(a) For the purposes of this Part, the annual allocation of awardable funds shall be distributed among the three types of preservation projects as follows:
(1) municipal projects shall receive no less than 40 percent and no more than 60 percent;
(2) not-for-profit projects shall receive no less than 40 percent and no more than 60 percent; and
(3) State projects shall receive no more than 10 percent.
(b) If eligible applications do not total the amount of funding set aside in either the municipal or not-for-profit category, the remainder shall be distributed to eligible projects in the other category.