(a) A county shall use grants awarded pursuant to this part for all of the following:
(1) Acquisition funding, new construction, or reconstruction and rehabilitation.
(2) Project based operating assistance.
(3) A county’s administrative costs, as determined by the department, of at least 5 percent of the total grant awarded.
(b) Project based operating assistance may include either or both of the following:
(1) Long-term rental assistance for periods of up to five years, subject to renewal grants.
(2) A capitalized operating reserve for at least 15 years to pay for operating costs of an apartment or apartments receiving capital funding to provide supportive housing to people experiencing homelessness.
(c) A county awarded grant funds pursuant to this part shall comply with federal Housing Trust Fund regulations.