For the purpose of administering Sections 5849.7 and 5849.8, the department shall organize counties into the following competitive groupings based on population:
(a) The County of Los Angeles.
(b) Large counties with a population greater than 750,000.
(c) Medium counties with a population between 200,000 to 750,000.
(d) Small counties with a population less than 200,000.
The competitive program shall distribute funding among the groupings based on a calculation made by the department that shall include the number of homeless persons residing within each county, as determined by the department, and considers minimum funding levels necessary for a permanent supportive housing development. The department, at its discretion, may consider other factors in the calculation if it supports the objectives of this part.