The purpose of the Predevelopment Loan Program is to:
(1) Provide for financial and technical assistance to local governments, housing authorities, and not-for-profit organizations who will provide for the sponsorship of housing for the target population in the state, such housing to be financed by federal, state, local, or private resources.
(2) Ensure maximum leverage of federal, state, and local public funds and private resources in the construction and financing of housing for the target population.
(3) Create a Housing Predevelopment Fund to be used by eligible sponsors of housing.