1. The department may make incentive grants from funds specifically appropriated for this purpose to private and public entities seeking to establish a residential facility, day program or specialized service for persons affected by mental disorders, mental illness, intellectual disabilities, developmental disabilities or alcohol or drug abuse in unserved, underserved or inappropriately served areas of the state.
2. The department shall promulgate rules establishing procedures for monitoring and auditing such grants.
3. The grants shall be of limited duration of one year and renewable for only one additional year if the funds are appropriated for this purpose.