(1) In carrying out the provisions of ORS 456.550 and 458.210 to 458.240, the Housing and Community Services Department shall give preference to a community development corporation described in ORS 458.210 (2) or that:
(a) Has a defined geographic service area outside an entitlement community or county;
(b) Has a defined geographic service area inside an entitlement community or county but does not include more than 50,000 people in the service area;
(c) Has a defined geographic service area that includes five or fewer nonentitlement counties; and
(d) Can demonstrate support from the community.
(2) As used in this section, “entitlement community or county” means any area within the state that is:
(a) A “metropolitan city” as defined in 42 U.S.C. 5302(4) (1995); or
(b) An “urban county” as defined in 42 U.S.C. 5302(6) (1995).