(a) The executive commissioner by rule shall develop criteria to regulate the provision of payment to a private provider for start-up costs associated with the development of residential and other community services for persons with mental illness.
(b) The criteria shall provide that start-up funds be awarded only as a last resort and shall include provisions relating to:
(1) the purposes for which start-up funds may be used;
(2) the ownership of capital property and equipment obtained by the use of start-up funds; and
(3) the obligation of the private provider to repay the start-up funds awarded by the department by direct repayment or by providing services for a period agreed to by the parties.