Eligible Activities

(1) Local housing programs may be established by any eligible political subdivision, as defined in Rule 0770—6—1—.03 or any local agency thereof which may be authorized to operate such programs pursuant to ordinance or resolution of the applicable legislative body. Such programs shall exist for the exclusive purpose of increasing the availability of adequate housing for very low, low and moderate income households. These programs can include but are not limited to: (a) Downpayment assistance for home purchase; (b) Interest rate assistance; (c) Technical or short-term financial assistance to avoid foreclosure; (d) Rehabilitation programs for homeowners; (e) Rehabilitation programs for rental housing; (f) Construction of single family homes; (g) Construction of rental units; (h) Construction of rental units for the elderly; (i) Construction of rental units for those with mental or physical handicaps. (2) No portion of the state or local matching funds may be used for administrative expenses except as approved by the Agency. In no case shall the Agency approve such expenses except as may otherwise be necessary to make the project successful. (3) It is further provided that grants provided to local programs shall not be pledged as support for tax exempt borrowing by such local programs.