To receive a grant, the applicant must:
(a) Be an organization as defined in § 1944.403(j) of this subpart.
(b) Have the financial, legal, administrative, and actual capacity to assume and carry out the responsibilities imposed by the Agreement. To meet the requirement of actual capacity it must either:
(1) Have necessary background and experience with proven ability to perform responsibly in the field of mutual self-help or other business management or administrative ventures which indicate an ability to perform responsibility in the field of mutual self-help; or
(2) Be sponsored by an organization with background experience, and ability, which agrees in writing to help the applicant to carry out its responsibilities.
(c) Legally obligate itself to administer TA funds, provide adequate accounting of the expenditure of such funds, and comply with the Agreement and Rural Development regulations.
(d) If the organization is a private nonprofit corporation, be a corporation that:
(1) Is organized under State and local laws.
(2) Is qualified under section 501(c)(3) of the Internal Revenue Code of 1986.
(3) Has as one of its purposes the production of affordable housing.
(4) Has a Board of Directors which consist of not less than five.