(a) Any unit or units of local government, upon recommendation of the chief executive officer of the unit, may establish a housing trust fund, hereinafter referred to as the “fund”, for the purposes set out in this part, to be administered by an entity approved by the participating unit or units of local government, such as a community foundation, a housing partnership, or a housing development agency, hereinafter referred to as “the approved entity”, in accordance with this part. The cost of administering the fund shall be borne out of the fund itself, consistent with the initial plan approved by the participating unit or units of local government.

(b) The fund provided by this part shall be used to provide low income persons with safe and affordable housing. Proceeds from the fund shall be loaned, or grants made available, for programs to include, but not be limited to, the following:

(1) Funding nonprofit housing development corporations to develop affordable low income housing. Funds may be used to support projects where a nonprofit entity acts as a general partner for a limited partnership, as a sole developer, or as a joint venture investor. Projects may be affordable rental housing, property developed for resale to low income buyers, or rent to own programs;

(2) Funding ongoing existing housing programs which have been established to assist low income households; and

(3) Funding soft costs, such as housing counseling, predevelopment costs, and administrative costs of nonprofit entities related to low income housing development.