(a) A project or undertaking, including the real, personal, and mixed property involved, qualifies as a public purpose project if it is planned, acquired, owned, developed, constructed, reconstructed, rehabilitated, repaired, renovated, or improved with the financial assistance of the Administration or the assistance of federal low-income housing credits authorized by the Internal Revenue Code, and it is: (1) eligible wholly or partly for federal low-income housing credits; or (2) located in a distressed area designated under subsection (e) of this section. (b) Except as provided in subsection (c) of this section, a public purpose project: (1) shall provide in substantial part for existing or new housing; and (2) may include: (i) any improvements, such as streets, roads, sewer lines, and water lines; and (ii) public or private commercial, educational, cultural, recreational, community, or civic facilities. (c) A public purpose project may include a greater proportion of public or private facilities if the Secretary determines that to do so would promote sound community development. (d) All or part of the housing portion of a public purpose project shall be occupied by families of

ate facilities if the Secretary determines that to do so would promote sound community development. (d) All or part of the housing portion of a public purpose project shall be occupied by families of limited income. (e) At the request of a political subdivision, the Secretary may designate a distressed area of the political subdivision after considering factors including: (1) the availability, cost, and condition of housing and neighborhood facilities, including the age and number of abandoned and substandard structures; (2) the incomes of residents relative to State or area-wide regional median incomes, including the number of individuals who are welfare recipients, unemployed, or living in poverty; (3) the need to finance housing or public or private facilities to upgrade the social and economic conditions of the distressed area; (4) the plans and financial commitment of the political subdivision to undertake improvements in the distressed area; and (5) other standards and criteria that the Secretary considers relevant, including standards established for other State or federal programs.