(1) There are two categories of TANF allocations:

(a) a TANF allocation - home ownership; and

(b) a TANF allocation - emergency housing assistance.

(2) A TANF allocation - home ownership may be used for loans to eligible recipients:

(a) for down payment assistance;

(b) for reasonable and necessary closing costs;

(c) for the first month's payment on a first mortgage;

(d) to buy down the rate of interest charged on a first mortgage; or

(e) for any other purpose reasonably designed to assist an eligible recipient to purchase a home and which has been approved by the board.

(3) A TANF loan from a TANF allocation - home ownership is not assumable and must be repaid upon sale of the real property pledged as security for the loan.

(4) The lesser of 10% of the TANF funds available to the board or $200,000 is available for TANF allocations - emergency housing assistance.  A TANF allocation - emergency housing assistance may be used to make loans to eligible recipients for:

(a) assistance in making rent payments;

(b) assistance in paying security deposits;

(c) assistance in making mortgage payments; or

(d) any other purpose reasonably designed to assist an eligible recipient to stay in their home during a time of emergency and which has been approved by the board.