The Department may fund a project if it complies with this regulation or Regulation .05 of this chapter. The project shall be determined to be consistent generally with the State Growth Policy, and demonstrate specifically that the project: Is located: On a site suitable for infill development or redevelopment which: Is occupied by a structure to be rehabilitated, Was previously improved with a structure, or Is surrounded by development; or In an area: Designated for growth, Within an existing sewer service area or an area planned for service within 5 years under the adopted county water and sewerage plan, and With public facilities and services that are adequate under standards adopted by the local jurisdiction; If in a rural area, is: Located in an existing population center or its designated growth area; and Sensitive to resource areas, including agricultural and forest lands; Is designed with sensitivity for sensitive areas, including: Streams and stream buffers; 100-year flood plains; Habitats of threatened or endangered species; and Steep slopes; and Is consistent with the comprehensive plan of the local jurisdiction in which the project is located.