The project shall be a special housing facility, as defined in Regulation .02B(11) of this chapter. Fifty-one percent of the residents of the project, other than supervisory personnel, shall be families of limited income. Upon closing the loan, the special housing facility shall be owned by an eligible sponsor. The project shall be a single family dwelling unit. The project shall comply, if necessary, with the notice, public hearing, and public approval requirements of the Internal Revenue Code. The project shall conform upon completion with all applicable State and local laws, codes, and regulations, including zoning, building, and housing regulations and the regulations and requirements of any agency of State or local government governing supported housing for special needs populations. The project shall be, in the determination of the Administration, economically feasible so that the loan reasonably can be expected to be repaid in full, with interest. The project shall have a useful life of a length satisfactory to the Administration with reasonable maintenance. The project shall be subject to a contract with an agency of State or local government under terms and conditions acceptable to the Administration. For projects involving new construction or the acquisition of a newly constructed building, the project shall be located within a priority funding area identified under State Finance and Procurement Article, §5-7B-02, Annotated Code of Maryland.