(a) The corporation may authorize commercial use in a multi-unit residential housing development it owns or finances if

(1) the use is not prohibited under (b) of this section; and

(2) the total of all commercial uses does not occupy more than a percentage of the space in the multi-unit residential housing development that the corporation has determined is consistent with the corporation's goal of increasing available affordable housing.

(b) The corporation may not authorize the commercial use of space in a multi-unit residential housing development owned or financed by the corporation for

(1) a business that offers adult entertainment;

(2) the sale of alcoholic beverages, unless the sale is in a restaurant or eating place licensed under AS 04.11.100 or is in premises designated by the Alcoholic Beverage Control Board as a restaurant under AS 04.16.049;

(3) substance abuse treatment; or

(4) a business that primarily sells, transfers, or stores cigarettes or tobacco-related products.

(c) This section does not require the corporation to authorize commercial use in a multi-unit residential housing development owned or financed by the corporation.

(d) In this section,

(1) “business that offers adult entertainment” has the meaning given in AS 23.10.350(f);

(2) “cigarette” has the meaning given in AS 18.74.290;

(3) “commercial use” includes a business or nonprofit activity conducted by a sole proprietorship, cooperative, corporation, firm, partnership, or other association of persons organized in any manner.