(a) The commissioner of alcoholism and substance abuse services is authorized, within appropriations made therefor, to make grants to local governmental units and voluntary nonprofit agencies developing an alcoholism community residence as defined in subdivision thirty-eight of section 1.03 of this chapter. Such grants shall be limited to the development costs incurred prior to the operation of a community residence. Development costs which may be eligible for up to one hundred percent reimbursement under this grant include:

(1) reasonable legal and other professional fees;

(2) initial staffing;

(3) up to six months rent;

(4) furniture; and

(5) reasonable rehabilitation costs within guidelines established by the division of the budget.

(b) Application for grants shall be made in the manner and on forms prescribed by the commissioner. The commissioner shall establish a schedule, subject to the approval of the director of the division of the budget, indicating the maximum development cost per bed for such community residences. Such schedule may include varying rates for distinct geographic areas of the state, if in the determination of the commissioner the location of an eligible community residence has direct bearing on the level of development costs. The commissioner may also establish varying rates based on the size of an eligible community residence.

(c) No grant will be awarded by the commissioner if the projected per bed development cost for the community residence exceeds the schedule established in subdivision (b) of this section.

(d) No such grant will be awarded unless the community residence is consistent with the local services plan, pursuant to this article.

(e) The state comptroller, or his legally authorized representative, is authorized and empowered to examine the books and accounts of the offices relating to program development grants and from time to time to examine the books and accounts of each local governmental unit or voluntary nonprofit agency receiving such grants, including its receipts, disbursements, contracts, leases, loans and any other moneys relating to its financial operation.

(f) Payments pursuant to this section shall be made in lieu of state aid for operating costs payable pursuant to any other provision of this article.