(a) the efficiency and effectiveness of the use of funding for the development of adequate and accessible housing to support vulnerable persons in the community and to ensure access to supports necessary to maximize expected outcomes; and

(b) other relevant factors relating to the maintenance of existing supportive housing and the development of new supportive housing and associated services. 3. The commissioner shall establish an application process by which eligible applicants may apply for a grant under this section. The application shall include:

(a) the geographic area in which the housing/services shall be provided;

(b) a detailed description of the housing/services to be provided;

(c) a plan for the efficient and effective use of funding for the development of adequate and accessible housing to support vulnerable persons in the community;

(d) other relevant factors relating to the need for maintenance of existing supportive housing and the development of new supportive housing and associated services; and

(e) any other information that the commissioner deems relevant and appropriate. 4. Grantees under this section shall file an annual report with the commissioner, in such form and with such information and data as the commissioner prescribes detailing the expenditure of grant funds. In addition, the commissioner is authorized and empowered to make inspections and examine records of any entity funded pursuant to subdivision two of this section. Such examination shall include all medical, service and financial records, receipts, disbursements, contracts, loans and other moneys relating to the financial operation of the provider. 5. The amount of supportive housing development reinvestment funds for the department shall be subject to annual appropriation. The methodologies used to calculate the savings shall be developed by the commissioner and the director of the budget. In no event shall the full annual value of supportive housing development reinvestment programs attributable to inpatient hospital and nursing home bed decertification and/or facility closure exceed the twelve month value of the department of health general fund reductions resulting from such decertification and/or facility closure. 6. The annual supportive housing development reinvestment appropriation shall reflect a proportion of the amount of general fund savings resulting from subdivision five of this section. Within any fiscal year where appropriation increases are recommended for the supportive housing development reinvestment program, insofar as projected bed decertification and/or facility closures do not occur as estimated, and general fund savings do not result, then the reinvestment appropriations may be reduced in the next year's annual budget itemization. 7. No provision in this section shall create or be deemed to create any right, interest or entitlement to services or funds that are subject to this section, or to any other services or funds, whether to individuals, localities, providers or others, individually or collectively. 8. The commissioner shall promulgate regulations, and may promulgate emergency regulations, to effectuate the provisions of this section.