(a) The Department shall notify an applicant regarding eligibility for funding by loan or grant within 90 days of the Department of Health Services' approval of project plans, provided the applicant has furnished all documentation required by the Department to render a decision.

(b) Funding will not be provided to pay for additional capacity in excess of that needed to accommodate the needs of existing populations and population growth that may reasonably be expected within ten years.

(c) All other factors being equal (including degree of financial need, submission of completed applications and approval of project plans by the Department of Health Services), applicants with lower numbers (higher priority) on the priority list shall receive preference in funding over applicants with higher numbers (lower priority).

(d) Within 60 days of notifying an applicant of eligibility for a grant, the Department shall submit its report to the Legislature.