(a) No more than 25 percent of the total amount appropriated under this Part for the purposes of this Article shall be allocated in any year in any contracts for other than project costs.

(b) In determining whether State financial assistance for these costs is necessary, the commissioner shall consider the proposed project's plan for meeting operating expenses, the efforts made by the contracting organization to secure alternative sources of funding for other than project costs, and such other factors as the commissioner shall deem appropriate.

(c) Proposals which seek funds for other than project costs shall be considered only if it can be shown that all sources and alternatives for meeting such costs have been exhausted, that the costs are reasonable, and that the need for such cash funds will not be ongoing.