(a) Project(s) and program proposals must be targeted to eligible areas as defined under these regulations. An eligible area may have an existing designation or must meet the criteria which establish an area as an eligible area, as determined by the corporation.

(b) An eligible area is one that is blighted, deteriorated or deteriorating, or has a blighting influence on the surrounding area or is in danger of becoming a slum or a blighted area because of the existence of substandard, insanitary, deteriorating or deteriorated conditions, an aged housing stock, or vacant nonresidential property, or other factors indicating an inability or unwillingness of the private sector, unaided, to invest in homes for the area.