; and (II) each member who is a representative of low-income individuals and families and is also selected to represent a specific geographic area under subclause (I) resides in such area; and (iii) the remainder of the members are representatives of business, industry, labor, religious, educational, charitable, or other significant private groups in the community. (D) Expertise The eligible entity shall ensure that the members of the board include, or have direct access to, individuals with expertise in financial management, accounting, and law. (E) Compliance with tax-exempt and other requirements The board of a private, nonprofit organization shall ensure that the board operates and conducts activities under the subgrant made under section 679(a)(1)(B) in a manner that complies with— (i) the requirements for maintaining tax-exempt status under section 501(a) of the Internal Revenue Code of 1986 ( 26 U.S.C. 501(a) ) regarding the governance of charities under section 501(c)(3) of the Internal Revenue Code of 1986 ( 26 U.S.C. 501(c)(3) ); and (ii) applicable requirements of State nonprofit corporation and public charities law. (2) Public organizations (A) Board In order for a local public (governmental) entity to be considered to be an eligible entity for purposes of section 673(6), the entity shall administer a program, project, or service under the supervision of a tripartite board described in subparagraph (C). (B) Selection The members of the board referred to in subparagraph (A) shall be selected by the local public entity. (C) Composition of board The board shall be composed so as to assure that— (i) not more than 1/3 of the members of the board are employees or officials, including elected officials, of the unit of government in which the organization is located