; (B) shall use the amounts for projects that are located in communities that have developed a local hazard mitigation plan that has been approved by the Administrator; (C) may use the amounts to— (i) establish and carry out enforcement activities and implement consensus-based codes, specifications, and standards; (ii) study special zoning overlay districts that better interface waterfront development with natural assets through the use of buffer zones and shoreline set-backs, protect freshwater resources for drinking and manufacturing, and flood prevention through installation and restoration of natural infrastructure such as connected floodplain, wetlands, marshes, setback areas, and riverfront parks; (iii) study agriculture risk compensation districts where there is a desire to remove or set-back levees protecting highly developed agricultural land to mitigate for flooding, allowing agricultural producers to receive compensation for assuming greater flood risk that would alleviate flood exposure to population centers and areas with critical national infrastructure; (iv) study land use incentives that reward developers for greater reliance on LID stormwater best management practices, exchange density increases for increased open space and improvement of neighborhood catch basins to mitigate urban flooding, reward developers for including and augmenting natural infrastructure adjacent to and around building projects without reliance on increased sprawl; (v) study an erosion response plan that accommodates river, lake, and ocean shoreline retreating or bluff stabilization due to increased flooding and disaster impacts. (3) Allowance The Administrator shall promulgate an allowance within this section to allow participating entities to use revolving loan funds toward resilience to hazards. Participating entities may direct a portion of revolving loan funds toward resilience activities that mitigate for the impacts of the following: (A) Flooding Funds may be applied to— (i) structural elevation; (ii) flood proofing