; and (B) shall be not be less than 20 percent of the median sales price in the targeted market. (b) Establishment The Secretary shall provide grants to eligible entities to establish and expand shared equity homeownership programs and shared equity homes, including through partnerships with nonprofit entities, community land trusts, or State or local governments or instrumentalities. (c) Types of grants (1) Grants for planning and capacity building The Secretary may award 3-year grants under this section to eligible entities to provide grants to nonprofit entities, community land trusts, or State or local governments or instrumentalities to develop shared equity homeownership programs or community land trusts or to plan and build capacity related to carrying out grant activities under this section. (2) Grants for expanding the number of shared equity homes The Secretary may award grants under this section to eligible entities to expand the number of shared equity homes in existing shared equity homeownership programs, which may include— (A) grants for acquisition and rehabilitation or new construction to create shared equity homes and includes subsidy to cover the affordability gap; and (B) grants to implement a buyer-initiated program, where eligible households identify homes in the market and bring them into the shared equity homeownership program, which may include subsidy to cover the affordability gap and funds necessary for rehabilitation or repair of the property. (3) Limitation The amount of grants provided under paragraph (1) in a fiscal year shall be limited to not more than 25 percent of the amount appropriated in the fiscal year under subsection (h). (d) Eligible grant expenses An eligible entity receiving a grant under (c)(2) may use the funds— (1) to provide a developer with a subsidy to cover the affordability gap, which funds may be used to acquire properties and conduct rehabilitation or to construct new homes before the property is converted to shared equity homeownership