; State The terms public housing agency and State have the meanings given those terms in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) ). (9) Secretary The term Secretary means the Secretary of Housing and Urban Development. (10) Total housing costs The term total housing costs means mortgage principal and interest, taxes, and insurance. (11) Workforce housing unit The term workforce housing unit means a 1- to 4-unit dwelling— (A) that is the primary residence of the buyer; (B) in which none of the units are rented; and (C) that is affordable to buyers with incomes of not more than 100 percent of the area median income. (b) Establishment The Secretary shall establish a competitive grant program to award grants to eligible entities to increase the supply of affordable workforce housing units. (c) Use of funds A recipient of a grant under the Program shall use grant funds for the construction, preservation, or rehabilitation of workforce housing units, which shall remain affordable for a period of not less than 5 years from the sale of the workforce housing unit. (d) Application and selection process (1) Application An eligible entity desiring a grant under the Program shall submit to the Secretary an application at such time, in such manner, and containing— (A) a description of the construction, preservation, or rehabilitation projects to be supported by the grant; and (B) any additional information as the Secretary may require. (2) Selection of grantees (A) In general The Secretary shall establish criteria to award grants under the Program on a competitive basis, which may include consideration of whether— (i) the median price of workforce housing units in the area to be served by the grant is increasing; (ii) the supply of available workforce housing units in the area to be served by the grant is decreasing