; (B) a State; (C) a metropolitan planning organization; and (D) a multi-jurisdiction entity, as defined by the Secretary. (2) State; unit of general local government The terms State and unit of general local government have the meanings given those terms in section 102 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5302 ). (b) Establishment The Secretary shall establish a Challenge Grant program to make grants on a competitive basis to eligible grantees that have policies in effect that are designed to remove barriers to the production and preservation of affordable rental housing on property owned by faith-based organizations and institutions of higher education. (c) Application (1) In general An eligible entity desiring a grant under this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (2) Other requirements In order to receive a grant under this section, an applicant shall— (A) demonstrate that the applicant has policies in effect designed to remove barriers to the production or preservation of affordable housing on property owned by faith-based organizations and institutions of higher education, as determined by the Secretary; (B) make publicly available a proposed plan for use of a grant under this section and solicit comments on the plan; and (C) address the disposition of public comments described in paragraph (2) in a final plan submitted to the Secretary as part of the grant application. (d) Preference In making awards under this section, the Secretary shall give preference to applicants that propose to use the grant to produce or preserve— (1) affordable rental housing for families with incomes below 60 percent of area median income, as determined by the Secretary in well-resourced areas of opportunity; (2) affordable rental housing for extremely low-income families