(1) The board may from time to time designate areas of chronic economic distress within the state which it will consider in establishing its programs to finance housing developments. "Areas of chronic economic distress" means an area of the state (town, city, county or other defined geographical area) which has, within its designated limits, persons and families of lower income who require assistance under the Housing Act of 1975, as determined by the board and taking into consideration:

(a) The condition of the housing stock, including the age of the housing and the number of abandoned and substandard residential units;

(b) The need of area residents for owner financing under a mortgage revenue bond issue as indicated by low per capita income, a high percentage of families in poverty, a high number of welfare recipients, and high unemployment rates;

(c) The potential for use of owner financing under a mortgage revenue bond issue to improve housing conditions in the area;

(d) The existence of a housing assistance plan which provides a displacement program and a public improvements and services program (similar to the housing assistance plan (HAP) required by the department of housing and urban development under the community development block grant program (42 U.S.C. 5301, et seq.) ) ;

(e) The need of area residents in areas which have experienced a sudden increase in population growth which results in social problems, especially for persons and families of lower income;

(f) The need of area residents in areas which have experienced a lack of capital in the local lending institutions which provide long term financing for housing; and

(g) The need of area residents in undeveloped areas of the state which have experienced a shortage of decent, safe and sanitary housing which is within the financial capabilities of lower income persons and families.