A grantee may use housing preservation grant funds under this section for replacement housing only after providing documentation to the Secretary that—
(A) the existing housing is in such poor condition that rehabilitation is not economically feasible;
(B) the owner of the housing lacks the income or repayment ability necessary to qualify for a loan under section 1472 of this title ; and
(C) the grantee will extend assistance to the owner of the housing under terms that the owner can afford.