(a) Local 
Each participating jurisdiction shall, insofar as is feasible, distribute assistance under this part geographically within its boundaries and among different categories of housing need, according to the priorities of housing need identified in the jurisdictions approved housing strategy.

(b) State 
Participating States shall be responsible for distributing assistance throughout the State according to the States assessment of the geographical distribution of the housing need within the State, as identified in the States approved housing strategy. Participating States shall distribute assistance to rural areas in amounts that take into account the nonmetropolitan share of the States total population and objective measures of rural housing need, such as poverty and substandard housing, as set forth in the States housing strategy approved under section 12705 of this title. To the extent the need is within the boundaries of a participating unit of general local government, the State and the unit of general local government shall coordinate activities to address that need.