(a)      Proceeds received from any bonds issued and sold under this subtitle may be:

            (1)      Expended with respect to any designated blighted area for redevelopment purposes;

            (2)      Expended with respect to any designated blighted area for other purposes determined by the local governing body to be incidental, necessary, or appropriate to the redevelopment of the designated blighted area, as may be determined by the local governing body, including construction of new structures or the enlargement of existing structures; or

            (3)      Expended with respect to the necessary expenses of preparing, printing, selling, and issuing the bonds, the funding of reserves and the funding of interest on the bonds in such amounts, or for such period, as the local governing body deems reasonable.

      (b)      In the ordinance or resolution described in § 14-807 of this subtitle, the local governing body may provide that the proceeds of bonds may be expended for any combination of the purposes described in subsection (a) of this section and may further define and determine the purposes for which bond proceeds may be expended.

      (c)      A local governing body may also expend for any of the purposes described in subsection (a) of this section funds provided to the local governing body by the federal government or the State of Maryland for such purposes, or funds otherwise made available to or by the local governing body and legally available for such purposes, provided, however, that the expenditure by the local governing body of any such funds shall first be authorized in accordance with applicable procedures of the local governing body regarding the expenditure of public funds.