The Commissioner shall establish eligibility criteria for services to be applied by programs awarded grants pursuant to this article. Such criteria shall provide that:
1. Eligibility shall be determined without regard to sex, sexual orientation, gender identity, race, national origin, religion, or type of impairment of the person applying for the service;
2. Preference shall be given to applicants for services whose impairments are so severe that they do not presently have the potential for employment, but whose ability to live and function independently within their family settings or communities may be improved by the services for which they have applied; and
3. Services shall not be provided to people who are eligible for prevocational or supported employment services through a Medicaid home and community based waiver program.