(1) The units shall provide a program of physically strenuous work and exercise, patterned after military basic training, and other programming as determined by the department. The term of any probationer‘s or prisoner‘s incarceration in a unit shall not exceed 120 days except that the probationer also shall be required to complete a period of not less than 120 days of probation under intensive supervision, and a prisoner also shall be required to complete a period of not less than 120 days of parole under intensive supervision. A probationer also may be required to complete a period of not more than 120 days in a residential program, if ordered by the sentencing court to do so under section 3b(9) of chapter XI of the code of criminal procedure, Act No. 175 of the Public Acts of 1927, being section 771.3b of the Michigan Compiled Laws, or if required by the department to do so under section 3b(10) of chapter XI of Act No. 175 of the Public Acts of 1927.

  (2) The department shall develop and operate a special alternative incarceration aftercare residential pilot program. The program shall be a residential program in which probationers may be required to participate pursuant to section 3b(10) of chapter XI of Act No. 175 of the Public Acts of 1927 and in which prisoners may be required to participate. The construction of the facility used for the purposes of the program shall be governed by a written agreement between the department, the department of management and budget, and the city, village, or township in which the program is operated.