Page:United States Statutes at Large Volume 94 Part 2.djvu/1386

 94 STAT. 2664

PUBLIC LAW 96-499—DEC. 5, 1980 limits determined for such year for all constitutional home rule cities in such State. "(C) CONSTITUTIONAL HOME RULE CITY.—For purposes of

this subsection, the term 'constitutional home rule city' means, with respect to any calendar year, any political subdivision of a State which, under a State constitution which was adopted in 1970 and effective on July 1, 1971, had home rule powers on the first day of the calendar year. "(6) STATE MAY PROVIDE FOR DIFFERENT ALLOCATION.—

"(A) IN GENERAL.—Except as provided in subparagraph (C), a State may, by law enacted after the date of the enactment of this section, provide a different formula for allocating the State ceiling among the governmental units in such State having authority to issue qualified mortgage bonds. "(B) INTERIM AUTHORITY FOR GOVERNOR.—

"(i) IN GENERAL.—Except as otherwise provided in subparagraph (C), the Governor of any State may proclaim a different formula for allocating the State ceiling among the governmental units in such State having authority to issue qualified mortgage bonds. "(ii) TERMINATION OF AUTHORITY.—The authority provided in clause (i) shall not apply after the earlier of—• "(I) the first day of the first calendar year beginning after the first calendar year after 1980 during which the legislature of the State met in regular session, or "(II) the effective date of any State legislation with respect to the allocation of the State ceiling enacted after the date of the enactment of this section. "(C) STATE MAY NOT ALTER ALLOCATION TO CONSTITUTIONAL HOME RULE CITIES.—Except as otherwise provided in a State

Ante, p. 2660.

constitutional amendment (or law changing the home rule provision adopted in the manner provided by the State constitution), the authority provided in this paragraph shall not apply to that portion of the State ceiling which is allocated to any constitutional home rule city in the State unless such city agrees to such different allocation. "(7) TRANSITIONAL RULES.—In applying this subsection to any calendar year, there shall not be taken into account any bond which, by reason of section 1104 of the Mortgage Subsidy Bond Tax Act of 1980, receives the same tax treatment as bonds issued on or before April 24, 1979. "(h) PORTION OF LOANS REQUIRED TO B E PLACED IN TARGETED AREAS.—

"(1) IN GENERAL.—An issue meets the requirements of this subsection only if at least 20 percent of the proceeds of the issue which are devoted to providing owner-financing is made available (with reasonable diligence) for owner-financing of targeted area residences for at least 1 year after the date on which ownerfinancing is first made available with respect to targeted area residences. "(2) LIMITATION.—Nothing in paragraph (1) shall be treated as requiring the making available of an amount which exceeds 40 percent of the average annual aggregate principal amount of mortgages executed during the immediately preceding 3 calendar years for single-family owner-occupied residences

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