PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4105 allocate to the State any funds reserved for the locality, with preference going to the provision of affordable housing within the locality. (C) DIRECT REALLOCATION.—I f a unit of general local government has failed to meet the requirements and is located in a State that is not a participating jurisdiction, the Secretary shall— (i) make any funds reserved for the locality available for use within the State by direct reallocation among units of general local government and community housing development organizations, insofar as approvable applications meeting the selection criteria under section 217(c) are received within 12 months after the funds become available for the direct reallocation with priority going to applications for affordable housing within the locality, and (ii) reallocate the remainder in accordance with section 217(b). (D) CERTAIN JURISDICTIONS DEEMED TO BE PARTICIPATING JURISDICTIONS. —I f a State or unit of general local government is meeting the requirements of paragraphs (3), (4), and (5), it shall be deemed to be a participating jurisdiction for purposes of reallocation under this paragraph. (7) DESIGNATION.—The Secretary shall designate an eligible jurisdiction to be a participating jurisdiction as soon as its comprehensive housing affordability strategy is approved in accordance with section 105. (8) CONTINUOUS DESIGNATION. —Once a State or unit of general local government is designated a participating jurisdiction, it shall remain a participating jurisdiction for subsequent fiscal years, except as provided in paragraph (9). The provisions of paragraphs (3) through (6) shall not apply to participating jurisdictions. (9) REVOCATION. —The Secretary may revoke a jurisdiction's designation as a participating jurisdiction if— (A) the Secretary finds, after reasonable notice and opportunity for hearing, that the jurisdiction is unwilling or unable to carry out the provisions of this title, or (B) the jurisdiction's allocation falls below $750,000 for 3 consecutive years, below $625,000 for 2 consecutive years, or the jurisdiction does not receive a formula allocation of $500,000 or more in any 1 year. If a jurisdiction's designation as a participating jurisdiction is revoked, any remaining line of credit in the jurisdiction's HOME Investment Trust Fund established under section 218 shall be reallocated in accordance with paragraph (6) of this section. SEC. 217. ALLOCATION OF RESOURCES. 42 USC 12747. (a) IN GENERAL.— (1) STATES AND UNITS OF GENERAL LOCAL GOVERNMENT. —After reserving amounts for Indian tribes as required by paragraph (2) of this subsection, the Secretary shall allocate funds approved in an appropriations Act to carry out this title by formula as provided in subsection (b). Of the funds made available under the preceding sentence, the Secretary shall initially
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