104 STAT. 4104 PUBLIC LAW 101-625—NOV. 28, 1990 (3) EuGiBiLiTY. —(A) A jurisdiction receiving a formula allocation under section 217 shall be eligible to become a participating jurisdiction if its formula allocation is $750,000 or greater, or if the Secretary finds that— (i) the jurisdiction has a local housing authority and has demonstrated a capacity to carry out provisions of this subtitle, and (ii) the State has authorized the Secretary to transfer to the jurisdiction a portion of the State's allocation that is equal to or greater than the difference between the jurisdiction's formula allocation and $750,000, or the State or jurisdiction has made available from the State's or jurisdiction's own sources an equal amount for use by the jurisdiction in conformance with the provisions of this subtitle. (B) If a jurisdiction heis met the requirements of subparagraph (A), the jurisdiction's formula allocation for a fiscal year shall subsequently be deemed to equal the sum of the jurisdiction's allocation under section 217(a)(1) and the amount made available to the jurisdiction under subparagraph (A)(ii). (4) NOTIFICATION. — If an eligible jurisdiction notifies the Secretary in writing, not later than 30 days after receiving notification under paragraph (1), of its intention to become a participating jurisdiction, the Secretary shall reserve an amount equal to the jurisdiction's gdlocation (plus any reallocations for which the jurisdiction is eligible under section 217(d)(l)) pending the jurisdiction's designation as a participating jurisdiction. The Secretary shall reallocate, in accordemce with paragraph (6) of this section, any funds reserved under the previous sentence if the Secretary determines that the jurisdiction will not meet the requirements for designation as a participating jurisdiction within a reasonable period of time. (5) SUBMISSION OF STRATEGY. — Not later than 90 days after providing notification under paragraph (4), an eligible jurisdiction shall submit to the Secretary a comprehensive housing affordability strategy in accordance with section 105. (6) REALLOCATION. —If the Secretary determines that a jurisdiction has failed to meet the requirements of the previous 3 paragraphs or if the Secretary, after providing for amendments and resubmissions in accordance with section 105(c)(3), disapproves the jurisdiction's comprehensive housing affordability strategy, the Secretary shall reallocate any funds reserved for the jurisdiction as follows: (A) STATE. —If a State has failed to meet the requirements, the Secretary shall— (i) make any funds reserved for the State available by direct reallocation among applications submitted by units of general local government within the State or consortia that include units of general local government within the State, 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, and (ii) reallocate the remainder by formula in accordance with section 217(b). (B) LOCAL. — If a unit of general local government has failed to meet the requirements and is located in a State that is a participating jurisdiction, the Secretary shall re-
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