104 STAT. 4290 PUBLIC LAW 101-625—NOV. 28, 1990 development of affordable housing in targeted underserved areas and colonias. "(B) USE. — A grant under this paragraph shall not exceed an amount that the Secretary determines to equal the customary and reasonable costs incurred in preparing an application for a loan under section 502, 504, 514, 515, or 524, or a grant under section 533 (including preapplication planning, site analysis, market analysis, and other necessary technical assistance). The Secretary shall adjust the loan or grant amount under such sections to take account of project preparation costs that have been paid from grant proceeds under this paragraph and that normally would be reimbursed with proceeds of the loan or grant. "(C) APPROVAL.— The Secretary shall approve a properly submitted application or issue a written statement indicating the reasons for disapproval not later than 60 days after the receipt of the application. "(D) ELIGIBILITY. —For purposes of this paragraph, an eligible applicant may be a nonprofit organization or corporation, a community housing development organization, State, unit of general local government, or agency of a State or unit of general local government. "(E) AVAILABILITY OF FUNDING.— Any amounts appropriated to carry out this paragraph shall remain available until expended. "(7) PRIORITY FOR COLONIAS.— "(A) IN GENERAL. — In providing Eissistance under this title in any fiscal year described under subparagraph (B), each State in which colonias are located shall give priority to any application for assistance to be used in a colonia. The priority under this subparagraph shall not apply in such State after 5 percent of the assistance available in such fiscal year has been allocated for colonias qualifying for the priority. "(B) COVERED YEARS.— T his paragraph shall apply to any fiscal year following 2 fiscal years in which the State did not obligate the total amount of assistance allocated it under this title during each of such 2 fiscal years. "(8) DEFINITION OF COLONIA. —For purposes of this subsection, the term 'colonia' means any identifiable community that— "(A) is in the State of Arizona, California, New Mexico, or Texas; "(B) is in the area of the United States within 150 miles of the border between the United States and Mexico, except that the term does not include any standard metropolitan statistical area that has a population exceeding 1,000,000; "(C) is designated by the State or county in which it is located as a colonia; "(D) is determined to be a colonia on the basis of objective criteria, including lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, and sanitary housing; and "(E) was in existence and generally recognized as a colonia before the date of the enactment of the Cranston- Gonzalez National Affordable Housing Act.". 42 USC 1479 (c) REGULATIONS. —Not later than the expiration of the 120-day "ote. period beginning on the date of enactment of the Cranston-Gonzalez
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