A jurisdiction that fails to comply may be cut out of reallocations
What the document says“``(4) Reallocation not available for certain jurisdictions.--The Secretary may decline to make a reallocation available to a jurisdiction eligible for such reallocation if such jurisdiction has failed to meet or comply with any requirement under this title.''.”
The section adds a new paragraph (4) to section 217(d) of the Cranston-Gonzalez National Affordable Housing Act letting the Secretary decline to give a reallocation to an otherwise eligible jurisdiction that has failed to meet or comply with any requirement of the title. It also rewrites paragraph (1) to set out which jurisdictions are eligible, and separately lets the Secretary remove a participating jurisdiction from reallocations on a finding of noncompliance.
What the document actually says“``(4) Reallocation not available for certain jurisdictions.--The Secretary may decline to make a reallocation available to a jurisdiction eligible for such reallocation if such jurisdiction has failed to meet or comply with any requirement under this title.''.”
The housing agency may hold back money from a place. That happens when the place has not met the rules of this part of the law.
A reallocation is money passed on from a place that did not use it. Others share it out. A place that breaks the rules can be left out.
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