Reduction in aggregate amount of qualified mortgage bonds which may be issued where certain requirements not met
(1) In general
(1)In general#
If for any calendar year any mortgage credit certificate program which satisfies procedural requirements with respect to volume limitations prescribed by the Secretary fails to meet the requirements of paragraph (2) of subsection (d), such requirements shall be treated as satisfied with respect to any certified indebtedness of such program, but the applicable State ceiling under subsection (d) of section 146 for the State in which such program operates shall be reduced by 1.25 times the correction amount with respect to such failure. Such reduction shall be applied to such State ceiling for the calendar year following the calendar year in which the Secretary determines the correction amount with respect to such failure.
(2)Correction amount#
(A) In general For purposes of paragraph (1), the term “correction amount” means an amount equal to the excess credit amount divided by 0.25.
(B) Excess credit amount (i) In general For purposes of subparagraph (A)(ii), the term “excess credit amount” means the excess of— (I) the credit amount for any mortgage credit certificate program, over (II) the amount which would have been the credit amount for such program had such program met the requirements of paragraph (2) of subsection (d). (ii) Credit amount For purposes of clause (i), the term “credit amount” means the sum of the products determined under clauses (i) and (ii) of subsection (d)(2)(A).
(2)(A)In general#
For purposes of paragraph (1), the term “correction amount” means an amount equal to the excess credit amount divided by 0.25.
(2)(B)Excess credit amount#
(i) In general For purposes of subparagraph (A)(ii), the term “excess credit amount” means the excess of— (I) the credit amount for any mortgage credit certificate program, over (II) the amount which would have been the credit amount for such program had such program met the requirements of paragraph (2) of subsection (d).
(ii) Credit amount For purposes of clause (i), the term “credit amount” means the sum of the products determined under clauses (i) and (ii) of subsection (d)(2)(A).
(3)Special rule for States having constitutional home rule cities#
In the case of a State having one or more constitutional home rule cities (within the meaning of section 146(d)(3)(C)), the reduction in the State ceiling by reason of paragraph (1) shall be allocated to the constitutional home rule city, or to the portion of the State not within such city, whichever caused the reduction.
(4)Exception where certification program#
The provisions of this subsection shall not apply in any case in which there is a certification program which is designed to ensure that the requirements of this section are met and which meets such requirements as the Secretary may by regulations prescribe.
(5)Waiver#
The Secretary may waive the application of paragraph (1) in any case in which he determines that the failure is due to reasonable cause.