Adjustments to community development block grant allocations

(a) In general In allocating amounts to an eligible recipient under section 106 for a fiscal year, the Secretary shall adjust the allocation based on the housing growth improvement rate of the eligible recipient, in accordance with subsection (b) of this section. (b) Adjustments (1) Housing growth improvement rate at or above median; extremely high-growth recipients (A) In general If, with respect to a fiscal year for which the allocation under section 106 is being determined, the housing growth improvement rate for an eligible recipient is at or above the median housing growth improvement rate for all eligible recipients other than extremely high-growth recipients, or if an eligible recipient is an extremely high-growth recipient, the Secretary shall allocate to the eligible recipient for that fiscal year, in addition to the amount that would otherwise be allocated to the eligible recipient under section 106, a bonus amount, as determined under subparagraph (B) of this paragraph. (B) Bonus amount For purposes of subparagraph (A), the bonus amount for an eligible recipient for a fiscal year shall be equal to the product of— (i) the aggregate amount by which allocations to eligible recipients are decreased under paragraph (2) for that fiscal year; and (ii) the quotient of— (I) the number of housing units, as of the third quarter of the preceding fiscal year, in the jurisdiction of the eligible recipient, as calculated by the Secretary; and (II) the number of housing units, as of the third quarter of the preceding fiscal year, in the jurisdictions of all eligible recipients that receive a bonus amount under this paragraph, as calculated by the Secretary. (2) Housing growth improvement rate below median If, with respect to a fiscal year for which the allocation under section 106 is being determined, the housing growth improvement rate for an eligible recipient is below the median housing growth improvement rate for all eligible recipients other than high-growth outliers, the Secretary shall decrease the amount that would otherwise be allocated to the eligible recipient under section 106 for that fiscal year by 10 percent.