SECTION 330:10-7-1. Method of allocation

(a)   The federal legislation requires that an amount at least equal to 20% of the lendable proceeds shall be used or made available for use (for at least twelve months) within a designated target area.

(b)   In order to comply with provisions of the federal law, the Agency proposes to invite offers and allocate proceeds of the participants based upon the following criteria:

(1)   Participants, in their Offers to Originate, must specify the amount of the proposed allocation to be used in target and non-target areas. Upon receipt of offers, the Agency will total the amount of Offers to Originate within target areas, and divide the target area amount by 0.20 to determine the maximum issue size that will assure use of at least 20% of lendable proceeds within designated target areas. Allocations to the lenders by the Agency will be made at the discretion of the Agency so that the total of all target area offers will equal or exceed 20% of the aggregate of all offers in target and non-target areas. Should it become necessary, after making initial allocations, for the Agency to reduce the overall issue size because of marketing or other considerations, the allocations of all participants will be reduced approximately proportionately.

(2)   The offer may encompass the State as a whole or various specific counties within the State. The offer should, however, indicate the approximate allocation of mortgage funds among the various counties, so that the Agency may monitor geographic distribution of program funds. The minimum participation allowable under the program will be $500,000.