Section 4. Allocation of funds for 1985 and thereafter.
The funds which the Commonwealth receives pursuant to the Housing and Community Development Act shall be allocated by the department in accordance with the following formula:
(1) An amount of 2% of the funds shall be used by the department for administrative costs.
(2) An additional amount of 13% of the funds may be used by the department for discretionary projects in boroughs, towns and townships which are not eligible entitlement entities, for urgent need projects, planning projects, economic development projects and other projects eligible under the Housing and Community Development Act; or in eligible entitlement entities with a population less than 10,000, for urgent need projects or to complete planning projects, economic development projects and other projects eligible under the Housing and Community Development Act undertaken by the eligible entitlement entity with its entitlement.
(3) The balance of the funds which remain after subtracting the administrative costs of the department and the amount reserved by the department for discretionary projects shall be allocated as follows:
(i) Thirty-eight percent to eligible counties.
(ii) Thirty-eight percent to eligible boroughs, incorporated towns and townships.
(iii) Twenty-four percent to eligible cities.
(iv) The amount of funds allocated to an entitlement entity and which are not awarded to the entitlement entity whether due to failure to timely apply for the funds or due to a failure to meet the general qualifications criteria shall, for that funding year, be added to the funds available to the class of which the entity is a part and allocated to other members of the class in accordance with the provisions for additional grants pursuant to section 6 or 7 unless provisions of section 7(c) are operative.
Compiler's Note: Section 48(15) of Act 45 of 2025 provided that par. (1) is repealed insofar as it inconsistent with the addition of section 1919(6) of the act of April 9, 1929, P.L.343, No.176, known as The Fiscal Code.