Section 1680.501a.1 - Qualified housing bonds(a) The agency shall have the power and is hereby authorized from time to time by resolution of the members, and subject to the written approval by the Governor, to issue qualified housing bonds and notes, pursuant to the Mortgage Subsidy Bond Tax Act of 1980, and subsequent amendments, or any Federal tax legislation or program which authorizes Federal tax exemption for bonds issued to provide housing. The agency may issue such bonds or notes in such principal amounts, as permitted by Federal law and the act of December 20, 1985 (P.L. 483, No. 113) , known as the "Tax-Exempt Bond Allocation Act," and as are in the opinion of the agency, necessary to provide sufficient funds for the Owner Occupied Residential Mortgage Program authorized by Article IV-B and the Rental Housing Program authorized by Article IV-A. These bonds and notes shall be issued, to the extent permitted by Federal law, in conformity with all other provisions of Article V-A.(b) In determining the limitation on the aggregate amount of qualified housing bonds issued during any calendar year, which are eligible for exemption from Federal taxation under Federal law, the total State ceiling shall be completely allocated to the agency for its programs under Article IV.-B, except for amounts allocated to municipalities electing local issuance.(c) Qualified housing bonds may be locally issued by election of any of the following entities which may apply to the agency for the allocation of local authority for the purpose of issuing housing bonds subject to annual volume cap:(1) Cities of the first, second and second class A and cities of the third class with a population of fifty thousand (50,000) or greater.(2) Counties of the second class.(3) Any other municipality which by itself or through an authority prior to January 1, 1981, issued mortgage subsidy bonds.(4) Any county or city housing authorities, redevelopment authorities or residential finance authorities within the jurisdiction of any of the above and with the approval of the incorporating municipality.(d) A qualified entity authorized to issue bonds hereunder may use any part or all of its allocation hereunder by designating an authority in clause (4) of subsection (c) as its agent for a mortgage program. An election for local issuance may be made by any other municipality, upon recommendation of the agency and with the approval of the Governor, if the agency determines that local issuance will result in loans being made at rates significantly lower than those available from the agency, or will result in substantial reductions in administrative costs, or will allow more effective integration of State, Federal and local housing assistance programs, not available through cooperation with the agency. A municipality electing local issuance may issue amounts equal to the portion of the State ceiling allocated to the municipality by the agency and the Governor pursuant to section 402-B. If in the judgment of the agency, it will not issue bonds in the total amount available to it in any calendar year as prescribed in subsection (b), any excess availability within the State ceiling may be reallocated by resolution adopted by the agency board to any of the entities authorized to issue mortgage bonds under this act.1959, Dec. 3, P.L. 1688, § 501-A.1, added 1981, Dec. 31, P.L. 594, No. 176, § 5, effective 1/1/1982. Amended 1992, Dec. 18, P.L. 1652, No. 182, § 12, imd. effective.