WILLIAM DONALD SCHAEFER, Governor

of the Secretary's Reserve equal to $7.50
multiplied by the State's population is
reserved exclusively for use in the issuance of
501(c)(3) bonds for 501(c)(3) organizations (as
defined in H.R. 3838) which are not authorized
to be financed under Article 43C of the
Annotated Code of Maryland, as amended, by the
Maryland Health and Higher Educational
Facilities Authority. Through September 30,
1986, the Secretary shall make allocations for
501(c)(3) bonds only from the portion of the
Secretary's reserve set aside in this Section
2(d)(2).]

(3)  The Secretary may at any time make an
allocation of a portion of the Secretary's
Reserve to any State or Local Issuer in any
amount and in any order that the Secretary in
his sole and absolute discretion determines for
facilities, projects, or financing ("Projects")
for which [nonessential function] PRIVATE
ACTIVITY bonds[, including 501(c)(3) bonds but
excluding housing bonds,] may be issued and
that the Secretary determines are in accordance
with the criteria set forth in Sections 2(d)(4)
and (5) below and which were unforeseen or are
special. [Any allocations for 501(c)(3) bonds
shall be made only from that portion of the
Secretary's Reserve set aside for 501(c)(3)
bonds in Section 2(d)(2) above.]

(4)  In exercising discretion in the allocation of
the Secretary's Reserve, the Secretary shall
give highest priority to those Projects that
demonstrate readiness to proceed and that most
advance established State goals such as:

(A) INCREASING THE SUPPLY AND GEOGRAPHIC
DISTRIBUTION OF HOUSING FOR LOW-INCOME
PERSONS;

(B) EXPANDING OPPORTUNITIES FOR HOMEOWNERSHIP;

[(A)] (C) Creating significant job
opportunities;

[(B)] (D) Locating job creating facilities in
enterprise zones or areas of high
unemployment, urban redevelopment, or
planned unit development;

[(C)] (E) Reducing, recycling, or treating
solid or hazardous wastes;

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