ELIMINATION OF RESTRICTIONS ON NEW CONSTRUCTION.

SEC. 203. ELIMINATION OF RESTRICTIONS ON NEW CONSTRUCTION. (a) Eligible Uses of Investment.—Section 212(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)) is amended— (1) in the last sentence of paragraph (2), by striking “under paragraph (3) of this subsection or”; (2) by striking paragraph (3); and (3) by redesignating paragraph (4) as paragraph (3). (b) Formula Allocation.—Section 217(b)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(b)(1) is amended— (1) by striking subparagraph (A); (2) in subparagraph (D), by striking “Except as provided in subparagraph (A), the basic formula established under subparagraph (B)” and inserting “The basic formula established under subparagraph (A)”; (3) in subparagraph (E), by striking “formulas in subparagraph (B)” and inserting “formula in subparagraph (A)”; (4) in subparagraph (F)— (A) in the first sentence, by striking “subparagraph (B)” and inserting “subparagraph (A)”; and (B) by striking the second sentence; (5) in subparagraph (G), by striking “formulas in subparagraphs (A) and (B)” and inserting “formula in subparagraph A”; and (6) by redesignating subparagraphs (B) through (G) (as amended by this paragraph) as subparagraphs (A) through (F), respectively. (c) Conforming Amendment.—Section 218(g) of the Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 12748(g)) is amended by striking “Except as provided in section 217(b)(1)(A)(ü), if” and inserting “If”.