SECTION 3. GENERAL RULES FOR

AN ALLOCATION OF COMMERCIAL REVITALIZATION EXPENDITURE AMOUNTS

.01 Types of allocations allowed . A commercial revitalization agency may make the following types of allocations of the commercial revitalization expenditure amount (commercial revitalization expenditure allocation):

(1) An allocation in the calendar year in which a qualified revitalization building is placed in service, as described in section 4 of this revenue procedure;

(2) A binding commitment to make an allocation of a specified dollar amount to a qualified revitalization building in the calendar year in which the building is placed in service, as described in section 5 of this revenue procedure; and

(3) A carryover allocation for a singlebuilding project or a multi-building project, as described in section 6 of this revenue procedure.

.02 Allocation must be made for each building . A separate commercial revitalization expenditure allocation must be made for each qualified revitalization building whether new or substantially rehabilitated.

.03 $12 million ceiling for each renewal community . Each state is permitted to allocate up to $12 million of commercial revitalization expenditure amounts to each renewal community located within the state for each calendar year after 2001 and before 2010 (the commercial revitalization expenditure ceiling). The $12 million of commercial revitalization expenditure amounts for any renewal community may not be allocated, in whole or in part, to another renewal community. However, see section 8.02 of this revenue procedure for the special rule for the 2002 ceiling.

.04 Carryforward of ceiling is not per- mitted . If a commercial revitalization agency does not allocate all of the commercial revitalization expenditure ceiling for a renewal community for any given calendar year, the unused ceiling amount may not be carried forward to a later year. However, see section 8.01 of this revenue procedure for the special rule for any unused 2002 ceiling amount.