SEC-904 -- ALLOCATION FORMULA IN CASES OF ANNEXATION. 

 
 (a) In General.-Section 102(a)(12) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302(a)(12)) is amended by inserting
after the period at the end the following new sentence: "Where the
boundaries for a metropolitan city or urban county used for the 1980
census have changed as a result of annexation, the current population
used to compute extent of growth lag shall be adjusted by multiplying
the current population by the ratio of the population based on the 1980
census within the boundaries used for the 1980 census to the population
based on the 1980 census within the current boundaries.".
 
 (b) Applicability.-The amendment made by subsection (a) shall apply to
the first allocation of assistance under section 106 that is made after
the date of the enactment of this Act and to each allocation thereafter.