(a) Funding limit.--The sum of the grants to boroughs, incorporated towns and townships which will be entitlement entities in 1985 and thereafter according to sections 4, 5, 7 and 8¹ shall be equal to the total amount all such municipalities would have received had the entitlement program been in place for 1984, plus or minus 15% of the sum of all such grants.

(b) Repayment of excess.--Municipalities receiving a grant under the 1984 program which is in excess of what they would have received had the entitlement program been in place shall repay that excess, in thirds, in the form of a reduced entitlement during the following three years.

(c) Additional amount for underpayment.--Entitlement municipalities not receiving a grant under the 1984 program or receiving a grant which is less than they would have received had the entitlement program been in place shall receive the amount necessary to match the amount they would have received had the entitlement program been in place, in thirds, in the form of an increased entitlement during the following three years.

(d) Limitation.--No grant to any municipality shall exceed four times the amount that such municipality would have received had the entitlement program been in place.