(B) State The term State includes the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States, and includes any agency or political subdivision of a State. (b) Rural housing Section 501 of the Housing Act of 1949 ( 42 U.S.C. 1471 ), as amended by the preceding provisions of this title, is further amended by adding at the end the following new subsection: (o) Prohibition relating to use of power of eminent domain (1) In general Notwithstanding any other provision of law, the Secretary may not newly guarantee, make, or insure under this title any mortgage that is secured by a structure or dwelling unit that is located within a county that contains any structure or dwelling unit that secures or secured a residential mortgage loan which mortgage loan was obtained by the State during the preceding 120 months by exercise of the power of eminent domain. (2) Definitions For purposes of this subsection, the following definitions shall apply: (A) Residential mortgage loan The term residential mortgage loan means a mortgage loan that is evidenced by a promissory note and secured by a mortgage, deed of trust, or other security instrument on a residential structure or a dwelling unit in a residential structure. Such term includes a first mortgage or any subordinate mortgage. (B) State The term State has the meaning given such term in section 502(h)(12), and includes any agency or political subdivision of a State. . (c) Effective date (1) In general This section and the amendment made by this section shall take effect on the date of the enactment of this Act. (2) Transition period During the transition period under section 551— (A) any reference in subsection (a) to the FHA shall be construed to refer to the Secretary of Housing and Urban Development to the extent such Secretary has not delegated authority under subsection (a) to the FHA pursuant to section 552(1)