In selecting qualified homebuyers for assistance with grant amounts under this Act, a State or eligible entity may not provide any priority or preference for homebuyers who are acquiring eligible homes with a mortgage loan made, insured, guaranteed, or otherwise assisted by the State housing finance agency for the State, any other housing agency of the State, or an eligible entity when applicable, nor may the State or eligible entity seek to recoup any funds associated with the provision of downpayment assistance to the qualified homebuyer, whether through premium pricing or otherwise, except as provided in subsection (g) or otherwise authorized by the Secretary. (g) Recapture and reallocation The Secretary shall require changes in a grantee’s policy or distribution of funds or recapture any amounts remaining available to a grantee, and reallocate such funds among other States and eligible entities, if the Secretary determines in his or her sole discretion that— (1) a State or eligible entity— (A) has not demonstrated the capacity to expend grant funds in a timely manner that furthers the purposes under this Act