(4) No more than 480 acres may be owned and/or leased
 (of which no more than 320 acres must be owned) for each
 participating resident adult individual, ]provided that in no
 instance shall a legal entity own and/or lease more than 960
 acres of land receiving project water, of which no more than
 640 acres may be owned.
 (d) A minor individual may beneficially own land served by
 project water so long as the acreage involved is counted against
 the ownership entitlement of an eligible adult.
 (e) Each of the above classes of eligible participants shall, in
 addition to meeting residency requirements as set forth in section
 5, infra, be required to be substantially involved in the farming
 operation. Criteria and standards for involvement shall be devel-
 oped in regulations to be issued pursuant to section 14, infra."
 Change Sec. 5 to be titled "Residency" and substitute the following:
 RESIDENCY
 "Sec. 5. (a) The requirement in section 5 of the Reclamation Act of
1902 (43 U.S.C. 392) pertaining to residency is hereby reaffirmed. The
term resident shall be defined as provided in Sec. 2(d) above.
 (b) Notwithstanding subsection (a), in recognition of the fact that
the residency requirement has not been enforced for many years, and
in order to avoid the undue hardships that may arise if the require-
ment is enforced too abruptly, residency will be enforced henceforth as
follows:
 (1) Residency shall be required of all new purchasers of Rec-
 lamation project lands after January 1, 1978; however, new pur-
 chasers may qualify to continue to receive project water on newly
 purchased lands by making affidavits indicating an intent 'to be-
 come a resident within 3 years, and by becoming a resident within
 that time.
 (A) The Secretary shall carefully monitor such affidavits
 to achieve compliance.
 (B) The Secretary may impose by rule such reasonable
 procedures and sanctions as may be necessary to protect
 against fraudulent or other unfulfilled affidavits. Such sanc-
 tions may include termination of water deliveries to the land
 in question, or penalties as provided by section 16 of this Act.
 (2) With respect to individuals who own land purchased prior
 to January 1, 1978, who are not now residents, but who are other-
 wise qualified, residency will not be required so long as ownership
 is retained; upon transfer of any beneficial interest in the land,
 however accomplished, the transferee shall be a resident.
 (3) Where land has been owned prior to January 1, 1978, by a
 family corporation or other form of multiple ownership com-
 prised of individuals in an immediate family relationship, resi-
 dency will not be required of individuals having an interest in the
 family multiple ownership as of that time; upon the addition of
 any new family shareholders in the multiple ownership, or upon
 any transfer of title or shares however accomplished, new owners
 or shareholders shall be residents.