C-D are out because 'that' is required to demonstrate that they are not proposing funding, but rather proposing how the funding should be obtained.

'Be' it is used properly in B to show conditionality. Because this is a proposal and not certain, you will not use 'is'

The commission proposed that funding for the park's development, which could be open to the public early next year, is obtained through a local bond issue.

(A) that funding for the park's development, which could be open to the public early next year
(B) that funding for development of the park, which could be open to the public early next year, be
(C) funding for the development of the park, perhaps open to the public early next year, to be
(D) funds for the park's development, perhaps open to the public early next year
(E) development funding for the park, which could be open to the public early next year, is to be

Besides Jim's points,

The pronoun which does not have a well defined antecedent-noun, such as in Option A and D i.e.which refers to Park's Development and not park directly, are considered wrong. Although the reference is understood implicitly, GMAT considers this wrong.
The second factor to take in account is that the idea is "proposed", which is command subjunctive mood of verb which mostly requires bare form of verb with infinitive form BUT without a "to".(Though there are exceptions to this rule). Hence it's "be". Consider these sentences:
We propose that the action be taken/Cops suggest that the crowd be dispersed, etc.
Hence out of the remaining options, B suits good.

Hope this helps.

-V

vabhs192003 wrote:

The commission proposed that funding for the park's development, which could be open to the public early next year, is obtained through a local bond issue.

(A) that funding for the park's development, which could be open to the public early next year
(B) that funding for development of the park, which could be open to the public early next year, be
(C) funding for the development of the park, perhaps open to the public early next year, to be
(D) funds for the park's development, perhaps open to the public early next year
(E) development funding for the park, which could be open to the public early next year, is to be

Besides Jim's points,

The pronoun which does not have a well defined antecedent-noun, such as in Option A and D i.e.which refers to Park's Development and not park directly, are considered wrong. Although the reference is understood implicitly, GMAT considers this wrong.
The second factor to take in account is that the idea is "proposed", which is command subjunctive mood of verb which mostly requires bare form of verb with infinitive form BUT without a "to".(Though there are exceptions to this rule). Hence it's "be". Consider these sentences:
We propose that the action be taken/Cops suggest that the crowd be dispersed, etc.
Hence out of the remaining options, B suits good.

Hope this helps.

-V

Hii V, thank u for ur reply.

But i still don't get it under what circumstances I should pick BE instead of regular Be verb.

can u explain more detail and give some more examples if possible?

thank u so so much!

Hi,

You can have a look at these:

https://grockit.com/blog/gmat/2011/07/13 ... -strategy/
(Kinda answers your querry fairly square)
https://www.manhattangmat.com/forums/not ... t5286.html

These are fairly sufficient information sets to handle this question and related types.

Hope that helps.

Thanks,
V

Rules of Subjunctive mode

(1).............propose that funding..............should be obtained .......... (informal)[GMAT does not accept it)
(2)............propose that funding.............. be obtained .......... (formal)
But in formal english sentence having verb such as propose, recommend, stipulate and so on we follow the construction:
.......Verb( propose) that + Subject + base form of verb(do) + extension in case of active sentence
...........Verb( propose) that + Subject + be+ past particple form of verb(done)+ extension in case of passive sentence[/u]

Rules of Subjunctive mode

(1).............propose that funding..............should be obtained .......... (informal)[GMAT does not accept it)
(2)............propose that funding.............. be obtained .......... (formal)
But in formal english sentence having verb such as propose, recommend, stipulate and so on we follow the construction:
.......Verb( propose) that + Subject + base form of verb(do) + extension in case of active sentence
...........Verb( propose) that + Subject + be+ past particple form of verb(done)+ extension in case of passive sentence