The terms for memory allocation that I've always heard used are either stack/heap allocation or static/dynamic allocation.
Whoever used the term run-time allocation was probably just using a short-cut. When you allocate a variable on the stack (as in line 3), the compiler knows exactly where the variable resides in memory (relative to the current stack frame) at compile time. When you allocate memory in the heap, the program won't know where the variable lives in memory until it is actually allocated--at run time.
So, in either case the memory isn't allocated until run time, but the relative address of the memory for stack allocation is known at compile time.