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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT This chapter presents the budget and program estimates for the Department of Housing and Urban Development (HUD). For the past 4 years, the Department has been engaged in a reinvention process which has emphasized: addressing homelessness through comprehensive continuum of care strategies; transforming public and assisted housing; enhancing homeownership opportunities through new national and local partnerships; reducing racial barriers to housing; and, encouraging locally-driven solutions and leveraging private sector investment through initiatives like consolidated planning, and Empowerment Zones and Enterprise Communities. Emphasis has also been placed on reinventing HUD, itself. The 1999 Budget continues to move toward a ‘‘right-side up’’ Cabinet Department that is organized, staffed, and empowered to respond to locally driven priorities rather than Federal dictates. The 1999 Budget request would continue funding the Community Development Block Grant (CDBG) program at an increased level. This program will continue to use a formula approach for allocating funds for a wide range of community and economic development activities. The Community Development Loan Guarantee program will also be maintained to enable communities to borrow in the private market with a Federal guarantee. Communities must develop consolidated plans which identify local needs and priorities in order to tap into CDBG and other HUD funds. The HOME Investment Partnerships program will also continue formula allocations to states and participating jurisdictions to assist in expanding the supply of affordable housing. The Homeless Assistance Grants program consolidated HUD’s six Stewart B. McKinney homeless assistance programs. This program enables communities to continue their development and implementation of comprehensive, coordinated continuum of care systems to address the needs of homeless people and families. Homeless programs are maintained in their current structure although they are increased and augmented by incremental vouchers. Major changes in funding levels and approach will occur in community and economic development programs. Significant funding is included for an Economic Development Initiative/Community Empowerment Fund program to finance a variety of economic development efforts and to help establish a secondary market for expanded and improved operation of the Section 108 Loan Guarantee program. Proposed as separate programs are: Lead Hazard Reduction, Homeownership Zones, and Urban Empowerment Zones, (which is proposed as a ten year mandatory program). Several set-asides remain within the block grant program including Regional Connections, Supportive Services, Section 107 and Grants to Indian tribes. The HOPE VI, Public and Indian Housing Operating Fund, and the Public Housing Capital Fund retain their current form. In total, the budget will provide almost 140,000 new or replacement subsidies and would provide for the renewal of all expiring units. The Housing Certificate Fund and the homeless and elderly/disabled programs account for approximately 90,000 new or replacement subsidies. Also, an Administrative Fee Bonus program is proposed as part of the President’s Housing Mobility Initiative. In addition, a new separate account is proposed for 50,000 new Welfare-to-Work vouchers as a part of the President’s Welfare-to-Work Initiative. FHA and GNMA programs are retained, although the FHA guarantee limitation is proposed to be increased to the con- forming limit, and separate funding within the program account for contractual support is requested to conform with credit reform rules. PUBLIC AND INDIAN HOUSING Federal Funds General and special funds: HOUSING CERTIFICATE FUND (INCLUDING TRANSFERS OF FUNDS) For activities and assistance to prevent the involuntary displacement of low-income families, the elderly and the disabled because of the loss of affordable housing stock, expiration of subsidy contracts (other than contracts for which amounts are provided under another heading in this Act) or expiration of use restrictions, or other changes in housing assistance arrangements, and for other purposes, ø$9,373,000,000¿ $8,981,187,705, to remain available until expended: Provided, That of the total amount provided under this heading, ø$8,180,000,000¿ $7,190,645,675 shall be for assistance under the United States Housing Act of 1937 (42 U.S.C. 1437) for use in connection with expiring or terminating section 8 subsidy contracts, øfor enhanced vouchers as provided under the ‘‘Preserving Existing Housing Investment’’ account in the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104–204),¿ and contracts entered into pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act: Provided further, That the Secretary may determine not to apply section 8(o)(6)(B) of the Act to housing vouchers during fiscal year ø1998¿ 1999: Provided further, That of the total amount provided under this heading, ø$850,000,000¿ $1,337,000,000 shall be for amendments to section 8 contracts other than contracts for projects developed under section 202 of the Housing Act of 1959, as amended: Provided further, That of the total amount provided under this heading, ø$343,000,000 shall be for section 8 rental assistance under the United States Housing Act of 1937 including assistance to relocate residents of properties: (1) that are owned by the Secretary and being disposed of; or (2) that are discontinuing section 8 project-based assistance; for the conversion of section 23 projects to assistance under section 8; for funds to carry out the family unification program; and for the relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency: Provided further, That of the total amount made available in the preceding proviso, $40,000,000 shall be made available to nonelderly disabled families affected by the designation of a public housing development under section 7 of such Act, the establishment of preferences in accordance with section 651 of the Housing and Community Development Act of 1992 (42 U.S.C. 1361l), or the restriction of occupancy to elderly families in accordance with section 658 of such Act, and to the extent the Secretary determines that such amount is not needed to fund applications for such affected families, to other nonelderly disabled families: Provided further, That the amount made available under the fifth proviso under the heading ‘‘Prevention of Resident Displacement’’ in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, Public Law 104–204, shall also be made available to nonelderly disabled families affected by the restriction of occupancy to elderly families in accordance with section 658 of the Housing and Community Development Act of 1992: Provided further, That to the extent the Secretary determines that the amount made available under the fifth proviso under the heading ‘‘Prevention of Resident Displacement’’ in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, Public Law 104–204, is not needed to fund applications for affected families described in the fifth proviso, or in the preceding proviso under this heading in this Act, the amount not needed shall be made available to other nonelderly disabled fami437 438 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 90.00 General and special funds—Continued Outlays ........................................................................... 193 4,780 6,394 HOUSING CERTIFICATE FUND—Continued (INCLUDING TRANSFERS OF FUNDS)—Continued lies:¿ $433,542,030 shall be for section 8 rental assistance under the United States Housing Act of 1937, including relocation assistance, for residents of properties that are owned by the Secretary and are being disposed of, or that are discontinuing section 8 project-based assistance, and for enhanced vouchers as provided under the ‘‘Preserving Existing Housing Investment’’ account in the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104–204), for families eligible for assistance under such Act: Provided further that of the total amount provided under this head, $20,000,000 shall be for Regional Opportunity Counseling: Provided further, That all balances, as of September 30, ø1997¿ 1998, remaining in the ø‘‘Annual Contributions for Assisted Housing’’ account and the¿ ‘‘Prevention of Resident Displacement’’ account øfor use in connection with expiring or terminating section 8 subsidy contracts and for amendments to section 8 contracts other than contracts for projects developed under section 202 of the Housing Act of 1959, as amended,¿ shall be transferred to and merged with the amounts provided for those purposes under this heading. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0319–0–1–604 00.01 00.02 00.03 00.04 00.05 10.00 1997 actual 1998 est. 1999 est. Obligations by program activity: Contract renewals .......................................................... 756 11,215 7,191 Section 8 amendments .................................................. 401 1,228 1,337 Relocation & other ......................................................... 30 661 393 Preservation amendments ............................................. 17 8 ................... Incremental rental assistance ....................................... ................... ................... 60 Total obligations (object class 41.0) ........................ 1,204 13,112 8,981 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested: 21.40 Uninvested ............................................................ ................... 21.40 Uninvested ............................................................ ................... 2,306 ................... 1,180 ................... 21.99 22.00 22.22 Total unobligated balance, start of year ............. ................... New budget authority (gross) ........................................ 4,690 Unobligated balance transferred from other accounts ................... 3,486 ................... 9,373 8,981 253 ................... 23.90 23.95 24.40 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested: Uninvested ............................................................ Uninvested ............................................................ 24.99 Total unobligated balance, end of year .................... 3,486 ................... ................... 40.00 42.00 New budget authority (gross), detail: Appropriation .................................................................. Transferred from other accounts ................................... 4,640 9,373 8,981 50 ................... ................... 43.00 Appropriation (total) .................................................. 4,690 9,373 8,981 70.00 Total new budget authority (gross) .......................... 4,690 9,373 8,981 4,690 –1,204 13,112 –13,112 8,981 –8,981 2,306 ................... ................... 1,180 ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. ................... 73.10 New obligations ............................................................. 1,204 73.20 Total outlays (gross) ...................................................... –193 73.32 Obligated balance transferred from other accounts ................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1,011 72.40 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. 193 Outlays from current balances ...................................... ................... 1,011 15,219 13,112 8,981 –4,780 –6,394 5,876 ................... 15,219 17,806 478 4,302 898 5,496 87.00 Total outlays (gross) ................................................. 193 4,780 6,394 89.00 Net budget authority and outlays: Budget authority ............................................................ 4,690 9,373 8,981 The funds requested will support the following activities for 1999: 1. Contract Renewals. Contract renewals provide funding to renew expiring Section 8 rental assistance contracts covering certificates, vouchers, and moderate rehabilitation (renewed as certificates or vouchers), Loan Management, New Construction/Substantial Rehabilitation, Property Disposition, and Preservation. In 1999, $7.2 billion is requested to support 2 million units. 2. Section 8 Amendments. The need for amendment funding results from insufficient funding being provided for long-term contracts funded in the 1970’s and 1980’s. During those years, the Department provided contracts for terms of up to 40 years. Estimating funding needs over such a long period of time proved to be problematic, and as a result many of these Section 8 contracts were inadequately funded. The current practice of providing contracts for 1-year terms helps to ensure that the problem of inadequately funded contracts is not repeated. However, older long-term contracts must still be provided additional funding to maintain the current inventory of assisted rental housing. For 1999, $1,800 million is proposed for Section 8 Amendment contracts. This is partially offset by $463 million in recaptures, resulting in a net requirement of $1,337 million in budget authority in 1999. 3. Incremental Rental Assistance. For 1999, the Department is requesting $60 million in budget authority to support a total of 10,655 incremental certificates and vouchers. A portion of this assistance may be used for family unification, witness relocation, settlement of litigation, section 23 conversions, and for families exercising portability. Public and Indian Housing Regional Opportunity Counseling. The Department is committed to increasing the housing opportunities available to low-income families. The Budget request includes $20 million to pay for special counseling conducted by public housing agencies in partnership with local non-profit agencies to expand housing opportunities and deconcentrate the number of families living in high poverty neighborhoods. Some of the results the Department expects to receive by providing intense regional opportunity counseling include: (1) expanding landlord participation in the Section 8 program and increases in the number and diversity of neighborhoods in which Section 8 recipients locate; (2) assisting and encouraging Section 8 families to move to low poverty neighborhoods that offer high quality housing, education, and employment opportunities; (3) addressing existing barriers to mobility and choice in the Section 8 program, including administrative barriers to portability; (4) promoting greater cooperation and joint problem-solving among Section 8 programs operating in a metropolitan housing market; and, (5) creating or strengthening institutions that administer the Section 8 program on a regional basis, including the provision of regional mobility counseling. Family Self-Sufficiency (FSS) Coordinators. In 1990, the National Affordable Housing Act established the Family SelfSufficiency Program. In establishing the program, Congress mandated that any housing agency that received any funding for rental vouchers and certificates in 1993 and subsequent would be required to establish a self-sufficiency program equal to the number of rental vouchers or certificates received. Since that time Congress has appropriated funds to support approximately one service coordinator in approximately 375 Public Housing Authorities over a 3-year period. The PHAs that receive the special funding for FSS service coordinators were the smallest agencies that administered less than 1,000 rental vouchers and certificates. PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT The Department is committed to administering the FSS program for families receiving assistance under the rental voucher and certificate programs. The request for this account includes $24 million to allow the smallest housing agencies to hire FSS coordinators. Under the FSS program, families will receive job training and employment that should lead to a decrease in their dependency on welfare programs and move them toward economic self-sufficiency. Housing Tenant Protection Set-Asides. The Housing Certificate Fund also serves a role in supporting families in FHA-insured, privately owned assisted housing projects affected by changes in project status. It is intended that income-eligible families who, through no fault of their own, are affected by HUD’s management of the multifamily inventory be aided through the Housing Certificate Fund. The $373 million requested for 1999 Housing tenant protections will be used to provide funding for an estimated 17,000 preservation prepayment vouchers, and for 15,000 vouchers for residents in properties which are proposed for disposition from the assisted housing inventory, voluntarily terminating project-based assistance, terminations due to HUD housing quality enforcement actions, or which are undergoing portfolio re-engineering. Of this amount, $130 million is included for Housing tenant protections to accommodate the more aggressive enforcement activities of the Department, including the cost of relocating affected families, and to address the potential need to modify current assistance payment standards and eligibility to avoid undue hardship or displacement of currently assisted families. WELFARE TO WORK HOUSING VOUCHERS For tenant-based assistance under the United States Housing Act of 1937 to help eligible families make the transition from welfare to work, $283,000,000, to be administered by public housing agencies (including Indian housing authorities, as defined by the Secretary of Housing and Urban Development), and to remain available until expended: Provided, That families initially selected to receive assistance under this head (a) shall be eligible to receive, shall be currently receiving, or shall have received within the preceding year, assistance or services funded under the Temporary Assistance for Needy Families (TANF) program under part A of title IV of the Social Security Act or as part of a State’s qualified State expenditure under section 409(a)(7)(B)(i) of such Act; (b) shall be determined by the agency to be families for which tenant-based housing assistance is critical to successfully obtaining or retaining employment; and (c) shall not already be receiving tenant-based assistance: Provided further, That each application shall (a) describe the proposed program, which shall be developed by the public housing agency in consultation with the State, local or Tribal entity administering the TANF program and the entity, if any, administering the Welfare-to-Work grants allocated by the United States Department of Labor pursuant to section 403(a)(5)(A) of the Social Security Act, and which shall take into account the particular circumstances of the community; (b) demonstrate that tenant-based housing assistance is critical to the success of assisting eligible families to obtain or retain employment; (c) specify the criteria for selecting among eligible families to receive housing assistance under this head; (d) describe the proposed strategy for tenant counseling and housing search assistance and landlord outreach; (e) include any requests for waivers of any administrative requirements or any provisions of the United States Housing Act of 1937, with a demonstration of how approval of the waivers would substantially further the objective of this head; (f) include certifications from the State, local, or Tribal entity administering assistance under the TANF program and from the entity, if any, administering the Welfareto-Work grants allocated by the United States Department of Labor, that the entity supports the proposed program and will cooperate with the public housing agency that administers the housing assistance to assure that such assistance is coordinated with other welfare reform and welfare to work initiatives; however, if either does not respond to the public housing agency within a reasonable time period, its concurrence shall be assumed, and if either objects to the applica- 439 tion, its concerns shall accompany the application to the Secretary, who shall take them into account in this funding decision; and (g) include such other information as the Secretary may require and meet such other requirements as the Secretary may establish: Provided further, That the Secretary, after consultation with the Secretary of Health and Human Services and the Secretary of Labor, shall select public housing agencies to receive assistance under this head on a competitive basis, taking into account the need for and quality of the proposed program (including innovative approaches), the extent to which the assistance will be coordinated with welfare reform and welfare to work initiatives, the extent to which the application demonstrates that tenant-based assistance is critical to the success of assisting eligible families to obtain or retain employment, and other appropriate criteria established by the Secretary: Provided further, That the Secretary may waive any administrative requirement or any provision of the United States Housing Act of 1937 if the Secretary determines that the waiver would substantially further the objective of the assistance under this head, and in the event of any waiver, may make provision for alternative conditions or terms where appropriate: Provided further, That the Secretary may use up to one percent of the amount available under this head, directly or indirectly, to conduct detailed evaluations of the effect of providing assistance under this head. Program and Financing (in millions of dollars) Identification code 86–0321–0–1–604 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Welfare-to-work housing assistance ............................. ................... ................... 283 10.00 Total obligations (object class 41.0) ........................ ................... ................... 283 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 283 –283 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 283 73.10 73.20 74.40 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. ................... ................... 283 –27 256 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 27 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 283 27 These funds would provide 50,000 housing vouchers to be used to help families make the transition from welfare to work. Lack of affordable, stable housing, or housing located close to employment, impedes the efforts of families moving from welfare to work. These vouchers will provide States and communities with a new flexible tool to help families who need housing assistance in order to achieve self-sufficiency. The additional vouchers will be available on a competitive basis to the local housing agencies, including Indian housing authorities. Local housing agencies will submit an application plan, developed in consultation with the State, local, or Tribal welfare agency and the local Welfare-To-Work formula funds grantee (generally the local Private Industry Council), allowing both state and local participation in the effort. The vouchers will be used where they are essential to a successful transition from welfare to work, that is, where housing assistance is critical for a family to achieve or maintain employment. For example, a family could use a welfare-to-work housing voucher to move to an area where there are more job opportunities, to reduce an extremely long commute, or to stabilize its housing situation in order to improve attendance and performance at work. Families who receive the vouchers must initially be eligible for, or be currently receiving, Temporary Assistance for Needy 440 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued WELFARE TO ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING ø(INCLUDING WORK HOUSING VOUCHERS—Continued Families (TANF) or have received TANF within the past year. However, local agencies will have great flexibility to design and operate the welfare-to-work voucher program within broad national guidelines. For example, the agencies would propose whether to focus on particular groups of welfare recipients and how to structure the assistance to meet local needs. The application would request any waivers of administrative provisions or statutory provisions of the United States Housing Act of 1937 that are needed to substantially further the objectives of the program. The Department of Housing and Urban Development (HUD) will review and select the local plans after consultation with the Department of Health and Human Services and the Department of Labor. HUD will evaluate the impact of this program. SECTION 8 RESERVE PRESERVATION ACCOUNT The amounts recaptured during fiscal year ø1998¿ 1999 that were heretofore made available to public housing agencies for tenant-based assistance under the section 8 existing housing certificate and housing voucher programs from the Annual Contributions for Assisted Housing account shall be collected in the account under this heading, for use as provided for under this heading, as set forth under the Annual Contributions for Assisted Housing heading in chapter 11 of Public Law 105–18, approved June 12, 1997. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0316–0–1–604 1997 actual 1998 est. 1999 est. Obligations by program activity: 00.01 Contract Renewals ......................................................... ................... 700 3,652 10.00 700 3,652 Total obligations (object class 41.0) ........................ ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. ................... 22.00 New budget authority (gross) ........................................ ................... 22.22 Unobligated balance transferred from other accounts 4,202 21.40 23.90 23.95 24.40 40.36 4,202 3,652 –550 ................... 700 ................... 3,652 –3,652 Identification code 86–0164–0–1–604 1997 actual 1998 est. 1999 est. 4,407 ................... ................... ................... ................... ................... ................... ................... ................... ................... 00.01 00.02 00.03 00.04 00.05 Obligations by program activity: Lower income housing ................................................... Public and Indian housing ............................................ Elderly/disabled grants .................................................. Other programs .............................................................. Contract renewals .......................................................... 879 1,327 1,340 53 1,463 10.00 Total obligations (object class 41.0) ........................ 5,062 4,407 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested: 21.40 Uninvested ............................................................ 21.40 Uninvested ............................................................ 21.49 Contract authority ..................................................... 1,981 8,029 89 495 ................... 4,090 ................... 73 ................... 21.99 22.00 22.10 22.21 22.22 22.75 23.90 23.95 Total unobligated balance, start of year ............. 10,099 4,658 New budget authority (gross) ........................................ –3,725 ................... Resources available from recoveries of prior year obligations ....................................................................... 7,780 700 Unobligated balance transferred to other accounts –4,245 –968 Unobligated balance transferred from other accounts ................... 17 Balance of contract authority withdrawn ...................... –190 ................... 9,719 –5,062 ................... ................... ................... ................... ................... ................... 24.40 24.40 24.49 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested: Uninvested ............................................................ Uninvested ............................................................ Contract authority ..................................................... 4,407 ................... –4,407 ................... 24.99 Total unobligated balance, end of year .................... 4,658 ................... ................... 495 ................... ................... 4,090 ................... ................... 73 ................... ................... 3,652 ................... New budget authority (gross), detail: Unobligated balance rescinded ..................................... ................... New budget authority (gross), detail: Current: 40.36 Unobligated balance rescinded ................................. 41.00 Transferred to other accounts ................................... –3,650 ................... ................... –75 ................... ................... –550 ................... 43.00 –3,725 ................... ................... 60.05 60.49 72.40 ................... ................... ................... 700 ................... –350 350 3,652 –2,176 ................... 350 1,826 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... ................... 350 2,176 89.00 90.00 Program and Financing (in millions of dollars) Total budgetary resources available for obligation 4,202 New obligations ............................................................. ................... Unobligated balance available, end of year: Uninvested ................................................................. 4,202 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 4,352 –700 RESCISSION AND TRANSFER OF FUNDS)¿ øNotwithstanding any other provision of law, of the amounts recaptured under this heading during fiscal year 1998 and prior years, $550,000,000, heretofore maintained as section 8 reserves made available to housing agencies for tenant-based assistance under the section 8 existing housing certificate and housing voucher programs, are rescinded.¿ øAll balances outstanding as of September 30, 1997, in the Preserving Existing Housing Investment Account for the Preservation program shall be transferred to and merged with the amounts previously provided for those purposes under this heading.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... –550 ................... 350 2,176 The Section 8 Reserve Preservation Account was authorized by P.L. 105–17. This account contains funds which were recaptured from project reserve accounts maintained by Housing Authorities nationwide. These funds will be used to renew expiring contracts during 1999 to reduce the requirements for new contract renewal funding in the Housing Certificate Fund. 63.00 70.00 Appropriation (total) ............................................. Permanent: Appropriation (indefinite) .......................................... Portion applied to liquidate contract authority ........ 74.40 74.49 74.99 10,706 –10,706 7,552 –7,552 Appropriation (total) ............................................. ................... ................... ................... Total new budget authority (gross) .......................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: 72.40 Uninvested ............................................................ 72.49 Contract authority ................................................. 72.99 73.10 73.20 73.31 73.32 73.45 595 –595 –3,725 ................... ................... 52,400 56,034 29,723 55,249 –700 59,591 Total unpaid obligations, start of year ................ 108,434 New obligations ............................................................. 5,062 Total outlays (gross) ...................................................... –20,375 Obligated balance transferred to other accounts ......... –368 Obligated balance transferred from other accounts ................... Adjustments in unexpired accounts .............................. –7,780 Unpaid obligations, end of year: Obligated balance: Uninvested ............................................................ 29,723 Contract authority ................................................. 55,249 84,972 4,407 –10,869 –19,070 150 –700 58,891 ................... –7,552 ................... ................... ................... –700 59,591 –700 52,039 58,891 51,339 Total unpaid obligations, end of year .................. 84,972 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 20,375 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... –3,725 ................... ................... 20,375 10,869 7,552 10,869 7,552 Status of Contract Authority (in millions of dollars) Identification code 86–0164–0–1–604 0100 0400 0600 0700 Balance, start of year .................................................... Appropriation to liquidate contract authority ................ Balance of contract authority withdrawn ...................... Balance, end of year ..................................................... 1997 actual 1998 est. 56,123 55,322 59,591 –595 –10,706 –7,552 –190 ................... ................... 55,322 59,591 52,039 Obligations by program activity: Modernization ................................................................. Preservation ................................................................... Operating Subsidies ....................................................... Operating Subsidies ....................................................... 10.00 Total obligations ........................................................ 1,186 336 2,786 4 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 5,757 ................... ................... –4,312 ................... ................... 1,445 ................... ................... New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 70.00 Total new budget authority (gross) .......................... 5,753 ................... ................... 4 ................... ................... 5,757 ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. ................... 2,825 ................... 73.10 New obligations ............................................................. 4,312 ................... ................... 73.20 Total outlays (gross) ...................................................... –1,487 ................... ................... 73.31 Obligated balance transferred to other accounts ......... ................... –2,825 ................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 2,825 ................... ................... 72.40 86.90 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from new permanent authority ......................... 1,483 ................... ................... 4 ................... ................... 87.00 Total outlays (gross) ................................................. 1,487 ................... ................... Offsets: Against gross budget authority and outlays: 88.45 Offsetting collections (cash) from: Offsetting governmental collections ............................................ –4 ................... ................... Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 5,753 ................... ................... 1,483 ................... ................... 89.00 90.00 Object Classification (in millions of dollars) Identification code 86–0312–0–1–604 41.0 99.0 99.9 Direct obligations: Grants, subsidies, and contributions ........................................................................... Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... Total obligations ........................................................ 1997 actual 1998 est. 1999 est. 4,308 ................... ................... 4 ................... ................... 4,312 ................... ................... This account includes funding provided in 1997 for preservation, modernization, public housing development, Indian housing development, and public housing operating subsidies. Pursuant to P.L. 103–65: (1) all balances for preservation were transferred to the Annual Contributions for Assisted Housing account; (2) all balances for modernization and public housing development were transferred to the Public Housing Capital Fund; (3) all balances for Indian housing development were transferred to the Indian Housing Block Grants; and, (4) and all balances for operating subsidies were transferred to the Public Housing Operating Fund. (INCLUDING TRANSFERS OF FUNDS) Program and Financing (in millions of dollars) 00.01 00.02 00.03 09.01 23.90 23.95 24.40 PUBLIC HOUSING CAPITAL FUND PRESERVING EXISTING-HOUSING INVESTMENT 1997 actual Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. ................... 1,445 ................... 22.00 New budget authority (gross) ........................................ 5,757 ................... ................... 22.21 Unobligated balance transferred to other accounts ................... –1,445 ................... 21.40 1999 est. The Annual Contributions for Assisted Housing account provided assistance under three major categories. Low-income housing (section 8).—Included within the section 8 category was incremental rental assistance in the form of housing certificates and housing vouchers; Public Housing and Housing Relocation/Replacement opt-out units; Housing Opportunities for Persons with AIDS; section 23 conversions; and loan management and property disposition activities. Housing for the elderly and disabled (section 202 and 811).—The Cranston-Gonzales National Affordable Housing Act authorized a grant program to make new construction assistance available to elderly and disabled persons. Both the grant funding and the Rental Assistance—or operating subsidy—needed to aid these low-income tenants was provided under this account. Public and Indian housing.—New development funding was provided for both Public Housing and for Indian Housing within this account. In addition, funding was provided for public and Indian housing modernization activities and public/ Indian housing amendments and lease adjustments. Funding was also provided for Public Housing Service Coordinators and Family Investment Centers. This account provided funding for a wide range of housing assistance through the Low-Income Housing (Section 8), Housing for the Elderly and Disabled, and the Public and Indian Housing programs. In addition, various housing-related programs were carried out through funding provided under this account. The account now displays the spendout of all remaining balances. Pursuant to P.L. 105–65: (1) all balances for Public Housing Development, Modernization, Family Investment Centers, Public Housing Amendments, and Leave Adjustments were transferred to the Public Housing Capital Fund; (2) all balances for Section 8 Amendments and Contract Renewals were transferred to the Housing Certificate Fund; (3) all balances for the Supportive Housing for the Elderly and Supportive Housing for the Disabled were transferred to the Housing for Special Populations account; and, (4) all balances for Indian Housing were transferred to the Indian Housing Block Grants account. The $550 million rescission of recaptured 1998 and prior years section 8 reserves, enacted in the fiscal year 1998 Appropriations Act, can be found under the Section 8 Reserve Preservation Account. Identification code 86–0312–0–1–604 441 1998 est. 1999 est. ................... ................... ................... ................... ................... ................... ................... ................... 4,312 ................... ................... For the Public Housing Capital Fund Program for modernization of existing public housing projects as authorized under section 14 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437), ø$2,500,000,000¿ $2,550,000,000, to remain available until expended: Provided, That of the total amount, ø$30,000,000¿ up to $100,000,000 shall be for carrying out activities under section 6(j) of such Act and technical assistance for the inspection of public housing units, contract expertise, and training and technical assistance directly or indirectly, under grants, contracts, or cooperative agreements, to assist in the oversight and management of public housing 442 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued PUBLIC HOUSING OPERATING FUND ø(INCLUDING PUBLIC HOUSING CAPITAL FUND—Continued (INCLUDING TRANSFERS OF FUNDS)—Continued (whether or not the housing is being modernized with assistance under this proviso) or tenant-based assistance, including, but not limited to, an annual resident survey, data collection and analysis, training and technical assistance by or to officials and employees of the Department and of public housing agencies and to residents in connection with the public housing øprogram¿ programs and for lease adjustments to section 23 projects: øProvided further, That of the amount available under this heading, up to $5,000,000 shall be for the Tenant Opportunity Program:¿ Provided further, That all balances, as of September 30, ø1997¿ 1998, of funds heretofore provided ø(other than for Indian families) for the development or acquisition costs of public housing, for modernization of existing public housing projects, for public housing amendments, for public housing modernization and development technical assistance, for lease adjustments under the section 23 program, and for the Family Investment Centers program,¿ for section 673 public housing service coordinators shall be transferred to and merged with amounts made available under this heading. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0304–0–1–604 1997 actual 1998 est. TRANSFERS OF FUNDS)¿ For payments to public housing agencies for operating subsidies for low-income housing projects as authorized by section 9 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437g), ø$2,900,000,000¿ $2,818,000,000, to remain available until expendedø: Provided, That all balances outstanding, as of September 30, 1997, of funds heretofore provided (other than for Indian families) for payments to public housing agencies for operating subsidies for low-income housing projects, shall be transferred to and merged with amounts made available under this heading¿. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) 1997 actual Identification code 86–0163–0–1–604 1998 est. 1999 est. 00.01 Obligations by program activity: Operating subsidies ....................................................... ................... 2,901 2,931 10.00 Total obligations (object class 41.0) ........................ ................... 2,901 2,931 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. ................... ................... 113 22.00 New budget authority (gross) ........................................ ................... 2,900 2,818 22.22 Unobligated balance transferred from other accounts ................... 114 ................... 21.40 1999 est. Obligations by program activity: 00.01 Direct program ............................................................... ................... 3,782 2,550 10.00 3,782 23.90 23.95 24.40 Total budgetary resources available for obligation ................... New obligations ............................................................. ................... Unobligated balance available, end of year: Uninvested ................................................................. ................... 3,014 –2,901 2,931 –2,931 2,550 Total obligations (object class 41.0) ........................ ................... Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... 22.22 Unobligated balance transferred from other accounts ................... 40.00 2,500 2,550 1,282 ................... 23.90 23.95 Total budgetary resources available for obligation ................... New obligations ............................................................. ................... 3,782 –3,782 2,550 –2,550 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... 2,500 2,550 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.32 Obligated balance transferred from other accounts 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. ................... 7,270 3,810 3,511 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... 2,500 3,810 2,550 3,509 89.00 90.00 The Public Housing Capital Fund, which is a comprehensive formula-driven program based on need, is designed to respond to the capital and management improvement requirements of public housing. The fund consolidates the following programs: public housing modernization; public housing development; Major Reconstruction of Obsolete Public Housing (MROP) Projects; public housing amendments; lease adjustments; and Family Investment Centers. The 1999 Budget proposes to transfer all balances reflected in the Annual Contributions for Assisted Housing account for the Public Housing Service Coordinators program to the Public Housing Capital Fund. Pursuant to P.L. 105–65, all balances for modernization and public housing development previously funded under the Annual Contributions for Assisted Housing and Preserving Existing Housing Investment accounts were transferred to the Public Housing Capital Fund. 2,818 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 1,606 74 1,395 73.10 New obligations ............................................................. ................... 2,901 2,931 73.20 Total outlays (gross) ...................................................... –1,529 –3,090 –2,861 73.32 Obligated balance transferred from other accounts ................... 1,510 ................... 73.40 Adjustments in expired accounts .................................. –3 ................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 74 1,395 1,465 86.90 86.93 87.00 6,311 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... ................... 2,900 72.40 72.40 ................... ................... 7,270 ................... 3,782 2,550 ................... –3,810 –3,509 ................... 7,299 ................... New budget authority (gross), detail: Appropriation .................................................................. ................... 113 ................... 89.00 90.00 Outlays (gross), detail: Outlays from new current authority .............................. ................... Outlays from current balances ...................................... 1,529 1,392 1,698 1,353 1,508 1,529 3,090 2,861 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... 1,529 2,900 3,090 2,818 2,861 Total outlays (gross) ................................................. Operating subsidies are provided to public housing authorities (PHAs) to assist in funding the operation and maintenance expenses of public housing units in accordance with Section 9 of the United States Housing Act of 1937, as amended. Annual subsidy requirements are calculated on the basis of the Performance Funding System (PFS) formula. It is anticipated that sufficient funds will be available to provide 100 percent of PFS requirements in 1999. Pursuant to P.L. 105–65, all balances of operating subsidy funding that were provided under the Preserving Existing Housing Investment account in 1997 were transferred to this account. DRUG ELIMINATION GRANTS ø(INCLUDING FOR LOW-INCOME HOUSING TRANSFER OF FUNDS)¿ For grants to public housing agencies and tribally designated housing entities for use in eliminating crime in public housing projects authorized by 42 U.S.C. 11901–11908, for grants for federally assisted low-income housing authorized by 42 U.S.C. 11909, and for drug information clearinghouse services authorized by 42 U.S.C. 11921– PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 11925, $310,000,000, to remain available until expended, of which $10,000,000 shall be for grants, technical assistance, contracts and other assistance, training, and program assessment and execution for or on behalf of public housing agencies, resident organizations, and Indian tribes and their tribally designated housing entities (including the cost of necessary travel for participants in such training); $10,000,000 shall be used in connection with efforts to combat violent crime in public and assisted housing under the Operation Safe Home program administered by the Inspector General of the Department of Housing and Urban Development; $10,000,000 shall be provided to the Office of Inspector General for Operation Safe Home; and $20,000,000 shall be available for a program named the New Approach Anti-Drug program which will provide competitive grants to entities managing or operating public housing developments, federally assisted multifamily housing developments, or other multifamily housing developments for low-income families supported by non-Federal governmental entities or similar housing developments supported by nonprofit private sources in order to provide or augment security (including personnel costs), to assist in the investigation and/or prosecution of drug-related criminal activity in and around such developments, and to provide assistance for the development of capital improvements at such developments directly relating to the security of such developments: Provided, That grants for the New Approach Anti-Drug program shall be made on a competitive basis as specified in section 102 of the Department of Housing and Urban Development Reform Act of 1989: Provided further, That the term ‘‘drug-related crime’’, as defined in 42 U.S.C. 11905(2), shall also include other types of crime as determined by the Secretary: Provided further, That, notwithstanding section 5130(c) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary may determine not to use any such funds to provide public housing youth sports grants. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0197–0–1–604 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Direct program ............................................................... 78 591 310 10.00 Total obligations (object class 41.0) ........................ 78 591 310 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 68 290 21.40 23.90 23.95 24.40 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New budget authority (gross), detail: Appropriation .................................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 281 ................... 310 310 1 ................... ................... 359 –78 591 –591 310 –310 281 ................... ................... 290 310 310 72.40 516 302 605 78 591 310 –291 –288 –273 –1 ................... ................... 302 605 642 Outlays (gross), detail: Outlays from current balances ...................................... 291 288 Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 290 291 310 288 310 273 Housing Authorities (PHAs) and Tribally Designated Housing Entities (TDHEs) for their anti-drug, anti-crime efforts. To combat the concentration of crime in and around public housing, staff and residents use these resources to increase police coverage and security as well as to provide alternative activities to residents. Eligible activities include reimbursing local law enforcement for additional services, security contracts, investigators, and training residents for volunteer resident programs. Recent appropriation acts have expanded the definition of crime beyond drug-related patrols, physical changes to enhance security, drug prevention, and intervention and treatment; thus allowing housing authorities greater scope in targeting crime and developing successful alternatives. Of the $310 million requested in 1999, $243.8 million will be targeted to PHA and TDHE grants and clearinghouse information services. In addition, $50 million will be available to HUD for: (1) technical assistance, training, and information dissemination; (2) Operation Safe Home; and, (3) the New Approach Anti-Drug program. An additional $16.2 million is estimated to be available for other Federally assisted lowincome housing grants. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING (HOPE VI) For grants to public housing agencies for assisting in the demolition of obsolete public housing projects or portions thereof, the revitalization (where appropriate) of sites (including remaining public housing units) on which such projects are located, replacement housing which will avoid or lessen concentrations of very low-income families, and tenant-based assistance in accordance with section 8 of the United States Housing Act of 1937; and for providing replacement housing and assisting tenants displaced by the demolition, $550,000,000, to remain available until expended, of which the Secretary may use up to $10,000,000 for technical assistance and contract expertise, to be provided directly or indirectly by grants, contracts or cooperative agreements, including training and cost of necessary travel for participants in such training, by or to officials and employees of the Department and of public housing agencies and to residents: Provided, That øof the amount made available under this heading, $26,000,000 shall be made available, including up to $10,000,000 for Heritage House in Kansas City, Missouri, for the demolition of obsolete elderly public housing projects and the replacement, where appropriate, and revitalization of the elderly public housing as new communities for the elderly designed to meet the special needs and physical requirements of the elderly: Provided further, That no funds appropriated under this heading shall be used for any purpose that is not provided for herein, in the United States Housing Act of 1937, in the Appropriations Acts for the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies, for the fiscal years 1993, 1994, 1995, and 1997, and the Omnibus Consolidated Rescissions and Appropriations Act of 1996¿ for purposes of environmental review pursuant to the National Environment Policy Act of 1969, a grant under this head or under prior appropriations Acts for this head shall be treated as assistance under title I of the United States Housing Act of 1937 and shall be subject to the regulations issued by the Secretary to implement section 26 of such Act: Provided further, That none of such funds shall be used directly or indirectly by granting competitive advantage in awards to settle litigation or pay judgments, unless expressly permitted herein. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) 273 86.93 443 Program and Financing (in millions of dollars) Identification code 86–0218–0–1–604 1997 actual 1998 est. 1999 est. 00.01 The $310 million requested for this program in 1999 includes funding for technical assistance for drug elimination, operation safe home activities and the new approach antidrug program. The Public Housing Drug Elimination Grants program has been authorized since 1988, and provides funds to Public Obligations by program activity: Direct program ............................................................... 391 604 550 10.00 Total obligations (object class 41.0) ........................ 391 604 550 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 539 550 698 550 644 550 21.40 444 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued REVITALIZATION Program and Financing (in millions of dollars) SEVERELY DISTRESSED PUBLIC HOUSING (HOPE VI)—Continued OF Identification code 86–0313–0–1–604 1997 actual 00.01 00.02 1997 actual Identification code 86–0218–0–1–604 23.90 23.95 24.40 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New budget authority (gross), detail: Appropriation .................................................................. 1,089 –391 1998 est. 1,248 –604 703 600 4 ................... 707 600 698 644 644 22.00 22.21 22.22 550 550 550 23.90 23.95 Total budgetary resources available for obligation ................... New obligations ............................................................. ................... 707 –707 600 –600 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... 600 600 1,377 391 –205 1,563 604 –405 1,761 550 –524 1,563 1,761 1,787 Outlays (gross), detail: Outlays from current balances ...................................... 205 405 524 550 205 550 405 550 524 This program utilizes Federal resources to rehabilitate and restore severely distressed public housing projects, thereby expanding the supply of decent, safe, and affordable housing for low-income renters. The funds may also be used for project demolition, hard replacement units, as well as tenant-based rental assistance. øNATIVE AMERICAN¿ INDIAN HOUSING BLOCK GRANTS ø(INCLUDING Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... Unobligated balance transferred to other accounts ................... Unobligated balance transferred from other accounts ................... 1,194 –550 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... Total obligations (object class 41.0) ........................ ................... 1999 est. 1999 est. 72.40 86.93 Obligations by program activity: Indian Housing Block Grants ......................................... ................... Title VI Indian Federal Guarantees ................................ ................... 10.00 Program and Financing (in millions of dollars)—Continued 1998 est. TRANSFER OF FUNDS)¿ For the øNative American¿ Indian Housing Block Grants program, as authorized under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (Public Law 104–330), $600,000,000, to remain available until expended, of which ø$5,000,000¿ up to $6,000,000 shall be used to support the inspection of Indian housing units, contract expertise, training, and technical assistance in the oversight and management of Indian housing and tenant-based assistance, including up to ø$200,000¿ $300,000 for related travelø: Provided, That of the amount provided under this heading, $5,000,000 shall be made available for the cost of guaranteed notes and other obligations, as authorized by title VI of the Native American Housing Assistance and Self-Determination Act of 1996: Provided further, That such costs, including the costs of modifying such notes and other obligations, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize the total principal amount of any notes and other obligations, any part of which is to be guaranteed, not to exceed $217,000,000: Provided further, That the funds made available in the first proviso are for a demonstration on ways to enhance economic growth, to increase access to private capital, and to encourage the investment and participation of traditional financial institutions in tribal and other Native American areas: Provided further, That all balances outstanding as of September 30, 1997, previously appropriated under the headings ‘‘Annual Contributions for Assisted Housing’’, ‘‘Development of Additional New Subsidized Housing’’, ‘‘Preserving Existing Housing Investment’’, ‘‘HOME Investment Partnerships Program’’, ‘‘Emergency Shelter Grants Program’’, and ‘‘Homeless Assistance Funds’’, identified for Indian Housing Authorities and other agencies primarily serving Indians or Indian areas, shall be transferred to and merged with amounts made available under this heading¿. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.31 Obligated balance transferred to other accounts ......... 73.32 Obligated balance transferred from other accounts 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 600 600 –1 ................... 108 ................... 72.40 ................... ................... 2,400 ................... 707 600 ................... –81 –240 ................... –3 ................... ................... 1,777 ................... ................... 2,400 2,760 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. ................... Outlays from current balances ...................................... ................... 71 10 70 170 87.00 Total outlays (gross) ................................................. ................... 81 240 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... 600 81 600 240 Title I of the Native American Housing Assistance and SelfDetermination Act of 1996 (P.L. 104–330) authorized the Native American Housing Block Grants program. This program provides an allocation of funds on a formula basis to Indian tribes and their tribally designated housing entities to help them address housing needs within their communities. Indian tribes use performance measures and benchmarks that are consistent with the national goals of the program but can base these measures on the needs and priorities they establish in their own Indian housing plan. Pursuant to P.L. 105–65, all balances previously appropriated under Annual Contributions for Assisted Housing, Development of Additional New Subsidized Housing, Preserving Existing Housing Investment, HOME Investment Partnerships Program, Emergency Shelter Grants Program, and Homeless Assistance Funds identified for Indian Housing Authorities and other agencies primarily serving Indians or Indian areas were transferred to this account. Public enterprise funds: LOW-RENT PUBLIC HOUSING—LOANS AND OTHER EXPENSES Program and Financing (in millions of dollars) Identification code 86–4098–0–3–604 1997 actual 1998 est. 1999 est. Obligations by program activity: Capital investment: Loans to public housing agencies and Indian housing authorities ................................ 82 60 50 Total obligations (object class 33.0) ........................ 82 60 50 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 22.60 Redemption of debt ....................................................... 13 152 –80 3 130 –70 3 121 –71 00.01 10.00 21.40 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New budget authority (gross), detail: 67.15 Authority to borrow (indefinite) ..................................... 68.00 Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 85 –82 63 –60 53 –50 3 3 3 85 60 50 Operating results.—The actual and estimated net operating income for 1996, 1997, 1998, and 1999 follows: Statement of Operations (in millions of dollars) 1996 actual 1997 actual Revenue ................................................... Expense .................................................... 112 –127 108 –99 104 –95 100 –91 Net income or loss (–) ............................ –15 9 9 9 Identification code 86–4098–0–3–604 67 70 71 0101 0102 Total new budget authority (gross) .......................... 152 130 121 0109 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1,176 82 –189 1,068 60 –164 964 50 –149 1,068 964 865 Outlays (gross), detail: 86.97 Outlays from new permanent authority ......................... 86.98 Outlays from permanent balances ................................ 67 122 60 104 50 99 87.00 189 164 149 70.00 Identification code 86–4098–0–3–604 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... 88.40 Non-Federal sources ............................................. –65 –70 –71 –2 ................... ................... ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1106 Receivables, net ............................. Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............................. 1602 Interest receivable .............................. 1603 Allowance for estimated uncollectible loans and interest (–) .................... 1604 Direct loans and interest receivable, net .................................................. 88.90 –67 1699 Total, offsetting collections (cash) .................. Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... –70 85 122 60 94 –71 50 78 Status of Direct Loans (in millions of dollars) Identification code 86–4098–0–3–604 1998 est. 1999 est. Balance Sheet (in millions of dollars) 72.40 Total outlays (gross) ................................................. 445 1997 actual 1998 est. 1999 est. Value of assets related to direct loans .......................................... 1999 1996 actual 1997 actual 1998 est. 1999 est. 1,189 1,072 968 854 1,726 1,656 1,585 1,513 45 3 45 6 35 3 24 3 –12 –13 –12 –12 36 38 26 15 36 38 26 15 Total assets ........................................ LIABILITIES: Federal liabilities: 2102 Interest payable .................................. 2104 Resources payable to Treasury ........... 2207 Non-Federal liabilities: Other .................. 2,951 2,766 2,579 2,382 198 1,627 1 189 1,561 1 181 1,491 1 173 1,420 1 2999 1,826 1,751 1,673 1,594 1,076 49 972 43 866 40 757 31 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1251 Repayments: Repayments and prepayments ................. 1,627 –65 1,562 –70 1,492 –71 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 1290 1,562 1,492 1,421 3999 Total net position ................................ 1,125 1,015 906 788 4999 Total liabilities and net position ............ 2,951 2,766 2,579 2,382 Outstanding, end of year .......................................... Status of Guaranteed Loans (in millions of dollars) Identification code 86–4098–0–3–604 1997 actual 1998 est. 1999 est. Credit accounts: 2210 2251 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Repayments and prepayments ...................................... 3,861 –275 3,586 –280 3,306 –280 2290 Outstanding, end of year .......................................... 3,586 3,306 3,026 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 3,586 3,306 3,026 The Low-Rent Public Housing Loan Fund provides direct Federal loans to fund remaining Public Housing Agency and Indian Housing Authority construction, acquisition, and modernization activities reserved under the Annual Contributions appropriation through 1986. These loans are made from borrowings from the Treasury. Under legislation enacted during 1986 (Public Law 99–272), the borrowings from the Treasury are forgiven at the end of each fiscal year and the loans to PHAs/IHAs are forgiven as construction, acquisition, and modernization activities are completed. Under the provisions of this legislation, $85 million of borrowings from the Treasury were forgiven in 1997, an estimated $60 million will be borrowed from the Treasury and forgiven in 1998, and an estimated $50 million will be borrowed from the Treasury and forgiven in 1999. Since 1987, new reservations of capital funds for construction, acquisition, and modernization activities have been provided directly from the Annual Contributions and Public Housing Capital Fund appropriations. INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT For the cost of guaranteed loans, as authorized by section 184 of the Housing and Community Development Act of 1992 (106 Stat. 3739), ø$5,000,000¿ $6,000,000, to remain available until expended: Provided, That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed ø$73,800,000¿ $68,881,000. In addition, for administrative expenses to carry out the guaranteed loan program, up to $400,000, which shall be transferred to and merged with the appropriation for departmental salaries and expenses, to be used only for the administrative costs of these guarantees. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0223–0–1–371 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Direct program ............................................................... 4 5 6 10.00 Total obligations (object class 41.0) ........................ 4 5 6 22.00 23.95 24.40 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 4 –4 5 –5 6 –6 1 ................... ................... 446 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 22.00 INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT— Continued New financing authority (gross) .................................... 1 3 3 23.90 24.40 Credit accounts—Continued Total budgetary resources available for obligation Unobligated balance available, end of year: Uninvested ................................................................. 2 5 8 2 5 8 New financing authority (gross), detail: Spending authority from offsetting collections (gross): Federal sources ......................................................... 1 3 3 Offsets: Against gross financing authority and financing disbursements: 88.00 Offsetting collections (cash) from: Federal sources: Payments from program account ......................... –1 –3 –3 Program and Financing (in millions of dollars)—Continued Identification code 86–0223–0–1–371 1997 actual 1998 est. 1999 est. 68.00 New budget authority (gross), detail: 40.00 Appropriation .................................................................. 50.00 Reappropriation .............................................................. 3 5 6 1 ................... ................... 70.00 4 Total new budget authority (gross) .......................... Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 5 6 5 6 8 4 5 6 –1 –3 –3 –2 ................... ................... 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... –1 –3 –3 Status of Guaranteed Loans (in millions of dollars) 6 8 11 1997 actual Identification code 86–4104–0–3–604 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. 1 86.93 Outlays from current balances ...................................... ................... 1 2 1 3 87.00 Total outlays (gross) ................................................. 1 3 3 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 4 1 5 3 6 3 1998 est. 47 62 Total guaranteed loan commitments ........................ Guaranteed amount of guaranteed loan commitments 47 47 62 62 69 69 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... 6 11 17 20 37 34 Outstanding, end of year .......................................... 17 37 71 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 17 37 71 69 2159 2150 2199 2290 1999 est. 53 62 69 –6 ................... ................... 2299 1997 actual Guaranteed loan levels supportable by subsidy budget authority: 2150 Loan guarantee levels ................................................... Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... 47 62 69 8.13 8.13 8.13 2329 8.13 8.13 8.13 4 5 6 Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. 4 5 6 1 3 3 2349 1 3 3 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... 2339 Total subsidy outlays ................................................ 1999 est. 2210 2231 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0223–0–1–371 1998 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2112 Uncommitted loan guarantee limitation ....................... As required by the Federal Credit Reform Act of 1990, this nonbudgetary account records all cash flows to and from the Government resulting from the loan guarantees committed in 1992 and beyond (including modifications of loan guarantees that resulted from obligations in any year). The amounts in this account are a means of financing and not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account. Balance Sheet (in millions of dollars) As required by the Federal Credit Reform Act of 1990, this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1992 and beyond (including modifications of guarantees that resulted from obligations in any year). The subsidy amounts are estimated on a net present value basis. The administrative expenses are shown on a cash basis. This program provides access to sources of private financing for Indian families, Indian tribes and their tribally designated housing entities who otherwise could not acquire housing financing because of the unique legal status of Indian trust land. It is anticipated that the funding requested for 1999 will support 420 loans. 1996 actual Identification code 86–4104–0–3–604 1997 actual 1998 est. 1999 est. ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1106 Receivables, net ............................. 2 2 3 4 1 .................. .................. .................. 1999 Total assets ........................................ LIABILITIES: 2204 Non-Federal liabilities: Liabilities for loan guarantees .................................. 3 2 3 4 1 2 3 3 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 1 2 3 3 2 .................. .................. .................. 3999 Total net position ................................ 2 .................. .................. .................. 4999 Total liabilities and net position ............ 3 2 3 3 INDIAN HOUSING LOAN GUARANTEE FUND FINANCING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4104–0–3–604 21.40 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 1997 actual 1 TITLE VI INDIAN FEDERAL GUARANTEES PROGRAM ACCOUNT 1998 est. 1999 est. 2 (INCLUDING 5 TRANSFER OF FUNDS) For the cost of guaranteed loans, $5,000,000, to remain available until expended, as authorized by title VI of the Native American Housing Assistance and Self-Determination Act of 1996: Provided, PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 447 That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended; Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $43,636,000. In addition, for administrative expenses to carry out the guaranteed loan program, up to $200,000, which shall be transferred to and merged with the appropriation for departmental salaries and expenses, to be used only for the administrative costs of these guarantees; Provided further, That all balances, as of September 30, 1998, of funds previously provided for the cost of guaranteed notes and other obligations under the heading, ‘‘Indian Housing Block Grants,’’ shall be transferred to and merged with amounts made available under this heading. Title VI of the Native American Housing Assistance and Self-Determination Act of 1996 (P.L. 104–330) authorized the Federal Guarantees for Financing for Tribal Housing Activities. This program provides for the guarantee of notes or other obligations issued by Indian tribes or tribally designated housing entities for the purposes of financing affordable housing activities described in section 202 of the Act. In 1998, $5,000,000 was set aside for this program under the Indian Housing Block Grants appropriation. The 1999 budget proposes a separate appropriation for this program. Program and Financing (in millions of dollars) TITLE VI INDIAN FEDERAL GUARANTEES FINANCING ACCOUNT Identification code 86–0322–0–1–604 1997 actual 1998 est. Program and Financing (in millions of dollars) 1999 est. Obligations by program activity: Title VI Indian Federal loan guarantees ........................ ................... ................... 6 10.00 Total obligations (object class 41.0) ........................ ................... ................... 6 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested ................................................................. ................... ................... 1 22.00 New budget authority (gross) ........................................ ................... ................... 5 22.22 Unobligated balance transferred from other accounts ................... 1 ................... 23.90 23.95 24.40 Total budgetary resources available for obligation ................... 1 6 New obligations ............................................................. ................... ................... –6 Unobligated balance available, end of year: Uninvested ................................................................. ................... 1 ................... New budget authority (gross), detail: 40.00 Appropriation .................................................................. ................... ................... Change in unpaid obligations: 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.32 Obligated balance transferred from other accounts 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 5 ................... ................... 6 ................... ................... –1 ................... 3 ................... 3 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. ................... ................... 1 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 5 1 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0322–0–1–604 1997 actual 1998 est. 23.90 24.40 9 4 9 New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... ................... 4 5 Offsets: Against gross financing authority and financing disbursements: 88.00 Offsetting collections (cash) from: Federal sources ................... –4 –5 68.00 89.00 90.00 11.00 2329 1997 actual Identification code 86–4244–0–3–604 1998 est. 1999 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... 45 44 2112 Uncommitted loan guarantee limitation ....................... ................... ................... ................... 44 Total loan guarantee levels ...................................... ................... ................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... ................... ................... Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... ................... –4 –5 Status of Guaranteed Loans (in millions of dollars) 2210 2231 2159 Total budgetary resources available for obligation ................... Unobligated balance available, end of year: Uninvested ................................................................. ................... 4 5 4 1999 est. 44 1999 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. ................... ................... 22.00 New financing authority (gross) .................................... ................... 4 2150 2199 Guaranteed loan levels supportable by subsidy budget authority: 2150 Loan guarantee levels ................................................... ................... ................... 1998 est. 21.40 5 89.00 90.00 ................... 1997 actual Identification code 86–4244–0–3–604 00.01 Total guaranteed loan commitments ........................ ................... Guaranteed amount of guaranteed loan commitments ................... 45 45 44 44 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. ................... ................... Disbursements of new guaranteed loans ...................... ................... 11 11 11 2290 Outstanding, end of year .......................................... ................... 11 22 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... 11 22 11.00 Weighted average subsidy rate ................................. ................... ................... Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... ................... ................... 2339 5 Total subsidy budget authority ................................. ................... ................... Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. ................... ................... 1 2349 1 Total subsidy outlays ................................................ ................... ................... 5 As required by the Federal Credit Reform Act of 1990, this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1998 and beyond (including modifications of guarantees that resulted from obligations in any year), as well as administrative expenses of this program. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis. As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loan guarantees committed in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account. Balance Sheet (in millions of dollars) Identification code 86–4244–0–3–604 1996 actual 1997 actual ASSETS: Federal assets: 1101 Fund balances with Treasury ............. .................. .................. 1998 est. 1999 est. 4 5 448 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 4 126 4 164 5 171 87.00 Total outlays (gross) ................................................. 130 168 176 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 196 130 204 168 225 176 Credit accounts—Continued TITLE VI INDIAN FEDERAL GUARANTEES FINANCING ACCOUNT— Continued Balance Sheet (in millions of dollars)—Continued 1996 actual Identification code 86–4244–0–3–604 1106 Investments in US securities: Receivables, net ............................. 1997 actual 1998 est. 1999 est. .................. .................. .................. .................. Total assets ........................................ LIABILITIES: 2204 Non-Federal liabilities: Liabilities for loan guarantees .................................. .................. .................. 4 5 .................. .................. .................. .................. 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ .................. .................. .................. .................. .................. .................. 4 5 3999 Total net position ................................ .................. .................. 4 5 4999 Total liabilities and net position ............ .................. .................. 4 5 1999 COMMUNITY PLANNING AND DEVELOPMENT Federal Funds General and special funds: HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS For carrying out the Housing Opportunities for Persons with AIDS program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 12901), ø$204,000,000¿ $225,000,000, to remain available until expended: Provided, That up to 1 percent of such funds shall be available to the Secretary for technical assistanceø: Provided, That of the amount made available under this heading for non-formula allocation, the Secretary may designate, on a noncompetitive basis, one or more nonprofit organizations that provide meals delivered to homebound persons with acquired immunodeficiency syndrome or a related disease to receive grants, not exceeding $250,000 for any grant, and the Secretary shall assess the efficacy of providing such assistance to such persons¿. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0308–0–1–604 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Housing for AIDs victims ............................................... 201 240 225 10.00 Total obligations (object class 41.0) ........................ 201 240 225 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. ................... 36 ................... 22.00 New budget authority (gross) ........................................ 196 204 225 22.22 Unobligated balance transferred from other accounts 41 ................... ................... 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 237 –201 240 –240 225 –225 36 ................... ................... 40.00 42.00 New budget authority (gross), detail: Appropriation .................................................................. Transferred from other accounts ................................... 43.00 Appropriation (total) .................................................. 196 204 225 70.00 Total new budget authority (gross) .......................... 196 204 225 171 204 225 25 ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. ................... 439 511 73.10 New obligations ............................................................. 201 240 225 73.20 Total outlays (gross) ...................................................... –130 –168 –176 73.32 Obligated balance transferred from other accounts 368 ................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 439 511 560 72.40 The Housing Opportunities for Persons with AIDS program was established as a separate account in 1997. All of the balances from prior appropriations for this program have been transferred to and merged with this account, and it is now accounted for on an obligational basis. The purpose of the program is to provide States and localities with resources and incentives to devise long-term comprehensive strategies for meeting the housing needs of persons with HIV/AIDS and their families. States and metropolitan areas receive 90 percent of the funds by formula based on the incidence of HIV/AIDS in their jurisdictions. The remaining 10 percent is awarded competitively to States, local governments, and private nonprofit entities for projects of national significance. Awards are also made to States and local governments for projects in jurisdictions which do not qualify for a formula allocation. COMMUNITY DEVELOPMENT BLOCK GRANTS (INCLUDING TRANSFERS OF FUNDS) For grants to States and units of general local government and for related expenses, not otherwise provided for, to carry out a community development grants program as authorized by title I of the Housing and Community Development Act of 1974, as amended (the ‘‘Act’’ herein) (42 U.S.C. 5301), ø$4,675,000,000¿ $4,725,000,000, to remain available until September 30, ø2000¿ 2001: Provided, That $67,000,000 shall be for grants to Indian tribes notwithstanding section 106(a)(1) of such Act; ø$2,100,000 shall be available as a grant to the Housing Assistance Council; $1,500,000 shall be available as a grant to the National American Indian Housing Council; $32,000,000¿ $50,000,000 shall be for grants pursuant to section 107 of such Act; ø$7,500,000 shall be for the Community Outreach Partnership program; $16,700,000 shall be for grants pursuant to section 11 of the Housing Opportunity Program Extension Act of 1996 (Public Law 104–120)¿ $20,000,000 shall be provided to Habitat for Humanity: Provided further, That not to exceed 20 percent of any grant made with funds appropriated herein (other than øa grant made available under the preceding proviso to the Housing Assistance Council or the National American Indian Housing Council, or¿ a grant using funds under section 107(b)(3) of the Housing and Community Development Act of 1974, as amended) shall be expended for ‘‘Planning and Management Development’’ and ‘‘Administration’’ as defined in regulations promulgated by the Department. øOf the amount made available under this heading, $15,000,000 shall be made available for ‘‘Capacity Building for Community Development and Affordable Housing’’, as authorized by section 4 of the HUD Demonstration Act of 1993 (Public Law 103–120), as in effect immediately before June 12, 1997, with not less than $5,000,000 of the funding to be used in rural areas, including tribal areas.¿ Of the amount provided under this heading, the Secretary of Housing and Urban Development may use up to $55,000,000 for a public and assisted housing self-sufficiency program, of which øup to $5,000,000 may be used for the Moving to Work Demonstration, and¿ at least $7,000,000 shall be used for grants for service coordinators and congregate services for the elderly and disabled: Provided, That for self-sufficiency activities, the Secretary may make grants to public housing agencies (including Indian tribes and their tribally designated housing entities), nonprofit corporations, and other appropriate entities for a supportive services program to assist residents of public and assisted housing, former residents of such housing receiving tenant-based assistance under section 8 of such Act (42 U.S.C. 1437f), and other low-income families and individuals: Provided further, That the program shall provide supportive services, principally for the benefit of public housing residents, to the elderly and the disabled, and to families with children where the head of household would benefit from the receipt of supportive services and is working, COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT seeking work, or is preparing for work by participating in job training or educational programs: Provided further, That the supportive services may include congregate services for the elderly and disabled, service coordinators, and coordinated education, training, and other supportive services, including øacademic¿ Case management skills training, job search assistance, assistance related to retaining employment, vocational and entrepreneurship development and support programsø,¿ such as transportation, and child care: Provided further, That the Secretary shall require applications to demonstrate firm commitments of funding or services from other sources: Provided further, That the Secretary shall select public and Indian housing agencies to receive assistance under this heading on a competitive basis, taking into account the quality of the proposed program, including any innovative approaches, the extent of the proposed coordination of supportive services, the extent of commitments of funding or services from other sources, the extent to which the proposed program includes reasonably achievable, quantifiable goals for measuring performance under the program over a three-year period, the extent of success an agency has had in carrying out other comparable initiatives, and other appropriate criteria established by the Secretary (except that this proviso shall not apply to renewal of grants for service coordinators and congregate services for the elderly and disabled). øOf the amount made available under this heading, notwithstanding any other provision of law, $35,000,000 shall be available for YouthBuild program activities authorized by subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act, as amended, and such activities shall be an eligible activity with respect to any funds made available under this heading. Local YouthBuild programs that demonstrate an ability to leverage private and nonprofit funding shall be given a priority for YouthBuild funding.¿ øOf the amount made available under this heading, $25,000,000 shall be available for the Secretary, in consultation with the Secretary of Agriculture, to make grants, not to exceed $4,000,000 each, for rural and tribal areas, including at least one Native American area in Alaska and one rural area in each of the States of Iowa and Missouri, to test comprehensive approaches to developing a job base through economic development, developing affordable low- and moderate-income rental and homeownership housing, and increasing the investment of both private and nonprofit capital.¿ øOf the amount made available under this heading, $138,000,000 shall be available for the Economic Development Initiative (EDI) to finance a variety of efforts, including $100,000,000 for making grants for targeted economic investments in accordance with the terms and conditions specified for such grants in the conference report and the joint explanatory statement of the committee of conference accompanying this Act.¿ øOf the amount made available under this heading, notwithstanding any other provision of law, $60,000,000 shall be available for the lead-based paint hazard reduction program as authorized under sections 1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992.¿ øOf the amount made available under this heading, $25,000,000, including $15,000,000 for the County of San Bernardino, California, shall be used for neighborhood initiatives that are utilized to improve the conditions of distressed and blighted areas and neighborhoods, and to determine whether housing benefits can be integrated more effectively with welfare reform initiatives.¿ Of the amount made available under this heading, $100,000,000 shall be for Regional Connections, for grants to facilitate existing and new coordinated regional approaches to economic growth, housing, and community development, and to encourage and stimulate the development of coordinated regional strategies that promote economic empowerment of a region’s low- and moderate-income residents: Provided, That such grants shall be made to entities eligible under title I of the Housing and Community Development Act of 1974, for activities which may be assisted under section 105 of such Act. For the cost of guaranteed loans, $29,000,000, as authorized by section 108 of the Housing and Community Development Act of 1974: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $1,261,000,000, notwithstanding any aggregate limitation on outstanding obligations guaranteed in section 108(k) of the Housing and Community Development Act of 1974. In addition, for administrative expenses to carry out the guaranteed loan pro- 449 gram, $1,000,000, which shall be transferred to and merged with the appropriation for departmental salaries and expenses. øOf the $500,000,000 made available under the heading ‘‘Community Development Block Grants Fund’’ in the 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia (Public Law 105–18), not more than $3,500,000 shall be made available for the non-Federal cost-share for a levee project at Devils Lake, North Dakota: Provided, That the Secretary of Housing and Urban Development shall provide the State of North Dakota with a waiver to allow the use of its annual Community Development Block Grant allocation for use in funding the non-Federal cost-share for a levee project at Devils Lake, North Dakota: Provided further, That notwithstanding any other provision of law, the Secretary is prohibited from providing waivers, other than those provided herein, for funds in excess of $100,000 in emergency Community Development Block Grants funds for the non-Federal cost-share of projects funded by the Secretary of the Army through the Corps of Engineers.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0162–0–1–451 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Community development ................................................ 4,804 5,701 4,725 10.00 Total obligations (object class 41.0) ........................ 4,804 5,701 4,725 726 4,854 777 ................... 4,924 4,725 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 22.30 Unobligated balance expiring ........................................ 21.40 23.90 23.95 24.40 40.00 40.15 40.79 42.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 2 ................... ................... –1 ................... ................... 5,581 –4,804 5,701 –5,701 4,725 –4,725 777 ................... ................... New budget authority (gross), detail: Appropriation .................................................................. 4,600 4,675 4,725 Appropriation (emergency) ............................................. 250 250 ................... Line item veto cancellation ........................................... ................... –1 ................... Transferred from other accounts ................................... 4 ................... ................... 43.00 Appropriation (total) .................................................. 4,854 4,924 4,725 70.00 Total new budget authority (gross) .......................... 4,854 4,924 4,725 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 72.40 8,512 8,793 9,505 4,804 5,701 4,725 –4,517 –4,989 –4,959 –4 ................... ................... –2 ................... ................... 8,793 9,505 9,271 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 194 4,323 98 4,891 95 4,864 87.00 Total outlays (gross) ................................................. 4,517 4,989 4,959 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 4,854 4,517 4,924 4,989 4,725 4,959 Title I of the Housing and Community Development Act of 1974, as amended, authorizes the Secretary to make grants to units of general local government and States to fund local community development programs. Funds are allocated to Indian tribes and, on an entitlement basis, to metropolitan cities and urban counties which receive their grants using the higher of two objective formulas. States and small cities are also allocated a portion of the available funds. The proposed level of funding for CDBG and the Sec- 450 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued General and special funds—Continued COMMUNITY DEVELOPMENT BLOCK GRANTS—Continued (INCLUDING TRANSFERS OF FUNDS)—Continued tion 108 Loan Guarantee Program will support an estimated 276,000 jobs. These funds will also help to rehabilitate 171,100 housing units. Section 107 Grants include funding for Insular Areas, technical assistance, Historically Black Colleges and Universities, management information systems support, and the Community Development Work Study and Community Outreach Partnership programs. Habitat for Humanity International would use this funding to undertake innovative homeownership opportunities through the provision of self-help housing, under which a homeowner would contribute a significant amount of sweat equity toward the construction of the new dwelling. These decent, safe and sanitary nonluxury dwellings must be made available to eligible homeowners at prices below prevailing market prices. Eligible activities include land acquisition (including financing and closing costs) and infrastructure improvement (installing, extending, constructing, rehabilitating or otherwise improving utilities and other infrastructure). The 1999 request includes funding of $55 million for the Resident Opportunity and Supportive Services (ROSS) program. Formerly called the Economic Development and Supportive Services (EDSS) and Tenant Opportunity Program (TOP) programs, ROSS is intended to fuse the objectives of the two predecessor programs. The program will also address the expanded needs among residents and housing authorities brought upon by welfare reform legislation that sets time limits on how long recipients can receive welfare assistance. Principally for the benefit of public housing residents, ROSS grants are intended to assist the elderly and disabled, and families with children where the head of the household is working, seeking work, or participating in job training or educational programs. Eligible services under ROSS include academic skills training, residential management, microenterprise and small business development and start-ups, and social service support programs. The Regional Connections initiative will make funds available to States and localities to develop and implement strategic plans that address key regional issues facing the nation’s metropolitan areas and rural communities. The initiative will help communities address the significant demographic and economic shifts that are taking place in metropolitan regions by encouraging regional strategies that emphasize coordinated metropolitan economic growth and regional solutions to a range of environmental and social equity issues. The initiative will enable communities to address one or more of the following topics: regional economic development strategies, that tap the competitive advantage or location efficiency of the inner city; sustainable growth or compact development strategies; regional job training and access to work initiatives; regional affordable housing strategies; or, other regional concerns identified by communities themselves. Proposed outcomes include: strengthened partnerships between city and suburban governments and their private sector partners; enhanced regional coordination of Federal resources and planning requirements; expanded use of HUD’s existing Consolidated Planning process; and, increased community capacity to implement more comprehensive, regional solutions to local problems. Funds for this initiative will be distributed by competition and are intended to: (1) maximize local innovation and creativity; (2) maximize participation by local partners, including multiple jurisdictions and private sector and community stakeholders; and, (3) maximize and enhance coordination with existing planning and regional development efforts. HUD will undertake this initiative in close cooperation with other THE BUDGET FOR FISCAL YEAR 1999 Federal agencies and will utilize the expertise of an Advisory Board of distinguished urban planners, economists and regional experts to implement the program. ECONOMIC DEVELOPMENT INITIATIVE For grants for the Economic Development Initiative (EDI), as authorized by section 108(q) of the Housing and Community Development Act of 1974, to finance a variety of economic development efforts, $400,000,000, to remain available until expended. Program and Financing (in millions of dollars) Identification code 86–0173–0–1–451 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Economic development .................................................. ................... ................... 400 10.00 Total obligations (object class 41.0) ........................ ................... ................... 400 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 400 –400 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 400 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. ................... ................... 392 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 8 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 400 8 73.10 73.20 74.40 400 –8 Funding requested for the Economic Development Initiative (EDI)/Community Empowerment Fund (CEF) will support the financing for a variety of economic development efforts, in tandem with the existing Section 108 guaranteed loan program, to facilitate and encourage use of the Section 108 Program by State and local governments. The purpose of the EDI program is to help communities enhance the security of the Section 108 guaranteed loans and to improve the viability of projects financed with these loans. The EDI/CEF financing will support new jobs, thereby assisting former welfare recipients to successfully move from welfare to work. It will be used in conjunction with Section 108 Loan Guarantees to support a variety of employmentgenerating investments, including: (1) revolving loan funds for business expansion or modernization; (2) startup funds for new, small- and medium-sized businesses; (3) preservation and expansion of new and existing industrial facilities; (4) neighborhood-based commercial revitalization efforts; and, (5) regional economic strategies. The 1999 request of $400 million will leverage an estimated $2 billion in private sector loans and will support an estimated 280,000 jobs when projects are completed. The EDI/CEF grants will include mechanisms to: (1) assist state and local governments to standardize the underwriting and documentation of loans to businesses in distressed areas; (2) expand credit for economic and community development lending; (3) augment communities’ underwriting and loan servicing capacity; and, (4) use funds more efficiently for credit enhancement. These mechanisms will help reduce risk to the communities’ and States’ CDBG program funds and remove the impediments to the use of Section 108. In 1998, Congress provided $138 million for EDI, including $100 million for Congressionally earmarked projects. The Administration has objected repeatedly to the inclusion of earmarked projects in Appropriations Acts. The Administration COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT urges the Congress to permit a merit selection process for all communities for EDI grants in 1999. øEMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES¿ URBAN EMPOWERMENT ZONES øFor planning grants, technical assistance, contracts and other assistance, and training in connection with Empowerment Zones and Enterprise Communities, designated by the Secretary of Housing and Urban Development, to continue efforts to stimulate economic opportunity in America’s distressed communities, $5,000,000, to remain available until expended.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) 1997 actual Identification code 86–0315–0–1–451 1998 est. URBAN EMPOWERMENT ZONES (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) Obligations by program activity: Develop urban sites ....................................................... ................... 5 ................... 10.00 Total obligations (object class 41.0) ........................ ................... 5 ................... 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... New obligations ............................................................. ................... 5 ................... –5 ................... New budget authority (gross), detail: 40.00 Appropriation .................................................................. ................... 5 ................... ................... ................... 5 ................... 5 ................... ................... ................... –2 5 89.00 90.00 1999 est. 150 10.00 Total obligations (object class 41.0) ........................ ................... ................... 150 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 150 –150 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 150 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. ................... ................... 147 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 3 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 150 3 73.10 73.20 74.40 3 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... ................... ................... 1998 est. Obligations by program activity: Urban empowerment zones ............................................ ................... ................... 72.40 ................... 1997 actual 00.01 1999 est. 00.01 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. financing of projects in conjunction with the Section 108 loan guarantee program and other economic development projects; support for project-based rental assistance; and, financing other housing activities. Preliminary reports indicate that the Round I EZ’s are stimulating billions of dollars in private investment, reviving inner city neighborhoods once given up for dead, and supporting jobs and helping families move from welfare to work. The second round will build on these successes. Identification code 86–0315–4–1–451 Program and Financing (in millions of dollars) 451 2 Net budget authority and outlays: Budget authority ............................................................ ................... 5 ................... Outlays ........................................................................... ................... ................... 2 150 –3 In 1999, the Administration is proposing mandating funding of $150 million a year (for 10 years) for this program. Summary of Budget Authority and Outlays BROWNFIELDS REDEVELOPMENT (in millions of dollars) For Economic Development Grants, as authorized by section 108(q) of the Housing and Community Development Act of 1974, as amended, for Brownfields redevelopment projects, ø$25,000,000¿ $50,000,000, to remain available until expended: Provided, That the Secretary of Housing and Urban Development shall make these grants available on a competitive basis as specified in section 102 of the Department of Housing and Urban Development Reform Act of 1989. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Enacted/requested: Budget Authority ..................................................................... Outlays .................................................................................... Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... Outlays .................................................................................... 1997 actual 1998 est. 1999 est. .................... 5 .................... .................... .................... 2 .................... .................... .................... .................... 150 3 Total: Budget Authority ..................................................................... .................... 5 Outlays .................................................................................... .................... .................... 150 5 Program and Financing (in millions of dollars) The goal of the Empowerment Zone (EZ) initiative is to revitalize city neighborhoods in a way that will retain and attract middle-class residents and provide employment opportunities that will move people from welfare to work. Grant funds will allow the 15 new urban EZs that were authorized by the Taxpayer Relief Act of 1997, in accordance with their strategic plans, to create economic opportunity in America’s distressed communities, with a special emphasis on stimulating job creation linked to welfare reform. Flexible grant funds will be used to integrate human capital needs with economic development initiatives. Funding will be available for a broad range of activities aimed at assisting residents, businesses and organizations in urban EZs, including: community policing; health care; neighborhood development; brownfields clean-up and redevelopment; support for financing of capital projects; education; work force preparation and job creation efforts linked to welfare reform; repayment of debt financing by municipal bonds; Identification code 86–0314–0–1–451 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Cleanup and develop contaminated sites ..................... ................... 25 50 10.00 Total obligations (object class 41.0) ........................ ................... 25 50 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... New obligations ............................................................. ................... 25 –25 50 –50 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... 25 50 ................... ................... ................... 25 ................... –1 24 50 –10 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 72.40 ................... 24 64 452 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued BROWNFIELDS REDEVELOPMENT—Continued Program and Financing (in millions of dollars)—Continued Identification code 86–0314–0–1–451 86.90 86.93 1997 actual 1998 est. 1999 est. Outlays (gross), detail: Outlays from new current authority .............................. ................... 1 Outlays from current balances ...................................... ................... ................... 1 9 87.00 Total outlays (gross) ................................................. ................... 1 10 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... 25 1 50 10 The Brownfields Redevelopment program was first provided an initial appropriation of $25 million in 1998. The $50 million request for FY 1999 represents an acceleration of the President’s commitment to help communities clean up and redevelop the approximately 450,000 brownfields sites nationwide. This level of funding is expected to leverage $200 million in Section 108 loan guarantee commitments, which will support more than 28,000 jobs. This program provides competitive economic development grants in conjunction with Section 108 loan guarantees for qualified brownfield projects. Eligible communities will be invited to submit proposals to return contaminated sites to productive and employment-generating uses, with an emphasis on creating substantial numbers of jobs for lower-income people in physically and economically distressed neighborhoods. Grants will be made in accordance with section 108(q) selection criteria and such other criteria deemed appropriate for brownfield projects, including the extent to which an applicant is currently operating a brownfields program and is working with appropriate environmental regulatory agencies. Priority would be given to those projects that are located in designated Empowerment Zones or Enterprise Communities. HOMEOWNERSHIP ZONES mately five zones at an average of $5 million each, and would create 1,500 new homeowners. The Homeownership Zones program will provide flexible grants on a competitive basis to local governments for large-scale redevelopment of abandoned neighborhoods to create viable communities of mixed income homebuyers. Applications will be evaluated on specific criteria, such as the degree to which the proposed activities meet the goal of the program, the financial soundness of the proposals, level of economic distress of the area to be served, and the capacity of applicants to carry out the proposal. Funds will be used to create new housing opportunities in distressed areas. Eligible activities will include: property acquisition; housing construction; housing rehabilitation; demolition; site preparation; homeownership counseling; relocation; housing marketing; activities to further fair housing; and, other activities essential to homeownership. YOUTHBUILD PROGRAM For the Hope for Youth: Youthbuild program, authorized by subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act, as amended, $45,000,000, to remain available until expended. Program and Financing (in millions of dollars) Identification code 86–0219–0–1–604 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Youth training ................................................................ 3 ................... 45 10.00 Total obligations (object class 41.0) ........................ 3 ................... 45 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 3 ................... ................... 22.00 New budget authority (gross) ........................................ ................... ................... 45 21.40 23.90 23.95 40.00 Total budgetary resources available for obligation New obligations ............................................................. 3 ................... –3 ................... 45 –45 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 45 (Legislative proposal, not subject to PAYGO) Program and Financing (in millions of dollars) Identification code 86–0323–2–1–451 1997 actual Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 72.40 1998 est. 1999 est. 00.01 Obligations by program activity: Develop homeownership ................................................. ................... ................... 25 10.00 Total obligations (object class 41.0) ........................ ................... ................... Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 25 –25 5 45 –5 25 22.00 23.95 43 13 3 ................... –32 –8 New budget authority (gross), detail: 40.00 Appropriation .................................................................. ................... ................... 73.10 73.20 74.40 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. ................... ................... 25 25 –1 24 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 1 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 25 1 The 1999 request includes $25 million for Homeownership Zones in 1999. This level of funding would support approxi- 13 5 45 32 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 8 5 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... 32 8 45 5 This program provides resources to educate, train, and provide stipends for economically disadvantaged young adults through their participation in the construction and rehabilitation of housing for low-income and homeless persons. The program has expanded the supply of affordable housing and, at the same time, has enabled high school dropouts to obtain the education and employment skills necessary to achieve self-sufficiency. The 1999 request will provide 5,000–6,000 young people with skills they need to get jobs and will provide 750–800 families with homes in distressed communities. For 1996 through 1998, funding for the Youthbuild program was included in the Community Development Block Grants account. COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 74.40 HOME INVESTMENT PARTNERSHIPS PROGRAM øINCLUDING TRANSFER OF FUNDS¿ For the HOME investment partnerships program, as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101–625), as amended, ø$1,500,000,000¿ $1,883,000,000, to remain available until expended: Provided, That $1,550,000,000 shall be for grants under the HOME Investment Partnerships Program,ø:¿ øProvided, That¿ including up to $7,000,000 øshall be available¿ for the development and operation of integrated community development management information systemsø: Provided further, That¿, and including $25,000,000 øshall be available¿ for Housing Counseling under section 106 of the Housing and Urban Development Act of ø1968: Provided further, That up to $10,000,000 shall be available to carry out a demonstration program in which the Secretary makes grants to up to three organizations exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code, selected on a competitive basis, to demonstrate methods of expanding homeownership opportunities for low-income borrowers through expanding the secondary market for non-conforming home mortgage loans to low-wealth borrowers: Provided further, That grantees for such demonstration program shall have experience in working with lenders who make non-conforming loans to low-income borrowers, have experience in expanding the secondary market for such loans, have demonstrated success in carrying out such activities including raising non-Federal grants and capital on concessionary terms for the purpose of expanding the secondary market for loans in the previous two years in amounts equal to or exceeding the amount awarded to such organization under this paragraph, and have demonstrated the ability to provide data on the performance of such loans sufficient to allow for future analysis of the investment risk of such loans¿ 1986: Provided further, That $159,000,000 shall be available for housing for the elderly under a formula block grant program, including funds for capital advance contracts and project rental assistance: Provided further, That $50,000,000 shall be used to provide tenant-based assistance for the elderly under section 8(o) of the United States Housing Act of 1937: Provided further, That $174,000,000 shall be available for a grant program, including amendments to capital advance contracts and project rental assistance, for housing for persons with disabilities, of which at least 25 percent will be designated by the Secretary for tenant-based assistance for persons with disabilities under section 8(o) of the United States Housing Act of 1937. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998; additional authorizing legislation required.) Program and Financing (in millions of dollars) Identification code 86–0205–0–1–604 00.01 00.02 00.03 00.04 10.00 1997 actual 1998 est. Obligations by program activity: HOME grants .................................................................. 1,373 1,697 Elderly program .............................................................. ................... ................... Disabled program .......................................................... ................... ................... Elderly vouchers ............................................................. ................... ................... Total obligations (object class 41.0) ........................ 1,373 1,697 1999 est. 1,550 109 174 50 1,883 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 182 210 ................... 22.00 New budget authority (gross) ........................................ 1,400 1,500 1,883 22.10 Resources available from recoveries of prior year obligations ....................................................................... 1 ................... ................... 22.21 Unobligated balance transferred to other accounts ................... –13 ................... 21.40 23.90 23.95 24.40 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New budget authority (gross), detail: Appropriation .................................................................. 1,583 –1,373 1,697 –1,697 1,883 –1,883 210 ................... ................... 1,400 1,500 86.90 86.93 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 3,511 3,614 3,972 Outlays (gross), detail: Outlays from new current authority .............................. ................... Outlays from current balances ...................................... 1,211 30 1,529 31 1,494 87.00 Total outlays (gross) ................................................. 1,211 1,559 1,525 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1,400 1,211 1,500 1,559 1,883 1,525 The HOME Investment Partnership program is authorized by the National Affordable Housing Act (P.L. 101–625). This program provides assistance to States and units of local government, through formula allocation, for the purpose of expanding the supply and affordability of housing. Eligible activities include acquisition, rehabilitation, and new construction of housing and tenant-based rental assistance. The 1999 request of $1.550 billion will result in the production of 78,500 units of affordable housing through new construction, rehabilitation, or acquisition. In addition, tenant-based rental assistance will be provided for 11,200 units. Funding is included for a new component of the HOME program, integrating housing assistance for the elderly and disabled into the HOME account. The consolidated program will include project-based assistance through the current nonprofit delivery system. For the elderly, a total of $159 million is proposed, including $50 million to fund an estimated 8,839 section 8 vouchers and 1,938 new units for the elderly. For persons with disabilities, $174 million is proposed, of which at least 25 percent shall be used for tenant-based rental assistance in order to provide 3,118 units for the disabled. The HOME request also includes up to $7 million to continue to develop, implement and refine integrated community development management information systems in order to establish a national database of local programs. Funding for technical assistance is also included. HOMELESS ASSISTANCE GRANTS øFor the emergency shelter grants program (as authorized under subtitle B of title IV of the Stewart B. McKinney Homeless Assistance Act, as amended); the supportive housing program (as authorized under subtitle C of title IV of such Act); the section 8 moderate rehabilitation single room occupancy program (as authorized under the United States Housing Act of 1937, as amended) to assist homeless individuals pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act; and the shelter plus care program (as authorized under subtitle F of title IV of such Act), $823,000,000, to remain available until expended.¿ For grants to States, units of general government, nonprofit organizations, or public housing authorities, and for related expenses not otherwise provided for, to carry out a comprehensive homeless assistance program that emphasizes performance, $1,150,000,000, to remain available until expended, of which $192,000,000 shall be for section 8 rental assistance under the United States Housing Act of 1937 (42 U.S.C. 1437): Provided, That up to one percent of the funds provided shall be available to the Secretary for technical assistance: Provided further, That the Secretary may determine not to apply section 8(o)(6)(B) of the Act to housing vouchers funded under this account heading during fiscal year 1999. (Additional authorizing legislation required.) (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) 1,883 Identification code 86–0192–0–1–604 Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 3,350 3,511 3,614 73.10 New obligations ............................................................. 1,373 1,697 1,883 73.20 Total outlays (gross) ...................................................... –1,211 –1,559 –1,525 73.31 Obligated balance transferred to other accounts ......... ................... –35 ................... 73.45 Adjustments in unexpired accounts .............................. –1 ................... ................... 453 00.01 00.02 10.00 1997 actual 1998 est. Obligations by program activity: Homeless assistance grants .......................................... 758 1,778 Homeless vouchers ........................................................ ................... ................... Total obligations (object class 41.0) ........................ 758 1,778 1999 est. 958 192 1,150 454 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued housing will allow HUD to assist even more homeless persons through existing emergency and transitional programs. HOMELESS ASSISTANCE GRANTS—Continued Program and Financing (in millions of dollars)—Continued Identification code 86–0192–0–1–604 1997 actual 1998 est. URBAN DEVELOPMENT ACTION GRANTS 1999 est. Program and Financing (in millions of dollars) Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New budget authority (gross), detail: 40.00 Appropriation .................................................................. 888 823 955 ................... 823 1,150 1 ................... ................... 1,712 –758 1,778 –1,778 1,150 –1,150 Identification code 86–0170–0–1–451 22.00 22.10 23.90 955 ................... ................... 41.00 823 823 Budgetary resources available for obligation: New budget authority (gross) ........................................ Resources available from recoveries of prior year obligations ....................................................................... 1997 actual 1998 est. 1999 est. –4 ................... ................... 4 ................... ................... Total budgetary resources available for obligation ................... ................... ................... New budget authority (gross), detail: Transferred to other accounts ....................................... –4 ................... ................... 1,150 Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 857 1,294 2,461 73.10 New obligations ............................................................. 758 1,778 1,150 73.20 Total outlays (gross) ...................................................... –319 –609 –798 73.31 Obligated balance transferred to other accounts ......... ................... –2 ................... 73.45 Adjustments in unexpired accounts .............................. –1 ................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1,294 2,461 2,813 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 41 278 41 568 67 731 87.00 Total outlays (gross) ................................................. 319 609 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 72.40 136 102 52 –30 –50 –30 –4 ................... ................... 102 52 22 50 30 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 30 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... –4 ................... ................... 30 50 30 798 Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 823 319 823 609 1,150 798 The Homeless Assistance Grants program consolidates the activities of HUD’s six McKinney homeless assistance programs—Shelter Plus Care, Supportive Housing, Emergency Shelter Grants, Section 8 Single Room Occupancy, Rural Homeless Grants and Safe Havens—as well as those of the Innovative Homeless Initiatives Demonstration program. This consolidation enables localities to continue to shape and implement comprehensive, flexible, coordinated ‘‘continuum of care’’ approaches to solving rather than institutionalizing homelessness. In fact, over the last four years, many communities have made great strides in developing holistic continuum of care approaches to solving homelessness. A community-based process is required as part of the application process. Communities are required to include in their applications performance measures that contain specific goals that would accrue from the community’s efforts, and are required to demonstrate tangible results on an annual basis. Requested funding would be available for a wide range of activities to assist homeless persons and prevent future homelessness. The 1999 request will provide between 125,000–140,000 transitional and 59,000–62,500 permanent housing beds. Funding is also requested for technical assistance to provide needed assistance to grantees in resolving problems that hinder successful project completion and implementation. Funding for incremental housing vouchers will be used to provide permanent housing vouchers for up to 34,000 families or individuals who have achieved a sufficient level of independence to move to permanent housing linked to services. These vouchers will offer the ongoing assistance so desperately needed to help move homeless people into the housing mainstream when they are ready to do so. These vouchers are intended for homeless individuals and families who would otherwise have the most difficult time in securing permanent housing resources, as determined through the approved Continuum of Care strategy. Helping them secure permanent Title I of the Housing and Community Development Act of 1974, as amended, authorized grants to distressed cities and distressed urban counties to fund economic development projects. The program was terminated in 1990. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AFFORDABLE HOUSING AND Program and Financing (in millions of dollars) Identification code 86–0222–0–1–451 00.01 10.00 1997 actual 1998 est. 1999 est. Obligations by program activity: Build capacity of community development organizations ........................................................................... ................... 30 ................... Total obligations (object class 41.0) ........................ ................... 30 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. ................... 30 ................... 22.00 New budget authority (gross) ........................................ 30 ................... ................... 21.40 23.90 23.95 24.40 42.00 Total budgetary resources available for obligation 30 30 ................... New obligations ............................................................. ................... –30 ................... Unobligated balance available, end of year: Uninvested ................................................................. 30 ................... ................... New budget authority (gross), detail: Transferred from other accounts ................................... 30 ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 13 73.10 New obligations ............................................................. ................... 73.20 Total outlays (gross) ...................................................... –8 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 5 72.40 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 8 5 23 30 ................... –12 –15 23 8 12 15 30 ................... ................... 8 12 15 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT As authorized by section 4 of the HUD Demonstration Act of 1993, this program provides funding to the National Community Development Initiative to build the capacity of community-based development corporations and housing development organizations, and to assist such corporations and organizations to carry out community development and affordable housing activities. Funding for this program was provided under the Annual Contributions for Assisted Housing account in 1996. Public Law 105–18 amended authorizing legislation to include additional eligible recipients and provided funding for this program through a transfer from the Homeownership and Opportunity for People Everywhere Grants account in 1997. Public Law 105–65 provided funding for this program under the Community Development Block Grant Account in 1998. No funding is being requested for 1999. EMERGENCY SHELTER GRANTS PROGRAM Program and Financing (in millions of dollars) Identification code 86–0181–0–1–604 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1997 actual 1998 est. 1999 est. 72.40 6 –4 2 ................... –2 ................... 2 ................... ................... 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 72.40 2 ................... Title IV, subtitle B, of the Stewart B. McKinney Homeless Assistance Act (Public Law 100–77) authorizes the Secretary to make Emergency Shelter Grants to States and units of local government to provide emergency shelter and other support for the homeless. Since 1995, this assistance has been funded under the Homeless Assistance Grants account. 462 15 –159 –3 315 182 19 ................... –146 –112 –6 ................... 315 182 70 159 146 112 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... 159 –6 ................... 146 112 Title IV, subtitle C, of the Stewart B. McKinney Homeless Assistance Act authorizes assistance to promote the development of supportive housing and services, especially for: deinstitutionalized homeless individuals; homeless families with children; homeless individuals with mental disabilities; and other persons including those with AIDS. Such assistance is available for the acquisition, rehabilitation, construction, or leasing of structures to be used for homeless persons as well as to pay for operating costs and supportive services. Since 1995, this type of assistance has been funded under the Homeless Assistance Grants account. Public Law 105–65 included a $6 million rescission of funding, recaptured in 1998, for approved projects from prior years which were either not undertaken or utilized less funding than was originally obligated. Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 4 2 ................... 4 455 SUPPLEMENTAL ASSISTANCE FOR FACILITIES TO ASSIST HOMELESS THE Program and Financing (in millions of dollars) Identification code 86–0187–0–1–451 1997 actual 1998 est. 1999 est. øOf the funds made available under this heading in Public Law 102–389 and prior laws for the Supportive Housing Demonstration Program, as authorized by the Stewart B. McKinney Homeless Assistance Act, $6,000,000 of funds recaptured during fiscal year 1998 shall be rescinded.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0188–0–1–604 1997 actual 1998 est. 1999 est. Obligations by program activity: 00.01 Homelessness prevention ............................................... 15 15 19 ................... 1 ................... Total obligations (object class 41.0) ........................ ................... 1 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 1 1 ................... 23.95 New obligations ............................................................. ................... –1 ................... 24.40 Unobligated balance available, end of year: Uninvested ................................................................. 1 ................... ................... 21.40 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 3 1 73.10 New obligations ............................................................. ................... 1 73.20 Total outlays (gross) ...................................................... –2 –2 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1 ................... 72.40 ................... ................... ................... ................... 19 ................... 10.00 Obligations by program activity: Homelessness prevention ............................................... ................... 10.00 SUPPORTIVE HOUSING PROGRAM 00.01 Total obligations (object class 41.0) ........................ Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 31 22.00 New budget authority (gross) ........................................ ................... 22.10 Resources available from recoveries of prior year obligations ....................................................................... 3 21.40 23.90 23.95 24.40 40.36 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 34 –15 19 ................... –6 ................... 6 ................... 19 ................... –19 ................... 19 ................... ................... New budget authority (gross), detail: Unobligated balance rescinded ..................................... ................... –6 ................... 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 2 2 ................... 2 2 ................... Title IV, subtitle D, of the Stewart B. McKinney Homeless Assistance Act authorized the Supplemental Assistance for Facilities To Assist the Homeless program (SAFAH) to provide comprehensive assistance for particularly innovative programs or alternative methods of meeting the immediate and long-term needs of the homeless. The authority for the SAFAH program was terminated by section 1403 of the Housing and Community Development Act of 1992. 456 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued 89.00 90.00 SHELTER PLUS CARE øOf the funds made available under this heading in Public Law 102–389 and prior laws for the Shelter Plus Care program, as authorized by the Stewart B. McKinney Homeless Assistance Act, $4,000,000 of funds recaptured during fiscal year 1998 shall be rescinded.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0204–0–1–604 1997 actual 1998 est. Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 21 17 14 Section 2 of the HUD Demonstration Act of 1993 authorized assistance for projects intended to provide a continuum of care for homeless persons and for innovative programs to assist homeless persons. Eligible recipients included States, units of local government, Indian tribes, and nonprofit organizations. Authorization for this program expired at the end of 1994. 1999 est. 00.01 Obligations by program activity: Homelessness prevention ............................................... 8 10 ................... 10.00 Total obligations (object class 41.0) ........................ 8 10 ................... Public enterprise funds: REVOLVING FUND (LIQUIDATING PROGRAMS) Program and Financing (in millions of dollars) Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested ................................................................. 16 22.00 New budget authority (gross) ........................................ ................... 22.10 Resources available from recoveries of prior year obligations ....................................................................... 2 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 18 –8 Identification code 86–4015–0–3–451 10 ................... –4 ................... 4 ................... 10 ................... –10 ................... 10 ................... ................... 09.01 09.02 09.03 10.00 1997 actual 1998 est. Obligations by program activity: Loan servicing ................................................................ 5 Maintenance of acquired security and collateral ......... ................... Administrative expenses ................................................ 1 Total obligations ........................................................ Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 22.40 Capital transfer to general fund ................................... 1999 est. 7 6 1 7 6 1 6 14 14 97 71 103 60 89 55 21.40 40.36 New budget authority (gross), detail: Unobligated balance rescinded ..................................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. –4 ................... 72.40 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... 89.00 90.00 419 8 –58 –2 367 326 10 ................... –47 –49 –4 ................... 367 326 23.90 23.95 24.40 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... 58 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 109 –6 103 –14 89 –14 103 89 75 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 71 60 55 277 68.00 58 1 ................... ................... –60 –60 –55 47 49 –4 ................... 47 49 Title IV, subtitle F, of the Stewart B. McKinney Homeless Assistance Act authorizes the Secretary to provide rental assistance to persons with disabilities. Supportive services at least equal in value to the aggregate rental assistance must also be provided by grant recipients using other Federal, State, local and private resources. Eligible recipients include States and units of general local government. Since 1995, this type of assistance has been funded under the Homeless Assistance Grants account. Public Law 105–65 included a $4 million rescission of funding, recaptured in 1998, for approved projects from prior years which were either not undertaken or utilized less funding than was originally obligated. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 72.40 27 19 9 6 14 14 –14 –24 –23 –1 ................... ................... 19 9 ................... Outlays (gross), detail: Outlays from permanent balances ................................ 14 24 23 Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. –71 –60 –55 86.98 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –57 –36 –32 Status of Direct Loans (in millions of dollars) INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM Identification code 86–4015–0–3–451 Program and Financing (in millions of dollars) Identification code 86–0221–0–1–604 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1997 actual 1998 est. 1210 1251 1263 1999 est. 72.40 58 –21 37 –17 20 –14 37 20 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Repayments: Repayments and prepayments ................. Write-offs for default: Direct loans ............................... 1290 Outstanding, end of year .......................................... 6 21 17 1998 est. 1999 est. 328 271 231 –52 –40 –40 –5 ................... ................... 271 231 191 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4015–0–3–451 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... 1997 actual 14 2210 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. 1997 actual 3 1998 est. 1999 est. 2 1 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2251 Repayments and prepayments ...................................... –1 2290 Outstanding, end of year .......................................... 2 –1 2 1 ................... Budgetary resources available for obligation: New budget authority (gross) ........................................ Unobligated balance expiring ........................................ 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. 7 –7 30 –30 30 –30 40.00 New budget authority (gross), detail: Appropriation .................................................................. 32 30 30 1997 actual 9 7 –3 13 30 –16 27 30 –17 13 27 40 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1998 est. 1999 est. 0101 0102 Revenue ................................................... Expense .................................................... 31 –18 15 –12 14 –11 13 –10 0109 Net income or loss (–) ............................ 13 3 3 3 ASSETS: Federal assets: Fund balances with Treasury ............................................... Non-Federal assets: 1206 Receivables, net .................................. 1207 Advances and prepayments ................ Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............................. 1602 Interest receivable .............................. 1603 Allowance for estimated uncollectible loans and interest (–) .................... 1604 Direct loans and interest receivable, net .................................................. 1606 Foreclosed property ............................. Value of assets related to direct loans .......................................... 1999 Total assets ........................................ LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................................ 2207 Other ................................................... 2999 30 32 30 30 –25 ................... ................... 1997 actual 1998 est. 1999 est. 125 121 115 110 4 .................. 3 1 2 .................. 2 .................. 331 18 274 18 233 18 193 18 –25 –24 –20 –18 324 1 268 1 231 .................. 193 .................. 325 269 231 193 454 394 348 305 .................. 9 .................. 8 .................. 7 .................. 6 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3200 Invested capital ....................................... 3300 Cumulative results of operations ............ 9 8 7 6 28 301 116 25 172 189 23 126 192 21 83 195 3999 Total net position ................................ 445 386 341 299 4999 Total liabilities and net position ............ 454 394 348 305 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 1 2 5 11 5 14 87.00 1996 actual 1101 1699 30 86.90 86.93 Balance Sheet (in millions of dollars) Identification code 86–4015–0–3–451 7 72.40 Statement of Operations (in millions of dollars) 1996 actual Total obligations (object class 33.0) ........................ 1 ................... The Revolving fund (liquidating programs) was established by the Independent Offices Appropriation Act of 1955 for the efficient liquidation of assets acquired under a number of housing and urban development programs. Identification code 86–4015–0–3–451 10.00 22.00 22.30 Memorandum: 2299 Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ –1 457 Total outlays (gross) ................................................. 3 16 17 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 32 3 30 16 30 17 Guaranteed Loans.—The Community Development Block Grant program includes a guaranteed loan provision (Section 108). A commitment level of $1.3 billion is proposed for the Community Development Loan Guarantees (Section 108) program for 1999. The credit subsidy/administrative cost estimate for the guaranteed loan program is $30 million in 1999. Section 108 loan guarantees are used by entitlement and nonentitlement communities (assisted by their State), to cover the cost of: acquiring real property; rehabilitating publicly owned real property; housing rehabilitation; and, certain other economic development activities. In addition, Section 108 has, in some cases, been used to finance the construction of housing by nonprofit organizations. Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0198–0–1–451 1997 actual 1998 est. 1999 est. Guaranteed loan levels supportable by subsidy budget authority: 2150 Loan guarantee levels ................................................... 1,380 1,261 1,261 2159 1,380 1,261 1,261 2.30 2.30 2.30 2.30 2.30 2.30 31 29 29 31 29 29 2 15 16 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... 2329 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... Object Classification (in millions of dollars) Identification code 86–4015–0–3–451 1997 actual 1998 est. 1999 est. 2339 25.2 32.0 Other services ................................................................ Land and structures ...................................................... 1 5 6 8 6 8 99.9 Total obligations ........................................................ 6 14 14 COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT Program and Financing (in millions of dollars) Obligations by program activity: Community development loan guarantee credit subsidy ............................................................................ 00.09 Administrative expense .................................................. 1997 actual 1998 est. 1999 est. 00.02 6 1 29 1 29 1 2349 Total subsidy outlays ................................................ 2 15 16 3510 3590 Credit accounts: Identification code 86–0198–0–1–451 Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. Administrative expense data: Budget authority ............................................................ Outlays from new authority ........................................... 1 1 1 1 1 1 As required by the Federal Credit Reform Act of 1990, this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1992 and beyond (including modifications of direct loans or loan guarantees that resulted from obligations or commitments in any year), as well as administrative expenses of this program. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis. 458 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 Credit accounts—Continued COMMUNITY DEVELOPMENT LOAN GUARANTEES LIQUIDATING ACCOUNT COMMUNITY DEVELOPMENT LOAN GUARANTEES FINANCING ACCOUNT Program and Financing (in millions of dollars) Program and Financing (in millions of dollars) Identification code 86–4097–0–3–451 Identification code 86–4096–0–3–451 1997 actual 1998 est. 22.00 22.60 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested ................................................................. ................... 22.00 New financing authority (gross) .................................... 2 23.90 24.40 68.00 Total budgetary resources available for obligation Unobligated balance available, end of year: Uninvested ................................................................. New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 2 16 18 18 18 2 36 23.90 68.00 2 18 36 2 16 18 –15 –1 –16 –2 88.90 –16 Budgetary resources available for obligation: New budget authority (gross) ........................................ Redemption of debt ....................................................... New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... –2 Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... –2 –16 –18 2150 Total guaranteed loan commitments ........................ 4 –4 3 4 4 147 147 147 147 147 147 –3 –4 –4 1997 actual 1998 est. 1999 est. 1998 est. 1999 est. 1210 1251 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Repayments: Repayments and prepayments ................. 39 –3 36 –4 32 –4 1290 1997 actual Outstanding, end of year .......................................... 36 32 28 1,389 1,261 1,261 –1,111 ................... ................... 278 1,261 1,261 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4097–0–3–451 1997 actual 1998 est. 1999 est. Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... 633 189 –47 775 1,000 –135 1,640 1,000 –200 2290 Outstanding, end of year .......................................... 775 1,640 Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. 243 2231 Disbursements of new guaranteed loans ...................... ................... 2251 Repayments and prepayments ...................................... –45 198 10 –33 175 10 –30 2290 Outstanding, end of year .......................................... 198 175 155 2299 2210 2231 2251 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 198 175 155 2,440 Memorandum: 2299 Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 4 –4 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –3 –4 –4 Identification code 86–4097–0–3–451 Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2112 Uncommitted loan guarantee limitation ....................... 3 –3 Status of Direct Loans (in millions of dollars) Status of Guaranteed Loans (in millions of dollars) Identification code 86–4096–0–3–451 1999 est. Total budgetary resources available for obligation ................... ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. –18 89.00 90.00 1998 est. 72.40 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... –2 88.25 Interest on uninvested funds ............................... ................... Total, offsetting collections (cash) .................. 1997 actual 1999 est. 775 1,640 2,440 Guaranteed loans.—The Community Development Loan Guarantees program provides a mechanism for the Federal guarantee of private loans. There is an accompanying liquidating account which shows activity for Federal Financing Bank (FFB) direct loan activity, obligated prior to July 1, 1986. Also following is a status of privately financed guaranteed loan commitments made prior to 1992. As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loan guarantees committed in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account. As required by the Federal Credit Reform Act of 1990, this account records all cash flows to and from the Government resulting from Federal Financing Bank (FFB) direct loans for which loan guarantees were committed prior to 1992. This account is shown on a cash basis. Guaranteed loans.—Guaranteed loan assistance under the Community Development Loan Guarantees program is provided to eligible communities to finance economic development activities, housing rehabilitation, public facilities, acquisition of real property, rehabilitation of publicly owned real property, and certain related expenses. In the past, the FFB financed these guaranteed loans. The Consolidated Omnibus Budget Reconciliation Act of 1985 required private financing of all loan guarantees committed after July 1, 1986. FFB will continue disbursing loans for commitments approved prior to July 1, 1986. The activity shown in the above account reflects privately financed guaranteed loans for which commitments were made prior to 1992. HOUSING PROGRAMS Federal Funds DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Offsets: Against gross financing authority and financing disbursements: 88.00 Offsetting collections (cash) from: Federal sources ................... ................... HOME LOAN GUARANTEE PROGRAM ACCOUNT (Legislative proposal, not subject to PAYGO) Program and Financing (in millions of dollars) Identification code 86–0175–2–1–604 1997 actual 1998 est. 459 1999 est. 89.00 90.00 00.01 Obligations by program activity: Housing loan credit subsidy .......................................... ................... ................... Total obligations (object class 33.0) ........................ ................... ................... 11 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... ................... ................... –3 11 10.00 –3 11 –11 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 11 73.10 73.20 74.40 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. ................... ................... 1997 actual Identification code 86–4245–2–3–604 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... ................... 23.95 New obligations ............................................................. ................... ................... 40.00 Status of Guaranteed Loans (in millions of dollars) 11 –3 8 1998 est. 1999 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... 100 2150 100 2210 2231 2251 Total guaranteed loan commitments ........................ ................... ................... Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. ................... ................... ................... Disbursements of new guaranteed loans ...................... ................... ................... 27 Repayments and prepayments ...................................... ................... ................... ................... 89.00 90.00 2290 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... Outstanding, end of year .......................................... ................... ................... 27 2299 86.90 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... ................... 27 3 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 11 3 The HOME Loan Guarantee program will complement the existing HOME program. The proposal will authorize loan guarantees for up to five times a Participating Jurisdiction’s latest HOME allocation, and will enable the jurisdictions to formulate and implement neighborhood strategies to build or rehabilitate large numbers of units as a single undertaking within a short period of time. A loan guarantee option would greatly magnify the impact of HOME Federal housing dollars. As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loan guarantees committed in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account. Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0175–2–1–604 1997 actual 1998 est. HOUSING PROGRAMS 1999 est. Federal Funds Guaranteed loan levels supportable by subsidy budget authority: 2150 Loan guarantee levels ................................................... ................... ................... 100 2159 Total loan guarantee levels ...................................... ................... ................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... ................... ................... 100 11.00 2329 11.00 Weighted average subsidy rate ................................. ................... ................... Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... ................... ................... 2339 Total subsidy budget authority ................................. ................... ................... Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. ................... ................... General and special funds: 11 11 3 DEVELOPMENT OF ADDITIONAL NEW SUBSIDIZED HOUSING Program and Financing (in millions of dollars) Identification code 86–0310–0–1–604 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Direct program ............................................................... 190 ................... ................... 10.00 Total obligations (object class 41.0) ........................ 190 ................... ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. ................... 849 ................... 22.00 New budget authority (gross) ........................................ 1,039 ................... ................... 22.21 Unobligated balance transferred to other accounts ................... –849 ................... 21.40 2349 Total subsidy outlays ................................................ ................... ................... 3 23.90 23.95 24.40 HOME LOAN GUARANTEE FINANCING ACCOUNT (Legislative proposal, not subject to PAYGO) Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 1,039 ................... ................... –190 ................... ................... 849 ................... ................... Program and Financing (in millions of dollars) Identification code 86–4245–2–3–604 22.00 24.40 68.00 1997 actual 1998 est. Budgetary resources available for obligation: New financing authority (gross) .................................... ................... ................... Unobligated balance available, end of year: Uninvested ................................................................. ................... ................... New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... ................... ................... 1999 est. 40.00 3 3 3 New budget authority (gross), detail: Appropriation .................................................................. 1,039 ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. ................... 188 ................... 73.10 New obligations ............................................................. 190 ................... ................... 73.20 Total outlays (gross) ...................................................... –2 ................... ................... 73.31 Obligated balance transferred to other accounts ......... ................... –188 ................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 188 ................... ................... 72.40 460 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued DEVELOPMENT OF ADDITIONAL NEW SUBSIDIZED HOUSING— Continued Program and Financing (in millions of dollars)—Continued 1997 actual Identification code 86–0310–0–1–604 1998 est. of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) 1997 actual Identification code 86–0320–0–1–604 1998 est. 1999 est. 1999 est. 00.01 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. 2 ................... ................... Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 1,039 ................... ................... 2 ................... ................... In 1997, elderly, disabled and Indian housing development were funded in this program. Pursuant to P.L. 105–65, all balances for elderly and disabled housing were transferred to the Housing for Special Populations program and all balances for Indian housing development were transferred to the Indian Housing Block Grants program. Obligations by program activity: Direct program ............................................................... ................... 1,640 ................... 10.00 Total obligations (object class 41.0) ........................ ................... 1,640 ................... 22.00 22.22 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... Unobligated balance transferred from other accounts ................... 839 ................... 801 ................... 23.90 23.95 Total budgetary resources available for obligation ................... New obligations ............................................................. ................... 1,640 ................... –1,640 ................... 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... 839 ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.32 Obligated balance transferred from other accounts 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 72.40 HOUSING FOR SPECIAL POPULATIONS (INCLUDING TRANSFERS OF FUNDS) øFor assistance for the purchase, construction, acquisition, or development of additional public and subsidized housing units for lowincome families under the United States Housing Act of 1937, as amended (42 U.S.C. 1437), not otherwise provided for, $839,000,000, to remain available until expended: Provided, That of the total amount provided under this heading, $645,000,000 shall be for capital advances, including amendments to capital advance contracts, for housing for the elderly, as authorized by section 202 of the Housing Act of 1959, as amended, and for project rental assistance, and amendments to contracts for project rental assistance, for the elderly under section 202(c)(2) of the Housing Act of 1959, and for supportive services associated with the housing; and $194,000,000 shall be for capital advances, including amendments to capital advance contracts, for supportive housing for persons with disabilities, as authorized by section 811 of the Cranston-Gonzalez National Affordable Housing Act, for project rental assistance, for amendments to contracts for project rental assistance, and supportive services associated with the housing for persons with disabilities as authorized by section 811 of such Act: Provided further, That the Secretary may designate up to 25 percent of the amounts earmarked under this paragraph for section 811 of such Act for tenant-based assistance, as authorized under that section, including such authority as may be waived under the next proviso, which assistance is five years in duration: Provided further, That the Secretary may waive any provision of section 202 of the Housing Act of 1959 and section 811 of the Cranston-Gonzalez National Affordable Housing Act (including the provisions governing the terms and conditions of project rental assistance and tenantbased assistance) that the Secretary determines is not necessary to achieve the objectives of these programs, or that otherwise impedes the ability to develop, operate or administer projects assisted under these programs, and may make provision for alternative conditions or terms where appropriate: Provided further, That all balances, as of September 30, 1997, remaining in either the ‘‘Annual Contributions for Assisted Housing’’ account or the ‘‘Development of Additional New Subsidized Housing’’ account for capital advances, including amendments to capital advances, for housing for the elderly, as authorized by section 202 of the Housing Act of 1959, as amended, and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for the elderly, under section 202(c)(2) of such Act, shall be transferred to and merged with the amounts for those purposes under this heading; and, all balances, as of September 30, 1997, remaining in either the ‘‘Annual Contributions for Assisted Housing’’ account or the ‘‘Development of Additional New Subsidized Housing’’ account for capital advances, including amendments to capital advances, for supportive housing for persons with disabilities, as authorized by section 811 of the Cranston-Gonzalez National Affordable Housing Act, and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for persons with disabilities, as authorized under section 811 of such Act, shall be transferred to and merged with the amounts for those purposes under this heading.¿ (Departments ................... ................... 6,498 ................... 1,640 ................... ................... –650 –759 ................... 5,508 ................... ................... 6,498 5,739 86.93 Outlays (gross), detail: Outlays from current balances ...................................... ................... 650 759 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... 839 ................... 650 759 This account consolidates activity under the Section 202 Housing for the Elderly Program and the Section 811 Housing for the Disabled Program. Program activity prior to 1997 was reflected in the Annual Contributions for Assisted Housing account. Renewal of prior year contracts is reflected in the Housing Certificate Fund. For 1999, funding is being requested for assistance on behalf of the elderly and disabled as a new component of the HOME Investment Partnerships Program. Language is being proposed to transfer the obligated and unobligated balances from Housing for Special Populations to the HOME Investment Partnerships account. OTHER ASSISTED HOUSING PROGRAMS RENTAL HOUSING ASSISTANCE ø(RESCISSION)¿ øThe limitation otherwise applicable to the maximum payments that may be required in any fiscal year by all contracts entered into under section 236 of the National Housing Act (12 U.S.C. 1715z– 1) is reduced in fiscal year 1998 by not more than $7,350,000 in uncommitted balances of authorizations provided for this purpose in appropriation Acts: Provided, That up to $125,000,000 of recaptured budget authority shall be canceled.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–0206–0–1–999 1997 actual 1998 est. 1999 est. Obligations by program activity: Rent supplement ............................................................ 14 9 7 Homeownership and rental housing assistance (Sections 235 and 236) ................................................... 19 70 60 00.03 College housing debt service ........................................ 2 ................... ................... 00.04 IRP Rehab Grants .......................................................... ................... 26 727 00.01 00.02 10.00 Total obligations (object class 41.0) ........................ 35 105 794 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested ................................................................. 21.49 Contract authority (available) ................................... 21.99 22.00 22.10 22.75 23.90 23.95 15 978 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ Resources available from recoveries of prior year obligations ....................................................................... Balance of contract authority withdrawn ...................... 8 970 993 –152 9 1,250 978 1,259 –125 ................... 8,642 512 1,018 –8,472 ................... ................... 1,011 –35 1,365 –105 2,277 –794 24.40 24.49 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. Contract authority (available) ................................... 8 970 9 1,250 9 1,474 24.99 Total unobligated balance, end of year .................... 978 1,259 1,483 New budget authority (gross), detail: Current: Unobligated balance rescinded: 40.36 Preservation prepayment rescission ..................... –150 ................... ................... 40.36 Multifamily enforcement rescission ...................... ................... –125 ................... 40.36 Other unobligated balances rescinded ................. –2 ................... ................... 43.00 60.05 60.49 63.00 70.00 Appropriation (total) ............................................. Permanent: Appropriation (indefinite) .......................................... Portion applied to liquidate contract authority ........ –152 –125 ................... 741 –741 18 –18 18 –18 Appropriation (total) ............................................. ................... ................... ................... Total new budget authority (gross) .......................... –152 –125 ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: 72.40 Administrative commitment (reserved) ................ 72.49 Contract authority ................................................. 140 21,687 127 12,338 21,827 35 –755 –8,642 12,465 105 –754 –512 11,305 794 –676 –1,018 74.40 74.49 Total unpaid obligations, start of year ................ New obligations ............................................................. Total outlays (gross) ...................................................... Adjustments in unexpired accounts .............................. Unpaid obligations, end of year: Obligated balance: Administrative commitment reserved ................... Contract authority ................................................. 127 12,338 129 11,176 130 10,275 74.99 Total unpaid obligations, end of year .................. 12,465 11,305 The Other Assisted Housing Account contains the programs listed below: Rent supplement.—Rent supplement assistance payments will continue to be made on behalf of qualified low-income tenants in approximately 20,000 units which have not converted to section 8. Section 235.—The Housing and Urban-Rural Recovery Act of 1983 (Public Law 98–181) authorized a restructured section 235 (Homeownership Assistance) program based on a 10-year interest reduction subsidy. This replaced earlier versions of the program, the original and the revised versions. All were below interest rate mortgages for single family homes. Section 236.—The Housing and Urban Development Act of 1968, as amended, authorizes the section 236 Rental Housing Assistance Program which subsidizes the monthly mortgage payment that an owner of a rental or cooperative project is required to make. This interest subsidy reduces rents for lower income tenants. IRP Rehab Grants.—Title V of the 1998 Appropriations Act (P.L. 105–65) establishes a program of rehabilitation grants for owners of projects eligible for the program of multifamily portfolio re-engineering. An estimated $727 millon of such grants are expected in 1999. The table below reflects the consolidated outlay total for: the Annual Contributions for Assisted Housing account; the Housing Certificate Fund; the Public Housing Capital Fund; the Section 8 Reserve Preservation account; and the Other Assisted Housing account, for 1997, 1998, and 1999. 129 11,176 72.99 73.10 73.20 73.45 461 10,405 SUMMARY OF OUTLAYS 1 [In millions of dollars] 1997 actual 1 Includes 755 754 1999 est. 21,213 16,649 3,810 58 79 601 16 21,066 16,881 3,509 59 70 531 16 outlays for contract renewals. HOMEOWNERSHIP Outlays (gross), detail: 86.93 Outlays from current balances ...................................... 1998 est. Subsidized housing programs, total ........................................... 21,323 Low-income housing assistance (sec. 8) ................................... 20,568 Public housing capital fund ....................................................... .................... Rent supplement ......................................................................... 56 Homeownership assistance (sec. 235) ....................................... 79 Rental housing assistance (sec. 236) ........................................ 604 College housing grants ............................................................... 16 AND OPPORTUNITY FOR PEOPLE GRANTS (HOPE GRANTS) EVERYWHERE 676 Program and Financing (in millions of dollars) Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... –152 755 –125 ................... 754 676 00.01 00.02 00.03 Status of Contract Authority (in millions of dollars) 1997 actual Identification code 86–0206–0–1–999 0100 Balance, start of year .................................................... Contract authority: 0200 Contract authority .......................................................... 0400 Appropriation to liquidate contract authority ................ 0600 Balance of contract authority withdrawn ...................... 0700 Balance, end of year ..................................................... 22,665 Identification code 86–0196–0–1–604 1998 est. 13,308 1997 actual Obligations by program activity: Hope 1 ............................................................................ 1 Hope 2 ............................................................................ ................... Hope 3 ............................................................................ 1 1998 est. 1999 est. 3 ................... 5 ................... 3 ................... 1999 est. 12,426 –152 –125 ................... –741 –18 –18 –8,472 ................... ................... 13,308 12,426 11,749 10.00 Total obligations (object class 41.0) ........................ 2 11 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested: 21.40 Uncommitted ......................................................... 21.40 Administratively committed .................................. 34 4 10 ................... 1 ................... 21.99 22.00 22.10 OTHER ASSISTED HOUSING Summary of Administrative Commitments Total unobligated balance, start of year ............. New budget authority (gross) ........................................ Resources available from recoveries of prior year obligations ....................................................................... 38 11 ................... –30 ................... ................... 5 ................... ................... [In millions of dollars] 1997 actual 1998 est. 1999 est. Assistance contracts: Rent supplement ................................................................ 14 9 7 Homeownership and rental housing assistance (sections 235 and 236) ................................................................. 19 70 60 College Housing ...................................................................... 2 .................... .................... IRP Rehab Grants ................................................................... .................... 26 727 Administrative commitments, start of year ........................... 16 16 16 Administrative commitments, end of year ............................. –16 –16 –16 Total obligations ............................................................ 35 105 794 23.90 23.95 24.40 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested: Uncommitted ......................................................... Administratively committed .................................. 13 –2 11 ................... –11 ................... 24.99 Total unobligated balance, end of year .................... 11 ................... ................... 41.00 New budget authority (gross), detail: Transferred to other accounts ....................................... –30 ................... ................... 10 ................... ................... 1 ................... ................... 462 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued HOUSING COUNSELING ASSISTANCE HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EVERYWHERE GRANTS (HOPE GRANTS)—Continued Program and Financing (in millions of dollars) Identification code 86–0156–0–1–506 Program and Financing (in millions of dollars)—Continued Identification code 86–0196–0–1–604 1997 actual Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 86.93 1999 est. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1998 est. 1999 est. 72.40 185 132 92 2 11 ................... –49 –51 –42 –5 ................... ................... 6 –3 2 ................... –2 ................... 2 ................... ................... Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 49 92 51 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 132 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 1998 est. 1997 actual Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 3 2 ................... 50 3 2 ................... 42 –30 ................... ................... 49 51 42 The Homeownership and Opportunity for People Everywhere Program provided affordable homeownership opportunities for low-income families. Units were converted to homeownership from public and Indian housing properties in HOPE 1, from FHA-insured and Government-held multifamily properties in HOPE 2, and from Government-owned or -held single family properties in HOPE 3. HOPE Grants were used for property acquisition, rehabilitation, mortgage subsidies, security measures, and technical assistance. In addition, grants have been devoted to counseling and training of residents, and other activities intended to help them become economically self-sufficient homeowners. No funding is being requested for 1999. This schedule reflects the liquidation of prior year balances. The Housing Counseling Assistance program provides comprehensive housing counseling services to eligible homeowners and tenants, including pre-purchase, default and renter counseling. In 1997, housing counseling was appropriated as a $15 million set-aside in the HOME Investment Partnerships Program. The program was funded at $20 million in 1998. The Budget proposes Housing Counseling as a $25 million HOME set-aside for 1999. SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY Program and Financing (in millions of dollars) Identification code 86–0195–0–1–604 1997 actual 1998 est. 1999 est. 00.01 Obligations by program activity: Homelessness prevention ............................................... 20 86 ................... 10.00 Total obligations (object class 41.0) ........................ 20 86 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 23.95 New obligations ............................................................. 24.40 Unobligated balance available, end of year: Uninvested ................................................................. 106 –20 86 ................... –86 ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 382 20 –25 376 404 86 ................... –58 –56 376 404 348 25 58 56 CONGREGATE SERVICES Program and Financing (in millions of dollars) Identification code 86–0178–0–1–604 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ Budgetary resources available for obligation: 23.95 New obligations ............................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1997 actual 21.40 1998 est. 1999 est. 72.40 –1 ................... ................... 72.40 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... 89.00 90.00 86 ................... ................... 1 ................... ................... 30 22 15 1 ................... ................... –7 –7 –7 22 7 15 7 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 25 58 56 7 7 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 7 7 7 Under the Congregate Services program, HUD contracted directly with local public housing agencies and section 202 housing for the elderly or disabled sponsors to supply support services, including meals and other services. Funding for this activity will be requested in the supportive services set-aside within the Community Development Block Grant account for 1999. This schedule reflects the liquidation of prior year balances from the separately appropriated Congregate Services Program. Section 8 assistance for single room occupancy dwellings is authorized by Title IV, subtitle E, of the Stewart B. McKinney Homeless Assistance Act, as amended by the Housing and Community Development Act of 1992. Since 1995, these activities have been funded in the Homeless Assistance Grants account. CAPITAL GRANTS/CAPITAL LOANS PRESERVATION ACCOUNT øAt the discretion of the Secretary, to reimburse owners, nonprofits, and tenant groups for which plans of action were submitted with regard to eligible properties under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Emergency Low Income Housing Preservation Act of 1987 (ELIHPA) prior to the effective date of this Act, but were not executed for lack of available funds, with such reimbursement available only for documented costs directly applicable to the preparation of the plan of action or any purchase agreement as determined by the Secretary, on terms and conditions to be established by the Secretary, $10,000,000 shall be made available.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) 60.25 New budget authority (gross), detail: Appropriation (special fund, indefinite) ........................ 463 14 17 2 14 –13 3 15 –13 3 16 –15 3 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 16 3 3 72.40 Program and Financing (in millions of dollars) 86.97 Identification code 86–0231–0–1–604 1997 actual 1998 est. Obligations by program activity: Total obligations (object class 25.2) ............................ ................... 10 ................... 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... New obligations ............................................................. ................... 10 ................... –10 ................... 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... 10 ................... 72.40 86.90 86.93 ................... ................... 6 ................... 10 ................... ................... –4 –6 ................... 6 ................... Outlays (gross), detail: Outlays from new current authority .............................. ................... 4 ................... Outlays from current balances ...................................... ................... ................... 6 87.00 Total outlays (gross) ................................................. ................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... 13 13 15 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 14 13 16 13 17 15 1999 est. 10.00 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. Outlays (gross), detail: Outlays from new permanent authority ......................... 4 6 10 ................... 4 6 Funds were provided in 1998 to permit the Secretary, at his discretion, to reimburse groups who submitted plans of action under the preservation program that were not funded. As this is a non-recurring cost, no additional funds are requested for this activity. Section 620 of the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended, authorizes enforcement of appropriate construction standards for the construction, design and performance of manufactured homes to assure their quality, durability, and safety. All manufactured homes produced since the standards took effect on June 15, 1976 must comply with Federal construction and safety standards. The States are actively encouraged to participate in the program under compliance plans approved by HUD. A fee is charged to the manufacturers for each manufactured home produced to cover the costs of the monitoring and enforcement activities by HUD and its contract agents. Fees are deposited in a special fund administered by the Department, and a portion of the fee receipts are transferred to the salaries and expenses account to defray the direct administrative expenses of the program. In 1997, an estimated 403,000 manufactured homes and 600,000 transportable sections were produced. INTERSTATE LAND SALES Unavailable Collections (in millions of dollars) Identification code 86–5270–0–2–376 1997 actual 1998 est. 1999 est. Balance, start of year: Balance, start of year .................................................... 1 ................... ................... Receipts: 02.01 Interstate land sales ..................................................... ................... 1 1 01.99 MANUFACTURED HOME INSPECTION AND MONITORING Unavailable Collections (in millions of dollars) Identification code 86–5271–0–2–376 1997 actual 04.00 1998 est. 1999 est. Balance, start of year: Balance, start of year .................................................... ................... ................... ................... Receipts: 02.01 Manufactured home inspection and monitoring ........... 14 16 17 Appropriation: 05.01 Manufactured home inspection and monitoring ........... –14 –16 –17 07.99 Total balance, end of year ............................................ ................... ................... ................... Total: Balances and collections .................................... 1 1 1 Appropriation: 05.01 Interstate land sales ..................................................... –1 –1 –1 07.99 Total balance, end of year ............................................ ................... ................... ................... 01.99 Identification code 86–5270–0–2–376 1998 est. 1999 est. 1 13 1 14 1 15 10.00 14 15 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 1999 est. Obligations by program activity: Total obligations (object class 25.2) ............................ ................... 1 1 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ 1 New obligations ............................................................. ................... 1 –1 1 –1 60.25 New budget authority (gross), detail: Appropriation (special fund, indefinite) ........................ 1 1 1 Change in unpaid obligations: New obligations ............................................................. ................... Total outlays (gross) ...................................................... –1 1 –1 1 –1 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... 1 1 1 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ 1 Outlays ........................................................................... ................... 1 1 1 1 16 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 1998 est. 73.10 73.20 1997 actual Obligations by program activity: 00.01 Transfer to salaries and expenses ................................ 00.02 Other program costs ...................................................... Total obligations (object class 25.2) ........................ 1997 actual 10.00 Program and Financing (in millions of dollars) Identification code 86–5271–0–2–376 Program and Financing (in millions of dollars) 9 14 9 16 10 17 23 –14 25 –15 27 –16 9 10 11 464 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued INTERSTATE LAND SALES—Continued The Interstate Land Sales Full Disclosure Act provides protection to the public with respect to purchases or leases of subdivision lots. Statements of record must be filed with the Secretary before subdivisions with 100 or more lots may be sold in interstate commerce, except when the subdivision is eligible for exemption. The Secretary is authorized to charge a fee, to be paid by the developer when filing a statement of record. The fee receipts are permanently appropriated and have helped finance a portion of the direct administrative expenses incurred in program operations. The estimated annual program activity level will continue at 1,700 filings, approximately the same level as in recent years. 236 projects. The Housing and Community Development Act of 1980 amended the 1978 Act by authorizing the transfer of excess rent collections regardless of when collected. This Budget proposes that the resources from the Rental Housing Assistance Fund continue to be transferred to the Flexible Subsidy Fund. Statement of Operations (in millions of dollars) 1996 actual 1997 actual 0101 0102 Revenue ................................................... Expense .................................................... 53 –53 55 –53 47 –47 42 –42 0109 Net income or loss (–) ............................ .................. 2 .................. .................. 1998 est. 1999 est. Identification code 86–4041–0–3–604 1998 est. 1999 est. Balance Sheet (in millions of dollars) 1998 est. 1999 est. 52 47 42 10.00 Total obligations (object class 25.2) ........................ 52 47 42 21.40 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 1 52 1 47 53 –52 48 –47 1 1 1 1 1 4 3 17 5 .................. .................. .................. .................. Total liabilities .................................... NET POSITION: 3300 Cumulative results of operations ............ 7 22 .................. .................. 7 9 1 1 Total net position ................................ 7 9 1 1 Total liabilities and net position ............ 14 31 1 1 52 47 42 2999 FLEXIBLE SUBSIDY FUND (TRANSFER OF FUNDS) 8 52 –37 22 ................... 47 42 –69 –42 From the Rental Housing Assistance Fund, all uncommitted balances of excess rental charges as of September 30, ø1997¿ 1998, and any collections made during fiscal year ø1998¿ 1999, shall be transferred to the Flexible Subsidy Fund, as authorized by section 236(g) of the National Housing Act, as amended. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) Identification code 86–4044–0–3–604 22 ................... ................... 87.00 89.00 90.00 31 43 –42 Outlays (gross), detail: 86.97 Outlays from new permanent authority ......................... 37 86.98 Outlays from permanent balances ................................ ................... Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. 15 1 42 72.40 Total outlays (gross) ................................................. 1 .................. 4999 1997 actual Obligations by program activity: Reimbursable program .................................................. 68.00 1 .................. Total assets ........................................ LIABILITIES: Federal liabilities: 2101 Accounts payable ................................ 2105 Other ................................................... 09.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 22 9 1999 Program and Financing (in millions of dollars) 23.90 23.95 24.40 8 7 3999 RENTAL HOUSING ASSISTANCE FUND Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 1997 actual ASSETS: 1101 Federal assets: Fund balances with Treasury ............................................... 1206 Non-Federal assets: Receivables, net ..... Public enterprise funds: Identification code 86–4041–0–3–604 1996 actual Identification code 86–4041–0–3–604 37 –52 1997 actual 1998 est. 1999 est. 09.00 Obligations by program activity: Reimbursable program .................................................. 14 19 43 47 42 22 ................... 10.00 Total obligations (object class 41.0) ........................ 14 19 43 69 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested ................................................................. 21.41 U.S. Securities: Par value ......................................... 103 39 73 106 114 106 179 60 220 21 –47 42 –42 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –14 22 ................... The Housing and Urban Development Act of 1968 authorized the Secretary to establish a revolving fund into which rental collections in excess of the established basic rents for units in section 236 subsidized projects would be deposited. The Housing and Community Development Amendment of 1978 authorized the Secretary, subject to approval in appropriation acts, to transfer excess rent collections received after 1978 to the Troubled Projects Operating Subsidy program, renamed the Flexible Subsidy Fund. Prior to that time, collections were used for paying tax and utility increases in section 21.99 22.00 22.10 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ Resources available from recoveries of prior year obligations ....................................................................... 142 52 23.90 23.95 195 –14 239 –19 241 –43 24.40 24.41 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. U.S. Securities: Par value ......................................... 73 106 114 106 90 106 24.99 Total unobligated balance, end of year .................... 179 220 196 68.00 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 52 60 21 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: U.S. Securities: Par value ......................................... 101 44 1 72.41 1 ................... ................... HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 73.10 73.20 73.45 74.41 New obligations ............................................................. Total outlays (gross) ...................................................... Adjustments in unexpired accounts .............................. Unpaid obligations, end of year: Obligated balance: U.S. Securities: Par value ......................................... 14 19 43 –71 –62 –33 –1 ................... ................... Investments in US securities: Treasury securities, par .................. Receivables, net ............................. Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: Direct loans, gross .............................. Allowance for estimated uncollectible loans and interest (–) .................... Outlays (gross), detail: Outlays from permanent balances ................................ Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... 88.20 Interest on U.S. securities .................................... 88.40 Non-Federal sources ............................................. 88.90 88.95 1 62 33 Value of assets related to direct loans .......................................... Other Federal assets: Other assets ........ 150 9 150 .................. 150 .................. 676 743 802 831 –536 –607 –654 –678 140 4 136 .................. 148 .................. 153 .................. 1999 408 387 386 414 11 71 140 4 2999 86.98 44 1102 1106 465 1601 1603 1699 –38 –9 –5 –47 –9 –4 –7 –10 –4 Total, offsetting collections (cash) .................. –52 –60 –21 Change in orders on hand from Federal sources ......... ................... ................... ................... 1901 Total assets ........................................ LIABILITIES: 2201 Non-Federal liabilities: Accounts payable .................. .................. .................. 1 .................. .................. .................. 217 191 217 169 217 168 217 196 3999 Total net position ................................ 408 386 385 413 4999 Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... 18 2 12 1 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ Total liabilities and net position ............ 409 386 385 413 Status of Direct Loans (in millions of dollars) 1997 actual Identification code 86–4044–0–3–604 1998 est. 1999 est. 1210 1231 1251 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Disbursements: Direct loan disbursements ................... Repayments: Repayments and prepayments ................. 676 71 –3 744 62 –4 802 33 –4 1290 Outstanding, end of year .......................................... 744 802 831 HOMEOWNERSHIP ASSISTANCE FUND Program and Financing (in millions of dollars) Identification code 86–4043–0–3–604 The Flexible Subsidy Fund assisted financially troubled subsidized projects under certain FHA authorities. The subsidies were intended to prevent potential losses to the FHA fund resulting from project insolvency and to preserve these projects as a viable source of housing for low and moderateincome tenants. Priority was given to projects with Federal insurance-in-force and then to those with mortgages that had been assigned to the Department of Housing and Urban Development. A portion of Flexible Subsidy capital improvement loans were used, along with incentives available in the Emergency Low-Income Housing Preservation program, to extend affordability requirements for projects eligible to prepay mortgages. The budget assumes that the account will continue to serve as a repository of excess rental charges appropriated from the Rental Housing Assistance Fund. Since 1996, these resources have not been used for new reservations but they continue to offset Flexible Subsidy outlays and other discretionary expenditures. Summary of Administrative Commitments [In millions of dollars] 1997 actual Program by activities: Capital investments: Flexible subsidy reservations ............................................. Administrative commitments, start of year ....................... Administrative commitments, end of year ......................... 19 15 –19 Capital investment—obligations .................................. 1998 est. 15 1996 actual 1997 actual 1998 est. 43 1999 est. 0101 0102 Revenue ................................................... Expense .................................................... 66 –64 65 –81 60 –62 1 18 60 21.99 22.00 22.22 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ Unobligated balance transferred from other accounts 79 82 82 2 2 2 2 ................... ................... 23.90 83 84 84 24.40 24.41 24.49 Total budgetary resources available for obligation Unobligated balance available, end of year: Uninvested ................................................................. U.S. Securities: Par value ......................................... Contract authority ..................................................... 3 18 61 3 18 61 3 18 61 24.99 Total unobligated balance, end of year .................... 82 82 82 68.00 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 2 2 2 –1 –1 –1 –1 –1 –1 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 0109 Net income or loss (–) ............................ 2 –16 –2 49 ASSETS: Federal assets: 1101 Fund balances with Treasury ............. 120 1997 actual 92 1998 est. 88 3 18 61 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal sources: Interest on U.S. securities ......... ................... ................... ................... 88.40 Non-Federal sources ............................................. –2 –2 –2 88.90 89.00 90.00 Total, offsetting collections (cash) .................. –2 –2 –2 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –2 –2 –2 Status of Contract Authority (in millions of dollars) Identification code 86–4043–0–3–604 0100 0700 Balance Sheet (in millions of dollars) 1996 actual 3 18 61 72.40 55 –6 Identification code 86–4044–0–3–604 1999 est. Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested ................................................................. 21.41 U.S. Securities: Par value ......................................... 21.49 Contract authority ..................................................... Statement of Operations (in millions of dollars) Identification code 86–4044–0–3–604 1998 est. 1999 est. 43 .................... 19 43 –43 .................... 19 1997 actual Balance, start of year .................................................... Balance, end of year ..................................................... 1997 actual 60 61 1998 est. 61 61 1999 est. 61 61 1999 est. 111 The Homeownership Assistance Fund was established by the Housing and Urban-Rural Recovery Act of 1983. It provided for the receipt of recaptures of budget authority, cash, 466 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 Public enterprise funds—Continued Credit accounts: FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT HOMEOWNERSHIP ASSISTANCE FUND—Continued and interest earnings under the restructured section 235 program. The funds were authorized to be used, to the extent approved in Appropriation Acts, by the Secretary to provide additional section 235 assistance payments for mortgagors who are unable to assume the full payment due under the mortgage after the termination of the original 10-year assistance payments contract. Statement of Operations (in millions of dollars) Identification code 86–4043–0–3–604 1996 actual 1997 actual 1998 est. 1999 est. 0101 0102 Revenue ................................................... Expense .................................................... 2 .................. 1 .................. 1 .................. 1 .................. 0109 Net income or loss (–) ............................ 2 1 1 1 Balance Sheet (in millions of dollars) Identification code 86–4043–0–3–604 ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1102 Treasury securities, par .................. 1106 Receivables, net ............................. 1996 actual 1997 actual 1998 est. 1999 est. 1 3 3 3 18 .................. 18 1 18 1 18 1 19 22 22 22 .................. 19 12 9 12 9 12 9 (INCLUDING TRANSFERS OF FUNDS) During fiscal year ø1998¿ 1999, commitments to guarantee loans to carry out the purposes of section 203(b) of the National Housing Act, as amended, shall not exceed a loan principal of $110,000,000,000. During fiscal year ø1998¿ 1999, obligations to make direct loans to carry out the purposes of section 204(g) of the National Housing Act, as amended, shall not exceed ø$200,000,000¿ $50,000,000: Provided, That the foregoing amount shall be for loans to nonprofit and governmental entities in connection with sales of single family real properties owned by the Secretary and formerly insured under the Mutual Mortgage Insurance Fund. For administrative expenses necessary to carry out the guaranteed and direct loan program, ø$338,421,000¿ $328,888,000, to be derived from the FHA-mutual mortgage insurance guaranteed loans receipt account, of which not to exceed ø$326,309,000¿ $324,866,000 shall be transferred to the appropriation for departmental salaries and expenses; and of which not to exceed ø$12,112,000¿ $4,022,000 shall be transferred to the appropriation for the Office of Inspector General. In addition, for non-overhead administrative expenses necessary to carry out the Mutual Mortgage Insurance guaranteed and direct loan program, $200,000,000, to be derived from the FHA-mutual mortgage insurance guaranteed loan receipt account. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Unavailable Collections (in millions of dollars) 1999 Total assets ........................................ NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 3999 Total net position ................................ 19 21 21 21 4999 Total liabilities and net position ............ 19 21 21 21 Identification code 86–0183–0–1–371 1997 actual 1998 est. 1999 est. Balance, start of year: 01.99 Balance, start of year .................................................... ................... ................... ................... Receipts: 02.01 FHA Mutual Mortgage Insurance Guaranteed Loan, negative subsidies .................................................... 351 338 529 Appropriation: 05.01 FHA mutual mortgage insurance program account ...... –351 –338 –529 07.99 Total balance, end of year ............................................ ................... ................... ................... NEHEMIAH HOUSING OPPORTUNITY FUND Program and Financing (in millions of dollars) Program and Financing (in millions of dollars) Identification code 86–0183–0–1–371 Identification code 86–4071–0–3–604 1997 actual 1998 est. 1997 actual 1998 est. 1999 est. 1999 est. Obligations by program activity: Other administrative expenses, FHA .............................. ................... ................... Administrative expenses, salaries & expenses transfer 351 338 Obligations by program activity: 09.00 Reimbursable program .................................................. ................... 21 ................... 00.09 00.10 10.00 21 ................... 10.00 Total obligations ........................................................ 351 338 529 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 351 –351 338 –338 529 –529 40.25 New budget authority (gross), detail: Appropriation (special fund, definite) ........................... 351 338 529 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. Total outlays (gross) ...................................................... 351 –351 338 –338 529 –529 86.90 Outlays (gross), detail: Outlays from new current authority .............................. 351 338 529 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 351 351 338 338 529 529 Total obligations (object class 33.0) ........................ ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 21 21 ................... 23.95 New obligations ............................................................. ................... –21 ................... 24.40 Unobligated balance available, end of year: Uninvested ................................................................. 21 ................... ................... 21.40 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 10 73.10 New obligations ............................................................. ................... 73.20 Total outlays (gross) ...................................................... –3 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 7 72.40 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... 89.00 90.00 3 7 20 21 ................... –8 –4 20 8 200 329 16 4 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 3 8 4 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0183–0–1–371 The Nehemiah grants program was authorized by the Housing and Community Development Act of 1987 to provide loans to eligible families to assist in the purchase of new or substantially rehabilitated units. This schedule reflects the liquidation of remaining reserved and obligated balances. 1997 actual 1998 est. 1999 est. Direct loan levels supportable by subsidy budget authority: 1150 Direct loan levels ........................................................... 200 200 50 1159 200 200 50 Total direct loan levels ............................................. HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Guaranteed loan levels supportable by subsidy budget authority: 2150 MMI Fund, Section 203(b) ............................................. 2150 Standby commitment authority ..................................... 2159 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... 2329 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New financing authority (gross) .................................... 21.40 75,432 34,568 82,260 27,740 83,494 26,506 110,000 110,000 110,000 –2.88 –2.99 –2.62 –2.88 –2.99 –2.62 23.90 23.95 24.40 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 MMI Section 203(b) negative subsidy ........................... 2330 Subsidy budget authority—reestimate ......................... 2330 Subsidy—Note Sales ..................................................... 2330 Indirect modification Assignment Reform ..................... –1,392 –1,653 –1,594 –340 ................... ................... –448 –128 ................... –56 ................... ................... 67.15 68.00 2339 Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. –2,236 –1,781 –1,594 70.00 –2,236 –1,781 –1,594 2349 –2,236 –1,781 –1,594 Total subsidy outlays ................................................ The Federal Housing Administration provides mortgage insurance to encourage lenders to make credit available to expand homeownership, and to predominantly serve borrowers that the conventional market does not adequately provide for including: first-time homebuyers; minorities; lower-income families; and, residents of underserved areas (central cities and rural areas). Currently, the maximum mortgage amount for FHA-insured one-family loans is set at 95 percent of area median house price, provided that the amount is never less than 38 percent of the conforming loan limit—the maximum mortgage amount for loans purchased by the housing secondary market Government-Sponsored Enterprises, Fannie Mae and Freddie Mac—and never more than 75 percent of the conforming loan limit. The Administration proposes to increase the maximum mortgage amount for FHA-insured loans in all areas to equal the conforming loan limit. FHA has also proposed new legislation to allow greater flexibility in single family property disposition. As required by the Federal Credit Reform Act of 1990, this account records administrative expenses for this program, as well as the subsidy costs associated with the loan guarantees committed in 1992 and thereafter, if any. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis. Beginning in 1999, an appropriation of $200,000,000 is requested, to be derived from the negative subsidy account, for certain administrative expenses. All administrative expenses will be recorded in the program account. The transfer is derived from negative credit subsidy amounts associated with guaranteed loan activities. 25.2 25.3 99.9 1997 actual 1998 est. Other services ................................................................ ................... ................... Purchases of goods and services from Government accounts .................................................................... 351 338 Total obligations ........................................................ 351 338 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New financing authority (gross), detail: Authority to borrow (indefinite) ..................................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. Total new financing authority (gross) ...................... 1 3 5 1 25 50 2 4 10 3 29 60 2 27 –27 2 58 –55 2 27 5 55 –1 –1 –3 –1 –7 –3 88.90 Total, offsetting collections (cash) .................. –2 –4 –10 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... 1 –1 25 23 50 45 Status of Direct Loans (in millions of dollars) Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ............................................. 1112 Unobligated direct loan limitation ................................ Total direct loan obligations ..................................... 1997 actual 200 –197 3 1998 est. 1999 est. 200 50 –175 ................... 25 50 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. 2 2 Disbursements: Direct loan disbursements ................... 1 27 Repayments: Repayments and prepayments ................. –1 –1 Write-offs for default: Direct loans ............................... ................... ................... 28 50 –2 –1 1999 est. 50 6 2 1210 1231 1251 1263 10.00 58 1290 27 63 –58 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.25 Interest on uninvested funds ............................... 88.40 Other collections from non-Federal sources ......... Obligations by program activity: 00.01 Direct loans .................................................................... 3 25 00.02 Interest paid to Treasury ............................................... ................... 2 00.03 Claims & other .............................................................. ................... ................... 3 30 –27 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. ................... 73.10 New obligations ............................................................. 3 73.20 Total financing disbursements (gross) ......................... –1 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 2 87.00 Total financing disbursements (gross) ......................... 1 1150 Total obligations ........................................................ 4 –3 529 200 Program and Financing (in millions of dollars) 1998 est. 3 60 329 1999 est. FHA—MUTUAL MORTGAGE INSURANCE DIRECT LOAN FINANCING ACCOUNT 1997 actual 1 29 72.40 Identification code 86–4242–0–3–371 Identification code 86–4242–0–3–371 1 3 As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from direct loans obligated in 1992 and thereafter (including modifications of direct loans that resulted from obligations in any year). The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account. The $50 million in 1999 direct loan limitation in the MMI Fund would permit the Department to use Purchase Money Mortgages (PMMs) to help finance the sale of acquired single family properties. HUD would extend credit for these singlefamily homes to community nonprofit organizations or local government entities who would be expected to sell the properties to low- and moderate-income buyers. The use of PMMs provides a tool for State and local nonprofit organizations to use in revitalizing communities, and creates enhanced homeownership opportunities for low- and moderate-income families. Object Classification (in millions of dollars) Identification code 86–0183–0–1–371 467 Outstanding, end of year .......................................... 2 28 75 468 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 Credit accounts—Continued FHA—MUTUAL MORTGAGE INSURANCE DIRECT LOAN FINANCING ACCOUNT—Continued Balance Sheet (in millions of dollars) Identification code 86–4242–0–3–371 ASSETS: Net value of assets related to post– 1991 direct loans receivable: 1401 Direct loans receivable, gross ............ 1499 Net present value of assets related to direct loans ........................... 1999 1996 actual 1997 actual 1998 est. 1999 est. 2 2 28 75 2 2 28 75 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.25 Interest on uninvested funds ............................... ................... Non-Federal sources: 88.40 Fees and premiums .......................................... –2,253 88.40 Recoveries on defaults ..................................... –2,013 88.40 Gross proceeds from asset sales ..................... –1,218 –2,612 –3,057 –1,842 –1,951 –398 ................... 88.90 88.95 Total, offsetting collections (cash) .................. Change in receivables from program accounts ............ –5,484 –91 –4,950 –5,019 91 ................... 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... 364 1,159 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Treasury borrowing .... 2 2 28 2 28 75 2999 Total liabilities .................................... .................. 2 28 75 Identification code 86–4587–0–3–371 4999 Total liabilities and net position ............ .................. 2 28 75 Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2112 Uncommitted loan guarantee limitation ....................... 400 203 –11 700 687 75 .................. –98 FHA—MUTUAL MORTGAGE INSURANCE GUARANTEED LOAN FINANCING ACCOUNT 2150 Program and Financing (in millions of dollars) Identification code 86–4587–0–3–371 1997 actual 1998 est. Obligations by program activity: Default claims and other .............................................. 2,951 2,785 Payment of negative subsidy to receipt account .......... 351 338 Payment of negative subsidy to liquidating account 1,392 1,315 Subsidy reestimate paid to liquidating account ........... 340 ................... Interest payments to Treasury ....................................... 207 404 Payment to liquidating account of value of assets sold ............................................................................ 918 200 00.10 Negative subsidy from asset sales paid to liquidating account ...................................................................... 449 111 00.11 Indirect modification savings paid to liquidating account .......................................................................... 56 ................... 00.12 Negative subsidy to liquidating account for new legislation—FHA loan limit increase ............................... ................... ................... 00.14 Negative subsidy to liquidating account, new legislation ............................................................................ ................... ................... 00.01 00.05 00.06 00.07 00.08 00.09 10.00 Total obligations ........................................................ Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New financing authority (gross) .................................... 6,664 5,153 Status of Guaranteed Loans (in millions of dollars) Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New financing authority (gross), detail: Authority to borrow (indefinite) ..................................... Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.10 Change in receivables (Interest from Treasury) ....... 67.15 68.90 70.00 72.99 73.10 73.20 98,031 235,291 61,175 –20,882 272,750 58,613 –10,014 318,818 67,222 –16,719 –354 –7 –12 –2,404 –2,436 –2,619 –76 –88 –126 366,564 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 272,750 318,818 366,564 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2364 Other adjustments, net ............................................. 866 354 –10 –925 285 7 –4 –234 54 12 –1 –3 285 54 62 ................... 2210 2231 2251 228 527 5,706 182 288 301 364 400 700 5,484 91 4,950 5,019 –91 ................... Spending authority from offsetting collections (total) ................................................................ 5,575 4,859 Total new financing authority (gross) ...................... 5,939 5,259 5,719 Outstanding, end of year ...................................... As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loans insured in 1992 and thereafter. The amounts in this account are considered a means of financing and are not included in the budget totals. As required by the Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account. 5,019 68 6,643 82,260 318,818 6,007 –5,706 Total unpaid obligations, end of year .................. Total financing disbursements (gross) ......................... 75,432 272,750 5,441 –5,153 74.99 87.00 110,000 –11,969 Outstanding, end of year .......................................... 6,846 –6,664 74.40 74.95 110,000 –27,740 2290 288 5,719 47 6,664 –6,643 110,000 –34,568 ................... 182 5,259 Total unpaid obligations, start of year ................ New obligations ............................................................. Total financing disbursements (gross) ......................... Unpaid obligations, end of year: Obligated balance: Uninvested ................................. EOY Receivables from Treasury (interest) ................ 1999 est. ................... 2,927 529 1,066 ................... 429 907 5,939 Change in unpaid obligations: Unpaid obligations, start of year: 72.40 Obligated balance: Uninvested ................................. 47 72.95 Receivables from Treasury (interest) ........................ ................... Total guaranteed loan commitments ........................ 1998 est. Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2262 Terminations for default that result in acquisition of property ............................................................. 2263 Terminations for default that result in claim payments .................................................................... 1999 est. 2390 23.90 23.95 24.40 1997 actual Balance Sheet (in millions of dollars) 1996 actual1 1997 actual 954 159 355 353 866 521 –405 285 1,104 –443 53 1,114 –447 60 1,164 –467 1901 Net value of assets related to defaulted guaranteed loan ............ Other Federal assets: Other assets ........ 982 .................. 946 3 720 3 757 3 1999 Total assets ........................................ 1,936 1,108 1,078 1,113 Identification code 86–4587–0–3–371 ASSETS: Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 acquired defaulted guaranteed loans receivable: 1501 Defaulted guaranteed loans receivable, gross ...................................... 1504 Foreclosed property ............................. 1505 Allowance for subsidy cost ................. 1998 est. 1999 est. 1101 –23 68 91 ................... 68 5,153 –5,153 68 5,706 –5,706 –23 68 68 91 ................... ................... 68 5,153 68 5,706 1599 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LIABILITIES: Federal liabilities: Federal liabilities, Debt ..................................................... Non-Federal liabilities: 2204 Liabilities for loan guarantees ........... 2207 Other ................................................... 87.00 Total outlays (gross) ................................................. 469 2,346 1,941 1,338 –721 –1,260 –1,383 –90 –84 –78 2103 2,698 3,062 3,462 3,662 –762 .................. –1,978 24 –2,539 156 –2,823 274 2999 Total liabilities .................................... 1,936 1,108 1,079 1,113 4999 Total liabilities and net position ............ 1,936 1,108 1,079 1,113 1 As reflected in the 1998 Budget. Subsidy reestimates for fiscal year 1997 disbursements will be performed for the mid-session review of the Budget. FHA—MUTUAL MORTGAGE AND COOPERATIVE HOUSING INSURANCE FUNDS LIQUIDATING ACCOUNT Unavailable Collections (in millions of dollars) Identification code 86–4070–0–3–371 01.99 03.00 07.99 1997 actual 1998 est. 1999 est. Balance, start of year: Balance, start of year .................................................... ................... ................... ................... Offsetting collections ..................................................... ................... ................... Total balance, end of year ............................................ ................... ................... 1997 actual 220 –1,427 –926 88.90 –5,348 89.00 90.00 527 527 Total, offsetting collections (cash) .................. 24 8 –1,366 –969 –200 ................... –1 –1 –1 –7 –2 –1 –27 –9 –2 –2,237 –1,315 –1,266 –47 ................... ................... –85 –23 –24 –4,236 1998 est. 1999 est. Obligations by program activity: Operating expenses: 00.03 Other operating costs ................................................ 00.05 Participation payments ............................................. 93 1 189 1 49 1 00.91 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –3,002 –2,295 –2,378 Summary of Budget Authority and Outlays Enacted/requested: Budget Authority ..................................................................... Outlays .................................................................................... Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... Outlays .................................................................................... Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... Outlays .................................................................................... 1997 actual 1998 est. .................... .................... .................... .................... 190 50 01.02 01.03 01.05 01.07 01.08 01.09 82 1,552 13 229 1 19 4 1,513 13 161 16 43 6 1,072 13 136 13 47 01.91 Total capital investment ....................................... 1,896 1,750 1,288 10.00 Total obligations ........................................................ 1,990 1,940 1,337 1210 1251 1264 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Repayments: Repayments and prepayments ................. Write-offs for default: Other adjustments, net ............. 7 –1 –1 1290 Outstanding, end of year .......................................... 5 2,219 –8 233 7,730 –86 13,467 –238 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ 9,863 5,348 13,221 4,236 15,516 3,716 23.90 23.95 15,211 –1,990 17,457 –1,940 19,232 –1,337 –8 233 75 24.41 24.42 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. U.S. Securities: Par value ............................................................... Unrealized discounts ............................................. 13,467 –238 15,567 –284 18,131 –312 24.99 Total unobligated balance, end of year .................... 13,221 15,516 17,894 68.00 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... Total: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... –3,002 –2,295 –527 –3,133 Status of Direct Loans (in millions of dollars) Identification code 86–4070–0–3–371 15,567 –284 21.99 22.00 –527 –527 .................... .................... .................... .................... .................... –228 94 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested ................................................................. U.S. Securities: 21.41 Par value ............................................................... 21.42 Unrealized discounts ............................................. 1999 est. .................... .................... .................... –3,002 –2,295 –2,378 Total operating expenses ...................................... Capital investment: Assignment of defaulted mortgages ......................... Acquisition of real properties .................................... Acquisition of other assets ....................................... Capitalized property expenses ................................... Loss on defaulted guaranteed loans ........................ Preforeclosure sale claims ........................................ 24.40 –3,716 (in millions of dollars) Program and Financing (in millions of dollars) Identification code 86–4070–0–3–371 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.20 Interest on U.S. securities .................................... Non-Federal sources: 88.40 Fees and premiums .......................................... 88.40 Rebate of unearned prepaid premiums collected ........................................................... 88.40 Proceeds from sale of real property ................ 88.40 Proceeds from sale of mortgage notes ............ 88.40 Repayment of mortgage notes and sales contracts ............................................................ 88.40 Interest and operating income ......................... 88.40 Recoveries on defaulted mortgages ................. 88.40 Payment from financing account ..................... 88.40 Miscellaneous collections ................................. 88.40 Other income .................................................... 1997 actual 1998 est. 1999 est. 5 3 –1 –1 –1 ................... 3 2 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4070–0–3–371 1997 actual 1998 est. 1999 est. Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. 102,159 87,755 81,393 2251 Repayments and prepayments ...................................... –12,750 –4,785 –4,517 Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... –82 –5 –6 2262 Terminations for default that result in acquisition of property ............................................................. –1,552 –1,513 –1,072 2263 Terminations for default that result in claim payments .................................................................... –20 –59 –60 2264 Other adjustments, net ............................................. ................... ................... ................... 5,348 4,236 Outstanding, end of year .......................................... 87,755 81,393 75,738 2299 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.31 Obligated balance transferred to other accounts ......... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 2290 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 87,755 81,393 75,738 3,716 72.40 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 685 325 325 1,990 1,940 1,337 –2,346 –1,941 –1,338 –4 ................... ................... 325 325 325 1,661 685 1,467 474 864 474 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2361 Write-offs of loans receivable ................................... 2364 Other adjustments, net ............................................. 2390 Outstanding, end of year ...................................... 1,862 287 57 82 5 6 –953 –209 –2 –550 –26 –1 –154 ................... ................... 287 57 60 HOUSING PROGRAMS—Continued Federal Funds—Continued 470 THE BUDGET FOR FISCAL YEAR 1999 Credit accounts—Continued FHA—MUTUAL MORTGAGE AND COOPERATIVE HOUSING INSURANCE FUNDS LIQUIDATING ACCOUNT—Continued 1102 1102 The Federal Housing Administration Fund currently consists of four separate insurance funds. In order to present more clearly the operations of the various funds, FHA’s budget transactions are separated into two major business segments. The basic single-family insurance programs in the Mutual Mortgage Insurance (MMI) fund and the multifamily Cooperative Management Housing Insurance (CMHI) funds form one segment. All other multifamily and other specialized insurance programs in the General Insurance and Special Risk Insurance funds (GI/SRI) form the other segment. The Federal Credit Reform Act of 1990 creates a structure of three accounts for existing credit program. For each of the FHA business segments (MMI/CMHI and GI/SRI) there is a liquidating account, which records the revenues and costs associated with loan insurance committed prior to October 1, 1991, a financing account which records the revenues and costs associated with commitments to insure loans made after September 30, 1991, and, a program account which records the transactions associated with the program subsidy costs, if any, and the costs of administering the program. This liquidating account records, for this program, all cash flows to and from the Government resulting from MMI/CMHI loans insured prior to fiscal year 1992, and is shown on a cash basis. All new activity in this program in 1992 and thereafter (including modifications of loans insured in any year) is recorded in the corresponding program (86–0183) and financing (86–4587 and 86–4242) accounts. The program activity in the ‘‘Program Highlights’’ table shown below reflects only the activity in the MMI/CMHI liquidating and financing accounts. The GI/SRI program activity can be found with the GI/SRI liquidating account (86–4072). 1106 1107 1206 1207 1601 1603 1699 1701 1703 1704 1705 1706 1799 1901 Investments in US securities: Treasury securities, par: Treasury securities, par ............. Unamortized net premium/discount ...................................... Receivables, net ............................. Advances and prepayments ........... Non-Federal assets: Receivables, net .................................. Advances and prepayments ................ Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: Direct loans, gross .............................. Allowance for estimated uncollectible loans and interest (–) .................... Value of assets related to direct loans .......................................... Defaulted guaranteed loans, gross .... Allowance for estimated uncollectible loans and interest (–) .................... Defaulted guaranteed loans and interest receivable, net ..................... Allowance for uncollectables from foreclosed property ......................... Foreclosed property ............................. Value of assets related to loan guarantees ................................. Other Federal assets: Other assets ........ 1999 Total assets ........................................ LIABILITIES: 2101 Federal liabilities: Accounts payable ...... Non-Federal liabilities: 2201 Accounts payable ................................ 2206 Pension and other actuarial liabilities 2207 Unearned revenue and advances ....... 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 7,729 13,467 15,567 16,867 –87 106 .................. –246 1 .................. –284 1 .................. –308 1 .................. 207 –62 61 32 61 32 61 32 7 5 3 2 –1 –2 –1 –1 6 1,862 3 287 2 58 1 62 –495 –39 –8 –8 1,367 248 50 54 –354 872 –370 946 –263 672 –186 473 1,885 18 824 20 459 9 341 1 12,707 14,480 16,359 17,321 .................. .................. .................. .................. 676 2,175 1,061 1,600 549 7 2,688 549 17 2,623 549 25 3,912 2,156 3,254 3,197 19 8,776 18 12,306 18 13,087 18 14,106 3999 Total net position ................................ 8,795 12,324 13,105 14,124 4999 PROGRAM HIGHLIGHTS Total liabilities and net position ............ 12,707 14,480 16,359 17,321 [In millions of dollars] Insurance initiation: Mortgage insurance commitments (units) ................ 1997 actual 1 1998 est. 1999 est. 852,546 960,240 Mortgage insurance written (in fiscal year): Units .......................................................................... Amount ...................................................................... 740,320 61,175 697,094 58,613 744,445 67,222 Insurance maintenance: Outstanding balance of insurance in force, end of year: Mortgage insurance ................................................... 360,505 400,211 442,301 1 As 1,037,380 1 Unaudited Object Classification (in millions of dollars) Identification code 86–4070–0–3–371 Financial condition.—The following tables reflect the revenues, expenses and financial condition of the MMI/CMHI liquidating funds based on Generally Accepted Accounting Principles. 1998 est. 1999 est. 25.2 32.0 33.0 42.0 44.0 Other services ................................................................ Land and structures ...................................................... Investments and loans .................................................. Insurance claims and indemnities ................................ Refunds .......................................................................... 93 1,782 94 20 1 189 1,673 18 59 1 49 1,208 19 60 1 Total obligations ........................................................ 1,990 1,940 1,337 FHA—MUTUAL MORTGAGE INSURANCE AND COOPERATIVE HOUSING LIQUIDATING ACCOUNT (Legislative proposal, not subject to PAYGO) Statement of Operations (in millions of dollars) 1996 actual1 1997 actual2 Program and Financing (in millions of dollars) 1998 est. 1999 est. 0101 0102 Revenue ................................................... Expense .................................................... 2,103 –1,097 1,854 –577 2,636 –688 1,455 –437 0109 Net income or loss (–) ............................ 1,006 1,277 1,948 1,018 1 As 1997 actual 99.9 preliminary results. Identification code 86–4070–0–3–371 reflected in the 1998 Budget. reflected in the 1998 Budget. result on GAAP basis pending final audit. Identification code 86–4070–2–3–371 1997 actual 1998 est. New budget authority (gross), detail: Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... ................... ................... 68.45 Portion applied to capital reserve (limitation on obligations) ........................................................... ................... ................... 1999 est. 527 –527 2 Estimated 68.90 Balance Sheet (in millions of dollars) Identification code 86–4070–0–3–371 ASSETS: Federal assets: 1101 Fund balances with Treasury ............. 1996 actual1 1997 actual 2,905 318 1998 est. 512 1999 est. 325 Spending authority from offsetting collections (total) ................................................................ ................... ................... ................... Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Payment from financing account ................................................. ................... ................... –527 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... –527 –527 Single Family Claims Reform and Sale of Property This proposal would provide HUD with additional flexibility to choose the most cost-effective methods of paying insurance claims and disposing of acquired notes or homes. Currently, section 204(a) of the National Housing Act sets forth the conditions under which HUD pays insurance benefits for defaulted single family mortgages and details the manner of calculating the amount of insurance benefits. This provision updates the current section 204(a) and adds authority for HUD to take assignment of mortgages. Under this proposal the Department would be able to take assignment of mortgage notes (instead of taking properties into inventory) and then sell or transfer them to a third party for servicing, loss mitigation, foreclosure, and disposition of the property, depending upon the circumstances. It is expected that savings will result from a higher return on sales and expected property disposition. The proposal would also provide flexible authority for HUD to participate in joint venture arrangements in the sale of single family properties. FHA—MUTUAL MORTGAGE INSURANCE AND COOPERATIVE HOUSING LIQUIDATING ACCOUNT (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) Identification code 86–4070–4–3–371 22.00 24.40 68.00 1997 actual 1998 est. Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... Unobligated balance available, end of year: Uninvested ................................................................. ................... ................... New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... ................... ................... 1999 est. 228 228 228 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.20 Interest on U.S. securities .................................... ................... ................... ................... 88.40 Payment from financing account ......................... ................... ................... –228 88.90 89.00 90.00 Total, offsetting collections (cash) .................. ................... ................... sured financing carries favorable terms which may not be available to many working families in high cost areas, who may be constrained from entering the homeownership market because of a lack of downpayment. The proposal reflects the Administration’s National Homeownership Strategy, which continue to be successful in raising the national homeownership rate. FHA—GENERAL This proposal will permit the Federal Housing Administration (FHA) to insure a single family mortgage with a principal amount not exceeding the average of the conforming mortgage loan limits established by Freddie Mac and Fannie Mae ($227,150 for a one-family residence in 1998). Under current law, FHA cannot insure a mortgage with a principal amount that exceeds 75% of the conforming mortgage limit established by Freddie Mac. The proposal also would eliminate other dollar limitations on mortgage amounts that are in the current law. These include ‘‘floor’’ limits for certain areas and limits based upon 95% of median home price for others. Currently, the maximum amount for an FHA-insured mortgage varies from the ‘‘floor’’ of $86,317 to higher amounts up to $170,363 which are determined on a county or metropolitan statistical area (MSA) basis. The proposal would increase and standardize the maximum insurable mortgage amount throughout the country. FHA-in- AND SPECIAL RISK PROGRAM ACCOUNT (INCLUDING TRANSFERS OF FUNDS) For the cost of guaranteed loans, as authorized by sections 238 and 519 of the National Housing Act (12 U.S.C. 1715z–3 and 1735c), including the cost of loan guarantee modifications (as that term is defined in section 502 of the Congressional Budget Act of 1974, as amended), $81,000,000, to remain available until expended: Provided, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, of up to ø$17,400,000,000: Provided further, That any amounts made available in any prior appropriations Act for the cost (as such term is defined in section 502 of the Congressional Budget Act of 1974) of guaranteed loans that are obligations of the funds established under section 238 or 519 of the National Housing Act that have not been obligated or that are deobligated shall be available to the Secretary of Housing and Urban Development in connection with the making of such guarantees and shall remain available until expended, notwithstanding the expiration of any period of availability otherwise applicable to such amounts¿ $18,100,000,000. Gross obligations for the principal amount of direct loans, as authorized by sections 204(g), 207(l), 238(a), and 519(a) of the National Housing Act, shall not exceed ø$120,000,000¿ $50,000,000; of which not to exceed ø$100,000,000¿ $30,000,000 shall be for bridge financing in connection with the sale of multifamily real properties owned by the Secretary and formerly insured under such Act; and of which not to exceed $20,000,000 shall be for loans to nonprofit and governmental entities in connection with the sale of single-family real properties owned by the Secretary and formerly insured under such Act. In addition, for administrative expenses necessary to carry out the guaranteed and direct loan programs, ø$222,305,000¿ $211,455,000, of which ø$218,134,000, including $25,000,000 for the enforcement of housing standards on FHA-insured multifamily projects,¿ $193,134,000 shall be transferred to the appropriation for departmental salaries and expenses; and of which ø$4,171,000¿ $18,321,000 shall be transferred to the appropriation for the Office of Inspector General. In addition, for non-overhead administrative expenses necessary to carry out the guaranteed and direct loan programs, $104,000,000. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Unavailable Collections (in millions of dollars) –228 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... ................... ................... –228 471 Identification code 86–0200–0–1–371 1997 actual 1998 est. 1999 est. Balance, start of year: Balance, subsidy downward reestimate, start of year 1,506 2,138 2,840 Receipts: 02.01 Negative Subsidies ........................................................ 607 702 243 02.02 Negative Subsidies, legislative proposal not subject to PAYGO ................................................................... ................... ................... 50 02.03 Downward reestimates of subsidies .............................. 25 ................... ................... 01.99 02.99 Total receipts ............................................................. 632 702 293 04.00 07.99 Total: Balances and collections .................................... Total balance, end of year ............................................ 2,138 2,138 2,840 2,840 3,133 3,133 Program and Financing (in millions of dollars) Identification code 86–0200–0–1–371 00.01 00.02 00.04 00.09 00.10 10.00 1997 actual 1998 est. 1999 est. Obligations by program activity: Guaranteed loan subsidy ............................................... 138 151 134 Prior year adjustment .................................................... 22 –22 ................... FHA multi-family demonstration .................................... 22 ................... ................... Administrative expenses, salaries & expenses transfer 207 222 211 Administrative expenses, FHA ........................................ ................... 104 104 Total obligations ........................................................ 389 455 449 472 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 (INCLUDING TRANSFERS OF FUNDS)—Continued 2150 2150 2150 2150 Program and Financing (in millions of dollars)—Continued 2159 Credit accounts—Continued FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT—Continued Identification code 86–0200–0–1–371 1997 actual 1998 est. 1999 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested: 21.40 Uncommitted ......................................................... 21.40 Administratively committed .................................. 534 56 449 49 21.99 22.00 22.30 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ Unobligated balance expiring ........................................ 590 305 –8 498 352 319 396 –10 ................... 23.90 23.95 887 –389 807 –455 748 –449 24.40 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested: Uncommitted ......................................................... Administratively committed .................................. 449 49 314 38 266 33 24.99 Total unobligated balance, end of year .................... 498 352 299 314 38 New budget authority (gross), detail: Appropriation: 40.00 Appropriation ............................................................. 40.00 FHA multi-family demonstration ............................... 292 303 396 10 ................... ................... 43.00 50.05 Appropriation (total) .................................................. Reappropriation (indefinite) ........................................... 302 3 303 396 16 ................... 70.00 Total new budget authority (gross) .......................... 305 319 Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 46 389 –378 –2 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Multifamily development ................................................ 2320 Refinance of multifamily mortgages ............................. 2320 Multifamily risk sharing programs ................................ 2320 Section 221(d)(3) ........................................................... 2320 Section 223(d) ............................................................... 2320 Mixed income ................................................................. 2320 Nursing Homes ............................................................... 2320 Hospitals ........................................................................ 2320 Section 241 supplemental ............................................. 2320 Mobile home parks ........................................................ 2320 Very small projects ........................................................ 2320 Tax credit new construction .......................................... 2320 Neighborhood improvements .......................................... 2320 Single family programs ................................................. 2320 Title I .............................................................................. 2329 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... 2339 396 55 28 455 449 –466 –451 –16 ................... 55 28 26 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 207 171 295 171 350 101 87.00 Total outlays (gross) ................................................. 378 466 451 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 305 378 319 466 396 451 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0200–0–1–371 Mobile home parks ........................................................ ................... ................... Single family .................................................................. 7,690 8,500 Title I guarantees .......................................................... 1,476 2,400 Standby authority ........................................................... ................... 752 1997 actual 1998 est. 1999 est. Direct loan levels supportable by subsidy budget authority: 1150 Single-family PMMs ....................................................... ................... 1150 Multifamily bridge loans ................................................ ................... 20 100 20 30 1159 120 50 Guaranteed loan levels supportable by subsidy budget authority: 2150 Multifamily development ................................................ 1,609 1,585 2150 Refinance of FHA-insured mortgages ............................ 1,485 1,973 2150 Risk sharing programs .................................................. 222 913 2150 Section 221(d)(3) ........................................................... 25 19 2150 Section 223(d) ............................................................... 9 8 2150 Mixed Income ................................................................. 9 4 2150 Hospitals ........................................................................ 137 450 2150 Nursing homes ............................................................... 564 649 2150 Very small projects ........................................................ ................... 113 2150 Tax credit new construction .......................................... ................... ................... 2150 Section 241 supplemental loans ................................... 92 24 2150 Neighborhood improvements .......................................... ................... 10 1,344 2,100 708 27 10 5 600 600 204 75 100 10 Total direct loan levels ............................................. ................... 10 9,120 2,187 1,000 13,318 17,400 18,100 8.78 –0.79 –0.34 30.47 30.47 12.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 –1.55 –1.59 8.51 –0.75 –0.52 29.21 29.21 12.13 –0.70 1.49 0.00 0.00 –0.48 0.00 17.04 –1.32 –1.50 6.95 –0.78 –0.57 17.27 24.18 12.13 –0.70 1.53 17.06 6.95 –0.63 –0.88 17.06 –1.32 –1.35 –0.02 –0.13 –0.27 98 97 81 Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. 98 97 81 171 166 136 2349 171 166 136 Administrative expense data: Budget authority, S&E Transfer ..................................... 207 222 Budget authority, FHA .................................................... ................... ................... Outlays from balances ................................................... ................... ................... Outlays from new authority ........................................... 207 222 211 104 26 289 3510 3510 3580 3590 Total subsidy outlays ................................................ Multifamily Products.—This account includes budget authority for multifamily insurance programs requiring positive credit subsidies, as well as for salaries and expenses for all General and Special Risk Insurance Fund programs. The credit subsidy appropriation of $81 million requested for 1999 will be used in conjunction with $49 million of carryover budget authority to provide a total program level of $130 million. As required by the Federal Credit Reform Act of 1990, this account records, for the single family, multifamily, hospital, and Title I insurance programs of FHA’s General Insurance and Special Risk Insurance Funds, the subsidy costs associated with the loan guarantees committed or direct loans obligated in 1992 and thereafter (including modifications of loan guarantees or direct loans that resulted from obligations or commitments in any year), as well as administrative expenses of these programs. The subsidy amounts are estimated on a present value basis; the administrative expenses are accounted for on a cash basis. FHA has corrected the allocation of administrative expenses among its budgetary accounts. Beginning in 1998, all administrative expenses are recorded in the program account. In 1999, $104 million in appropriations has been requested to provide consistency with this approach. Object Classification (in millions of dollars) Identification code 86–0200–0–1–371 25.1 25.3 41.0 99.9 1997 actual Advisory and assistance services .................................. ................... Purchases of goods and services from Government accounts .................................................................... 207 Grants, subsidies, and contributions ............................ 182 Total obligations ........................................................ 389 1998 est. 1999 est. 104 104 222 129 211 134 455 449 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FHA—GENERAL AND SPECIAL RISK GUARANTEED LOAN FINANCING ACCOUNT Status of Guaranteed Loans (in millions of dollars) 1997 actual Identification code 86–4077–0–3–371 Program and Financing (in millions of dollars) Identification code 86–4077–0–3–371 1997 actual 1998 est. 1999 est. Obligations by program activity: Capital investment, claims and other: 00.01 Default claims and other .......................................... 702 986 1,221 00.02 Loan asset sale contracts ......................................... ................... ................... 8 00.03 PD related contracts ................................................. ................... 4 8 00.04 Payment of negative subsidy to receipt account 142 140 143 00.05 Interest paid to Treasury ........................................... 42 82 118 00.06 Downward subsidy rate reestimate ........................... 25 ................... ................... 00.08 Asset sale negative subsidy payment to receipt account ................................................................. 384 ................... 100 00.09 Asset sale payment to liquidating account .............. 536 ................... 285 00.10 Value paid to liquidating account for guarantees refinanced under 223(a)(7) .................................. 2 ................... ................... 00.11 Mark-to-market portfolio reengineering legislative savings .................................................................. ................... 562 50 00.12 Waiver of PD/mortgage sale law, savings ................ 80 ................... ................... 00.13 Modification of pre–1992 guarantees, costs ............ 7 ................... ................... 10.00 Total obligations ................................................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New financing authority (gross) .................................... 22.60 Redemption of debt ....................................................... Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New financing authority (gross), detail: Authority to borrow (indefinite) ..................................... Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.10 Change in receivables ............................................... 67.15 1,774 1,933 275 2,135 –77 414 2,137 –135 642 2,323 –135 2,333 –1,920 2,416 –1,774 2,830 –1,933 414 642 897 227 1,260 750 1,777 131 1,008 1,573 –131 ................... 68.90 Spending authority from offsetting collections (total) ................................................................ 1,908 877 1,573 70.00 Total new financing authority (gross) ...................... 2,135 2,137 2,323 Change in unpaid obligations: Unpaid obligations, start of year: 72.40 Obligated balance: Uninvested ................................. 42 72.95 Receivables from program account .......................... ................... 72.99 73.10 73.20 1998 est. 1999 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2112 Uncommitted loan guarantee limitation ....................... 17,400 –4,082 17,400 –752 18,100 –1,000 2150 13,318 16,648 17,100 40,319 12,677 –6,144 45,663 14,323 –3,594 55,662 14,416 –2,973 –167 –333 –512 –227 –285 –310 Total guaranteed loan commitments ........................ Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2262 Terminations for default that result in acquisition of property ............................................................. 2263 Terminations for default that result in claim payments .................................................................... 2264 Other adjustments, net ............................................. 2210 2231 2251 –100 –112 –126 –695 ................... ................... 42 1,920 –1,913 74.40 74.95 Total unpaid obligations, start of year ................ New obligations ............................................................. Total financing disbursements (gross) ......................... Unpaid obligations, end of year: Obligated balance: Uninvested ................................. Receivables from federal accounts ........................... 74.99 87.00 Total unpaid obligations, end of year .................. Total financing disbursements (gross) ......................... 49 1,913 –82 49 131 ................... 49 1,774 –1,774 49 1,933 –1,933 –82 49 49 131 ................... ................... 49 1,774 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: Federal sources: 88.00 Payments from program account ..................... –157 –166 88.00 Repayment of principal and interest from liquidating account .......................................... –97 –117 88.25 Interest on uninvested funds ............................... ................... –23 Non-Federal sources: 88.40 Fees and premiums .......................................... –277 –486 88.40 Recoveries on defaulted mortgages ................. –60 –55 88.40 Single family property recoveries ..................... –246 –153 88.40 Title I recoveries ............................................... –6 –8 88.40 Proceeds from sale of mortgage notes ............ –934 ................... 88.90 88.95 Total, offsetting collections (cash) .................. Change in receivables from program accounts ............ –1,777 –131 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... 227 136 49 1,933 –136 –217 –23 –574 –49 –168 –13 –393 –1,008 –1,573 131 ................... 2290 Outstanding, end of year .......................................... 45,663 55,662 66,157 2299 1,920 21.40 23.90 23.95 24.40 473 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 45,663 55,662 66,157 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2361 Write-offs of loans receivable ................................... 159 210 518 167 333 512 –67 –25 –39 –49 ................... ................... 2390 210 Outstanding, end of year ...................................... 518 991 As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loan guarantees committed in 1992 and thereafter (including modifications of loan guarantees that resulted from commitments in any year) for FHA’s General and Special Risk Insurance Fund programs. The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account. Balance Sheet1 (in millions of dollars) Identification code 86–4077–0–3–371 ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1107 Borrowings receivable from liquidating account ........................ Net value of assets related to post– 1991 acquired defaulted guaranteed loans receivable: 1501 Defaulted guaranteed loans receivable, gross ...................................... 1504 Foreclosed property ............................. 1505 Allowance for subsidy cost ................. 1599 1901 Net value of assets related to defaulted guaranteed loan ............ Other Federal assets: Other assets ........ 1999 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Debt ........................... Non-Federal liabilities: 2204 Liabilities for loan guarantees ........... 2207 Other ................................................... 1996 actual 1997 actual 1998 est. 1999 est. 589 333 152 152 336 .................. 622 405 159 118 –164 210 195 –235 518 271 –457 991 311 –732 113 .................. 170 1 332 .................. 570 97 1,038 504 1,106 1,224 421 572 1,195 1,336 617 .................. –72 4 –89 .................. –112 .................. 2999 1,260 766 750 360 Total liabilities .................................... NET POSITION: 1,038 504 1,106 1,224 3999 Total net position ................................ .................. .................. .................. .................. 474 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 Credit accounts—Continued FHA—GENERAL AND SPECIAL RISK GUARANTEED LOAN FINANCING ACCOUNT—Continued Balance Sheet1 (in millions of dollars)—Continued 1996 actual Identification code 86–4077–0–3–371 4999 Total liabilities and net position ............ 1997 actual 1,038 504 1998 est. 1999 est. 1,106 1,224 1 Preliminary results pending final audit. Subsidy reestimates for fiscal year 1997 disbursements will be performed for the Mid-Session review of the Budget. The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Reform Act of 1990, no administrative expenses can be recorded in the financing account. This schedule includes two direct loan programs. One provides bridge loan financing to facilitate the disposition of multifamily housing owned by the Department to non-profit organizations who agree to preserve it as affordable rental or cooperative housing. The second is a single-family direct loan program for purchase money mortgages, as discussed in the preceding section for the Mutual Mortgage Insurance Fund. Balance Sheet (in millions of dollars) FHA—GENERAL AND SPECIAL RISK DIRECT LOAN FINANCING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4105–0–3–371 00.01 00.02 10.00 1997 actual Obligations by program activity: Direct loans .................................................................... 1 Interest paid to Treasury ............................................... ................... Total obligations ........................................................ 1 1996 actual 1997 actual .................. .................. 1 4 .................. 1 21 66 .................. 1 21 66 Total assets ........................................ LIABILITIES: Federal liabilities: 2103 Treasury borrowing .............................. 2104 Resources payable to Treasury ........... .................. 1 22 70 .................. .................. 1 .................. 21 1 66 4 2999 Total liabilities .................................... .................. 1 22 70 4999 Total liabilities and net position ............ .................. 1 22 70 Identification code 86–4105–0–3–371 ASSETS: Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 direct loans receivable: 1401 Direct loans receivable, gross ............ 1998 est. 1999 est. 20 2 50 7 22 57 1499 Net present value of assets related to direct loans ........................... 1999 67.15 68.00 Total budgetary resources available for obligation 1 New obligations ............................................................. –1 Unobligated balance available, end of year: Uninvested ................................................................. ................... New financing authority (gross), detail: Authority to borrow (indefinite) ..................................... ................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 1 1 60 23 –22 61 –57 1 4 20 50 FHA—LOAN GUARANTEE RECOVERY FUND—FINANCING ACCOUNT 3 10 Program and Financing (in millions of dollars) 70.00 Total new financing authority (gross) ...................... 1 23 60 73.10 73.20 87.00 Change in unpaid obligations: New obligations ............................................................. Total financing disbursements (gross) ......................... Total financing disbursements (gross) ......................... 1 –1 1 22 –22 22 57 –57 57 Offsets: Against gross financing authority and financing disbursements: 88.40 Offsetting collections (cash) from: Interest received on loans ................................................................ Identification code 86–4106–0–3–371 –3 Net financing authority and financing disbursements: Financing authority ........................................................ ................... Financing disbursements ............................................... ................... 20 19 Status of Direct Loans (in millions of dollars) Identification code 86–4105–0–3–371 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ............................................. 1112 Unobligated direct loan limitation ................................ 1150 Total direct loan obligations ..................................... 1997 actual 1998 est. 3 5 New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... ................... 3 2 Offsets: Against gross financing authority and financing disbursements: 88.00 Offsetting collections (cash) from: Federal sources ................... –3 –2 89.00 90.00 120 –100 120 –70 1 20 50 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. ................... 1 1231 Disbursements: Direct loan disbursements ................... 1 20 1251 Repayments: Repayments and prepayments ................. ................... ................... 21 50 –5 1290 Total budgetary resources available for obligation ................... Unobligated balance available, end of year: Uninvested ................................................................. ................... 3 2 5 1999 est. 120 –119 1999 est. 3 –10 50 47 1998 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. ................... ................... 22.00 New financing authority (gross) .................................... ................... 3 68.00 89.00 90.00 1997 actual 21.40 23.90 24.40 –1 1999 est. 1101 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested ................................................................. ................... ................... 22.00 New financing authority (gross) .................................... 1 23 23.90 23.95 24.40 1998 est. Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... ................... –3 –2 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4106–0–3–371 1997 actual 1998 est. 1999 est. 66 Outstanding, end of year .......................................... 1 21 Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2113 Uncommitted limitation carried forward ....................... 2150 As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from direct loans obligated in 1992 and thereafter (including loan modifications) for FHA’s General Insurance and Special Risk Insurance Fund programs. 2210 2231 2290 10 10 ................... –10 ................... ................... Total guaranteed loan commitments ........................ ................... 10 ................... Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. ................... ................... Disbursements of new guaranteed loans ...................... ................... 3 Outstanding, end of year .......................................... ................... 3 3 3 6 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... 87.00 3 6 Section 4 of the Church Arson Prevention Act of 1996 (P.L. 104–155), entitled ‘‘Loan Guarantee Recovery Fund,’’ authorizes the Secretary of Housing and Urban Development to guarantee loans made by financial institutions to assist certain nonprofit organizations that were damaged as a result of acts of arson or terrorism. FHA—GENERAL AND SPECIAL RISK INSURANCE FUNDS LIQUIDATING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4072–0–3–371 1997 actual Obligations by program activity: Operating expenses: 00.02 Interest on debentures .............................................. 5 00.03 Other operating costs ................................................ 50 00.04 Property disposition related contracts ...................... ................... 00.05 Legislative savings repayments ................................ 109 00.06 PAE & 3rd party restructuring fees .......................... ................... 00.91 01.01 01.02 01.03 01.04 01.05 01.07 01.08 01.10 01.11 1998 est. 5 8 4 117 6 1999 est. 5 8 8 217 69 Total operating expenses ...................................... 164 140 307 Capital investment: Claims and other: Acquisition of defaulted Title I notes ....................... 37 33 30 Assignment of mortgages ......................................... 333 428 544 Acquisition of real properties .................................... 215 199 152 Rehabilitation of real properties ............................... 54 34 44 Mark-to-Market Restructures .................................... ................... 102 1,603 Capitalized property expenses ................................... 112 147 147 Loss on defaulted guaranteed loans ........................ 14 ................... ................... Tax advances on held mortgages ............................. 65 33 33 SF partial claims ....................................................... ................... 4 3 Total outlays (gross) ................................................. 853 475 1,120 2,863 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: Non-Federal sources: 88.40 Fees and premiums .......................................... –232 –201 –194 88.40 Rebates of insurance premiums ...................... 7 7 7 88.40 Multifamily foreclosure sales ........................... –3 –108 –147 88.40 Proceeds from sale of real property ................ –186 –158 –184 88.40 Proceeds from sale of mortgage notes ............ –560 ................... –285 88.40 MTM second mortgage repayments ................. ................... –1 –7 88.40 Prior year adjustment ....................................... 3 ................... ................... 88.40 Recoveries on defaulted mortgages ................. –131 –53 –52 88.40 Interest and operating income ......................... –206 –105 –110 88.40 Recoveries on defaulted Title I mortgages ...... –15 –12 –10 88.40 Other interest, dividends and revenue ............ –8 –9 –8 88.40 Modification subsidy & transfers from financing acct. ....................................................... –8 –7 ................... 88.90 Total, offsetting collections (cash) .................. –1,339 –647 –990 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 47 –486 66 473 1,939 1,873 Summary of Budget Authority and Outlays (in millions of dollars) 1997 actual 1998 est. Enacted/requested: Budget Authority ..................................................................... 47 66 Outlays .................................................................................... –486 473 Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 47 –486 66 473 1999 est. 1,939 1,873 23 –2 1,962 1,871 Status of Direct Loans (in millions of dollars) 01.91 Total capital investment ....................................... 829 980 2,556 10.00 Total obligations ........................................................ 994 1,120 2,863 Identification code 86–4072–0–3–371 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested ................................................................. 21.41 U.S. Securities: Par value ......................................... 21.99 22.00 22.10 22.40 22.60 23.90 23.95 2,089 7 2,420 ................... 8 ................... Total unobligated balance, start of year ............. 2,096 2,428 ................... New budget authority (gross) ........................................ 1,386 713 2,929 Resources available from recoveries of prior year obligations ....................................................................... 1 ................... ................... Capital transfer to general fund ................................... ................... –1,955 ................... Redemption of debt ....................................................... –61 –66 –66 24.40 24.41 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. U.S. Securities: Par value ......................................... 24.99 Total unobligated balance, end of year .................... 3,422 –994 1,120 –1,120 2,420 ................... ................... 8 ................... ................... 2,428 ................... ................... New budget authority (gross), detail: 60.05 Appropriation (indefinite) ............................................... ................... ................... 67.15 Authority to borrow (indefinite) ..................................... 47 66 68.00 Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 1,339 647 70.00 Total new budget authority (gross) .......................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.32 Obligated balance transferred from other accounts 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 2,863 –2,863 1,386 713 1,873 66 990 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 1290 279 423 423 994 1,120 2,863 –853 –1,120 –2,863 4 ................... ................... –1 ................... ................... 423 423 423 47 806 713 2,863 407 ................... Outstanding, end of year .......................................... 1997 actual 1998 est. 1999 est. 97 –13 –6 78 –10 –3 65 –8 –2 78 65 55 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4072–0–3–371 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2262 Terminations for default that result in acquisition of property ............................................................. 2263 Terminations for default that result in claim payments .................................................................... 2264 Other adjustments, net ............................................. 2210 2251 1997 actual 1998 est. 1999 est. 48,423 –3,422 42,405 –1,949 39,690 –1,756 –369 –465 –577 –215 –199 –152 –14 –102 –1,603 –1,998 ................... ................... 2290 Outstanding, end of year .......................................... 42,405 39,690 35,602 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 42,405 39,690 35,602 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2361 Write-offs of loans receivable ................................... 2364 Other adjustments, net ............................................. 2,941 369 –1,050 –93 43 2,929 72.40 86.97 86.98 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1251 Repayments: Repayments and prepayments ................. 1264 Write-offs for default: Other adjustments, net ............. 2390 Outstanding, end of year ...................................... 2,210 2,210 2,388 465 577 –121 –445 –232 –545 66 ................... 2,388 1,975 The General Insurance fund provides for a large number of specialized mortgage insurance programs, including the in- 476 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 1901 Credit accounts—Continued FHA—GENERAL AND SPECIAL RISK INSURANCE FUNDS LIQUIDATING ACCOUNT—Continued surance of loans for property improvements as well as for cooperatives, condominiums, housing for the elderly, rental housing and nonprofit hospitals. The Special Risk Insurance fund provides insurance on behalf of mortgagors who otherwise would not be eligible for mortgage insurance. In addition, the fund provides insurance on mortgages covering experimental housing where strict adherence to State or local building regulations was not observed. As required by the Federal Credit Reform Act of 1990, this account records, for this program, all cash flows to and from the Government resulting from loan guarantees committed and direct loans obligated prior to 1992. This account is shown on a cash basis. New insurance and direct loan activity in 1992 and thereafter in the GI/SRI programs is recorded in corresponding program (86–0200) and financing (86–4077 and 86–4105) accounts. Section 571 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 established the Office of Multifamily Housing Assistance Restructuring within HUD to administer the program of mortgage and rental assistance restructuring. Included in the budget estimates for this account are projections for the financial operations of the office. More detailed information will be provided to Congress at a later date. Financial Condition.—The following tables reflect the revenues, expenses, and financial condition of the GI/SRI Liquidating Account based on Generally Accepted Accounting Principles. Statement of Operations (in millions of dollars) Identification code 86–4072–0–3–371 1996 actual1 1997 actual2 Other Federal assets: Other assets ........ .................. 330 330 330 Total assets ........................................ LIABILITIES: Federal liabilities: 2101 Accounts payable ................................ 2102 Interest payable .................................. 2104 Resources payable to Treasury ........... Non-Federal liabilities: 2201 Accounts payable ................................ 2202 Interest payable .................................. 2203 Debt ..................................................... 2206 Pension and other actuarial liabilities Other: 2207 Unearned revenue and advances ... 2207 Other ............................................... 3,502 3,809 1,400 1,316 373 .................. .................. 363 .................. .................. 363 .................. .................. 363 .................. .................. 131 .................. 82 8,890 443 .................. .................. 6,685 443 .................. .................. 6,300 443 .................. .................. 6,000 111 209 124 .................. 124 .................. 124 .................. 2999 9,796 7,615 7,230 6,930 3100 3300 5,350 –19,115 5,290 –16,567 5,290 –16,636 7,290 –18,420 7,471 .................. 7,471 .................. 7,471 –1,955 7,471 –1,955 1999 Total liabilities .................................... NET POSITION: Appropriated capital ................................ Cumulative results of operations ............ Other: 3600 Debt Forgiveness ................................. 3600 Balances transfered ............................ 3999 Total net position ................................ –6,294 –3,806 –5,830 –5,614 4999 Total liabilities and net position ............ 3,502 3,809 1,400 1,316 1 As Object Classification (in millions of dollars) Identification code 86–4072–0–3–371 25.1 25.2 32.0 33.0 42.0 43.0 44.0 99.9 1998 est. reflected in 1998 Budget. pending final audit. 2 Preliminary 1997 actual 1998 est. Advisory and assistance services .................................. ................... Other services ................................................................ 50 Land and structures ...................................................... 269 Investments and loans .................................................. 370 Insurance claims and indemnities ................................ 191 Interest and dividends ................................................... 5 Repayments to financing account ................................. 109 Total obligations ........................................................ 994 4 14 233 567 180 5 117 8 77 196 2,180 180 5 217 1,120 2,863 1999 est. 0101 0102 Revenue ................................................... Expense .................................................... 370 –167 520 –55 299 –368 299 –2,083 0109 Net income or loss (–) ............................ 203 465 –69 FHA—GENERAL –1,784 1 As reflected in the 1998 Budget. 2 Preliminary results pending final audit. AND SPECIAL RISK INSURANCE FUNDS LIQUIDATING (Legislative proposal, not subject to PAYGO) Program and Financing (in millions of dollars) Identification code 86–4072–2–3–371 Balance Sheet (in millions of dollars) 1997 actual 1998 est. Obligations by program activity: Increase in 3rd party fees ............................................. ................... ................... Capital investment: Claims and other: 01.01 Change to baseline project restructuring costs ....... ................... ................... 01.03 Legislative savings repayment to financing account ................... ................... 00.01 Identification code 86–4072–0–3–371 ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1102 Treasury securities, par .................. 1106 Receivables, net ............................. 1107 Advances and prepayments ........... Non-Federal assets: 1206 Receivables, net .................................. 1207 Advances and prepayments ................ Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............................. 1603 Allowance for estimated uncollectible loans and interest (–) .................... 1699 1701 1703 1704 1705 1706 1799 Value of assets related to direct loans .......................................... Defaulted guaranteed loans, gross .... Allowance for estimated uncollectible loans and interest (–) .................... Defaulted guaranteed loans and interest receivable, net ..................... Allowance for uncollectables from foreclosed property ......................... Foreclosed property ............................. Value of assets related to loan guarantees ................................. 1996 actual1 1997 actual2 1998 est. 1999 est. 1999 est. 1999 est. 5 –25 18 2,092 2,842 423 423 01.91 Total capital investment ....................................... ................... ................... –7 7 16 .................. 7 3 .................. .................. 3 .................. .................. 3 .................. 10.00 Total obligations ........................................................ ................... ................... –2 22.00 22.40 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... Capital transfer to general fund ................................... ................... ................... 23 –25 23.90 23.95 Total budgetary resources available for obligation ................... ................... New obligations ............................................................. ................... ................... –2 2 60.05 New budget authority (gross), detail: Appropriation (indefinite) ............................................... ................... ................... 23 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... –2 2 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... ................... Outlays from permanent balances ................................ ................... ................... 23 –25 87.00 Total outlays (gross) ................................................. ................... ................... –2 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 23 –2 175 .................. 86 .................. 86 .................. 86 .................. 97 78 65 55 –21 –59 –49 –41 76 2,940 19 2,210 16 2,388 14 1,975 –1,957 –1,801 –1,946 –1,609 983 409 442 366 –479 632 –182 295 –160 260 –150 244 1,136 522 542 460 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT This adjustment reflects the effect of repealing sections 513(b)(7)(g) and 517(d) of the Multifamily Assisted Housing Reform and Affordability Act of 1997. Section 513(b)(7)(g) of the Act prohibits any private entity from sharing, participating in, or otherwise benefiting from any equity created, received, or restructured as a result of a portfolio restructuring agreement. Section 517(d) of the Act prohibits the Secretary of HUD from participating in any equity sharing or profit sharing arrangement. The Department will be reporting in February, 1998, on possible ways that equity sharing might be developed in connection with portfolio restructuring. Currently, HUD is using joint venture arrangements with non-profit partners under the multifamily demonstration as a mechanism to achieve savings. Object Classification (in millions of dollars) 1997 actual Identification code 86–4072–2–3–371 1998 est. 1999 est. 25.1 33.0 44.0 Advisory and assistance services .................................. ................... ................... Investments and loans .................................................. ................... ................... Repayments to financing account ................................. ................... ................... 5 –25 18 99.9 Total obligations ........................................................ ................... ................... –2 HOUSING FOR THE ELDERLY OR HANDICAPPED FUND LIQUIDATING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4115–0–3–371 Obligations by program activity: Capital investment: 00.01 Housing for the elderly or handicapped loans ......... 00.02 Maintenance security and collateral ......................... 1997 actual 2 2 1998 est. 1999 est. 13 ................... 4 4 00.91 01.01 Subtotal, capital investment ................................ Operating expenses: Interest on borrowings ................. 4 436 17 361 4 309 10.00 Total obligations ........................................................ 440 378 313 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 462 920 ................... 22.00 New budget authority (gross) ........................................ 786 751 751 22.10 Resources available from recoveries of prior year obligations ....................................................................... 112 ................... ................... 22.60 Redemption of debt ....................................................... ................... –1,293 –438 21.40 23.90 23.95 24.40 60.05 60.47 63.00 68.00 70.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New budget authority (gross), detail: Appropriation (indefinite) ............................................... Portion applied to debt reduction ................................. 1,360 –440 378 –378 313 –313 920 ................... ................... 735 –735 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 786 89.00 90.00 751 751 86.97 86.98 87.00 –751 1997 actual 1998 est. 1999 est. Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 8,306 8,228 8,342 1231 Disbursements: Direct loan disbursements ................... 6 184 ................... 1251 Repayments: Repayments and prepayments ................. –84 –70 –71 Write-offs for default: 1263 Direct loans ............................................................... ................... ................... ................... 1264 Other adjustments, net ............................................. ................... ................... ................... 1290 Outstanding, end of year .......................................... 8,228 8,342 8,271 Note.—Amounts for direct loan obligations reflect reservations of section 202 funds. Loan obligations shown under the program and financing schedule reflect loans that have reached the initial closing stage of processing. The Housing for the Elderly or Handicapped Fund was established pursuant to section 202 of the Housing Act of 1959, as amended. The fund provided direct loans to nonprofit organizations building and managing housing projects for lower income persons who are elderly or disabled. Projects included an assured range of necessary services for the occupants of such projects. In addition, the section 8 lower income housing assistance payments program has been used in conjunction with the section 202 program. Applications under the two programs have been processed simultaneously. The data included in these schedules represent direct loan activities funded under the Housing for the Elderly or Handicapped Loan Fund. Further, activities in support of the needs of the elderly and disabled have been carried out under a grant program funded in the 1991 Appropriations Act (P.L. 101–507) and authorized in the National Affordable Housing Act (P.L. 101–625). After April 1, 1992, all projects for which there were administrative reservations converted to the capital advance assistance program. For 1999, funding is being requested for assistance on behalf of the elderly and disabled under the HOME Investment Partnerships Program. The program and financing schedule for this account summarizes the Federal government’s obligations for this loan program. Financing.—Repayments and interest income from loans continue to be available to pay for commitments of the fund. Statement of Operations (in millions of dollars) Identification code 86–4115–0–3–371 1996 actual 1997 actual 1998 est. 1999 est. 0101 0102 Revenue ................................................... Expense .................................................... 700 –573 699 –440 681 –364 680 –313 0109 Net income or loss (–) ............................ 127 259 317 367 Balance Sheet (in millions of dollars) Identification code 86–4115–0–3–371 ASSETS: Federal assets: Fund balances with Treasury ............................................... 1206 Non-Federal assets: Receivables, net ..... Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............................. 1602 Interest receivable .............................. 1996 actual 1997 actual 1998 est. 1999 est. 887 83 1,027 81 1,417 81 1,177 81 8,306 .................. 8,228 .................. 8,343 .................. 8,272 .................. 1101 123 110 Outlays (gross), detail: Outlays from new permanent authority ......................... 646 362 Outlays from permanent balances ................................ ................... ................... 202 123 Total outlays (gross) ................................................. –751 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –141 –389 –426 Identification code 86–4115–0–3–371 72.40 425 107 123 440 378 313 –646 –362 –325 –112 ................... ................... –786 Status of Direct Loans (in millions of dollars) 881 ................... –881 ................... Appropriation (total) .................................................. ................... ................... ................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 786 751 751 Total new budget authority (gross) .......................... Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. 477 107 646 362 325 HOUSING PROGRAMS—Continued Federal Funds—Continued 478 THE BUDGET FOR FISCAL YEAR 1999 Credit accounts—Continued HOUSING FOR THE Balance Sheet (in millions of dollars) ELDERLY OR HANDICAPPED FUND LIQUIDATING ACCOUNT—Continued 1603 1604 1606 1699 1901 Allowance for estimated uncollectible loans and interest (–) .................... Direct loans and interest receivable, net .................................................. Acquired Real Property ....................... Value of assets related to direct loans .......................................... Other Federal assets: Other assets ........ 1999 ASSETS: Federal assets: Fund balances with Treasury ............................................... Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............................. 1603 Allowance for estimated uncollectible loans and interest (–) .................... 1997 actual 1998 est. 1999 est. 6 6 .................. .................. 1 1 1 1 –1 –1 –1 –1 .................. .................. .................. .................. 6 6 .................. .................. 1101 Balance Sheet (in millions of dollars)—Continued Identification code 86–4115–0–3–371 1996 actual Identification code 86–4042–0–3–604 1996 actual 1997 actual 1998 est. 1999 est. –20 –21 –21 –21 8,286 .................. 8,207 1 8,322 1 8,251 1 1699 8,286 1 8,208 .................. 8,323 .................. 8,252 .................. 9,257 9,316 9,821 9,510 Total assets ........................................ LIABILITIES: Federal liabilities: 2102 Interest payable .................................. 2104 Resources payable to Treasury ........... 2207 Non-Federal liabilities: Other .................. 291 8 6,909 90 9 6,174 184 9 5,293 157 9 4,628 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 7,208 6,273 5,486 2,784 259 2,784 1,551 Total net position ................................ 2,049 3,043 4,335 Total liabilities and net position ............ 9,257 9,316 9,821 9,510 6 6 .................. .................. 3999 Total net position ................................ 6 6 .................. .................. 4999 Total liabilities and net position ............ 6 6 .................. .................. 4,716 4999 Total assets ........................................ NET POSITION: 3300 Cumulative results of operations ............ 2,784 1,932 3999 1999 4,794 2,021 28 Value of assets related to direct loans .......................................... Object Classification (in millions of dollars) Identification code 86–4115–0–3–371 1997 actual 1998 est. 1999 est. 32.0 33.0 43.0 Land and structures ...................................................... Investments and loans .................................................. Interest and dividends ................................................... 2 2 436 4 4 13 ................... 361 309 99.9 Total obligations ........................................................ 440 378 313 NONPROFIT SPONSOR ASSISTANCE LIQUIDATING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4042–0–3–604 1997 actual Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 6 22.40 Capital transfer to general fund ................................... ................... 1998 est. 1999 est. 89.00 90.00 Total budgetary resources available for obligation Unobligated balance available, end of year: Uninvested ................................................................. 6 ................... –6 ................... GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE PROGRAM ACCOUNT 6 ................... ................... (INCLUDING TRANSFER OF FUNDS) 6 ................... ................... During fiscal year ø1998¿ 1999, new commitments to issue guarantees to carry out the purposes of section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)), shall not exceed ø$130,000,000,000¿ $150,000,000,000. For administrative expenses necessary to carry out the guaranteed mortgage-backed securities program, $9,383,000, to be derived from the GNMA-guarantees of mortgage-backed securities guaranteed loan receipt account, of which not to exceed $9,383,000 shall be transferred to the appropriation for departmental salaries and expenses. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... ................... ................... ................... Status of Direct Loans (in millions of dollars) Identification code 86–4042–0–3–604 Federal Funds The Housing and Urban Development Act of 1968 authorized the Government National Mortgage Association (Ginnie Mae) to guarantee the timely payment of principal and interest on privately issued securities that are backed by pools of FHA, Veterans Affairs (VA) and Rural Housing Service mortgages. The Ginnie Mae guarantee gives lenders access to the capital markets for funds to originate new loans. New FHA and VA loans are currently pooled into Ginnie Mae securities. Financing.—Ginnie Mae issuers are assessed commitment, guarantee and other fees to cover costs incurred by Ginnie Mae and to fund a reserve against possible future payments under the guarantee. Operating results.—Fee collections, interest, and other income are expected to exceed expenses by $329 million and $402 million in 1998 and 1999 respectively. Credit accounts: 21.40 23.90 24.40 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 1997 actual 1998 est. 1999 est. 1210 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. 1 1 1 1290 Outstanding, end of year .......................................... 1 1 1 Unavailable Collections (in millions of dollars) Identification code 86–0186–0–1–371 As required by the Federal Credit Reform Act of 1990, this account records, for this program, all cash flows to and from the Government resulting from direct loans obligated prior to 1992. This account is shown on a cash basis. The Nonprofit Sponsor Assistance fund provided interestfree loans to nonprofit organizations to plan housing projects to be financed under the section 202 housing for the elderly or disabled program. 1997 actual 1998 est. 1999 est. Balance, start of year: Balance, start of year .................................................... ................... ................... Receipts: 02.01 Guarantees of mortgage backed securities guarantee loans, negative subsidies ......................................... 9 391 5,715 04.00 01.99 Total: Balances and collections .................................... Appropriation: 05.01 Guarantees of mortgage-backed securities loan guarantee program account ............................................. 382 9 391 6,097 –9 –9 –9 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 07.99 Total balance, end of year ............................................ ................... 382 6,088 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New financing authority (gross) .................................... 479 21.40 Program and Financing (in millions of dollars) Identification code 86–0186–0–1–371 1997 actual 1998 est. 1999 est. 23.90 23.95 24.40 00.01 Obligations by program activity: Administrative expenses ................................................ 9 9 9 10.00 Total obligations (object class 25.2) ........................ 9 9 9 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ 23.95 New obligations ............................................................. 68.00 9 –9 9 –9 9 –9 9 9 9 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. Total outlays (gross) ...................................................... 9 –9 9 –9 9 –9 86.90 Outlays (gross), detail: Outlays from new current authority .............................. 9 9 9 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 9 9 9 9 9 9 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) 1997 actual 1998 est. 1999 est. Guaranteed loan levels supportable by subsidy budget authority: 2150 Loan guarantee levels ................................................... 110,000 130,000 150,000 2159 110,000 130,000 407 505 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 164 –9 608 –201 912 –418 155 407 494 New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 37 453 505 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. ................... ................... 73.10 New obligations ............................................................. 9 201 73.20 Total financing disbursements (gross) ......................... –9 –211 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. ................... –9 87.00 Total financing disbursements (gross) ......................... 9 211 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.25 Interest on uninvested funds ............................... –10 Non-Federal sources: 88.40 Non-Federal sources: Commitment and other fees .............................................................. ................... 88.40 Non-Federal sources ......................................... ................... 88.40 Non-Federal sources ......................................... –27 88.40 Non-Federal sources ......................................... ................... 150,000 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... 155 453 72.40 New budget authority (gross), detail: 40.25 Appropriation (special fund, indefinite) ........................ Identification code 86–0186–0–1–371 127 37 0.00 –0.32 –0.42 0.00 –0.32 –9 –9 –9 –9 –9 –9 –9 2349 –9 –9 –9 –12 –24 –286 –81 –63 –11 –351 –55 –64 –11 88.90 88.95 Total, offsetting collections (cash) .................. –37 –453 –505 Change in receivables from program accounts ............ ................... ................... ................... 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... –28 –242 –92 –9 Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. –4 413 –0.42 –9 –9 418 –413 2329 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... 2339 Total subsidy outlays ................................................ The schedule above reflects new methodology under credit reform for Ginnie Mae. During transition to the new methodology, negative subsidy will not match disbursement from the Ginnie Mae financing account to the Ginnie Mae receipt account. As required by the Federal Credit Reform Act of 1990, this account records the administrative expenses of this program. The administrative expenses are estimated on a cash basis. GUARANTEES OF MORTGAGE-BACKED SECURITIES FINANCING ACCOUNT Obligations by program activity: 00.01 Payment to receipt account for administration ............ 00.02 Payment to receipt account for negative subsidy ........ 00.03 Payment to receipt account for multi-class savings proposals ................................................................... 00.04 Operating expenses ........................................................ 00.05 Capital investment ........................................................ 1997 actual Identification code 86–4240–0–3–371 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. Disbursements: 1232 Purchase of loans assets from the public ............... 1233 Purchase of loans assets from a liquidating account ..................................................................... 1252 Repayments: Proceeds from loan asset sales to the public or discounted ................................................. 1290 1998 est. 9 45 9 286 ................... ................... ................... 27 ................... 38 43 82 80 1998 est. ................... ................... ................... 74 1999 est. 255 71 265 ................... ................... –84 –58 Outstanding, end of year .......................................... ................... 255 268 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4240–0–3–371 1997 actual 1998 est. 1999 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 110,000 130,000 150,000 2112 Uncommitted loan guarantee limitation ....................... ................... ................... ................... Total guaranteed loan commitments ........................ 2210 2231 2251 2264 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... Adjustments: Other adjustments, net ........................... 1999 est. 9 ................... 1997 actual ................... 2150 Program and Financing (in millions of dollars) Identification code 86–4240–0–3–371 Status of Direct Loans (in millions of dollars) 110,000 130,000 150,000 ................... ................... 468,737 ................... 107,472 108,658 ................... –200 –289 ................... 361,465 ................... Total obligations ........................................................ 9 201 418 Outstanding, end of year .......................................... ................... 468,737 577,106 2299 10.00 2290 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... 468,737 577,106 480 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 New budget authority (gross), detail: Spending authority from offsetting collections: Offsetting collections (cash): 68.00 Offsetting collections (cash) ................................ 68.00 Spending authority from offsetting collections (REMICs) ........................................................... Credit accounts—Continued GUARANTEES OF MORTGAGE-BACKED SECURITIES FINANCING ACCOUNT—Continued Balance Sheet (in millions of dollars) Identification code 86–4240–0–3–371 ASSETS: 1101 Federal assets: Fund balances with Treasury ............................................... 1206 Non-Federal assets: Receivables, net ..... Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............................. 1603 Allowance for estimated uncollectible loans and interest (–) .................... 1699 1801 Value of assets related to direct loans .......................................... Other Federal assets: Cash and other monetary assets .................................. 1996 actual 127 .................. 1997 actual 155 .................. 1998 est. 1999 est. 397 23 495 30 .................. .................. 274 380 .................. .................. –159 –217 .................. .................. 115 163 .................. .................. 8 10 155 543 698 .................. .................. .................. .................. 19 402 40 453 2999 .................. .................. 421 493 127 155 120 206 3999 Total net position ................................ 127 155 120 206 4999 Total liabilities and net position ............ 127 155 541 699 Note.—Ginnie Mae guarantees the timely payment of principal and interest installments on securities which are backed by FHA-insured, Rural Housing Service-insured, and VA-guaranteed mortgages. Such guarantees are excluded from the Government total of guaranteed obligations duplicating FHA, Rural Housing Service, and VA guarantees. GUARANTEES 5 12 ................... ................... Spending authority from offsetting collections (total) ................................................................ 766 317 5 70.00 Total new budget authority (gross) .......................... 766 317 5 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested1 ............................................................... 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. –78 158 –164 –85 340 –627 –62 5,434 –5,372 72.40 127 Total liabilities .................................... NET POSITION: 3300 Cumulative results of operations ............ 317 68.90 Total assets ........................................ LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................................ 2207 Other ................................................... 1999 754 86.98 MORTGAGE-BACKED SECURITIES LIQUIDATING ACCOUNT Program and Financing (in millions of dollars) 164 Outlays (gross), detail: Outlays from permanent balances ................................ –62 ................... 627 5,372 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.20 Interest on U.S. securities .................................... –306 –259 ................... 88.25 Interest on uninvested funds ............................... ................... –3 ................... Non-Federal sources: 88.40 Guarantee fees ................................................. –326 –55 –5 88.40 Repayments of guaranteed payments ............. –84 ................... ................... 88.40 Commitment and other fees ............................ –22 ................... ................... 88.40 Servicing income .............................................. –11 ................... ................... 88.40 Receipts from sale of REO properties and mobile home units ....................................... –16 ................... ................... 88.40 Repayments on mortgages ............................... –1 ................... ................... 88.40 Sale of servicing rights .................................... ................... ................... ................... 88.90 89.00 90.00 OF –85 Total, offsetting collections (cash) .................. –766 –317 –5 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –602 310 5,367 1 This line nets unpaid obligations and offsetting collections from new Federal sources. Status of Direct Loans (in millions of dollars) Identification code 86–4238–0–3–371 1997 actual 1998 est. 1999 est. 1997 actual Identification code 86–4238–0–3–371 1998 est. 1999 est. Obligations by program activity: 00.01 Functional services ........................................................ Operating expenses: 00.02 Default expenses ....................................................... 00.03 Servicing expenses .................................................... 00.04 Other expenses .......................................................... 00.05 REMIC expenses ........................................................ 10 2 1 6 1 1 16 3 2 4 ................... ................... 00.91 49 9 5 94 15 18 3 8 1 Total capital investment ....................................... 109 Other: Transfer to Receipt Account ...................................... ................... 21 9 310 5,420 158 340 5,434 2210 2231 2251 2264 82 85 61 2290 Outstanding, end of year .......................................... 530,042 90,317 7,710 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 530,041 90,316 7,709 01.01 01.02 01.91 02.01 10.00 Total operating expenses ...................................... Capital investment: Advances of guaranty payments ............................... Real estate owned properties ................................... Total obligations ........................................................ 13 3 1 1290 Outstanding, end of year .......................................... 4,772 –10 5,382 5,368 –15 ................... 21.99 22.00 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ 4,844 766 5,452 317 5,429 5 23.90 23.95 5,610 –158 5,769 –340 5,434 –5,434 24.41 24.42 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. U.S. Securities: Par value ............................................................... Unrealized discounts ............................................. 24.99 Total unobligated balance, end of year .................... 5,452 332 85 19 8 –1 ................... –265 ................... 332 85 93 Status of Guaranteed Loans (in millions of dollars) 1997 actual Identification code 86–4238–0–3–371 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested ................................................................. U.S. Securities: 21.41 Par value ............................................................... 21.42 Unrealized discounts ............................................. 24.40 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 321 1232 Disbursements: Purchase of loans assets from the public ......................................................................... 98 1252 Repayments: Proceeds from loan asset sales to the public or discounted ................................................. –87 1264 Write-offs for default: Other adjustments, net ............. ................... 1998 est. 1999 est. Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. 497,433 530,042 90,317 Disbursements of new guaranteed loans ...................... 97,569 ................... ................... Repayments and prepayments ...................................... –64,960 –78,260 –82,607 Adjustments: Other adjustments, net ........................... ................... –361,465 ................... Budget Program.—Program activity is summarized below: Mortgage-backed Securities* [In millions of dollars] 85 61 ................... 5,382 5,368 ................... –15 ................... ................... 5,429 ................... 1997 actual Commitment limitation .................................................. Commitments issued ..................................................... Guarantees issued ......................................................... Securities outstanding ................................................... * Includes both financing and liquidating account activity. 110,000 98,869 97,569 530,041 1998 est. 130,000 130,000 107,472 649,369 1999 est. 150,000 150,000 108,000 592,525 POLICY DEVELOPMENT AND RESEARCH Federal Funds DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Operating results.—Fee collections, interest, and other income are expected to exceed expenses by $573 million in 1997, $309 million in 1998, and $1 million in 1999. These amounts will be retained to cover future year expenses and as a reserve against losses that may be incurred on guarantees. Statement of Operations (in millions of dollars) Identification code 86–4238–0–3–371 Revenue: Revenue ................................................... Revenue (REMICs) ................................... Expense: 0102 Expense .................................................... 0102 Expense (REMICs) .................................... Net income or loss (–): 0101 0101 1996 actual 1997 actual 1998 est. 1999 est. 576 11 641 12 317 .................. 5 .................. –96 –4 –76 –4 –8 .................. –4 .................. 0109 Net income or loss (–) ....................... 480 565 309 1 0109 Net income or loss (–) (REMICs) ....... 7 8 .................. .................. 0199 Net income or loss .................................. 487 573 309 POLICY DEVELOPMENT AND RESEARCH Federal Funds General and special funds: RESEARCH AND TECHNOLOGY For contracts, grants, and necessary expenses of programs of research and studies relating to housing and urban problems, not otherwise provided for, as authorized by title V of the Housing and Urban Development Act of 1970, as amended (12 U.S.C. 1701z–1 et seq.), including carrying out the functions of the Secretary under section 1(a)(1)(i) of Reorganization Plan No. 2 of 1968, ø$36,500,000¿ $50,000,000, to remain available until September 30, ø1999¿ 2000, of which $10,000,000 shall be for activities to support the Partnership for Advanced Technologies in Housing. øOf the amount made available under this heading, $500,000 shall be made available for a contract with the National Academy of Public Administration to evaluate the Secretary’s efforts to implement needed management systems and processes.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) 1 Program and Financing (in millions of dollars) Identification code 86–0108–0–1–451 Balance Sheet (in millions of dollars) Identification code 86–4238–0–3–371 ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1102 Treasury securities, par .................. 1104 Agency securities, par .................... 1106 Receivables, net ............................. 1206 Non-Federal assets: Receivables, net ..... Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............................. 1603 Allowance for estimated uncollectible loans and interest (–) .................... 1699 1801 Value of assets related to direct loans .......................................... Other Federal assets: Cash and other monetary assets .................................. 1998 est. 00.01 00.02 1996 actual 1997 actual 1999 est. 4 1 1 .................. 4,785 .................. 60 28 5,382 .................. 73 33 5,368 .................. 61 8 .................. .................. .................. 4 10.00 321 332 85 93 –288 –303 –52 –86 Total assets ........................................ LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................................ 2207 Other ................................................... 2999 1997 actual 1998 est. Obligations by program activity: Housing Research .......................................................... 35 40 Research Fund for America ........................................... ................... ................... 1999 est. 40 10 Total obligations ........................................................ 35 40 50 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 2 36 3 ................... 37 50 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 38 –35 40 –40 50 –50 3 ................... ................... 29 33 10 2 .................. 4,915 5,528 5,473 11 36 473 39 509 7 101 4 50 50 7 5 40 10 43.00 33 New budget authority (gross), detail: Current: Appropriation: 40.00 Appropriation ......................................................... 34 37 40.00 Appropriation ......................................................... ................... ................... 68.00 1999 481 70.00 Total liabilities .................................... NET POSITION: 3300 Cumulative results of operations ............ 509 548 108 54 4,406 4,979 5,365 –43 3999 Total net position ................................ 4,406 4,979 5,365 –43 4999 Total liabilities and net position ............ 4,915 5,527 5,473 Appropriation (total) ............................................. Permanent: Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 34 Total new budget authority (gross) .......................... 36 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 37 2 ................... ................... 37 50 72.40 25 26 26 35 40 50 –33 –40 –41 –1 ................... ................... 11 26 26 35 Object Classification (in millions of dollars) Identification code 86–4238–0–3–371 25.2 33.0 92.0 99.9 1997 actual Other services ................................................................ 45 Investments and loans .................................................. 113 Undistributed ................................................................. ................... Total obligations ........................................................ 158 1998 est. 1999 est. 9 21 310 5 9 5,420 340 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 14 19 15 25 20 21 87.00 Note.—Ginnie Mae guarantees the timely payment of principal and interest installments on securities which are backed by FHA-insured, Rural Housing Service, and VA-guaranteed mortgages. Such guarantees are excluded from the Government total of guaranteed obligations duplicating FHA, Rural Housing Service, and VA guarantees. Total outlays (gross) ................................................. 33 40 41 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –2 ................... ................... 5,434 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 34 31 37 40 50 41 The Housing and Urban Development Act of 1970 directs the Secretary to undertake programs of research, studies, testing, and demonstrations related to the HUD mission. These functions are carried out internally and through con- 482 POLICY DEVELOPMENT AND RESEARCH—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 22.30 General and special funds—Continued RESEARCH AND TECHNOLOGY—Continued tracts with industry, nonprofit research organizations, and educational institutions, and through agreements with State and local governments and other Federal agencies. In 1999, the research program will focus on activities to support research examining the implications of significant changes in public and assisted housing policy, the impacts of welfare reform on HUD-assisted households and HUD-subsidized developments, the success of instituting a continuum of care approach to help the homeless and other areas. National Housing Surveys will continue in 1999. The 1999 request includes $10 million to support an initiative known as the Partnership for Advancing Technologies in Housing (PATH). PATH is a key component of the President’s Climate Change Technology Initiative (CCTI). Energy use in buildings accounts for more than one-third of air emissions, producing more than 350 million metric tons of carbon emissions. PATH will help to significantly reduce: housing utility costs; carbon emissions; construction injuries; losses due to fire and disasters. The funds will be used for PATHrelated housing technology research, field demonstrations of promising new technologies, information dissemination, and the development of product evaluation systems. Funding for PATH is proposed as part of the Research Fund for America. This proposal highlights the Administration’s priority to providing needed and sustained investments in important Federal research programs on a deficit neutral basis. A discussion of the Research Fund for America, and two other funds for the environment and transportation, can be found in Section II of the Budget volume. Object Classification (in millions of dollars) 1997 actual Identification code 86–0108–0–1–451 1998 est. 1999 est. 25.2 41.0 Other services ................................................................ Grants, subsidies, and contributions ............................ 31 4 35 5 45 5 99.9 Total obligations ........................................................ 35 40 50 FAIR HOUSING AND EQUAL OPPORTUNITY Federal Funds General and special funds: FAIR HOUSING ACTIVITIES For contracts, grants, and other assistance, not otherwise provided for, as authorized by title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988, and section 561 of the Housing and Community Development Act of 1987, as amended, ø$30,000,000¿ $52,000,000, to remain available until September 30, ø1999¿ 2000, of which ø$15,000,000¿ $29,000,000 shall be to carry out activities pursuant to such section 561. No funds made available under this heading shall be used to lobby the executive or legislative branches of the Federal Government in connection with a specific contract, grant or loan. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Unobligated balance expiring ........................................ 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. 40.00 New budget authority (gross), detail: Appropriation .................................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. –1 ................... ................... 42 –35 38 –38 52 –52 8 ................... ................... 30 30 52 32 35 –28 39 38 –22 55 52 –29 39 55 78 72.40 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 28 22 29 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 30 28 30 22 52 29 The Budget proposes an appropriation of $52 million in 1999 for fair housing activities to fund programs, consistent with the President’s ‘‘One America’’ policy, which will support new efforts to end housing discrimination, including a commitment to double the number of housing discrimination enforcement actions over the next 4 years. Of the amount requested, $23 million is for the Fair Housing Assistance Program and $29 million is for the Fair Housing Initiatives Program. The Fair Housing Assistance Program (FHAP), authorized by title VIII of the Civil Rights Act of 1968 as amended, provides funding to State and local agencies to assure prompt and effective processing of Title VIII (Civil Rights Act of 1968) complaints. The additional $8 million in funding requested for FHAP will support the President’s fair housing enforcement initiative by increasing funding to support additional State and local fair housing organizations to meet the needs of currently underserved populations. These funds will be used for joint investigations and enforcement activities with State and local fair housing agencies to address housing discrimination. It is estimated that the number of new State and local agencies with laws equivalent to the Fair Housing Act will increase to 85 in 1999 from 78 in 1997. The Fair Housing Initiatives Program (FHIP), authorized by the Housing and Community Development Act of 1987, as amended by the Housing and Community Development Act of 1992, provides support to public and private organizations for the purpose of eliminating or preventing discrimination in housing and for enhancing fair housing opportunities. Of the $29 million requested, $10 million will be used to fund an audit-based enforcement initiative which will address the continued existence of a high level of both blatant and subtle forms of housing discrimination confirmed through testing experience. Additional FHIP funding will support extended testing and other anti-discrimination activities by private fair housing groups. Program and Financing (in millions of dollars) Identification code 86–0144–0–1–751 1997 actual 1998 est. 1999 est. OFFICE OF LEAD HAZARD CONTROL Federal Funds 00.01 00.02 Obligations by program activity: Fair housing assistance ................................................ Fair housing initiatives .................................................. 11 24 23 15 23 29 10.00 Total obligations (object class 41.0) ........................ 35 38 52 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 13 30 8 ................... 30 52 General and Special Funds: LEAD HAZARD REDUCTION For the Lead Hazard Reduction Program, as authorized by sections 1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992, $85,000,000 to remain available until expended, of which $25,000,000 shall be for a Healthy Homes Initiative, which shall be a program pursuant to sections 501 and 502 of the Housing and MANAGEMENT AND ADMINISTRATION Federal Funds DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Urban Development Act of 1970 that shall include research, studies, testing, and demonstration efforts, including education and outreach concerning lead-based paint poisoning and other housing-related environmental diseases and hazards. MANAGEMENT AND ADMINISTRATION Federal Funds General and special funds: SALARIES Program and Financing (in millions of dollars) Identification code 86–0174–0–1–451 1997 actual 1998 est. 1999 est. 85 10.00 Total obligations (object class 41.0) ........................ ................... ................... 85 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 85 –85 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 85 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. ................... ................... AND EXPENSES (INCLUDING TRANSFER OF FUNDS) Obligations by program activity: 00.01 Lead abatement ............................................................. ................... ................... 73.10 73.20 74.40 483 For necessary administrative and nonadministrative expenses of the Department of Housing and Urban Development not otherwise provided for, including not to exceed $7,000 for official reception and representation expenses, $1,000,826,000, of which ø$544,443,000¿ $518,000,000 shall be provided from the various funds of the Federal Housing Administration, $9,383,000 shall be provided from funds of the Government National Mortgage Association, øand¿ $1,000,000 shall be provided from the ‘‘Community Development Grants Program’’ account, $200,000 shall be provided from the ‘‘Title VI Indian Federal Guarantees Program Account,’’ and $400,000 shall be provided from the ‘‘Indian Housing Loan Guarantee Fund Program Account’’. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Program and Financing (in millions of dollars) 85 –1 Identification code 86–0143–0–1–999 1997 actual 1998 est. 1999 est. 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 1 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 85 1 Title X of the Housing and Community Development Act of 1992 (Public Law 102–550), known as the Residential LeadBased Paint Hazard Reduction Act, authorized the Secretary to establish the Lead-Based Paint Hazard Control Grant Program. The primary purpose of the program is to reduce the exposure of young children to lead-based paint hazards in their homes. To accomplish this, two major activities are being conducted within the Department’s Office of Lead Hazard Control. The first is the Healthy Homes Initiative, which will include a program to conduct lead-based paint compliance checks. The Healthy Homes Initiative will also enable the Department to control additional childhood diseases and injuries that are caused by housing related factors. The initiative will allow for a demonstration that evaluates methods of controlling two or more housing related diseases through a single intervention. A public education/outreach effort, to enable the public to act effectively to protect their children, will also be conducted. The second activity is the continuation of the Lead Hazard Control Grant Program, which provides grants of $1 to $4 million to State and local governments for control of leadbased paint hazards in privately owned, low-income owneroccupied and rental housing. The grants are also designed to stimulate the development of a trained and certified hazard evaluation and control industry by requiring all contractors to be certified and all workers to be trained through a Stateaccredited program. In awarding grants, HUD promotes the use of cost-effective approaches to hazard control that can be replicated across the nation. Prior to 1997, funding for the lead hazard control grant program was provided under the Annual Contributions for Assisted Housing Account. In 1997 and 1998, the program was funded as a set-aside under the Community Development Block Grant (CDBG) account. In 1999 the program is being proposed as a separate, stand-alone program. Obligations by program activity: Direct program: 00.01 Housing, mortgage credit, regulatory and energy conservation .......................................................... 00.02 Community planning and development programs 00.03 Equal opportunity and research programs ............... 00.04 Departmental management, legal and audit services ........................................................................ 00.05 Field direction and administration ........................... 146 60 62 134 61 61 129 60 60 52 97 52 138 55 168 00.91 09.01 84 Total direct program ............................................. Reimbursable program .................................................. 417 561 446 555 472 529 09.99 Total reimbursable program ...................................... 561 555 529 10.00 Total obligations ........................................................ 978 1,001 1,001 22.00 22.30 Budgetary resources available for obligation: New budget authority (gross) ........................................ Unobligated balance expiring ........................................ 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. 981 1,001 1,001 –3 ................... ................... 978 –978 1,001 –1,001 1,001 –1,001 420 446 472 561 555 529 Total new budget authority (gross) .......................... 981 1,001 1,001 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 136 978 –981 –7 126 1,001 –995 –6 126 1,001 –995 –6 126 126 126 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 70.00 72.40 86.90 86.93 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 324 96 561 343 97 555 363 103 529 87.00 Total outlays (gross) ................................................. 981 995 995 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –561 –555 –529 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 420 419 446 440 472 466 89.00 90.00 484 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 General and special funds—Continued SALARIES AND EXPENSES—Continued (INCLUDING TRANSFER OF FUNDS)—Continued This appropriation finances all salaries and related costs associated with administering the programs of the Department of Housing and Urban Development, including: housing and mortgage credit programs; community planning and development programs; equal opportunity, research, regulatory and insurance programs; departmental management, and legal services; and, field direction and administration. Object Classification (in millions of dollars) 1997 actual Identification code 86–0143–0–1–999 11.1 11.3 11.5 11.8 11.9 12.1 13.0 21.0 22.0 23.1 23.3 24.0 25.1 25.2 25.3 25.4 26.0 31.0 Direct obligations: Personnel compensation: Full-time permanent ............................................. Other than full-time permanent ........................... Other personnel compensation ............................. Special personal services payments .................... 1998 est. 1999 est. 221 7 5 3 228 228 7 7 5 5 1 ................... Total personnel compensation ......................... 236 Civilian personnel benefits ....................................... 48 Benefits for former personnel ................................... 9 Travel and transportation of persons ....................... 6 Transportation of things ........................................... ................... Rental payments to GSA ........................................... 32 Communications, utilities, and miscellaneous charges ................................................................. 11 Printing and reproduction ......................................... 3 Advisory and assistance services ............................. 13 Other services ............................................................ 1 Purchases of goods and services from Government accounts ................................................................ 46 Operation and maintenance of facilities .................. 6 Supplies and materials ............................................. 3 Equipment ................................................................. 3 241 240 48 47 3 ................... 11 13 1 1 35 38 12 3 12 1 9 3 35 3 65 6 3 5 69 6 3 5 99.0 99.0 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 417 561 446 555 472 529 99.9 Total obligations ........................................................ 978 1,001 1,001 Personnel Summary 1997 actual Identification code 86–0143–0–1–999 Direct: 1001 Total compensable workyears: Full-time equivalent employment ............................................................... Reimbursable: 2001 Total compensable workyears: Full-time equivalent employment ............................................................... 1998 est. 1999 est. 4,332 4,207 5,235 70.00 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. OF Program and Financing (in millions of dollars) 10.00 Obligations by program activity: Direct program ............................................................... Reimbursable program .................................................. Total obligations ........................................................ Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ 23.95 New obligations ............................................................. 26 32 53 67 67 18 11 11 53 67 67 –58 –67 –67 –2 ................... ................... 11 11 11 32 9 26 27 9 32 87.00 Total outlays (gross) ................................................. 58 67 67 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –17 –26 –32 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 36 41 41 41 35 35 89.00 90.00 This appropriation provides agencywide audit and investigative functions to identify and correct management and administrative deficiencies that create conditions for existing or potential instances of fraud, waste and mismanagement. The audit function provides internal audit, contract audit, and inspection services. Contract audits provide professional advice to agency contracting officials on accounting and financial matters relative to negotiation, award, administration, repricing, and settlement of contracts. Internal audits review and evaluate all facets of agency operations. Inspection services provide detailed technical evaluations of agency operations. The investigative function provides for the detection and investigation of improper and illegal activities involving programs, personnel, and operations. Object Classification (in millions of dollars) 1997 actual Direct obligations: Personnel compensation: Full-time permanent ............................................. Other personnel compensation ............................. 1998 est. 1999 est. 1998 est. 19 1 22 2 19 2 20 5 3 3 1 1 24 6 3 3 3 1 21 5 3 3 1 1 31.0 Total personnel compensation ......................... Civilian personnel benefits ....................................... Travel and transportation of persons ....................... Rental payments to GSA ........................................... Advisory and assistance services ............................. Other services ............................................................ Purchases of goods and services from Government accounts ................................................................ Equipment ................................................................. 99.0 99.0 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 36 17 41 26 35 32 99.9 INSPECTOR GENERAL For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, $66,850,000, of which ø$16,283,000¿ $22,343,000 shall be provided from the various funds of the Federal Housing Administration and $10,000,000 shall be transferred from the amount earmarked for Operation Safe Home in the ‘‘Drug Elimination Grants for Low-Income Housing’’ account. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) 00.01 09.01 17 36 5 17 Identification code 86–0189–0–1–451 1997 actual 35 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 4,724 (INCLUDING TRANSFER OF FUNDS) Identification code 86–0189–0–1–451 41 86.90 86.93 86.97 11.1 11.5 OFFICE Total new budget authority (gross) .......................... 36 72.40 4,231 5,787 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... Total obligations ........................................................ 53 67 67 11.9 12.1 21.0 23.1 25.1 25.2 25.3 2 1 1 1 ................... ................... 1999 est. Personnel Summary 36 17 53 53 –53 41 26 67 67 –67 35 32 67 67 –67 Identification code 86–0189–0–1–451 Direct: 1001 Total compensable workyears: Full-time equivalent employment ............................................................... Reimbursable: 2001 Total compensable workyears: Full-time equivalent employment ............................................................... 1997 actual 1998 est. 1999 est. 339 363 319 160 230 292 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT Object Classification (in millions of dollars) SALARIES AND EXPENSES For carrying out the Federal Housing Enterprise Financial Safety and Soundness Act of 1992, ø$16,000,000¿ $16,551,000, to remain available until expended, to be derived from the Federal Housing Enterprise Oversight Fund: Provided, That not to exceed such amount shall be available from the General Fund of the Treasury to the extent necessary to incur obligations and make expenditures pending the receipt of collections to the Fund: Provided further, That the General Fund amount shall be reduced as collections are received during the fiscal year so as to result in a final appropriation from the General Fund estimated at not more than $0. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.) Balance, start of year: Balance, start of year .................................................... Receipts: 02.01 Office of federal housing enterprise oversight ............. 1997 actual 1998 est. 1998 est. 1999 est. 11.1 12.1 23.1 25.2 Personnel compensation: Personnel Compensation ...... Civilian personnel benefits ............................................ Rental payments to GSA ................................................ Other services ................................................................ 7 1 2 5 8 1 2 4 8 2 2 4 99.0 99.5 Subtotal, direct obligations .................................. 15 Below reporting threshold .............................................. ................... 15 1 16 1 16 17 99.9 Total obligations ........................................................ 15 Personnel Summary Identification code 86–5272–0–2–371 1001 Unavailable Collections (in millions of dollars) 01.99 1997 actual Identification code 86–5272–0–2–371 (INCLUDING TRANSFER OF FUNDS) Identification code 86–5272–0–2–371 485 1997 actual Total compensable workyears: Full-time equivalent employment ............................................................... 69 1998 est. 1999 est. 78 78 1999 est. 1 ................... ................... Intragovernmental funds: WORKING CAPITAL FUND 15 16 17 Program and Financing (in millions of dollars) 04.00 Total: Balances and collections .................................... 16 16 17 Appropriation: 05.01 Office of federal housing enterprise oversight ............. –16 –16 –17 07.99 Total balance, end of year ............................................ ................... ................... ................... Identification code 86–4586–0–4–451 1997 actual 1998 est. 1999 est. 09.01 Identification code 86–5272–0–2–371 1997 actual 1998 est. 1999 est. 15 16 17 10.00 Total obligations ........................................................ 15 16 17 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 16 –15 16 –16 17 –17 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Uninvested ................................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Uninvested ................................................................. 16 16 17 72.40 7 15 –17 5 16 –16 5 17 –17 5 5 5 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 12 5 12 4 13 4 87.00 Total outlays (gross) ................................................. 17 16 17 Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 259 262 Total obligations ........................................................ 220 259 262 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested ................................................................. 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 30 195 6 259 6 262 21.40 Obligations by program activity: 00.01 Direct program ............................................................... New budget authority (gross), detail: 40.20 Appropriation (special fund, definite) ........................... 220 10.00 Program and Financing (in millions of dollars) Obligations by program activity: Reimbursable program .................................................. 16 17 16 16 17 17 This appropriation funds the Office of Federal Housing Enterprise Oversight (the Office), which was established in 1992 to regulate the financial safety and soundness of the two housing Government Sponsored Enterprises (GSEs)—the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. The Office was authorized in the Federal Housing Enterprise Safety and Soundness Act of 1992, which also instituted a risk-based capital standard for the GSEs, and gave the regulator enhanced authority to enforce those standards. The office is also required by statute to conduct on-site annual examinations at the GSEs to determine the condition of each enterprise for the purpose of ensuring their financial safety and soundness. 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested ................................................................. New budget authority (gross), detail: Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.10 Change in orders on hand from Federal sources 68.15 Adjustment to orders on hand from Federal sources 68.90 1 ................... ................... 226 –220 265 –259 268 –262 6 6 6 228 259 262 –32 ................... ................... –1 ................... ................... Spending authority from offsetting collections (total) ................................................................ 195 259 262 Total new budget authority (gross) .......................... 195 259 262 Change in unpaid obligations: Unpaid obligations, start of year: 72.40 Obligated balance: Uninvested ................................. 72.95 Orders on hand from Federal sources ...................... –3 55 25 23 25 23 70.00 72.99 73.10 73.20 73.45 74.40 74.95 Total unpaid obligations, start of year ................ New obligations ............................................................. Total outlays (gross) ...................................................... Adjustments in unexpired accounts .............................. Unpaid obligations, end of year: Obligated balance: Uninvested ................................. Orders on hand from Federal sources ...................... 74.99 Total unpaid obligations, end of year .................. 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 87.00 Total outlays (gross) ................................................. Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources 88.95 Change in orders on hand from Federal sources ......... 88.96 Adjustment to orders on hand from Federal sources 52 48 48 220 259 262 –224 –259 –262 –1 ................... ................... 25 23 25 23 25 23 48 48 48 195 259 262 29 ................... ................... 224 259 262 –228 –259 –262 32 ................... ................... 1 ................... ................... 486 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1999 Intragovernmental funds—Continued WORKING CAPITAL FUND—Continued Program and Financing (in millions of dollars)—Continued 1997 actual Identification code 86–4586–0–4–451 89.00 90.00 1998 est. 1999 est. Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –4 ................... ................... The Working Capital Fund, authorized by the Department of Housing and Urban Development Act of 1965, finances information technology and office automation initiatives which can be performed more efficiently on a centralized basis. The fund is financed from fees charged for services performed. Object Classification (in millions of dollars) 1997 actual Identification code 86–4586–0–4–451 1998 est. 1999 est. 11.1 12.1 21.0 23.3 25.1 26.0 31.0 Personnel compensation: Full-time permanent ............. Civilian personnel benefits ............................................ Travel and transportation of persons ............................ Communications, utilities, and miscellaneous charges Advisory and assistance services .................................. Supplies and materials ................................................. Equipment ...................................................................... 17 3 1 50 122 1 26 19 4 1 50 169 1 15 19 4 1 51 170 1 16 99.9 Total obligations ........................................................ 220 259 262 Personnel Summary Identification code 86–4586–0–4–451 2001 Total compensable workyears: Full-time equivalent employment ............................................................... 1997 actual 279 1998 est. 330 1999 est. 330 ADMINISTRATIVE PROVISIONS SEC. 201. EXTENDERS. (a) ONE-FOR-ONE REPLACEMENT OF PUBLIC HOUSING.—Section 1002(d) of Public Law 104–19 is amended by striking ø‘‘1997’’¿ ‘‘1998’’ and inserting ø‘‘1998’’¿ ‘‘1999’’. (b) STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE.—Section 203(d) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996, is amended by striking ‘‘fiscal years 1996, øand¿ 1997, and 1998’’ and inserting ‘‘fiscal years 1996, 1997, øand¿ 1998, and 1999’’. ø(c) SECTION 8 RENT ADJUSTMENTS.—Section 8(c)(2)(A) of the United States Housing Act of 1937 is amended— (1) in the third sentence, by striking ‘‘fiscal year 1997’’ and inserting ‘‘fiscal years 1997 and 1998’’; and (2) in the last sentence, by striking ‘‘fiscal year 1997’’ and inserting ‘‘fiscal years 1997 and 1998’’.¿ ø(d)¿ (c) PUBLIC AND ASSISTED HOUSING RENTS, INCOME ADJUSTMENTS AND PREFERENCES.— (1) Section 402(a) of The Balanced Budget Downpayment Act, I is amended by striking ‘‘fiscal øyear¿ years 1997 and 1998’’ and inserting ‘‘fiscal years 1997, øand¿ 1998, and 1999’’. (2) Section 402(f) of The Balanced Budget Downpayment Act, I is amended by striking ‘‘fiscal years 1996, øand¿ 1997, and 1998’’ and inserting ‘‘fiscal years 1996, 1997, øand¿ 1998, and 1999’’. (3) Section 16 of the United States Housing Act of 1937 is amended by revising the heading and subsections (a) through (c) to read as follows: ‘‘SEC. 16. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING. ‘‘(a) PUBLIC HOUSING. ‘‘(1) PROGRAM REQUIREMENT.—Of the public housing units of a public housing agency that are made available for occupancy by eligible families in any fiscal year of the agency— ‘‘(A) at least 40 percent shall be occupied by families whose incomes do not exceed 30 percent of the median income for the area; and ‘‘(B) at least 90 percent shall be occupied by families whose incomes do not exceed 60 percent of the median income for the area. ‘‘(2) DEVELOPMENT REQUIREMENT.—At least 40 percent of the units in each public housing development shall be occupied by families with incomes which are less than 30 percent of the median income for the area, except that no family may be required to move to achieve compliance with this requirement. ‘‘(b) SECTION 8 ASSISTANCE. ‘‘(1) TENANT-BASED, MODERATE REHABILITATION, AND PROJECTBASED CERTIFICATE ASSISTANCE.—In any fiscal year of a public housing agency, at least 75 percent of all families who initially receive tenant-based assistance from the agency, assistance under the moderate rehabilitation program of the agency, or assistance under the project-based certificate program of the agency shall be families whose incomes do not exceed 30 percent of the median income for the area. ‘‘(2) PROJECT-BASED ASSISTANCE.—Of the dwelling units in a project receiving section 8 assistance, other than assistance described in paragraph (1), that are made available for occupancy by eligible families in any year (as determined by the Secretary)— ‘‘(A) At least 40 percent shall be occupied by families whose incomes do not exceed 30 percent of the median income for the area; and ‘‘(B) at least 90 percent shall be occupied by families whose incomes do not exceed 60 percent of the median income for the area. ‘‘(c) DEFINITION OF AREA MEDIAN INCOME.—The term ‘‘area median income’’, as used in subsections (a) and (b), refers to the median income of an area, as determined by the Secretary, with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than the percentages specified in subsections (a) and (b) if the Secretary determines that such variations are necessary because of unusually high or low family incomes.’’. ‘‘(ii) Section 16 of the United States Housing Act of 1937, as amended by this section, is further amended by inserting the following new heading after subsection designation (d): ‘‘APPLICABILITY.—’’. ‘‘(iii) This paragraph shall be effective initially for fiscal year 1999. For future fiscal years, this paragraph shall be effective only to the extent provided by section 402(f) of The Balanced Budget Downpayment Act, I.’’. øSEC. 202. DELAY REISSUANCE OF VOUCHERS AND CERTIFICATES.— Section 403(c) of The Balanced Budget Downpayment Act, I is amended— (1) by striking ‘‘fiscal years 1996 and 1997’’ and inserting ‘‘fiscal years 1996, 1997, and 1998’’; (2) by striking ‘‘1996 and October’’ and inserting ‘‘1996, October’’; and (3) by inserting before the semicolon the following: ‘‘and October 1, 1998 for assistance made available during fiscal year 1998’’.¿ øSEC. 203. WAIVER.—The part of the HUD 1996 Community Development Block Grant to the State of Illinois which is administered by the State of Illinois Department of Commerce and Community Affairs (grant number B–96–DC–170001) and which, in turn, was granted by the Illinois Department of Commerce and Community Affairs to the city of Oglesby, Illinois, located in LaSalle County, Illinois (State of Illinois Department of Commerce and Community Affairs grant number 96–24104), for the purpose of providing infrastructure for a warehouse in Oglesby, Illinois, is exempt from the provisions of section 104(g)(2), (g)(3), and (g)(4) of title I of the Housing and Community Development Act of 1974, as amended.¿ SEC. ø204¿ 202. FINANCING ADJUSTMENT FACTORS.—Fifty percent of the amounts of budget authority, or in lieu thereof 50 percent of the cash amounts associated with such budget authority, that are recaptured from projects described in section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100–628; 102 Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be remitted to the Treasury, and such amounts of budget authority or cash recaptured and not rescinded or remitted to the Treasury shall be used by State housing finance agencies or local governments or local housing agencies with projects approved by the Secretary of Housing and Urban Development for which settlement occurred after January 1, 1992, in accordance with such section. Notwithstanding the previous sentence, the Secretary may award up to 15 percent of the budget authority or cash recaptured and not rescinded or remitted to the Treasury to provide project owners with incentives to refinance their project at a lower interest rate. SEC. ø205¿ 203. øANNUAL ADJUSTMENT FACTORS.—Section 8(c)(2)(A) of the United States Housing Act of 1937, as amended by section 201 of this title, is further amended by inserting the following new sentences at the end: ‘‘In establishing annual adjustment factors for units in new construction and substantial rehabilitation projects, the Secretary shall take into account the fact that DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT debt service is a fixed expense. The immediately foregoing sentence shall be effective only during fiscal year 1998.’’.¿ STATE CDBG IDIS FUNDING.—During fiscal year 1999, from amounts received by a State under section 106(d)(1) of the Housing and Community Development Act of 1974 for distribution in nonentitlement areas, the State may deduct an amount, not to exceed the greater of 0.25 percent of the amount so received or $50,000, to administer the integrated disbursement and information system established by the Secretary, in addition to any amounts used for this purpose from amounts retained by the State for administrative expenses under section 106(d)(3)(A). øSEC. 206. COMMUNITY DEVELOPMENT BLOCK GRANT.—Notwithstanding any other provision of law, the $7,100,000 appropriated for an industrial park at 18th Street and Indiana Avenue shall be made available by the Secretary instead to 18th and Vine for rehabilitation and infrastructure development associated with the ‘‘Negro Leagues Baseball Museum’’ and the jazz museum.¿ øSEC. 207. FAIR HOUSING AND FREE SPEECH.—None of the amounts made available under this Act may be used during fiscal year 1998 to investigate or prosecute under the Fair Housing Act any otherwise lawful activity engaged in by one or more persons, including the filing or maintaining of a nonfrivolous legal action, that is engaged in solely for the purpose of achieving or preventing action by a government official or entity, or a court of competent jurisdiction.¿ øSEC. 208. REQUIREMENT FOR HUD TO MAINTAIN PUBLIC NOTICE AND COMMENT RULEMAKING.—Notwithstanding any other provision of law, for fiscal year 1998 and for all fiscal years thereafter, the Secretary of Housing and Urban Development shall maintain all current requirements under part 10 of the Department of Housing and Urban Development regulations (24 CFR part 10) with respect to the Department’s policies and procedures for the promulgation and issuance of rules, including the use of public participation in the rulemaking process.¿ SEC. ø209¿ 204. BROWNFIELDS AS ELIGIBLE CDBG ACTIVITY.—During fiscal øyear¿ years 1998 and 1999, States and entitlement communities may use funds allocated under the community development block grants program under title I of the Housing and Community Development Act of 1974 for environmental cleanup and economic development activities related to Brownfields projects in conjunction with the appropriate environmental regulatory agencies, as if such activities were eligible under section 105(a) of such Act. øSEC. 210. PARTIAL PAYMENT OF CLAIMS ON HEALTH CARE FACILITIES.—Section 541(a) of the National Housing Act is amended— (1) in the section heading, by adding ‘‘and health care facilities’’ at the end; and (2) in subsection (a)— (A) by inserting ‘‘or a health care facility (including a nursing home, intermediate care facility, or board and care home (as those terms are defined in section 232 of this Act), a hospital (as that term is defined in section 242 of this Act), or a group practice facility (as that term is defined in section 1106 of this Act))’’ after ‘‘1978’’; and (B) by inserting ‘‘or for keeping the health care facility operational to serve community needs,’’ after ‘‘character of the project,’’.¿ øSEC. 211. CALCULATION OF DOWNPAYMENT.—Section 203(b) of the National Housing Act is amended by striking ‘‘fiscal year 1997’’ in paragraph (10)(A) and inserting ‘‘fiscal years 1997 and 1998’’.¿ SEC. 205. INCENTIVE TO REDUCE POVERTY CONCENTRATIONS OF CERTIFICATE AND VOUCHER FAMILIES.—(a) Section 202(b) of the Departments of Veterans Affairs and Housing Development, and Independent Agencies Appropriations Act, 1997 is amended— (1) by striking ‘‘and’’ at the end of paragraph (2); (2) by striking the period at the end of paragraph (3) and inserting ‘‘; and’’; and (3) by inserting the following new paragraph at the end: ‘‘(4) agencies that demonstrate to the satisfaction of the Secretary that the poverty concentration of families assisted under the certificate and voucher programs has been reduced.’’. (b) Section 8(q) of the United States Housing Act of 1937 is hereby repealed. øSEC. 212. HOPE VI NOFA.—Notwithstanding any other provision of law, including the July 22, 1996 Notice of Funding Availability (61 Fed. Reg. 38024), the demolition of units at developments funded under the Notice of Funding Availability shall be at the option of the New York City Housing Authority and the assistance awarded shall be allocated by the public housing agency among other eligible activities under the HOPE VI program and without the development costs limitations of the Notice, provided that the public housing agen- MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued 487 cy shall not exceed the total cost limitations for the public housing agency, as provided by the Department of Housing and Urban Development.¿ SEC. 206. TRANSFER FOR EVALUATION OF HUD PROGRAMS.—(a) The Secretary may transfer to the departmental Salaries and Expenses account up to 1 percent of the amount appropriated in any account listed to which subsection (b) refers, for evaluation and monitoring of programs and collecting and maintaining data under section 7(r) of the Department of Housing and Urban Development Act as determined by the Secretary, including such activities as may be required under the Government Performance and Results Act of 1993 and 31 U.S.C. 1115, 1116 and 9703. (b) The accounts referred to in subsection (a) are those for the Housing Opportunities for Persons with AIDS program under subtitle D of title VIII of the Cranston-Gonzalez National Affordable Housing Act, and for programs the authorities for which are listed in section 7(r)(2) of the Department of Housing and Urban Development Act. (c) Any amounts transferred under this section shall be in addition to amounts appropriated for and otherwise transferred to the departmental Salaries and Expenses account. Any amounts transferred may be used for purposes that are also authorized under such account, and amounts otherwise in such account may continue to be used for the purposes for which the transfers authorized under this section may be used. SEC. ø213¿ 207. ENHANCED DISPOSITION AUTHORITY.—Section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, is amended by striking øinserting after ‘‘owned by the Secretary’’ the following: ‘‘, including,¿ for ‘‘fiscal years 1997 and 1998’’ø, the provision of grants and loans from the General Insurance Fund (12 U.S.C. 1735c) for the necessary costs of rehabilitation or demolition,’’¿. SEC. 208. TRANSFER LIMITATION.—Not to exceed 2 percent of any appropriation or earmarked amount made available for the current fiscal year in this Act may be transferred between appropriations or earmarked amounts, respectively, but no appropriations or earmarked amounts shall be increased or decreased by more than 2 percent by any such transfer. øSEC. 214. HOME PROGRAM FORMULA.—The first sentence of section 217(b)(3) of the Cranston-Gonzalez National Affordable Housing Act is amended by striking ‘‘only those jurisdictions that are allocated an amount of $500,000 or greater shall receive an allocation’’ and inserting the following: ‘‘jurisdictions that are allocated an amount of $500,000 or more, and participating jurisdictions (other than consortia that fail to renew the membership of all of their member jurisdictions) that are allocated an amount less than $500,000, shall receive an allocation’’.¿ øSEC. 215. HUD RENT REFORM.—Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may provide tenant-based assistance to eligible tenants of a project insured under either section 221(d)(3) or 236 of the National Housing Act in the same manner as if the owner had prepaid the insured mortgage to the extent necessary to minimize any rent increases or to prevent displacement of low-income tenants in accordance with a transaction approved by the Secretary provided that the rents are no higher than the published section 8 fair market rents, as of the date of enactment, during the tenants’ occupancy of the property.¿ øSEC. 216. NURSING HOME LEASE TERMS.—Section 232(b)(4)(B) of the National Housing Act is amended by striking ‘‘fifty years from the date the mortgage was executed’’ and inserting ‘‘ten years to run beyond the maturity date of the mortgage’’.¿ SEC. ø217¿ 209. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS GRANTS. (a) ELIGIBILITY.—Notwithstanding section 854(c)(1)(A) of the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts made available under this title for fiscal øyear¿ years 1998 and 1999 that are allocated under such section, the Secretary of Housing and Urban Development shall allocate and make a grant, in the amount determined under subsection (b), for any State that— (1) received an allocation øfor¿ in a prior fiscal year ø1997¿ under clause (ii) of such section; and (2) øis not otherwise eligible for an allocation for fiscal year 1998 under such clause (ii) because the State does not have the number of cases of acquired immunodeficiency syndrome required under such clause; and¿ is not otherwise eligible for an allocation for fiscal years 1998 or 1999 under such clause (ii) because the areas in the State outside of the metropolitan statistical areas that qualify under clause (i) in fiscal year 1999 do not have the number of cases of acquired immunodeficiency syndrome required under such clause. 488 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued Intragovernmental funds—Continued ADMINISTRATIVE PROVISIONS—Continued ø(3) would meet such requirement if the cases in the metropolitan statistical area for any city within the State, which city was not eligible for an allocation for fiscal year 1997 under clause (i) of such section but is eligible for an allocation for fiscal year 1998 under such clause, were considered to be cases outside of metropolitan statistical areas described in clause (i) of such section.¿ ø(b) AMOUNT.—The amount of the allocation and grant for any State described in subsection (a) shall be the amount that is equal to the lesser of— (1) the difference between— (A) the total amount allocated for such State under section 854(c)(1)(A)(ii) of the AIDS Housing Opportunity Act for fiscal year 1997; and (B) the total amount allocated for the city described in subsection (a)(3) of this section under section 854(c)(1)(A)(i) of such Act for fiscal year 1998 (from amounts made available under this title); and (2) $300,000.¿ (b) AMOUNT.—The amount of the allocation and grant for any State described in subsection (a) shall be an amount based on the cumulative number of AIDS cases in the areas of that State that are outside of metropolitan statistical areas that qualify under clause (i) in fiscal year 1999 in proportion to AIDS cases among cities and States that qualify under clauses (i) and (ii) and States deemed eligible under subsection (a). (c) ENVIRONMENTAL REVIEW.—For purposes of environmental review, pursuant to the National Environmental Policy Act of 1969, a grant under the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.) from amounts provided under this or prior Acts shall be treated as assistance for a special project that is subject to section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547), and shall be subject to the regulations issued by the Secretary to implement such section. Where the grantee under the AIDS Housing Opportunity Act is a nonprofit organization and the activity is proposed to be carried out within the jurisdiction of an Indian tribe or the community of an Alaska native village, the role of the State or unit of general local government under sections 305(c)(1)–(3) of such Act may be carried out by the Indian tribe or Alaska native village instead. øSEC. 218. DEBT FORGIVENESS.—The Secretary of Housing and Urban Development shall cancel the indebtedness of the Village of Robbins, Illinois, relating to loans under the Reconstruction Finance Corporation and refinanced under the Public Facility Loan program (loan numbers ILL–11–RFC–0029 and ILL–11–PFL0111). The Village is hereby relieved of all liability to the Federal Government for the outstanding principal balance on such loans, for the amount of accrued interest on such loans, and for any fees and charges payable in connection with such loans.¿ SEC. 210. DRAWDOWN OF FUNDS.—Section 14(q)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437(q)(1)) is amended by inserting after the first sentence the following sentence: ‘‘Such assistance may involve the drawdown of funds on a schedule commensurate with construction draws for deposit into an interest earning escrow account to serve as collateral or credit enhancement for bonds issued by a public agency for the construction or rehabilitation of the development.’’. SEC. 211. MULTIFAMILY RESTRUCTURING.—Sections 513(b)(7)(B) and 517(d) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 are hereby repealed. SEC. 212. SINGLE FAMILY CLAIMS REFORM AND SALE OF PROPERTY. (a) REVISION OF CLAIMS PROCEDURES.—Section 204(a) of the National Housing Act is amended to read as follows: ‘‘(a)(1) AUTHORIZED CLAIMS PROCEDURES.—The Secretary is authorized, in accordance with this subsection and terms and conditions prescribed by the Secretary, to pay insurance benefits to the mortgagee for any mortgage insured under section 203 of this Act through any of the methods described in this paragraph. ‘‘(A) ASSIGNMENT OF MORTGAGE.—The Secretary may pay insurance benefits whenever a mortgage has been in a monetary default for at least three full monthly installments or whenever the mortgagee is entitled to foreclosure for a non-monetary default. Insurance benefits shall be paid only upon the assignment, transfer and delivery to the Secretary of— ‘‘(i) all rights and interests arising under the mortgage; THE BUDGET FOR FISCAL YEAR 1999 ‘‘(ii) all claims of the mortgagee against the mortgagor or others arising out of the mortgage transaction; ‘‘(iii) title evidence satisfactory to the Secretary; and ‘‘(iv) such records relating to the mortgage transaction as the Secretary may require. ‘‘(B) CONVEYANCE OF TITLE TO PROPERTY.—The Secretary may pay insurance benefits if the mortgagee has acquired title to the mortgaged property through foreclosure or has otherwise acquired such property from the mortgagor after a default upon— ‘‘(i) the prompt conveyance to the Secretary of title to the property which meets the standards of the Secretary in force at the time the mortgage was insured, and which is evidenced in the manner provided by such standards; and ‘‘(ii) the assignment to the Secretary of all claims of the mortgagee against the mortgagor or others, arising out of the mortgage transaction or foreclosure proceedings, except such claims as may have been released with the consent of the Secretary. The Secretary is authorized to permit the mortgagee to tender to the Secretary a satisfactory conveyance of title and transfer of possession directly from the mortgagor or other appropriate grantor, and to pay to the mortgagee the insurance benefits to which it would otherwise be entitled if such conveyance had been made to the mortgagee and from the mortgagee to the Secretary. ‘‘(C) CLAIM WITHOUT CONVEYANCE OF TITLE.—The Secretary may pay insurance benefits upon sale of the mortgaged property at foreclosure where such sale is for at least the fair market value of the property (with appropriate adjustments), as determined by the Secretary, and upon assignment to the Secretary of all claims referred to in clause (ii) of subparagraph (B). ‘‘(D) PRE-FORECLOSURE SALE.—The Secretary may pay insurance benefits upon the sale of the mortgaged property by the mortgagor after default and the assignment to the Secretary of all claims referred to in clause (ii) of subparagraph (B), if— ‘‘(i) the sale of the mortgaged property has been approved by the Secretary; ‘‘(ii) the mortgagee receives an amount at least equal to the fair market value of the property (with appropriate adjustments), as determined by the Secretary; and ‘‘(iii) the mortgagor has received an appropriate disclosure, as determined by the Secretary. ‘‘(2) PAYMENT FOR LOSS MITIGATION.—The Secretary may pay insurance benefits to the mortgagee to recompense the mortgagee for its actions to provide an alternative to foreclosure of a mortgage that is in default, which actions may include such actions as special forbearance, loan modification, and deeds in lieu of foreclosure, all upon such terms and conditions as the mortgagee shall determine in the mortgagee’s sole discretion within guidelines provided by the Secretary, but which may not include assignment of a mortgage to the Secretary. For purposes of the preceding sentence, no action authorized by the Secretary and no action taken, nor any failure to act, by the Secretary or the mortgagee shall be subject to judicial review. ‘‘(3) DETERMINING CLAIMS PROCEDURE.—The Secretary shall publish guidelines for determining which of the procedures for payment of insurance specified in paragraph (1) are available to a mortgagee when it claims insurance benefits. At least one of the procedures for payment of insurance benefits specified in paragraph (1)(A) or (1)(B) shall be available to a mortgagee with respect to a mortgage, but the same procedure is not required to be available for all of the mortgages held by a mortgagee. ‘‘(4) SERVICING ASSIGNED MORTGAGE.—If a mortgage is assigned to the Secretary under paragraph (1)(A), the Secretary may permit the assigning mortgagee or its servicer to continue to service the mortgage for reasonable compensation and on terms and conditions determined by the Secretary. Neither the Secretary nor any servicer of the mortgage shall be required to forbear from collection of amounts due under the mortgage or otherwise pursue loss mitigation measures. ‘‘(5) CALCULATING INSURANCE BENEFITS.—Insurance benefits shall be paid as provided in section 520 of this Act, and shall be equal to the original principal obligation of the mortgage which was unpaid on the date the mortgage was assigned to the Secretary, or on the date of the institution of foreclosure proceedings, or on the date of the acquisition of the property after default other than by foreclosure, or on the date of sale of the mortgaged property by the mortgagor, with such additions and deductions as the Secretary deems appropriate. ‘‘(6) FORBEARANCE AND RECASTING AFTER DEFAULT.—The mortgagee may, upon such terms and conditions as the Secretary may prescribe— DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ‘‘(A) extend the time for the curing of the default, and the time for commencing foreclosure proceedings or for otherwise acquiring title to the mortgaged property, to such time as the mortgagee determines is necessary and desirable to enable the mortgagor to complete the mortgage payments, including an extension of time beyond the stated maturity of the mortgage, and in the event of a subsequent foreclosure or acquisition of the property by other means the Secretary is authorized to include in the amount of insurance benefits an amount equal to any unpaid mortgage interest; or ‘‘(B) provide for a modification of the terms of the mortgage for the purpose of recasting, over the remaining term of the mortgage or over such longer period pursuant to guidelines as may be prescribed by the Secretary, the total unpaid amount then due, with the modification to become effective currently or to become effective upon the termination of an agreed-upon extension of the period for curing the default; and the principal amount of the mortgage, as modified, shall be considered the ‘original principal obligation of the mortgage’ as that term is used in this section for the purpose of paragraph (5). ‘‘(7) TERMINATION OF PREMIUM OBLIGATION.—The obligation of the mortgagee to pay the premium charges for insurance shall cease upon fulfillment of the appropriate requirements under which the Secretary may pay insurance benefits, as described in paragraph (1). The Secretary may also terminate the mortgagee’s obligation to pay mortgage insurance premiums upon receipt of an application filed by the mortgagee for insurance benefits under paragraph (1), or in the event the contract of insurance is terminated pursuant to section 229 of this Act. ‘‘(8) RELATIONSHIP TO SECTION 230.—Nothing in this section shall limit the authority of the Secretary to pay insurance benefits under section 230 of this Act.’’. (b) EFFECTIVE DATE.—The Secretary shall publish a notice in the Federal Register stating the effective date of the terms and conditions prescribed by the Secretary under section 204(a)(1) of the National Housing Act, as amended by this section. Sections 204 (a) and (k) of the National Housing Act as they existed immediately prior to the effective date of the terms and conditions implementing the amendment to section 204(a) made by this Act shall continue to apply to any mortgage insured under section 203 of the National Housing Act prior to such date, except that the Secretary is authorized, at the request of the mortgagee, to pay insurance benefits as provided in sections 204(a)(1) (A) and (D) of such Act to calculate insurance benefits in accordance with section 204(a)(5) of such Act. (c) REDUNDANT PROVISION REPEALED.—Section 204(k) of the National Housing Act is hereby repealed. (d) AUTHORITY TO SELL.—Section 204(g) of the National Housing Act is amended by adding at the end the following: ‘‘The Secretary may sell real and personal property on such terms and conditions as the Secretary may prescribe.’’. (e) AUTHORITY TO INSURE MORTGAGE.—Section 223(c) of the National Housing Act is amended by— (1) striking ‘‘him’’ each place it appears and inserting ‘‘the Secretary’’; and (2) inserting after ‘‘sale by the Secretary’’, the following: ‘‘, including a sale through another entity under authority of the fourth sentence of section 204(g),’’. SEC. 213. ISSUANCE OF CERTIFICATES AND VOUCHERS TO SINGLE PERSONS. MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued 489 (a) CERTIFICATE PROGRAM.—Section 8(c)(1) of the United States Housing Act of 1937 is amended by inserting after the third sentence the following new sentence: ‘‘The maximum monthly rent for a single person (other than an elderly person or person with disabilities, if such elderly person or person with disabilities is living with one or more persons determined under the regulations of the Secretary to be essential to such person’s care or well-being) receiving tenant-based rental assistance in the certificate program under subsection (b)(1) shall not exceed by more than the amount permitted under the second sentence of this paragraph the fair market rental for an efficiency unit, except that the Secretary, or the public housing agency in accordance with guidelines established by the Secretary, may determine not to apply the limitation in this sentence if there is an insufficient supply of efficiency units in the market area or if necessary to meet the needs of persons with disabilities.’’. (b) VOUCHER PROGRAM.—Section 8(o) of such Act is amended by inserting the following at the end of paragraph (1): ‘‘The payment standard for a single person (other than an elderly person or person with disabilities, if such elderly person or person with disabilities is living with one or more persons determined under the regulations of the Secretary to be essential to such person’s care or well-being) shall be based on the fair market rental for an efficiency unit, except that the Secretary, or the public housing agency in accordance with guidelines established by the Secretary, may determine not to apply the limitation in this sentence if there is an insufficient supply of efficiency units in the market area or if necessary to meet the needs of persons with disabilities.’’. (c) APPLICABILITY.—This section shall become effective 60 days after the later of October 1, 1998 or the date of enactment of this Act. SEC. 214. ELIMINATION OF SHOPPING INCENTIVE FOR VOUCHER FAMILIES WHO REMAIN IN SAME UNIT UPON INITIAL RECEIPT OF ASSISTANCE. (a) Section 8(o)(2) of the United States Housing Act of 1937 is amended by inserting the following new sentence at the end: ‘‘Notwithstanding the preceding sentence, for families being admitted to the voucher program who remain in the same unit or complex, where the rent (including the amount allowed for utilities) does not exceed the payment standard, the monthly assistance payment for any family shall be the amount by which such rent exceeds the greater of 30 percent of the family’s monthly adjusted income or 10 percent of the family’s monthly income.’’. (b) This section shall become effective 60 days after the later of October 1, 1998 or the date of enactment of this Act. SEC. 215. ENFORCEMENT OF RENT REASONABLENESS REQUIREMENTS.—The Secretary of Housing and Urban Development shall take steps to assure that public housing agencies administering tenantbased assistance under section 8 of the United States Housing Act of 1937 comply with applicable rent reasonableness requirements, to assure that assistance provided on behalf of eligible families is not excessive. SEC. 216. TECHNICAL CORRECTION TO NURSING HOME LEASE TERMS PROVISION. (a) TECHNICAL CORRECTION.—Section 216 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998, is amended by striking ‘‘fifty years from the date’’ and inserting ‘‘fifty years to run from the date’’. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall be construed to have taken effect on October 27, 1997.