Full text of Budget of the United States Government - Appendix : Fiscal Year 1997 : Department of Housing and Urban Development

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
This chapter presents the budget and program estimates
of the Department of Housing and Urban Development
(HUD).
For the past 3 years, the Department has been engaged
in a reinvention process which has emphasized: addressing
homelessness through a comprehensive continuum of care
strategies; transforming public and assisted housing; enhancing homeownership opportunities through new national and
local partnerships; and, encouraging locally-driven solutions
and leveraging private sector investment through initiatives
like consolidated planning, Empowerment Zones and Enterprise Communities.
This budget proposes to continue this reinvention process
as follows:
1. HUD’s new programs would give communities more
power over Federal programs by consolidating over 20 programs into three core funds. These funds would provide enhanced flexibility in return for results by rewarding high performers through the use of incentives, or ‘‘bonus funding.’’
2. HUD proposes to transform the dynamic of public and
assisted housing through a policy of no tolerance of crime
and mismanagement. The worst housing projects will be torn
down and replaced with portable rental assistance and/or
lower-density townhome-style developments which can serve
as an anchor for neighborhood renewal. Rules will be changed
to promote self-sufficiency and responsibility, and to reward
people who work.
3. This proposal will ensure that homeownership is accessible to record numbers of people by revamping the Federal
Housing Administration (FHA) and helping those in assisted
housing buy their own homes.
4. HUD’s FY 1997 reinvention blueprint will transform the
Department into a ‘‘right side up, community first’’ organization. This will be accomplished through the creation of single
points of contact for all major localities to cut red tape, the
relocation of Federal personnel to communities, and aggressive training of HUD staff and its partners.
HUD is proposing three performance-based funds which will
consolidate a myriad of programs and give localities and
States the resources and flexibility needed to address community development, affordable housing, and homelessness.
These ‘‘consolidated’’ funds will be: the Community Development Block Grants (CDBG) Fund, the HOME Fund and the
Homeless Assistance Fund.
• The Community Development Block Grants Fund will
continue to use a formula approach for allocating funds for
a wide range of activities. However, Consolidated Plans developed by States and communities will be based on performance
measures and benchmarks linked to their needs and priorities. Included within the total amount requested for 1997
is a performance bonus pool and a set-aside for Empowerment
Zones.
• The HOME Fund will also utilize performance measures
and benchmarks based on local needs and priorities. A 10percent bonus pool will be made available to create large
tracts of homeownership in communities.
• The Homeless Assistance Fund proposes to consolidate
the six Stewart B. McKinney Homeless Assistance Act programs into a comprehensive, flexible, coordinated ‘‘continuum
of care’’ approach to solving the needs of the homeless. A
competitive 10-percent bonus pool will be set aside under
this fund to address the needs of homeless persons with multiple diagnoses and fund innovative homeless solutions.

The Department is reproposing to consolidate several categorical housing programs within three performance funds.
• The Public Housing Operating Fund would fund the operating costs of Public and Indian Housing. Through this fund
Public Housing Agencies will have greater flexibility in attracting and retaining a broader range of families.
• The Public Housing Capital Fund would address the capital cost needs of Public and Indian Housing. Based on the
Modernization program, this Fund will permit the upgrading
of inventory, demolition and replacement of obsolete buildings. Funds also will be available to expand linkages between
public housing, local schools and other educational institutions. In addition, $500 million of these funds will be set
aside for a competitive bonus pool.
• The Housing Certificate Fund would address the problems arising from lagging household income and high housing
costs. The Fund would be based on the existing voucher and
certificate programs with changes to make the system simpler
and more effective.
• Other Housing Programs. Funding for Section 8 contract
renewals and amendments is included within the Annual
Contributions for Assisted Housing account. Lead-paint hazard reduction activities will continue to be funded within the
Annual Contributions account but will remain a free-standing
program through 1997. Several other programs assisting communities will remain as free-standing activities: housing opportunities for persons with AIDS, housing assistance for the
elderly and disabled, drug elimination activities, and assistance for severely distressed public housing. Further program
consolidation will be proposed for 1998.
A major initiative reflected in the budget estimates is ‘‘Portfolio Reengineering,’’ formerly known as ‘‘Mark-to-Market.’’
This plan would reduce over-subsidized Section 8 contracts
and FHA-insured debt on properties. The goal of the initiative
is to leave all responsible owners with the ability to sustain
the remaining mortgage through the payment of market-derived rents by tenants.

PUBLIC AND INDIAN HOUSING
Federal Funds
General and special funds:
HOUSING CERTIFICATE FUND
For assistance under the section 8 existing housing certificate program (42 U.S.C. 1437f) and the housing voucher program under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)),
as amended, $290,000,000, to remain available until expended: Provided, That the Secretary may transfer and merge with the foregoing
amount, up to $100,000,000 of amounts earmarked for the renewal
of expiring section 8 contracts in the Annual Contributions for Assisted
Housing account, upon determining that the amount to be transferred
is excess to the purposes for which it is earmarked.
Program and Financing (in millions of dollars)
Identification code 86–0302–0–1–604

10.00

22.00
23.95
24.40

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................ ................... ...................
Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ...................

505

150

290
–150
140

506

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued

Program and Financing (in millions of dollars)

HOUSING CERTIFICATE FUND—Continued
Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 86–0302–0–1–604

40.00

1996 est.

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

Change in unpaid obligations:
73.10 New obligations ............................................................. ................... ...................
73.20 Total outlays (gross) ...................................................... ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

1997 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................ ................... ...................

495

22.00
22.20

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
Unobligated balance transferred ................................... ................... ...................

2,700
1,750

1997 est.

290

150
–29

23.90
23.95
24.40

121

87.00

Total outlays (gross) ................................................. ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

290
29

The Administration proposes to consolidate a variety of
rental assistance programs into one Housing Certificate Fund.
In addition to traditional incremental assistance, this account
would provide incremental certificates for a demonstration
linking housing assistance to State welfare reform initiatives
to help families make the transition from welfare to work.
In addition, certificates would be used to prevent tenant displacement in prepayments related to preservation activities,
property disposition, and other activities. Certificates would
provide recipients with subsidies to help them afford rental
housing in the private housing market.

PUBLIC HOUSING CAPITAL FUND
(INCLUDING

1996 est.

10.00

40.00
Outlays (gross), detail:
86.90 Outlays from new current authority .............................. ................... ...................

1995 actual

Identification code 86–0304–0–1–604

TRANSFERS OF FUNDS)

For the Public Housing Capital Fund program under the United
States Housing Act of 1937, as amended (42 U.S.C. 1437),
$2,700,000,000, to remain available until expended, of which
$2,447,000,000 shall be for modernization of existing public housing
projects; $200,000,000 for Indian Housing Development; up to
$53,000,000 for grants to public housing agencies (including Indian
housing authorities), 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, and other low-income
families and individuals, principally for the benefit of public housing
residents, to become self-sufficient; up to $20,000,000 for 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 and Indian housing (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
and Indian housing program; $15,000,000 for the Tenant Opportunity
Program; and $5,000,000 for the Jobs-Plus Demonstration for Public
Housing families: Provided, That all obligated and unobligated balances as of the end of fiscal year 1996 heretofore provided for the
development or acquisition costs of public housing (including public
housing for Indian families), for modernization of existing public housing projects (including such projects for Indian families), for public
and Indian housing amendments, for modernization and development
technical assistance, for lease adjustments for the section 23 program,
and for the Family Investment Centers program shall be transferred
to amounts made available under this heading.

73.10
73.20
73.30
74.40

Total budgetary resources available for obligation ................... ...................
New obligations ............................................................. ................... ...................
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ...................

3,955

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

2,700

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................
Obligated balance transferred, net ...............................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

4,450
–495

................... ...................
................... ...................
................... ...................

495
–4,276
18,774

................... ...................

14,993

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................
Outlays from current balances ...................................... ................... ...................

13
4,263

87.00

Total outlays (gross) ................................................. ................... ...................

4,276

89.00
90.00

2,700
4,276

Summary of Budget Authority and Outlays
[In millions of dollars]

1995 actual

1996 est.

.................... ....................
.................... ....................

1997 est.

2,700
4,276

.................... ....................
500
.................... .................... ....................

Total:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

3,200
4,276

The Administration proposes to consolidate all current public housing capital programs into a single Public Housing
Capital Fund program. Activities consolidated into this account include: technical assistance, Public Housing Modernization, Public and Indian Housing Development, public
and Indian housing amendments, lease adjustments, and
Family Investment Centers. This program would provide Federal resources to rehabilitate and restore viable public housing in need of modernization, demolish uninhabitable and
non-viable public housing projects, and construct replacement
housing where feasible. In addition, funding would be provided for technical assistance and evaluation of the JobsPlus Demonstration for Public Housing families.
PUBLIC HOUSING CAPITAL FUND BONUS PROGRAM
(Legislative proposal, not subject to PAYGO)
For grants and related expenses, not otherwise provided for, necessary for carrying out a Public Housing Capital Fund bonus program, $500,000,000 to remain available until expended. (Additional
authorizing language required).
Program and Financing (in millions of dollars)
Identification code 86–0304–2–1–604

22.00
24.40

1995 actual

1996 est.

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ...................

1997 est.

500
500

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

73.10

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................

87.00

Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
500
Outlays ........................................................................... ................... ................... ...................

500

The Public Housing Capital Fund Bonus Program would
be available on a formula basis to high-performing Public
Housing Agencies (PHAs) that also initiate Campus of Learners programs or other substantial efforts to link public housing residents with educational and employment opportunities.
The PHAs would be able to use bonus funds for all purposes
eligible under the Capital Fund.

507

Operating subsidy payments are provided to assist local
PHAs and Indian Housing Authorities (IHAs) to meet certain
deficits in the operation of PHA-owned and IHA-owned lowincome housing. These payments are in addition to the debt
service and capital funding provided by HUD for development
and modernization of low-income housing.
Beginning in fiscal year 1997, funding for these activities
would be provided under the Public and Indian Housing Operating Fund.

DRUG ELIMINATION GRANTS

FOR

LOW-INCOME HOUSING

For payments to public housing agencies and Indian housing authorities 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), $2,900,000,000.

For grants to public housing agencies for use in eliminating drugrelated crime in public housing projects authorized by 42 U.S.C.
11901–11908, and for drug information clearinghouse services authorized by 42 U.S.C. 11921–11925, $290,000,000, to remain available
until expended, of which $10,000,000 shall be for grants, technical
assistance, contracts and other assistance training, program assessment, and execution for or on behalf of public housing agencies and
resident organizations (including the cost of necessary travel for participants in such training), and $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: Provided, 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.

Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L 104–92, and P.L. 104–
99.

øPAYMENTS

OPERATION OF LOW-INCOME HOUSING PROJECTS¿
PUBLIC HOUSING OPERATING FUND

FOR

Program and Financing (in millions of dollars)
1995 actual

Identification code 86–0163–0–1–604

Program and Financing (in millions of dollars)
1996 est.

1997 est.

Obligations by program activity:
00.01 Operating subsidies .......................................................

2,900

2,800

2,900

10.00

2,900

2,800

2,900

Total obligations (object class 41.0) ........................

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
23.95 New obligations .............................................................

2,900
–2,900

2,800
–2,800

2,900
–2,900

New budget authority (gross), detail:
Appropriation ..................................................................

2,900

2,800

2,900

40.00

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

Identification code 86–0197–0–1–604

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

1995 actual

1996 est.

1997 est.

525

310

290

255
290

20 ...................
290
290

21.40

23.90
23.95
24.40
1,373
1,506
1,480
2,900
2,800
2,900
–2,762
–2,826
–2,842
–4 ................... ...................
1,506

1,480

1,538

40.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1 ................... ...................
546
–525

310
–310

290
–290

20 ................... ...................

290

72.40

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

1,393
1,369

1,344
1,482

1,392
1,451

87.00

Total outlays (gross) .................................................

2,762

2,826

2,842

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

2,900
2,762

2,800
2,826

2,900
2,842

Summary of Budget Authority and Outlays

186
532
662
525
310
290
–179
–180
–308
–1 ................... ...................
532

662

644

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

178

180

308

87.00

Total outlays (gross) .................................................

179

180

308

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

290
178

290
180

290
308

[In millions of dollars]

Enacted/requested:
1995 actual
Budget Authority .....................................................................
2,900
Outlays ....................................................................................
2,762
Adjustment to 1996 continuing resolution levels:
Budget Authority ..................................................................... ....................
Outlays .................................................................................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

2,900
2,762

1996 est.

2,800
2,826

1997 est.

2,900
2,843

100 ....................
48
51
2,900
2,874

2,900
2,894

The table below shows the funding requested for drug-related and crime prevention activities for the period 1995–1997.
The $290 million requested for this program in 1997 includes funding for technical assistance for drug elimination
and operation safe home activities.

508

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
DRUG ELIMINATION GRANTS

FOR

Program and Financing (in millions of dollars)

LOW-INCOME HOUSING—Continued

Budget Authority:
Drug elimination grants .........................................................
Outlays:
Drug Elimination Grants ....................................................

1995 actual

1996 est.

290

178

262

290

For activities authorized by subtitle J, Title III of Public Law 103–
322 (including administrative costs), $3,000,000, to remain available
until expended, which shall be derived from the Violent Crime Reduction Trust Fund and shall be transferred to the Bureau of the Census
to develop or update statistical data required by the Local Partnership
Act to develop formulae necessary for the future distribution of funds
appropriated under such Act.
Program and Financing (in millions of dollars)
Identification code 86–8192–0–1–754

1996 est.

Obligations by program activity:
Local Partnership Act .................................................... ................... ...................

10.00

Total obligations (object class 25.1) ........................ ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

3
–3

New budget authority (gross), detail:
42.00 Transferred from other accounts ................................... ................... ...................

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................

3
–3

Outlays (gross), detail:
86.90 Outlays from new current authority .............................. ................... ...................

87.00

Total outlays (gross) ................................................. ................... ...................

89.00
90.00

3
3

218

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested balance ...................................................
21.49
Contract authority .....................................................

23
476

9 ...................
107
178

21.99
22.00

Total unobligated balance, start of year .............
New budget authority (gross) ........................................

499
500

116
280

178
650

23.90
23.95

999
–883

396
–218

828
–456

24.40
24.49

24.99

Total unobligated balance, end of year ....................

116

178

373

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

500

280

650

456

9 ................... ...................
107
178
373

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

578
883
–31

1,430
218
–128

1,520
456
–283

1,430

1,520

1,692

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

128

283

87.00

Total outlays (gross) .................................................

128

283

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

500
31

280
128

650
283

Summary of Budget Authority and Outlays
[In millions of dollars]

Amounts for Public and Indian Housing’s portion of the
Crime Control Programs are derived from transfers from the
Violent Crime Reduction Trust Fund as authorized by the
Crime Control and Law Enforcement Act of 1994. These funds
are provided to pay for census surveys required in development of formulae needed to distribute funds to units of local
governments.
REVITALIZATION

883

72.40

1997 est.

00.01

73.10
73.20

1997 est.

308

VIOLENT CRIME REDUCTION PROGRAMS

1995 actual

1996 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................

10.00

1997 est.

1995 actual

Identification code 86–0218–0–1–604

Summary of Program Activity (in millions of dollars)

SEVERELY DISTRESSED PUBLIC HOUSING (HOPE
VII)

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 to be displaced by the demolition, $650,000,000,
to remain available until expended, which the Secretary may use
up to .67 percent for technical assistance, 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. (Authorizing legislation to be proposed.)

Enacted/requested:
1995 actual
1996 est.
1997 est.
Budget Authority .....................................................................
500
280
650
Outlays ....................................................................................
31
128
283
Adjustment to 1996 continuing resolution levels:
Budget Authority ..................................................................... ....................
220 ....................
Outlays .................................................................................... .................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

500
31

500
128

650
283

This program provides 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. Funds provided to this program are
in addition to the substantial resources provided for the public
housing modernization program and are specifically targeted
to the units in most need of attention.
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

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Capital investment: Loans to public housing agencies
and Indian housing authorities ................................

10.00

Total obligations (object class 33.0) ........................

21.40

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................

00.01

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
22.00
22.60

New budget authority (gross) ........................................
Redemption of debt .......................................................

98
–58

112
–62

115
–65

23.90
23.95
24.40

60
–54

56
–50

67.15
68.00
70.00

New budget authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

Total new budget authority (gross) ..........................

112

115

509

activities are completed. Under the provisions of this legislation, $54 million of borrowings from the Treasury were forgiven in 1995, an estimated $50 million will be borrowed
from the Treasury and forgiven in 1996, and an estimated
$50 million will be borrowed from the Treasury and forgiven
in 1997. The table below shows the status of outstanding
loans for the period 1995–1997. The $64 million balance at
the end of each year represents administrative loans, offsite facility loans, and preliminary loans on projects never
undertaken and excess financing.
PUBLIC HOUSING AGENCIES/INDIAN HOUSING AUTHORITIES

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Appropriation .........................................................
72.90
Fund balance ........................................................

1,403
1

1,287
1

1,175
1

72.99
73.10
73.20

Loans Outstanding

1,404
54
–169

1,288
50
–162

1,176
50
–165

74.40
74.90

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance:
Appropriation .........................................................
Fund balance ........................................................

1,287
1

1,175
1

1,060
1

74.99

Total unpaid obligations, end of year ..................

1,288

1,176

1,061

Outlays (gross), detail:
86.97 Outlays from new permanent authority .........................
86.98 Outlays from permanent balances ................................

54
115

62
100

65
100

87.00

169

162

165

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.40
Non-Federal sources .............................................

–58
–62
–65
–20 ................... ...................

88.90

–78

Total, offsetting collections (cash) ..................

Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

[In millions of dollars]

1995 actual

Outstanding, start of year ..........................................................
Direct loan disbursements ..........................................................
Repayments .................................................................................
Adjustments .................................................................................
Total loans forgiven ....................................................................
Outstanding, end of year ............................................................

–62

20
92

50
100

–65

1994 actual

1995 actual

Revenue ...................................................
Expense ....................................................

119
–139

116
–131

113
–123

110
–115

0109

Net income or loss (–) ............................

–19

–15

–10

–5

2210
2251

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Repayments and prepayments ......................................

4,413
–281

4,132
–300

3,832
–325

2290

Outstanding, end of year ..........................................

4,132

3,832

3,507

1699

1995 actual

1996 est.

1997 est.

1,689
–62

1,627
–65

1290

1,689

1,627

1,562

Status of Guaranteed Loans (in millions of dollars)
1995 actual

1996 est.

1997 est.

Value of assets related to direct
loans ..........................................

1999

4,132

3,832

3,507

The Low-Rent Public Housing Loan Fund is used to provide
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
available resources of this fund and 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

1996 est.

1997 est.

Balance Sheet (in millions of dollars)
Identification code 86–4098–0–3–604

1,747
–58

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

0101
0102

Identification code 86–4098–0–3–604

50
100

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................

Identification code 86–4098–0–3–604

Since 1987, new reservations of capital funds for construction, acquisition, and modernization activities have been provided directly from the Annual Contributions appropriation.
Operating results.—The actual and estimated net operating
income for 1994, 1995, 1996, and 1997 follows:

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 ..................................................

Outstanding, end of year ..........................................

1997 est.

Statement of Operations (in millions of dollars)

Status of Direct Loans (in millions of dollars)
Identification code 86–4098–0–3–604

1996 est.

68
64
64
54
50
50
–26 .................... ....................
25 .................... ....................
–57
–50
–50

1994 actual

1995 actual

1996 est.

1997 est.

1,424

1,294

1,164

1,034

1,852

1,791

1,730

1,669

68
3

64
6

–12

Total assets ........................................
LIABILITIES:
Federal liabilities:
2102
Interest payable ..................................
2104
Resources payable to Treasury ...........
2207 Non-Federal liabilities: Other ..................

3,335

3,143

2,952

2,761

212
1,746
1

205
1,688
1

205
1,627
1

205
1,567
1

2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

1,959

1,894

1,833

1,773

1,297
79

1,184
65

1,054
65

923
65

3999

Total net position ................................

1,376

1,249

1,119

988

4999

Total liabilities and net position ............

3,335

3,143

2,952

2,761

510

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Credit accounts:

INDIAN HOUSING LOAN GUARANTEE FUND FINANCING ACCOUNT
Program and Financing (in millions of dollars)

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) $3,000,000: 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 $36,900,000.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Identification code 86–4104–0–3–604

1995 actual

1996 est.

1997 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

3
–3

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ...................
73.10 New obligations .............................................................
3
73.20 Total outlays (gross) ...................................................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
3

3
3
–2

4
3
–3

Outlays (gross), detail:
86.90 Outlays from new current authority .............................. ...................
2
86.93 Outlays from current balances ...................................... ................... ...................

2
1

87.00

Total outlays (gross) ................................................. ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
3
Outlays ........................................................................... ...................

3
2

3
3

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ...................................................................... ................... ...................
22.00 New financing authority (gross) .................................... ...................
2

2
3

21.90

23.90
23.95
24.90

Identification code 86–0223–0–1–604

1995 actual

Guaranteed loan levels supportable by subsidy budget
authority:
2159 Total loan guarantee levels ...........................................
22
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................
13.40
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................
3
Guaranteed loan subsidy outlays:
2340 Subsidy outlays .............................................................. ...................

1996 est.

Total budgetary resources available for obligation ...................
2
New obligations ............................................................. ................... ...................
Unobligated balance available, end of year: Fund
balance ...................................................................... ...................
2

5
–1
5

New financing authority (gross), detail:
Spending authority from offsetting collections:
68.00
Spending authority from offsetting collections, Federal sources .......................................................... ...................
2
3
68.10
Change in receivables from program account ......... ................... ................... ...................
Spending authority from offsetting collections
(total) ................................................................ ...................

Total new financing authority (gross) ...................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Fund Balance ............................. ...................
72.95
Receivables from program account ..........................
3

3
3

70.00

72.99
73.10
73.20
74.90
74.95

Total unpaid obligations, start of year ................
3
6
6
New obligations ............................................................. ................... ...................
1
Total financing disbursements (gross) .........................
3 ................... ...................
Unpaid obligations, end of year:
Obligated balance: Fund balance .............................
3
3
3
Receivables from program account ..........................
3
3
3

74.99

Total unpaid obligations, end of year ..................

87.00

Outlays (gross), detail:
Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
88.00
Offsetting collections (cash) from: Federal sources:
Payments from program account .........................

89.00
90.00

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

1997 est.

68.90

72.40

1996 est.

Obligations by program activity:
Total obligations ............................................................ ................... ...................

10.00

Program and Financing (in millions of dollars)
Identification code 86–0223–0–1–604

1995 actual

–3 ................... ...................

–2

–3

Net financing authority and financing disbursements:
Financing authority ........................................................
3 ................... ...................
Financing disbursements ............................................... ...................
–2
–3

Status of Guaranteed Loans (in millions of dollars)

1997 est.

Identification code 86–4104–0–3–604

8.13

1996 est.

1997 est.

2199

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year ............................................. ................... ...................
Disbursements of new guaranteed loans ...................... ...................
28

28
33

2210
2231

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 1994 and beyond (including modifications of guarantees that resulted from
obligations in any year). The subsidy amounts are estimated
on a present value basis. This program provides access to
sources of private financing for Indian families and Indian
housing authorities which otherwise could not acquire housing
financing because of the unique legal status of Indian trust
land.

1995 actual

2290

Outstanding, end of year .......................................... ...................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ...................

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 1994 and beyond (including modifications of loan guar-

COMMUNITY PLANNING AND DEVELOPMENT
Federal Funds

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

antees that resulted from obligations in any year). The
amounts in this account are a means of financing and not
included in the budget totals.
Balance Sheet (in millions of dollars)
Identification code 86–4104–0–3–604

1994 actual

1995 actual

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................

..................

1999

..................

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

..................

1996 est.

1997 est.

..................

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

..................

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), $171,000,000, to remain available until expended: Provided, That any amounts previously appropriated for such program,
and any related assets and liabilities, in the ‘‘Annual Contributions
for Assisted Housing’’ account, shall be transferred to and merged
with amounts in this account.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 86–0308–0–1–604

1995 actual

1996 est.

1997 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................ ................... ...................

171

22.00
23.95

171
–171

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

171

Change in unpaid obligations:
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.30 Obligated balance transferred, net ...............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

in existence. The purpose of the program is to provide States
and localities with resources and incentives to devise longterm comprehensive strategies for meeting the housing needs
of persons with AIDS and their families.
States and metropolitan areas receive 90 percent of the
funds by formula based on the incidence of 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 FUND
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 HCD
Act) (42 U.S.C. 5301), $4,600,000,000, to remain available until September 30, 1999, of which $69,000,000 shall be for grants to Indian
tribes notwithstanding section 106(a)(1) of the HCD Act; $45,000,000
shall be for ‘‘special purpose grants’’ pursuant to section 107 of the
HCD Act, including up to 0.4 percent, but not less than $18,000,000,
for the development and operation of a management information system; $20,000,000 shall be 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,
in addition to the foregoing earmarked amount; and $50,000,000 shall
be for grants to nonprofit entities and units of local government to
assist underserved areas and populations through housing development, infrastructure improvements, economic development, and supportive services targeted to farmworkers, colonias, and Native Americans: Provided, That not to exceed 20 percent of any grant made
with funds appropriated herein and earmarked under this paragraph
(other than grants using funds under section 107(b)(3) of the HCD
Act, youthbuild, and assistance to underserved areas and populations)
shall be expended for ‘‘Planning and Management Development’’ and
‘‘Administration’’ as defined in regulations promulgated by the Department: Provided further, That for fiscal year 1997 and thereafter, section 105(a)(25) of the HCD Act shall continue to be effective, and
the termination and conforming provisions of section 907(b)(2) of the
Cranston-Gonzalez National Affordable Housing Act shall not be effective: Provided further, That section 916(f) of the Cranston-Gonzalez
National Affordable Housing Act is repealed.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 86–0162–0–1–451

................... ...................
................... ...................
................... ...................

171
–138
417

................... ...................

449

Outlays (gross), detail:
86.90 Outlays from new current authority .............................. ................... ...................
86.93 Outlays from current balances ...................................... ................... ...................

3
135

87.00

Total outlays (gross) ................................................. ................... ...................

138

89.00
90.00

171
138

1995 actual

1996 est.

1997 est.

00.01

Obligations by program activity:
Grants ............................................................................

5,030

5,088

4,601

10.00

Total obligations (object class 41.0) ........................

5,030

5,088

4,601

697
4,819

487 ...................
4,600
4,600

21.40

23.90
23.95
24.40

5,517
–5,030

5,088
–5,088

4,601
–4,601

487 ................... ...................

New budget authority (gross), detail:
Appropriation ..................................................................

4,819

4,600

7,949
5,030
–4,333

8,645
5,088
–5,093

8,639
4,601
–4,931

40.00

The Administration proposes to establish a Housing Opportunities for Persons with AIDS program as a separate account
in 1997. All of the balances from prior appropriations for
this program would be merged with the new appropriations.
The program would resemble the program which is already

511

72.40

512

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)—Continued

For grants to States and units of general local government and
for related expenses, necessary for carrying out a community development bonus program, $300,000,000, to remain available until expended. (Additional authorizing legislation required.)

1995 actual

Identification code 86–0162–0–1–451

73.45
74.40

CDBG/ECONOMIC DEVELOPMENT BONUS POOL

COMMUNITY DEVELOPMENT BLOCK GRANTS FUND—Continued

1996 est.

1997 est.

Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

–1

8,645

8,639

8,308

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

193
4,140

184
4,909

184
4,747

87.00

Total outlays (gross) .................................................

4,333

5,093

4,931

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

4,819
4,333

4,600
5,093

4,600
4,931

Summary of Budget Authority and Outlays

Program and Financing (in millions of dollars)

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

4,819
4,333

4,600
5,093

4,900
4,931

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.
HUD proposes to operate CDBG as a performance fund
starting in 1997. Grantees will continue to use their formula
funds for the present wide range of activities. States and
localities will 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 Consolidated Plans. The funding requested in 1997 for developing, implementing and refining
of management information systems is critical to establishing
a national database on local needs and program performance,
as well as providing localities, States and other community
members with software to plan and track performance. As
the necessary systems are implemented and refined, funds
needed for this purpose are anticipated to decrease over time.
In certain geographic areas of the United States—specifically Native American reservations, the ‘‘colonias’’ in the
States along the U.S.-Mexico border, and farmworker camps
in certain crop-growing States—special populations live in
shocking conditions of extreme poverty and substandard housing. The unique character of their poverty and their remote
locations defy solutions through HUD’s traditional programs
and, therefore, require special action if the nation is to eliminate these most unhealthy and degrading living conditions.
To this end, $50 million is requested to assist under-served/
developing areas and populations by providing grants for
housing development, infrastructure improvements, economic
development, and supportive services targeted to farmworkers, colonias, and Native Americans. Funding eligibility
would be made contingent upon applicants’ demonstrated
abilities to leverage funds from other public and private
sources, including national housing intermediaries.

1996 est.

1997 est.

00.01

Obligations by program activity:
Grants ............................................................................ ................... ...................

300

10.00

Total obligations (object class 41.0) ........................ ................... ...................

300

22.00
23.95

300
–300

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

300

[In millions of dollars]

Enacted/requested:
1995 actual
1996 est.
1997 est.
Budget Authority .....................................................................
4,819
4,600
4,600
Outlays ....................................................................................
4,333
5,093
4,931
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
300
Outlays .................................................................................... .................... .................... ....................

1995 actual

Identification code 86–0162–2–1–451

73.10
74.40

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

300
300

87.00

Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
300
Outlays ........................................................................... ................... ................... ...................

The Community Development bonus program would be
available on a competitive basis to high performing jurisdictions to finance efforts that either generate economic revitalization in distressed communities or link people living in distressed communities to jobs, wherever they might be. HUD
would administer this bonus pool funding as a challenge
grant, requiring localities to compete for funds by proposing
innovative economic revitalization and job creation strategies
using a combination of their own resources, private capital,
and federal program incentives. In 1997, $200 million will
be used to fund a new round of Empowerment Zones, and
$100 million will be reserved for a Bonus Pool for high-performing jurisdictions to provide funding for the Economic Development Initiative and other job-creation and economic development activities.

HOME FUND
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, $1,400,000,000 to remain
available until expended: Provided, $21,000,000 shall be available
for grants to Indian tribes: Provided further, That up to 0.5 percent,
but not less than $7,000,000 shall be available for the development
and operation of a management information system; Provided further,
That $15,000,000 shall be available for Housing Counseling under
section 106 of the Housing and Urban Development Act of 1968.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 86–0205–0–1–999

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................

1,337

1,550

83
1,400

148 ...................
1,400
1,400

10.00

1,402

21.40

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
22.10
23.90
23.95
24.40

Resources available from recoveries of prior year obligations .......................................................................
Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1,485
–1,337

1,550
–1,550

1,402
–1,402

New obligations ............................................................. ................... ...................

–150

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

150

73.10
74.40
1,400

1,400

3,033
1,337
–1,179
–2

3,189
1,550
–1,240
–2

3,497
1,402
–1,401
–2

3,189

3,497

3,496

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

28
1,151

28
1,212

28
1,373

87.00

Total outlays (gross) .................................................

1,179

1,240

1,401

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1,400
1,179

1,400
1,240

1,400
1,401

Summary of Budget Authority and Outlays
[In millions of dollars]

Enacted/requested:
1995 actual
1996 est.
1997 est.
Budget Authority .....................................................................
1,400
1,400
1,400
Outlays ....................................................................................
1,179
1,240
1,401
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
150
Outlays .................................................................................... .................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

23.95

148 ................... ...................

1,400

513

150
150

87.00

Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
150
Outlays ........................................................................... ................... ................... ...................

The HOME Fund Challenge Grant program would be available on a competitive basis to high performing jurisdictions
to support State and local efforts to develop homeownership
opportunities in targeted areas. This program will provide
critical resources for housing development, using the wide
range of tools available under the HOME program in Homeownership Zones, and is designed to reclaim abandoned neighborhoods, strengthen homeownership opportunities for hardworking families, and serve as a catalyst to stimulate business creation and private investment. HUD would administer
this funding as a challenge grant, requiring localities to compete for funds by proposing creative, cost-effective homeownership strategies using a combination of their own resources, private capital, and Federal program incentives.

URBAN DEVELOPMENT ACTION GRANTS
1,400
1,179

1,400
1,240

1,550
1,401

The HOME Investment Partnerships 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 $1.4
billion requested for 1997 includes $15 million for the Housing
Counseling program as part of an overall effort to increase
homeownership rates.
Funding for developing, implementing, and refining management information systems is critical to establishing a national database on local needs and program performance, as
well as for providing localities, States, and other community
members with software to plan and track performance. As
the necessary systems are implemented and refined, funds
needed for this purpose are anticipated to decrease over time.

Program and Financing (in millions of dollars)
Identification code 86–0170–0–1–451

1995 actual

1996 est.

1997 est.

21.40

23.90

41.00

10 ................... ...................
–18 ................... ...................
8

Total budgetary resources available for obligation ...................

New budget authority (gross), detail:
Transferred to other accounts .......................................

–18 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
191
163
120
73.10 New obligations ............................................................. ................... ................... ...................
73.20 Total outlays (gross) ......................................................
–20
–37
–30
73.45 Adjustments in unexpired accounts ..............................
–8
–6
–2
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
163
120
88
72.40

HOME FUND CHALLENGE GRANT
(Legislative proposal, not subject to PAYGO)

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

For grants and related expenses, not otherwise provided for, necessary for carrying out a HOME Investment Partnerships bonus program, $150,000,000, to remain available until expended. (Additional
authorizing language required.)

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

Program and Financing (in millions of dollars)
Identification code 86–0205–2–1–999

1995 actual

1996 est.

1997 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................ ................... ...................

150

22.00

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................

150

–18 ................... ...................
20
37
30

Title I of the Housing and Community Development Act
of 1974, as amended, authorizes grants to distressed cities
and distressed urban counties to fund economic development
projects.
The program has terminated and there are no funds remaining available for obligation.

514

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT
AFFORDABLE HOUSING

AND

Program and Financing (in millions of dollars)
1995 actual

Identification code 86–0222–0–1–451

1996 est.

government, and nonprofit organizations to provide emergency shelter and other support for the homeless. In fiscal
years 1995 and 1996, this assistance was funded by appropriations to the Homeless Assistance Grants account. Beginning in fiscal year 1997, funding for this type of activity
will be provided under the Homeless Assistance Fund.

1997 est.

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ................... ................... ...................

70.00

New budget authority (gross), detail:
Total new budget authority (gross) ............................... ................... ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
20
19
5
73.10 New obligations ............................................................. ................... ................... ...................
73.20 Total outlays (gross) ......................................................
–1
–14
–5
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
19
5 ...................
72.40

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

Program and Financing (in millions of dollars)
Identification code 86–0181–0–1–604

Obligations by program activity:
Total obligations (object class 41.0) ............................

1995 actual

1996 est.

1997 est.

40.00

4 ................... ...................
–4 ................... ...................

New budget authority (gross), detail:
Appropriation .................................................................. ................... ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

Obligations by program activity:
Total obligations (object class 41.0) ............................

273

1996 est.

1997 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
337
66 ...................
22.00 New budget authority (gross) ........................................ ................... ................... ...................
22.10 Resources available from recoveries of prior year obligations .......................................................................
2
2
2
21.40

23.90
23.95
24.40

339
–273

68
–68

2
–2

66 ................... ...................

New budget authority (gross), detail:
Appropriation .................................................................. ................... ................... ...................

419
273
–115
–2

575
68
–158
–2

483
2
–157
–2

575

483

326

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

115

158

157

87.00

Total outlays (gross) .................................................

115

158

157

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
115
158
157

4 ................... ...................

72.40

116
36
1
4 ................... ...................
–84
–35
–1
36

Title IV, subtitle C, of the Stewart B. McKinney Homeless
Assistance Act authorizes assistance to promote the development of supportive housing and services for deinstitutionalized homeless individuals, homeless families with children,
homeless individuals with mental disabilities, and other
homeless persons. 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.
For fiscal years 1995 and 1996, this type of assistance was
funded by appropriations to the Homeless Assistance Grants
account. Beginning in fiscal year 1997, funding for this type
of activity will be provided under the Homeless Assistance
Fund.

1 ...................

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

10.00

89.00
90.00

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ...................................................
4 ................... ...................
22.00 New budget authority (gross) ........................................ ................... ................... ...................
Total budgetary resources available for obligation
New obligations .............................................................

1995 actual

Identification code 86–0188–0–1–604

40.00

EMERGENCY SHELTER GRANTS PROGRAM

23.90
23.95

Program and Financing (in millions of dollars)

As authorized by section 4 of the HUD Demonstration Act
of 1993, this program provided 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.

10.00

SUPPORTIVE HOUSING PROGRAM

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, units of local

SUPPLEMENTAL ASSISTANCE FOR FACILITIES TO ASSIST
HOMELESS

THE

Program and Financing (in millions of dollars)
Identification code 86–0187–0–1–451

1995 actual

1996 est.

1997 est.

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ................... ...................
New obligations ............................................................. ................... ................... ...................

70.00

New budget authority (gross), detail:
Total new budget authority (gross) ............................... ................... ................... ...................

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
17
9
3
73.10 New obligations ............................................................. ................... ................... ...................
73.20 Total outlays (gross) ......................................................
–8
–6
–3
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
9
3 ...................
72.40

515

ginning in fiscal year 1997, funding for this type of activity
will be provided under the Homeless Assistance Fund.
INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM
Program and Financing (in millions of dollars)

Outlays (gross), detail:
86.93 Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ...........................................................................
8
6
3

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.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................ ...................

22.00
23.95

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
96
73.10 New obligations ............................................................. ...................
73.20 Total outlays (gross) ......................................................
–17
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
79

72.40

79
19
–19

Outlays (gross), detail:
Outlays from current balances ......................................

Program and Financing (in millions of dollars)

87.00

Total outlays (gross) .................................................

1995 actual

180

1996 est.

1997 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
199
24 ...................
22.00 New budget authority (gross) ........................................ ................... ................... ...................
22.10 Resources available from recoveries of prior year obligations .......................................................................
5
5
5
21.40

204
–180

29
–29

5
–5

24 ................... ...................

89.00
90.00

Section 2 of the HUD Demonstration Act of 1993 authorizes
assistance for projects intended to provide a continuum of
care for homeless persons and for innovative programs to
assist homeless persons. Eligible recipients include States,
units of local government, Indian tribes, and nonprofit organizations.
Previously, activities were funded by appropriations to the
Homeless Assistance Grants account. Beginning in fiscal year
1997, funding will be provided under the Homeless Assistance
Fund.

New budget authority (gross), detail:
Total new budget authority (gross) ............................... ................... ................... ...................

HOMELESS ASSISTANCE øGRANTS¿ FUND

72.40

296
180
–17
–5

454
29
–50
–5

428
5
–50
–5

454

428

378

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

1997 est.

86.93

Obligations by program activity:
10.00 Total obligations (object class 41.0) ............................

70.00

1996 est.

SHELTER PLUS CARE

Identification code 86–0204–0–1–604

23.90
23.95
24.40

1995 actual

Identification code 86–0221–0–1–604

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, units of general local government and Indian tribes.
Grants are awarded on a competitive basis.
For fiscal years 1995 and 1996, this type of assistance was
provided within the Homeless Assistance Grants account. Be-

For performance grants to States, units of general local government
and nonprofit organizations, and for related expenses, not otherwise
provided for, necessary for carrying out a needs-based homeless assistance program, $1,010,000,000, to remain available until expended:
Provided, That $13,500,000 shall be available for grants to Indian
tribes: Provided further, That such amount shall be available only
upon enactment into law of authorizing legislation for such program.
(Additional authorizing legislation required.)
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 86–0192–0–1–604

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

1995 actual

271

1996 est.

1,672

1997 est.

1,010

21.40

23.90
23.95
24.40

1,120
–271

849 ...................
823
1,010
1,672
–1,672

1,010
–1,010

849 ................... ...................

516

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
HOMELESS ASSISTANCE øGRANTS¿ FUND—Continued
Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 86–0192–0–1–604

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

1996 est.

1,120

823

1997 est.

1,010

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ...................
73.10 New obligations .............................................................
271
73.20 Total outlays (gross) ......................................................
–12
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
259

259
1,672
–198

1,733
1,010
–412

1,733

2,331

Outlays (gross), detail:
Outlays from new current authority ..............................
12
Outlays from current balances ...................................... ...................

41
157

51
361

72.40

86.90
86.93

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

87.00

Total outlays (gross) .................................................

198

412

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1,120
12

823
198

1,010
412

................... ................... ...................
................... ...................
110
................... ................... ...................
................... ...................

110

87.00

Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
110
Outlays ........................................................................... ................... ................... ...................

The Homeless/Innovations program would be available on
a competitive basis to applicants who propose innovative programs or solutions to addressing homelessness through ‘‘continuum of care’’ efforts. The Department would administer
this program as a challenge grant, requiring localities to compete for funds by proposing creative strategies using a combination of their own resources, private capital, and Federal
program incentives.
YOUTHBUILD PROGRAM
Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays
Identification code 86–0219–0–1–604

[In millions of dollars]

Enacted/requested:
1995 actual
1996 est.
1997 est.
Budget Authority .....................................................................
1,120
823
1,010
Outlays ....................................................................................
12
198
412
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
110
Outlays .................................................................................... .................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

1,120
12

823
198

1,120
412

The Homeless Assistance Fund consolidates HUD’s six
McKinney homeless assistance programs—Shelter Plus Care,
Supportive Housing, Emergency Shelter Grants, Section 8
Moderate Rehabilitation Single Room Occupancy, Rural
Homeless Grants, and Safe Havens, as well as the Innovative
Homeless Initiatives Demonstration Program. This consolidation would enable localities to shape a comprehensive, flexible,
coordinated ‘‘continuum of care’’ approach to solving rather
than institutionalizing homelessness. States and localities
would receive an allocation, for which they would submit an
application to HUD for approval. A community-based process
would be required as part of the application process. Approved
funding would be available for a wide range of activities to
assist homeless persons and prevent future homelessness.
HOMELESS/INNOVATIONS BONUS POOL

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

1995 actual

1996 est.

1997 est.

2 ...................

21.40

23.90
23.95
24.40

4
2 ...................
40 ................... ...................
26 ................... ...................
70
–68

2 ...................
–2 ...................

2 ................... ...................

40.00
40.35

New budget authority (gross), detail:
Appropriation ..................................................................
Appropriation rescinded .................................................

50 ................... ...................
–10 ................... ...................

43.00

Appropriation (total) ..................................................

40 ................... ...................

70.00

Total new budget authority (gross) ..........................

40 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.30 Obligated balance transferred, net ...............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

35
85
66
68
2 ...................
–20
–21
–18
2 ................... ...................

72.40

(Legislative proposal, not subject to PAYGO)
For grants and related expenses, not otherwise provided for, necessary for carrying out the Homeless/Innovations program,
$110,000,000, to be available until expended. (Additional authorizing
legislation required.)
Program and Financing (in millions of dollars)
Identification code 86–0192–2–1–604

10.00

22.00
23.95
24.40

40.00

1995 actual

1996 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................ ................... ...................

Outlays (gross), detail:
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

40 ................... ...................
20
21
18

1997 est.

110

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
110
New obligations ............................................................. ................... ...................
–110
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ................... ...................
New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

86.93

110

This program provides resources to educate, train, and provide stipends for economically disadvantaged young adults
to construct and rehabilitate 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.
Beginning in fiscal year 1996, funding for the Youthbuild
program was included in the Community Development Block
Grants Fund Account.

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
NATIONAL CITIES

SCHOOLS COMMUNITY DEVELOPMENT PROGRAM

90.00

Program and Financing (in millions of dollars)
1995 actual

Identification code 86–0220–0–1–451

Outlays ...........................................................................

–40

517
–33

–31

Status of Direct Loans (in millions of dollars)
1996 est.

1997 est.

1995 actual

Identification code 86–4015–0–3–451

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ................... ................... ...................
23.95 New obligations ............................................................. ................... ................... ...................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
9
2
73.10 New obligations ............................................................. ................... ...................
73.20 Total outlays (gross) ......................................................
–7
–2
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
2 ...................
72.40

1997 est.

446
–51
–7

388
–50
–2

336
–45
–1

1290

388

336

290

...................
...................
...................
...................

1996 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................
1263 Write-offs for default: Direct loans ...............................
Outstanding, end of year ..........................................

Status of Guaranteed Loans (in millions of dollars)
1995 actual

Identification code 86–4015–0–3–451

1996 est.

1997 est.

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

2 ...................

2210
2251

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Repayments and prepayments ......................................

8
–4

4
–1

3
–1

87.00

Total outlays (gross) .................................................

2 ...................

2290

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

89.00
90.00

This program provided grants for community-wide programs designed to assist at-risk youth and their families.
The program was terminated at the end of fiscal year 1994.
Public enterprise funds:

Statement of Operations (in millions of dollars)

REVOLVING FUND (LIQUIDATING PROGRAMS)

Identification code 86–4015–0–3–451

Program and Financing (in millions of dollars)
Identification code 86–4015–0–3–451

Obligations by program activity:
00.03 Loan servicing and other expenses ...............................
00.04 Maintenance of acquired security and collateral .........
00.05 Administrative expenses ................................................
10.00

Total obligations (object class 25.2) ........................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.40 Capital transfer to general fund ...................................

1995 actual

1996 est.

7
4
1

7
7
1

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
72.90 Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

92
74

102
73

92
65

3
–55

2 ...................
–70
–60

114
–12

107
–15

97
–15

102

71
12
–34
–3

46
19
15
15
–40
–34
–2 ...................

19 ...................

Outlays (gross), detail:
Outlays from permanent balances ................................

87.00

Total outlays (gross) .................................................

89.00

1996 est.

1997 est.

Revenue ...................................................
Expense ....................................................

21
–26

19
–12

19
–15

20
–15

0109

Net income or loss (–) ............................

–5

Balance Sheet (in millions of dollars)
Identification code 86–4015–0–3–451

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 ..............................
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

–73

–65

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................

1994 actual

1995 actual

163
3

149
3

143
3

135
3

450
20

391
21

350
20

325
20

–122

–36

–38

–39

348
1

376
1

332
1

306
1

349

377

333

307

515

529

479

445

1
13

1
12

1996 est.

1997 est.

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

501

514

465

432

3999

Total net position ................................

501

514

465

432

4999

Total liabilities and net position ............

515

528

479

445

Credit accounts:
–74

1995 actual

0101
0102

1699

86.98

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

1994 actual

1997 est.

21.90

23.90
23.95
24.90

The Revolving fund (liquidating programs) was established
by the Independent Offices Appropriation Act of 1955 for the
more efficient liquidation of assets acquired under a number
of housing and urban development programs.

COMMUNITY øOPPORTUNITY PERFORMANCE FUNDS¿ DEVELOPMENT
LOAN GUARANTEES PROGRAM ACCOUNT
For the cost of guaranteed loans, $46,000,000, as authorized by
section 108 of the Housing and Community Development Act of 1974:

518

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Credit accounts—Continued

COMMUNITY øOPPORTUNITY PERFORMANCE FUNDS¿ DEVELOPMENT
LOAN GUARANTEES FINANCING ACCOUNT

COMMUNITY øOPPORTUNITY PERFORMANCE FUNDS¿ DEVELOPMENT
LOAN GUARANTEES PROGRAM ACCOUNT—Continued

Program and Financing (in millions of dollars)

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: Provided further, That these funds are available to subsidize
total loan principal, any part of which is to be guaranteed, not to
exceed $2,000,000,000, 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 program, $675,000,
which shall be transferred to the appropriation for Salaries and Expenses.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

1995 actual

Identification code 86–4096–0–3–451

1996 est.

1997 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ...................................................................... ................... ...................
22.00 New financing authority (gross) .................................... ...................
16
21.90

23.90
23.95
24.90

68.00

16
39

Total budgetary resources available for obligation ...................
16
55
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year: Fund
balance ...................................................................... ...................
16
55
New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ...................

Program and Financing (in millions of dollars)
Identification code 86–0198–0–1–451

1995 actual

1996 est.

1997 est.

00.02
00.09

Obligations by program activity:
Guaranteed loan subsidy ............................................... ...................
Administrative expenses ................................................ ...................

32
1

46
1

10.00

Total obligations (object class 33.0) ........................ ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ...................
New obligations ............................................................. ...................

33
–33

47
–47

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ...................

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

86.90
86.93

73.10

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................

87.00

Outlays (gross), detail:
Total financing disbursements (gross) ..................... ................... ................... ...................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ...................
–16
88.25
Interest on uninvested funds ............................... ................... ...................

–39
–2

88.90

–16

–41

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ...................
Financing disbursements ............................................... ...................
–16

–2
–41

89.00
90.00
................... ...................
...................
33
...................
–17

16
47
–40

Total, offsetting collections (cash) .................. ...................

Status of Guaranteed Loans (in millions of dollars)
1995 actual

Identification code 86–4096–0–3–451

...................

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
17
Outlays from current balances ...................................... ................... ...................

1996 est.

1997 est.

24
16

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders ..............................................................................
2112 Uncommitted loan guarantee limitation .......................

2,054
1,500
2,000
–210 ................... ...................

87.00

Total outlays (gross) ................................................. ...................

2150

Total guaranteed loan commitments ........................

1,844

1,500

2,000

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ...................
Outlays ........................................................................... ...................

33
17

47
40

2210
2231
2251

115
243
–41

317
1,672
–40

1,949
1,750
–65

Guaranteed Loans.—The Community Development Block
Grants Fund includes a guaranteed loan provision (Section
108). A commitment level of $2 billion is proposed for the
Community Development Loan Guarantees (Section 108) program for 1997. The credit subsidy estimate for the guaranteed
loan is $46 million for the estimated use of this authority
in 1997.

2290

Outstanding, end of year ..........................................

317

1,949

3,634

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

317

1,949

3,634

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0198–0–1–451

1995 actual

Guaranteed loan levels supportable by subsidy budget
authority:
2159 Total loan guarantee levels ...........................................
2,054
Guaranteed loan subsidy (in percent):
2329 Weighted average subsidy rate .....................................
0.00
Guaranteed loan subsidy budget authority:
2339 Total subsidy budget authority ...................................... ...................
Guaranteed loan subsidy outlays:
2349 Total subsidy outlays ..................................................... ...................

1996 est.

1997 est.

1,500

2,000

2.14

2.30

Guaranteed loans.—The Community Development Loan
Guarantees Program provides a mechanism for Federal guarantees 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.
COMMUNITY øOPPORTUNITY PERFORMANCE FUNDS¿ DEVELOPMENT
LOAN GUARANTEES LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 86–4097–0–3–451

Administrative expense data:
3510 Budget authority ............................................................ ...................
3590 Outlays ........................................................................... ...................

1
1

22.00

Budgetary resources available for obligation:
New budget authority (gross) ........................................

1995 actual

1996 est.

1997 est.

HOUSING PROGRAMS
Federal Funds

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

68.00

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:
Authority to borrow ....................................................
158
153
153
73.10 New obligations ............................................................. ................... ................... ...................
73.20 Total outlays (gross) ......................................................
–5 ................... ...................
74.47 Unpaid obligations, end of year: Obligated balance:
Authority to borrow ....................................................
153
153
153
72.47

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................

5 ................... ...................

87.00

Total outlays (gross) .................................................

5 ................... ...................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

89.00
90.00

–21

–20

–15

Status of Direct Loans (in millions of dollars)
1995 actual

Identification code 86–4097–0–3–451

1996 est.

1997 est.

1210
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................

110
–21

89
–20

69
–15

1290

Outstanding, end of year ..........................................

Status of Guaranteed Loans (in millions of dollars)
1995 actual

Identification code 86–4097–0–3–451

1996 est.

1997 est.

2210
2231
2251

297
27
–78

246
20
–70

196
15
–60

2290

Outstanding, end of year ..........................................

246

196

151

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

246

196

151

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 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 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 requires 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
General and special funds:
ANNUAL CONTRIBUTIONS

FOR

ASSISTED HOUSING

For assistance under the United States Housing Act of 1937, as
amended (42 U.S.C. 1437), not otherwise provided for, $5,597,000,000,
to remain available until expended, of which $60,000,000 shall be

519

for the lead-based paint hazard reduction program authorized under
sections 1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992; $800,000,000 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; and $4,737,000,000
shall be for assistance under 42 U.S.C. 1437 for use in connection
with expiring or terminating section 8 subsidy contracts: Provided,
That any assets and liabilities remaining at the end of fiscal year
1996 in the ‘‘Renewal of expiring section 8 subsidy contracts’’ account
shall be transferred to and merged with the balances available under
this heading, and any such asset shall be treated as earmarked for
assistance for expiring or terminating section 8 subsidy contracts,
in addition to amounts earmarked for such use herein: Provided further, That to the extent that such transfers are insufficient to fund
all expiring section 8 contracts, the Secretary may transfer to and
merge with such earmark, additional unobligated balances from other
earmarks within the Annual Contributions for Assisted Housing account sufficient to fund such expiring contracts: Provided further,
That of the amounts recaptured from the termination or restructuring
of new construction or substantial rehabilitation contracts under section 8(a), as it existed prior to November 30, 1983, (except for new
construction contracts for housing for the elderly or disabled, as authorized by section 202 of the Housing Act of 1959), up to $477,000,000
shall be rescinded.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 86–0164–0–1–604

Obligations by program activity:
Assistance contracts:
00.01
Lower income housing (section 8) ............................
00.02
Public and Indian housing ........................................
00.03
Elderly/Disabled Grants .............................................
00.04
Program Activity ........................................................
00.05
Lead Based Paint Abatement ...................................
00.06
Disaster Assistance ...................................................
00.07
Contract Renewals ....................................................
10.00

Total obligations (object class 41.0) ...................

1995 actual

22.20
22.30
22.75
23.90
23.95

Total unobligated balance, start of year .............
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................
Unobligated balance transferred ...................................
Unobligated balance expiring ........................................
Balance of contract authority withdrawn ......................

1997 est.

8,581
8,820
4,452
5,666
2,818 ...................
1,346
1,386
1,039
566 ................... ...................
159 ................... ...................
83 ................... ...................
2,016
4,200
4,000
18,417

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance:
21.40
Administrative commitments (reserved) ...............
18,758
21.40
Administrative commitments (reserved) ...............
2,146
21.40
Uninvested balance .............................................. ...................
21.49
Administrative commitments (reserved) ...................
73
21.90
Fund balance ............................................................. ...................
21.99
22.00
22.10

1996 est.

20,977
8,150

17,224

9,491

358
358
9,182
5,387
1,200 ...................
73 ...................
29
29
10,842
10,156

5,774
5,120

11,468
2,000
2,477
–2 ...................
–1,750
89 ................... ...................
–11,423 ................... ...................
29,259
–18,417

24.40
24.40
24.40
24.49
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance:
Available ...............................................................
Reserved ................................................................
Uninvested balance ..............................................
Contract authority .....................................................
Fund balance .............................................................

24.99

Total unobligated balance, end of year ....................

10,842

22,998
–17,224

11,621
–9,491

358
358
525
9,182
5,387
1,576
1,200 ................... ...................
73 ................... ...................
29
29
29
5,774

2,130

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
8,144
10,156
5,597
40.35
Appropriation rescinded ............................................ ................... ...................
–477
41.00
Transferred to other accounts ...................................
–12 ................... ...................
42.00
Transferred from other accounts ..............................
18 ................... ...................
43.00
60.05
60.49

Appropriation (total) .............................................
Permanent:
Appropriation (indefinite) ..........................................
Portion applied to liquidate contract authority ........

8,150

10,156

5,120

22,326
–22,326

10,013
–10,013

16,000
–16,000

520

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
ANNUAL CONTRIBUTIONS

FOR

ASSISTED HOUSING—Continued

Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 86–0164–0–1–604

63.00
70.00

74.40
74.40
74.49

1997 est.

1,033
2,197

1,188
4,351

4,260
......................

Subtotal ............................................................
Administrative commitments, start of year ..............
Administrative commitments transferred1 ................
Administrative commitments, end of year ................

10,808
18,758
......................
¥11,149

10,543
10,381
......................
¥3,701

5,120
5,387
......................
¥1,016

Total obligations ...............................................

18,417

17,223

9,491

Appropriation (total) ............................................. ................... ................... ...................
Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
Appropriation:
72.40
Appropriation ....................................................
72.40
Appropriation ....................................................
72.49
Contract authority .................................................
72.99
73.10
73.20
73.30
73.45

1996 est.

Sec. 202/811 .............................................................
Contract renewals .....................................................

8,150

10,156

22,517
19,831
103,022

5,120

45,271
16,326
69,331

51,073
15,918
59,331

Total unpaid obligations, start of year ................
145,370
130,928
New obligations .............................................................
18,417
17,224
Total outlays (gross) ......................................................
–21,391
–19,830
Obligated balance transferred, net ............................... ................... ...................
Adjustments in unexpired accounts ..............................
–11,468
–2,000
Unpaid obligations, end of year:
Obligated balance:
Appropriation:
Appropriation ....................................................
45,271
51,073
Appropriation ....................................................
16,326
15,918
Contract authority .................................................
69,331
59,331

126,322
9,491
–16,756
–19,191
–2,477

39,890
15,918
41,581

74.99

Total unpaid obligations, end of year ..................

130,928

126,322

97,389

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

169
21,222

1,649
18,181

1,600
15,156

87.00

Total outlays (gross) .................................................

21,391

19,830

16,756

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

8,150
21,391

10,156
19,830

5,120
16,756

Summary of Budget Authority and Outlays
[In millions of dollars]

Enacted/requested:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................
Adjustment to 1996 continuing resolution levels:
Budget Authority .....................................................................
Outlays ....................................................................................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

8,150
21,391

1995 actual

1996 est.

1997 est.

8,150
21,391

10,156
19,830

5,120
16,756

....................
....................

–60
–60

–236
–236

....................
....................

365 ....................
8
50
10,461
19,778

4,884
16,570

1 Reflects

transfer from Contract Renewals to Annual Contributions account.

The Annual Contributions for Assisted Housing account
provided assistance under three major categories.
Low-income housing (section 8).—Included within the section 8 category were 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 the annual contributions 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.
The Annual Contributions for Assisted Housing 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. Consistent with HUD’s Reinvention process, many of these activities will be funded under the new consolidated Funds being
proposed for 1997.
However, certain activities will continue to be included
within this account in 1997. Appropriations are being requested for Lead-based paint hazard reduction, section 8 contract amendments and the renewal of expiring section 8 contracts. In addition, language is being proposed to permit the
transfer into this account of all unobligated and obligated
balances previously made available under the Renewal of expiring section 8 subsidy contracts account.
ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING

ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING

(Legislative proposal, subject to PAYGO)

Status of Contract Authority (in millions of dollars)
1995 actual

1996 est.

Program and Financing (in millions of dollars)
1997 est.

Total unfunded balance, start of year .............

103,095

69,404

59,331

Appropriation to liquidate contract authority ................
Balance of contract authority withdrawn ......................
Unfunded balances transferred for liquidation .............

–22,326
–11,365
......................

–10,013
–61
......................

–16,000
–2
......................

Unfunded balance, end of year .......................

69,404

59,331

41,581

ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING
Summary of Administrative Commitments

Identification code 86–0164–4–1–604

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Assistance contracts:
00.01
Lower income housing (section 8) ............................ ...................

–60

–236

10.00

Total obligations (object class 41.0) ................... ...................

–60

–236

22.00
23.95

–60
60

–236
236

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ...................

–60

–236

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ...................
Total outlays (gross) ...................................................... ...................

–60
60

–236
236

[In millions of dollars]

Program by activities:
Assistance contracts:
Lower income housing (section 8) .......................
Public and Indian housing ...................................

1995 actual

3,857
3,721

1996 est.

1997 est.

5,004
......................

860
......................

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ...................

–60

–236

87.00

Total outlays (gross) ................................................. ...................

–60

–236

89.00
90.00

–60
–60

–236
–236

The Budget includes several cost savings proposals, two
of which place limits on Annual Adjustment Factor (AAF)
rent increases for section 8 units. The first proposal limits
AAF increases to those cases where existing rents are less
than the local average fair market rent. This is estimated
to save $66 million in outlays in fiscal year 1997. The second,
reduces by up to one percent the increase for units in which
the same tenant has resided since the last increase. This
proposal is based on the rationale that operating costs are
less if tenant turnover is less. This proposal is estimated
to save $170 million in outlays in fiscal year 1997.
HOUSING

FOR

SPECIAL POPULATIONS: ELDERLY

AND

OTHER ASSISTED HOUSING PROGRAMS
RENTAL HOUSING ASSISTANCE
(RESCISSIONS)

The 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 1997 by not more than $2,000,000 in uncommitted
balances of authorizations provided for this purpose in appropriations
Acts.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)
1995 actual

The Administration proposes to establish a separate account
for the Supportive Housing for the Elderly and Disabled program. Assistance would be provided in the form of capital
grants and rental assistance. Tenant-based vouchers and certificates will be provided for 25 percent of Supportive Housing
for the Disabled, in the form of Section 8 vouchers.

DISABLED

For capital advances, including amendments to capital advance
contracts, and for project rental assistance and amendments thereto,
for Supportive Housing for the Elderly under section 202 of the Housing Act of 1959, as amended, $595,000,000, to remain available until
expended.
For capital advances, including amendments to capital advance
contracts, and for project rental assistance and amendments thereto,
for Supportive Housing for Persons with Disabilities under section
811 of the Cranston-Gonzalez National Affordable Housing Act,
$174,000,000, to remain available until expended, of which 25 percent
shall be used for tenant-based rental assistance under section 8(o)
of the U.S. Housing Act of 1937 (42 U.S.C. 1437(o)), in addition
to any other amounts available for section 8(o).
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) 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.

Identification code 86–0309–0–1–604

Identification code 86–0206–0–1–999

00.01
00.02
10.00

Obligations by program activity:
Rent supplement ............................................................ ...................
Homeownership and rental housing assistance (Sections 235 and 236) ................................................... ...................
Total obligations (object class 41.0) ........................ ...................

21.99
22.00
22.10
22.75
23.90
23.95

1996 est.

1997 est.

114

107

7 ...................
1,037
913

1,063
1,044
913
7 ................... ...................
208
–234

69
–86

375
–97

Total budgetary resources available for obligation
1,044
1,027
1,191
New obligations ............................................................. ...................
–114
–107
Unobligated balance available, end of year:
Uninvested balance ...................................................
7 ................... ...................
Contract authority (available) ...................................
1,037
913
1,084

1997 est.

24.99
Obligations by program activity:
10.00 Total obligations (object class 41.0) ............................ ................... ...................

769

22.00
23.95

769
–769

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

769

73.10
73.20
74.40

1995 actual

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested balance ................................................... ...................
21.49
Contract authority (available) ...................................
1,063

24.40
24.49
1996 est.

521

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
769
Total outlays (gross) ...................................................... ................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................
769

Outlays (gross), detail:
87.00 Total outlays (gross) ...................................................... ................... ................... ...................
Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ...................
769
90.00 Outlays ........................................................................... ................... ................... ...................

Housing for the elderly and disabled (section 202 and
811).—The Cranston-Gonzalez 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 operating subsidy
are needed to aid these low-income tenants.

Total unobligated balance, end of year ....................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
60.00
Appropriation .............................................................
60.49
Portion applied to liquidate contract authority ........
63.00
70.00

74.40
74.49

913

1,084

7 ................... ...................
743
–743

772
–772

747
–747

Appropriation (total) ............................................. ................... ................... ...................
Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Administrative commitment (reserved) ................
72.49
Contract authority .................................................
72.99
73.10
73.20
73.45

1,044

7 ................... ...................

128
23,726

104
22,774

104
22,047

Total unpaid obligations, start of year ................
23,854
New obligations ............................................................. ...................
Total outlays (gross) ......................................................
–768
Adjustments in unexpired accounts ..............................
–208
Unpaid obligations, end of year:
Obligated balance:
Administrative commitment reserved ...................
104
Contract authority .................................................
22,774

22,878
114
–772
–69

22,151
107
–741
–375

104
22,047

104
21,038

74.99

Total unpaid obligations, end of year ..................

22,878

22,151

21,142

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

768

772

741

HOUSING PROGRAMS—Continued
Federal Funds—Continued

522

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
OTHER ASSISTED HOUSING PROGRAMS—Continued

NATIONAL HOMEOWNERSHIP øTRUST¿ DEMONSTRATION PROGRAM

(RESCISSIONS)—Continued

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 86–0206–0–1–999

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1995 actual

Identification code 86–0301–0–1–371

1996 est.

1997 est.

1996 est.

1997 est.

741

22.00
23.95

7 ................... ...................
768
772
741

40.00
40.35

New budget authority (gross), detail:
Appropriation ..................................................................
Appropriation rescinded .................................................

768

772

OTHER ASSISTED HOUSING

50 ................... ...................
–50 ................... ...................

43.00

Appropriation (total) .................................................. ................... ................... ...................

70.00

Total new budget authority (gross) .......................... ................... ................... ...................

73.10

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................

Summary of Administrative Commitments
[In millions of dollars]

Program by activities ..................................................................
Assistance contracts:
Rent supplement ................................................................
Homeownership and rental housing assistance (sections
235 and 236) .................................................................
Administrative commitments, start of year ...........................
Administrative commitments, end of year .............................

1995 actual

Total obligations ............................................................

1996 est.

1997 est.

87.00

Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

0
16
–16

72
16
–16

68
16
–16

89.00
90.00

114

107

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. A total of $150 million of budget
authority was provided in the Second Supplemental Appropriations Act of 1984 (Public Law 98–396) to fund the program. Recaptures of budget authority from terminations must
be transferred into the Homeownership Assistance Fund account established pursuant to Public Law 98–181. Amounts
deposited will be available for use to assist program beneficiaries still in need of assistance at the expiration of their
present ten-year assistance contracts.
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.
The Rental Housing Assistance Rescission allows the rescission of not more than $2,000,000 in uncommitted balances
of contract authority.
The table below reflects the consolidated outlay total for
both the Annual Contributions for Assisted Housing account
and the Other Assisted Housing account, for fiscal years 1995,
1996, and 1997.
SUMMARY OF OUTLAYS
[In millions of dollars]
(Annual contributions for Assisted Housing and Other Assisted Housing) 1

1995 actual

Subsidized Housing Programs, total ...........................................
Low income housing assistance (sec. 8) ...................................
Public housing .............................................................................
Rent supplement .........................................................................
Homeownership assistance (sec. 235) .......................................
Rental housing assistance (sec. 236) ........................................
College housing grants ...............................................................
1 Includes

22,159
16,948
4,443
54
41
655
18

1996 est.

20,791
15,778
4,241
56
40
659
18

AND OPPORTUNITY FOR PEOPLE
GRANTS (HOPE GRANTS)

EVERYWHERE

Program and Financing (in millions of dollars)
Identification code 86–0196–0–1–604

1995 actual

1996 est.

1997 est.

00.01
00.02
00.03
00.04

Obligations by program activity:
Hope I .............................................................................
Hope II ............................................................................
Hope III ...........................................................................
Elderly independence .....................................................

64
10
18
2

2
31
6
2

10.00

Total obligations (object class 41.0) ........................

41 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance:
21.40
Uncommitted .........................................................
21.40
Administratively committed ..................................

34
63

36 ...................
5 ...................

21.99
22.00
22.10
22.20
23.90
23.95

...................
...................
...................
...................

97
41 ...................
62 ................... ...................
1 ................... ...................
–26 ................... ...................

24.40
24.40

134
–94

41 ...................
–41 ...................

24.99

Total unobligated balance, end of year ....................

41 ................... ...................

40.00
42.00

New budget authority (gross), detail:
Appropriation ..................................................................
Transferred from other accounts ...................................

50 ................... ...................
12 ................... ...................

43.00

Appropriation (total) ..................................................

62 ................... ...................

70.00

Total new budget authority (gross) ..........................

62 ................... ...................

72.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................

36 ................... ...................
5 ................... ...................

57
34
794
18

outlays for contract renewals.
Housing is proposed to be moved from Annual Contributions for Assisted Housing to the Public Housing
Capital Fund in 1997.
2 Public

HOMEOWNERSHIP

1997 est.

17,761
16,858

The National Homeownership Demonstration Program was
authorized to provide resources to revolving funds established
by public agencies to assist eligible first-time buyers to become homeowners. In addition, certain forms of mortgage assistance were authorized.

228

244

189

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
73.10
73.20
73.30
73.45
74.40

New obligations .............................................................
Total outlays (gross) ......................................................
Obligated balance transferred, net ...............................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

94
41 ...................
–75
–96
–87
–2 ................... ...................
–1 ................... ...................
244

189

102

being requested for this program in fiscal year 1997. This
schedule reflects the liquidation of prior year balances.
HOUSING COUNSELING ASSISTANCE
Program and Financing (in millions of dollars)

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

1995 actual

Identification code 86–0156–0–1–506

CONGREGATE SERVICES
Program and Financing (in millions of dollars)
1995 actual

1996 est.

1997 est.

1996 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................

12 ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

12 ................... ...................
–12 ................... ...................

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

12 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

13
17
12
12 ................... ...................
–7
–6
–5
17

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

12 ................... ...................
7
6
5

The Housing Counseling Assistance program provided comprehensive housing counseling services to eligible homeowners
and tenants, including default and renter counseling. Beginning in fiscal year 1997, funding for this type of activity
will be provided under the Home Fund.

Obligations by program activity:
Total obligations (object class 41.0) ............................

8 ................... ...................

20 ................... ...................
–12 ................... ...................

SECTION 8 MODERATE REHABILITATION
Program and Financing (in millions of dollars)

10.00

21.40

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

8 ................... ...................
–8 ................... ...................

40.00
40.35
40.36

New budget authority (gross), detail:
Appropriation ..................................................................
Appropriation rescinded .................................................
Unobligated balance rescinded .....................................

25 ................... ...................
–25 ................... ...................
–12 ................... ...................

43.00

Appropriation (total) ..................................................

–12 ................... ...................

70.00

Total new budget authority (gross) ..........................

–12 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

38
38
29
8 ................... ...................
–6
–9
–9
–2 ................... ...................

SINGLE ROOM OCCUPANCY

Identification code 86–0195–0–1–604

72.40

1997 est.

10.00
62 ................... ...................
75
96
87

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 fiscal year 1997. This schedule reflects
the liquidation of prior year balances.

Identification code 86–0178–0–1–604

523

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

1995 actual

1996 est.

193

1997 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
286
191 ...................
22.00 New budget authority (gross) ........................................ ................... ................... ...................
22.10 Resources available from recoveries of prior year obligations .......................................................................
2
2
2
21.40

23.90
23.95
24.40

288
–97

193
–193

2
–2

191 ................... ...................

72.40

Outlays (gross), detail:
86.93 Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–12 ................... ...................
6
9
9

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. No funding is

240
97
–17
–2

319
193
–41
–2

469
2
–51
–2

319

469

418

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................

524

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
SECTION 8 MODERATE REHABILITATION—Continued
SINGLE ROOM OCCUPANCY—Continued

Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 86–0195–0–1–604

90.00

Outlays ...........................................................................

1996 est.

1997 est.

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. In fiscal years
1995 and 1996, these activities were funded under the Homeless Assistance Grants account. Beginning in fiscal year 1997,
funding for this type of activity will be provided under the
Homeless Assistance Fund.
MANUFACTURED HOME INSPECTION

AND

MONITORING

1995 actual

1996 est.

INTERSTATE LAND SALES
Unavailable Collections (in millions of dollars)

1997 est.

Balance, start of year:
Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Mobile Home Inspection and Monitoring .......................
12
11
11
Appropriation:
05.01 Manufactured home inspection and monitoring ...........
–12
–11
–11
07.99 Total balance, end of year ............................................ ................... ................... ...................
01.99

1995 actual

1996 est.

1997 est.

1996 est.

1997 est.

................... ................... ...................
...................

...................
–1
–1
................... ................... ...................

Program and Financing (in millions of dollars)
1995 actual

Identification code 86–5270–0–2–376

1996 est.

1997 est.

10.00

Obligations by program activity:
Total obligations (object class 25.2) ............................ ...................

22.00
23.95

1
–1

60.25

New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................ ...................

73.10
73.20

1
–1

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................

Program and Financing (in millions of dollars)
Identification code 86–5271–0–2–376

1995 actual

Identification code 86–5270–0–2–376

Balance, start of year:
01.99 Balance, start of year ....................................................
Receipts:
02.01 Interstate land sales .....................................................
Appropriation:
05.01 Interstate land sales .....................................................
07.99 Total balance, end of year ............................................

Unavailable Collections (in millions of dollars)
Identification code 86–5271–0–2–376

ufactured 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 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.

00.01
00.02

Obligations by program activity:
Transfer to salaries and expenses ................................
Other program costs ......................................................

1
9

10.00

Total obligations (object class 25.2) ........................

6
12

7
11

9
11

18
–10

20
–10

87.00

Total outlays (gross) ................................................. ...................

89.00
90.00

1
1

2
10
–10

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.

21.40

23.90
23.95
24.40

60.25

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

87.00

Total outlays (gross) .................................................

12
10

11
10

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 man-

Public enterprise funds:

TITLE IV—CORPORATIONS
Corporations and agencies of the Department of Housing and Urban
Development which are subject to the Government Corporation Control
Act, as amended, are hereby authorized to make such expenditures,
within the limits of funds and borrowing authority available to each
such corporation or agency and in accord with law, and to make
such contracts and commitments without regard to fiscal year limita-

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
tions as provided by section 104 of the Act as may be necessary
in carrying out the programs set forth in the budget for 1997 for
such corporation or agency except as hereinafter provided: Provided,
That collections of these corporations and agencies may be used for
new loan or mortgage purchase commitments only to the extent expressly provided for in this Act (unless such loans are in support
of other forms of assistance provided for in this or prior appropriations
Acts), except that this proviso shall not apply to the mortgage insurance or guaranty operations of these corporations, or where loans
or mortgage purchases are necessary to protect the financial interest
of the United States Government.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

RENTAL HOUSING ASSISTANCE FUND

Identification code 86–4041–0–3–604

10.00

Obligations by program activity:
Total obligations (object class 25.2) ............................

1995 actual

Statement of Operations (in millions of dollars)
1994 actual

1995 actual

0101
0102

Revenue ...................................................
Expense ....................................................

65
–60

61
–61

57
–57

0109

Net income or loss (–) ............................

..................

1996 est.

1997 est.

Identification code 86–4041–0–3–604

1997 est.

23.90
23.95
24.90

68.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

1
61

1
57

62
–61

58
–57

72.90

3
61
–56

8 ...................
61
57
–69
–57

61
57
8 ...................

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–61

–57

1
..................

..................

3999

Total net position ................................

4999

Total liabilities and net position ............

FLEXIBLE SUBSIDY FUND
From the fund established by section 236(g) of the National Housing
Act, as amended, all uncommitted balances of excess rental charges
as of September 30, 1996, and any collection during fiscal year 1997
shall be transferred, as authorized under such section, to the fund
authorized under Section 201(j) of the Housing and Community Development Amendments of 1978, as amended.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 86–4044–0–3–604

Obligations by program activity:
Total obligations (object class 41.0) ............................

1995 actual

143

1996 est.

1997 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Fund balance:
21.90
Fund balance: Uncommitted .................................
52
73
72
21.90
Fund balance: administratively committed .......... ...................
36 ...................
U.S. Securities:
Par value:
21.91
Par Value: Administratively Committed ...........
124
46
73
21.91
Par Value: Uncommitted ..................................
26 ................... ...................
21.99
22.00
22.10
22.30

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
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.

1
..................

10.00
53
3

8
7

8 ................... ...................

Outlays (gross), detail:
86.97 Outlays from new permanent authority .........................
86.98 Outlays from permanent balances ................................

3
7

21.90

1
61

1995 actual

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

2999

1997 est.

1994 actual

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......

1996 est.

Balance Sheet (in millions of dollars)

1999

Program and Financing (in millions of dollars)

525

23.90
23.95

24.90
24.90
24.91
24.99

299
–143

Total unobligated balance, end of year ....................

155

Total new budget authority (gross) ..........................

155
72

145
68

1 ................... ...................
–17 ................... ...................

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Fund balance:
Fund balance, Uncommitted .................................
Fund balance: Administratively Committed .........
U.S. Securities: Par Value Administratively Committed .........................................................................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
70.00

202
113

227
–82

213
–73

73
72
140
36 ................... ...................
46

73 ...................
145

140

42 ................... ...................

113

526

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Public enterprise funds—Continued

Statement of Operations (in millions of dollars)

FLEXIBLE SUBSIDY FUND—Continued

1995 actual

Identification code 86–4044–0–3–604

1996 est.

86.93
86.98
87.00

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year: Obligated balance:
U.S. Securities: Par value .........................................

99
114
38
143
82
73
–128
–159
–56
–1 ................... ...................
114

Outlays (gross), detail:
Outlays from current balances ......................................
128
Outlays from permanent balances ................................ ...................

82
76

28
28

159

Total outlays (gross) .................................................

128

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 .............................................

–60
–9
–2

–61
–9
–2

–57
–9
–2

88.90

–71

–72

–68

Total, offsetting collections (cash) ..................

70
–67

71
–86

70
–137

66
–48

0109

Net income or loss (–) ............................

–15

–67

42 ................... ...................
57
87
–12

1995 actual

1996 est.

Identification code 86–4044–0–3–604

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury 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 (–) ....................

1901

Value of assets related to direct
loans ..........................................
Other Federal assets: Other assets ........

1999

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................

459
126
–1

584
159
–2

741
56
–2

1290

Outstanding, end of year ..........................................

584

741

795

1994 actual

1995 actual

151

126

109

194

150
2
2

82
6
..................

73
..................
..................

..................
..................
..................

459

584

741

795

–413

–493

–667

–715

46
29

91
26

74
..................

80
..................

380

331

256

274

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. Although these resources will no longer be used for new reservations, they
would continue to offset Flexible Subsidy outlays and other
discretionary expenditures.
[In millions of dollars]

Capital investment—obligations ..................................

143

1996 est.

..................

175
205

217
112

217
40

217
57

3999

Total net position ................................

380

329

257

274

4999

Total liabilities and net position ............

380

331

257

274

HOMEOWNERSHIP ASSISTANCE FUND
Unavailable Collections (in millions of dollars)
1995 actual

1996 est.

1997 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ...................

03.00
04.00
07.99

4
8
8

Offsetting Collections .................................................... ...................
Total: Balances and collections .................................... ...................
Total balance, end of year ............................................ ...................

4
4
4

Program and Financing (in millions of dollars)
Identification code 86–4043–0–3–376

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.49
Contract authority .....................................................
21.90
Fund balance .............................................................
21.91
U.S. Securities: Par value .........................................

1995 actual

56
4
43

1996 est.

1997 est.

56
2
49

21.99
22.00
22.20

Total unobligated balance, start of year .............
New budget authority (gross) ........................................
Unobligated balance transferred ...................................

103
107
107
4 ................... ...................
2 ................... ...................

23.90
23.95

Total budgetary resources available for obligation
109
107
107
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year:
Contract authority .....................................................
56
56
56
Fund balance .............................................................
2
2
2
U.S. Securities: Par value .........................................
49
49
49

1997 est.

24.99
103
73 ....................
124
82
73
–1 .................... ....................
–82
–73 ....................
82

1997 est.

..................

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

24.49
24.90
24.91

Summary of Administrative Commitments

1996 est.

2999

Identification code 86–4043–0–3–376

1995 actual

1997 est.

Total assets ........................................
LIABILITIES:
2201 Non-Federal liabilities: Accounts payable

1997 est.

1210
1231
1251

Program by activities:
Capital investments:
Flexible subsidy reservations .............................................
Administrative commitments, start of year .......................
Cancellation of prior year commitments ...........................
Administrative commitments, end of year .........................

1996 est.

Balance Sheet (in millions of dollars)

1699

Status of Direct Loans (in millions of dollars)
Identification code 86–4044–0–3–604

1995 actual

Revenue ...................................................
Expense ....................................................

1997 est.

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.41
U.S. Securities: Par value ..................................... ...................
114
38
72.90
Fund balance ........................................................
99 ................... ...................
72.99
73.10
73.20
73.45
74.41

1994 actual

0101
0102

Identification code 86–4044–0–3–604

Program and Financing (in millions of dollars)—Continued

Total unobligated balance, end of year ....................

107

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
4
68.45
Portion not available for obligation (limitation on
obligations) ........................................................... ...................

–4

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
68.90
70.00

Spending authority from offsetting collections
(total) ................................................................

4 ................... ...................

Total new budget authority (gross) ..........................

4 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Fund balance .............................
2
1 ...................
72.95
Orders on hand from Federal sources ...................... ................... ................... ...................
72.99
73.10
73.20
74.90

87.00

Total unpaid obligations, start of year ................
2
1 ...................
New obligations ............................................................. ................... ................... ...................
Total outlays (gross) ...................................................... ................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
1 ................... ...................
Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

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 .............................................

–3
–1

88.90

–4

–4
–4

89.00
90.00

Total, offsetting collections (cash) ..................

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,
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)

21.99
22.00
22.10
23.90
23.95
24.90

40.36

19
18
18
–10 ................... ...................

27
18
18
–8 ................... ...................

New budget authority (gross), detail:
Unobligated balance rescinded .....................................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Fund balance .............................
72.99
73.10
73.20
73.45

527

18 ................... ...................

–10 ................... ...................

18 ...................

32
18 ...................
8 ................... ...................
–5
–18 ...................
–18 ................... ...................

74.90

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
Obligated balance: Fund balance .............................

74.99

Total unpaid obligations, end of year ..................

18 ................... ...................

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

18 ...................

87.00

Total outlays (gross) .................................................

18 ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

18 ................... ...................

–10 ................... ...................
5
18 ...................

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 obligated balances.

Credit accounts:

Identification code 86–4043–0–3–376

1994 actual

1995 actual

1996 est.

1997 est.

FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

0101
0102

Revenue ...................................................
Expense ....................................................

4
..................

(INCLUDING TRANSFERS OF FUNDS)

0109

Net income or loss (–) ............................

Balance Sheet (in millions of dollars)
1994 actual

1995 actual

43
1

49
..................

51
..................

55
..................

Total assets ........................................
NET POSITION:
3300 Cumulative results of operations ............

3999

Identification code 86–4043–0–3–376

Total net position ................................

1996 est.

1997 est.

NEHEMIAH HOUSING OPPORTUNITY FUND
Program and Financing (in millions of dollars)
Identification code 86–4071–0–3–604

10.00

Obligations by program activity:
Total obligations (object class 33.0) ............................

1995 actual

1996 est.

1997 est.

During fiscal year 1997, 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: Provided, That during fiscal year 1997, the Secretary shall sell assigned
mortgage notes having an unpaid principal balance of up to
$2,000,000,000, which notes were originally insured under section
203(b) of the National Housing Act: Provided further, That the Secretary may use the amount of any negative subsidy resulting from
the sale of such assigned mortgage notes during fiscal year 1997
for purposes included under this heading.
During fiscal year 1997, obligations to make direct loans to carry
out the purposes of section 204(g) of the National Housing Act, as
amended, shall not exceed $200,000,000: 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 section 203 of such Act.
For administrative expenses necessary to carry out the guaranteed
and direct loan program, $350,595,000 to be derived from the FHAmutual mortgage insurance guaranteed loans receipt account, of which
not to exceed $343,483,000 shall be transferred to the appropriation
for departmental salaries and expenses; and of which not to exceed
$7,112,000 shall be transferred to the appropriation for the Office
of Inspector General.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

8 ................... ...................

Unavailable Collections (in millions of dollars)
Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested balance ................................................... ................... ................... ...................
21.90
Fund balance .............................................................
19
18
18

Identification code 86–0183–0–1–371

1995 actual

1996 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ...................

1997 est.

2,385

528

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Credit accounts—Continued
FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT—
Continued
(INCLUDING TRANSFERS OF FUNDS)—Continued

Unavailable Collections (in millions of dollars)—Continued
Identification code 86–0183–0–1–371

1995 actual

Receipts:
FHA Mutual Mortgage Insurance Guaranteed Loan,
negative subsidies ....................................................
309
02.02 FHA Mutual Mortgage Insurance Guaranteed Loan,
negative subsidies, addition to 1996 Continuing
Resolution level ......................................................... ...................
02.03 FHA Mutual Mortgage Insurance Guaranteed Loan,
negative subsidies, legislative proposal ................... ...................

1996 est.

1997 est.

02.01

1,500

1,255

1,066 ...................
161

260

309

2,727

1,515

Total: Balances and collections ....................................
309
Appropriation:
05.01 FHA mutual mortgage insurance program account ......
–309
07.99 Total balance, end of year ............................................ ...................

2,727

3,900

–342
2,385

–351
3,549

02.99

Total receipts .............................................................

04.00

1995 actual

FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT
(Legislative proposal, not subject to PAYGO)
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

Program and Financing (in millions of dollars)
Identification code 86–0183–0–1–371

of these goals, the Administration is supporting the transformation of FHA into a ‘‘Performance-Based Organization’’
with flexibility in human resources management, procurement, and other administrative functions. FHA will continue
to operate within HUD and will be led by executives operating
under term, performance-based contracts negotiated by the
Secretary of Housing and Urban Development.
Recent legislation requires FHA to develop a new loss mitigation program. As a result, it is expected that future default
claims, assignment of defaulted mortgages, and property acquisitions will decrease.
Credit Subsidy and Administrative Expenses.—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 thereafter, 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.

1996 est.

1997 est.

309

342

351

2320

10.00

Total obligations (object class 25.3) ........................

309

342

351

2329

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

309
–309

342
–342

351
–351

40.25

New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................

309

342

351

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

309
–309

342
–342

351
–351

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

309

342

351

87.00

Total outlays (gross) .................................................

309

342

351

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

309
309

342
342

351
351

Guaranteed loan subsidy (in percent):
Change to subsidy rate ................................................. ...................

1995 actual

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ........................................................... ...................

1996 est.

1997 est.

2159

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................
Guaranteed loan subsidy budget authority:
2330 MMI Section 203(b) negative subsidy ...........................

1997 est.

–0.39

–0.55

–0.39

–0.55

–197

–260

2339

Guaranteed loan subsidy budget authority .............. ...................
Guaranteed loan subsidy outlays:
2340 Increase in negative subsidy ......................................... ...................

–197

–260

–197

–260

2349

–197

–260

Guaranteed loan subsidy outlays .............................. ...................

This account summarizes the effect of pending legislation
covering insurance of Mutual Mortgage Insurance (MMI) fund
mortgages originated after September 30, 1995. The legislation encourages the use of alternative loss mitigation tools,
which would replace the single family assignment program,
for mortgages in default. This program account reflects the
changes in estimated negative subsidy rates and amounts
in 1996 and later fiscal years. Separate pending legislation
would provide the same tools for mortgages originated prior
to October 1, 1995; its impact is reflected elsewhere in this
Budget.

FHA—MUTUAL MORTGAGE INSURANCE DIRECT LOAN FINANCING
ACCOUNT
Program and Financing (in millions of dollars)

200

200
Identification code 86–4242–0–3–371

Guaranteed loan levels supportable by subsidy budget
authority:
2150 MMI Fund, Section 203(b) .............................................
50,323
2150 Standby commitment authority ..................................... ...................

1996 est.

Weighted average subsidy rate ................................. ...................
Guaranteed loan subsidy budget authority:
2330 Change to negative subsidy .......................................... ...................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0183–0–1–371

1995 actual

Identification code 86–0183–2–1–371

Obligations by program activity:
00.09 Administrative expenses ................................................

1995 actual

1996 est.

1997 est.

77,793
32,207

70,721
39,279

00.01
00.02

Obligations by program activity:
Direct loans .................................................................... ...................
Interest paid to Treasury ............................................... ...................

200
5

200
16

50,323

110,000

10.00

Total obligations ........................................................ ...................

205

216

–1.95

–2.77

–2.33

–869

–1,316

–1,255

FHA will continue to serve first-time home buyers, minorities, lower-income, and urban residents whom the conventional market does not serve. It will seek greater flexibility
in product design to tailor its services to the needs of local
markets and special populations. The Department also proposes a demonstration program that tests risk-sharing arrangements with various partners. To aid in the achievement

22.00
22.30
23.90
23.95

67.15
68.00
70.00

Budgetary resources available for obligation:
New financing authority (gross) ....................................
Unobligated balance expiring ........................................

185
205
216
–185 ................... ...................

Total budgetary resources available for obligation ...................
New obligations ............................................................. ...................
New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................
Total new financing authority (gross) ......................

205
–205

216
–216

178

197

193

185

205

216

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ...................
Total financing disbursements (gross) ......................... ...................

205
–205

216
–214

87.00

Outlays (gross), detail:
Total financing disbursements (gross) ......................... ...................

205

214

10.00

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.40
Other collections from non-Federal sources ......... ...................

–8

–23

88.90

Total, offsetting collections (cash) .................. ...................

–8

–23

Net financing authority and financing disbursements:
89.00 Financing authority ........................................................
185
90.00 Financing disbursements ............................................... ...................

197
197

193
191

Status of Direct Loans (in millions of dollars)
1995 actual

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................
1112 Unobligated direct loan limitation ................................
1150

1210
1231
1251
1263
1290

1996 est.

1997 est.

200

................... ...................
200
...................
200
200
................... ................... ...................
................... ...................
–1

Outstanding, end of year .......................................... ...................

200

399

Balance Sheet (in millions of dollars)
1994 actual

Identification code 86–4242–0–3–371

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1499
1999

Total obligations ........................................................

3,199

4,901

5,035

1,128
2,772

701
4,810

610
4,827

3,900
–3,199

5,511
–4,901

5,437
–5,035

701

610

402

885

350 ...................

23.90
23.95
24.90

1995 actual

1996 est.

1997 est.

..................
..................

200
5

399
16

Net present value of assets related
to direct loans ...........................

..................

205

415

Total assets ........................................

..................

205

415

1,887

4,460

4,827

Total new financing authority (gross) ......................

2,772

4,810

4,827

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

–61
3,199
–3,061

77
4,901
–4,901

77
5,035
–5,291

3,061

4,901

5,291

70.00

72.90

87.00

Identification code 86–4587–0–3–371

00.01

Obligations by program activity:
Default claims and other ..............................................

1995 actual

1,026

1996 est.

1,904

1997 est.

2,833

Outlays (gross), detail:
Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.25
Interest on uninvested funds ...............................
–134 ................... ...................
Non-Federal sources:
88.40
Fees and premiums ..........................................
–1,381
–2,008
–2,194
88.40
Recoveries on defaulted notes .........................
–372
–791
–1,253
88.40
Gross proceeds from asset sales ..................... ...................
–1,661
–1,380
88.90

Total, offsetting collections (cash) ..................

–1,887

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

885
1,175

–4,460

–4,827

350 ...................
441
464

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4587–0–3–371

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 ....................................................................
2210
2231
2251

1995 actual

1996 est.

1997 est.

100,000
–49,677

110,000
–32,207

110,000
–39,279

50,323

77,793

70,721

184,190
40,142
–1,392

222,021
51,543
–19,450

252,379
58,592
–27,449

–263

–453

–677

–647

–1,260

–1,900

–9

–22

–36

2290

Outstanding, end of year ..........................................

222,021

252,379

280,909

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

222,021

252,379

280,909

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................

152

413

841

FHA—MUTUAL MORTGAGE INSURANCE GUARANTEED LOAN
FINANCING ACCOUNT
Program and Financing (in millions of dollars)

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

67.15
68.00

180
200
200
–180 ................... ...................

Total direct loan obligations ..................................... ...................

Working capital fund reimbursements .......................... ...................
19
19
Payment of negative subsidy to receipt account ..........
309
1,363
1,275
Payment of negative subsidy to liquidating account
560 ................... ...................
Subsidy reestimate paid to liquidating account ...........
1,227 ................... ...................
Interest payments to Treasury .......................................
77
13
13
Payment to liquidating account for asset sale ............ ...................
1,602
895

21.90

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. The $200 million in 1997 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 single-family homes to community nonprofit organizations or local government entities who would be expected
to sell the properties to low- and medium-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.

Identification code 86–4242–0–3–371

00.04
00.05
00.06
00.07
00.08
00.09

529

530

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
21.99
22.00
22.10

Credit accounts—Continued
FHA—MUTUAL MORTGAGE INSURANCE GUARANTEED LOAN
FINANCING ACCOUNT—Continued
Status of Guaranteed Loans (in millions of dollars)—Continued
1995 actual

Identification code 86–4587–0–3–371

1996 est.

263
–1
–1

453
–14
–11

677
–860
–552

2390

Outstanding, end of year ......................................

413

841

106

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. The amounts in this account are considered a means of financing and are not included in the
budget totals.
Balance Sheet (in millions of dollars)

ASSETS:
1101 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 .......................................
1599

Net value of assets related to defaulted guaranteed loan ..........................................................

1999

Total assets ...............................................................
LIABILITIES:
2103 Federal liabilities: Federal liabilities, Debt ...................
2204 Non-Federal liabilities: Liabilities for loan guarantees

2999

1996 est.

1997 est.

777

336

742

413
324
–429

841
584
–851

105
906
–356

308

574

655

1,085

910

1,397

1,171
–86

771
139

521
876

Total liabilities ..........................................................
1,085
910
1,397
NET POSITION:
3300 Cumulative results of operations .................................. ................... ................... ...................
3999
4999

Total net position ...................................................... ................... ................... ...................
Total liabilities and net position ...................................

1,085

910

1,397

1 Preliminary results pending final audit. Subsidy reestimates for 1995 will be performed for the mid-session
review of the Budget.

FHA—MUTUAL MORTGAGE AND COOPERATIVE HOUSING INSURANCE
FUNDS LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 86–4070–0–3–371

1995 actual

Obligations by program activity:
Operating expenses:
00.03
Other operating costs ................................................
59
00.04
Working Capital Fund reimbursements ..................... ...................
00.05
Participation payments .............................................
2
00.91

1996 est.

9,939
–3,494

10,257
–2,324

10,498
–1,849

–163

–636

–639

24.91
24.92

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Fund balance .............................................................
U.S. Securities:
Par value ...............................................................
Unrealized discounts .............................................

6,673
–64

8,633
–64

9,353
–65

24.99

Total unobligated balance, end of year ....................

6,446

7,933

8,649

1997 est.

Disbursements for guaranteed loan claims .............
Repayments of loans receivable ...............................
Other adjustments, net .............................................

1995 actual1

5,274
4,664

23.90
23.95

2331
2351
2364

Identification code 86–4587–0–3–371

1997 est.

93
30
2

98
30
2

125

130

01.02
01.03
01.05
01.07
01.08
01.09

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 ........................................

606
2,427
39
344
2
15

502
1,397
39
238
4
19

395
1,099
39
168
3
15

01.91

Total capital investment .......................................

3,433

2,199

1,719

10.00

Total obligations ........................................................

3,494

2,324

1,849

24.90

–416

–163

–636

5,726
–36

6,673
–64

8,633
–64

7,933
2,565

1 ................... ...................

New budget authority (gross), detail:
Current:
40.75
Reduction pursuant to P.L. 103–327 .......................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

4,664

3,811

2,565

70.00

4,664

3,811

2,565

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

–1 ................... ...................

72.90

661
659
659
3,494
2,324
1,849
–3,495
–2,324
–1,849
–1 ................... ...................
659

659

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

2,834
661

1,665
659

1,190
659

87.00

Total outlays (gross) .................................................

3,495

2,324

1,849

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.20
Interest on U.S. securities ....................................
–408
–461
–529
Non-Federal sources:
88.40
Fees and premiums ..........................................
–146
–126
–110
88.40
Rebate of unearned prepaid premiums collected ...........................................................
222
71
31
88.40
Proceeds from sale of real property ................
–2,221
–1,406
–1,023
88.40
Proceeds from sale of mortgage notes ............ ...................
–1,603
–734
88.40
Repayment of mortgage notes and sales contracts ............................................................ ...................
–1
–1
88.40
Interest and operating income .........................
–22
–22
–22
88.40
Recoveries on defaulted mortgages .................
–319
–240
–154
88.40
Other interest, dividends and revenues ...........
–1
–1
–1
88.40
Payment from financing account .....................
–1,787 ................... ...................
88.40
Miscellaneous collections .................................
–16
–5
–5
88.40
Other income ....................................................
34
–17
–17
88.90

Total, offsetting collections (cash) ..................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–4,664

–3,811

–2,565

–1 ................... ...................
–1,169
–1,487
–716

Status of Direct Loans (in millions of dollars)
Identification code 86–4070–0–3–371

1210
1251
1264
1290

1995 actual

1996 est.

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
17
Repayments: Repayments and prepayments .................
–2
Write-offs for default: Other adjustments, net ............. ...................
Outstanding, end of year ..........................................

1997 est.

15
–1
–1

13
–1
–1

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4070–0–3–371

6,446
3,811

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2251 Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2262
Terminations for default that result in acquisition
of property .............................................................

1995 actual1

1996 est.

1997 est.

118,688
–19,493

96,145
–12,391

81,535
–9,015

–606

–502

–395

–2,427

–1,398

–1,099

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
2263
2264

Terminations for default that result in claim payments ....................................................................
–17
Other adjustments, net ............................................. ...................

2290

Outstanding, end of year ..........................................

96,145

81,535

71,009

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

96,145

81,535

71,009

–23
–17
–296 ...................

3,642
3,886
1,801
606
502
395
–192
–1,747
–844
–16 ................... ...................
–154
–840
–510

2390

3,886

Outstanding, end of year ......................................

1,801

842

preliminary results.

The Federal Housing Administration Fund currently consists of four separate insurance funds. Prior to 1992, all budget transactions for the four funds were reflected in a single
consolidated budget account (86–4070). Beginning in 1992,
the transactions of the Fund appear in six separate accounts.
(However, financial data for each individual insurance fund
are continuing to be maintained for control and reporting
purposes.)
In order to present more clearly the operations of the various funds, FHA’s budget transactions were separated into
two major business segments. The basic single-family insurance programs in the Mutual Mortgage Insurance Fund and
the multifamily Cooperative Management Housing insurance
funds (MMI/CMHI) form one segment. The basic multifamily
and other specialized insurance programs in the General Insurance and Special Risk Insurance funds (GI/SRI) form the
other.
The Federal Credit Reform Act of 1990 creates a structure
of three accounts for existing credit programs. 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
loan guarantees committed 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 loan guarantees that resulted from commitments 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).

Insurance fund:
Mutual mortgage/CMHI:
Liquidating account 2 .........................................................

1995 actual1

735,946

534,082
40,142

1996 est.

1,014,871

659,141
51,543

1997 est.

902,983

645,022
51,250

1 Unaudited

preliminary results.

318,166

333,915

351,919

1996 est.

6,902

1997 est.

7,390

7,234

preliminary results.
2 Reflects impact from the transfer of negative subsidy from the Financing account to the Liquidating account
in 1995 only. Negative subsidy transfers are to the Receipt Account in 1996 and 1997.

Financial condition.—The following tables reflect the revenues, expenses and financial condition of the MMI/CMHI liquidating funds based on Generally Accepted Accounting Principles.
Statement of Operations (in millions of dollars)
Identification code 86–4070–0–3–371

1994 actual1

1995 actual2

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

4,531
–1,392

2,821
–1,123

2,239
–1,011

1,573
–926

0109

Net income or loss (–) ............................

3,139

1,698

1,228

647

1 As

reflected in the 1996 Budget.
result on GAAP basis pending final audit.

2 Estimated

Balance Sheet (in millions of dollars)
Identification code 86–4070–0–3–371

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
Treasury securities, par:
1102
Treasury securities, par .............
1102
Unamortized net premium/discount ......................................
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

1994 actual1

1995 actual2

245

495

5,726

6,673

8,633

9,353

–46
97
..................

–67
123
72

172
7

159
12

–3

–2

14
3,642

12
3,886

10
1,800

9
842

–686

–738

–342

–160

1996 est.

1997 est.

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 .............................

2,956

3,148

1,458

682

..................
1,103

–526
1,379

–351
923

–263
691

Value of assets related to loan
guarantees .................................
Other Federal assets: Other assets ........

4,059
..................

4,001
..................

2,030
18

1,110
35

10,274

11,480

11,013

10,827

578
2,177
1,403

496
2,254
1,805

496
2,254
1,734

496
2,254
1,703

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

Insurance maintenance: Outstanding balance of insurance in force, end of year:
Mortgage insurance ...................................................

1995 est.1

1 Unaudited

1999

[In millions of dollars]

Mortgage insurance written:
Units ..........................................................................
Amount ......................................................................

STATUS OF INSURANCE RESERVES FROM OPERATIONS

1901

PROGRAM HIGHLIGHTS
Insurance initiation:
Mortgage insurance applications (units) ..................

Insurance reserves from operations at the end of 1995 are
estimated to be in a surplus position for the Mutual Mortgage
Insurance and Cooperative Management Housing insurance
funds. The status of estimated insurance reserves from operations (retained income or deficit) through 1997 for the MMI/
CMHI account follows:
[In millions of dollars]

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 .............................................

1 Unaudited

531

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

4,172

4,559

4,488

4,457

19
6,083

19
6,902

19
6,506

19
6,350

3999

6,102

6,921

6,525

6,369

Total net position ................................

HOUSING PROGRAMS—Continued
Federal Funds—Continued

532

THE BUDGET FOR FISCAL YEAR 1997
07.99

Credit accounts—Continued
FHA—MUTUAL MORTGAGE AND COOPERATIVE HOUSING INSURANCE
FUNDS LIQUIDATING ACCOUNT—Continued
Balance Sheet (in millions of dollars)—Continued
1994

Identification code 86–4070–0–3–371

4999
1 As

Total liabilities and net position ............

actual1

10,274

1995

actual2

11,480

1996 est.

11,013

1997 est.

10,826

reflected in the 1996 Budget.
results pending final audit.

1995 actual

1996 est.

1997 est.

25.2
32.0
33.0
42.0
44.0
99.0

Other services ................................................................
Land and structures ......................................................
Investments and loans ..................................................
Insurance claims and indemnities ................................
Refunds ..........................................................................
Subtotal, reimbursable obligations ...............................

59
2,771
645
17
2
3,494

123
1,635
541
23
2
2,324

128
1,267
434
18
2
1,849

99.9

Total obligations ........................................................

3,494

2,324

1,849

FHA—GENERAL

AND

00.02
00.03
00.04
00.09
10.00

Object Classification (in millions of dollars)

SPECIAL RISK PROGRAM ACCOUNT

1,209

2,944

3,136

Program and Financing (in millions of dollars)
Identification code 86–0200–0–1–371

2 Preliminary

Identification code 86–4070–0–3–371

Total balance, end of year ............................................

1995 actual

Obligations by program activity:
Guaranteed loan subsidy ...............................................
89
Section 221(g)(4) auction .............................................. ...................
FHA Multifamily Demonstration ..................................... ...................
Administrative expenses ................................................
197
Total obligations ........................................................

286

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance:
21.40
Uncommitted ......................................................... ...................
21.40
Administratively Committed .................................. ...................
21.99
22.00

Total unobligated balance, start of year ............. ...................
New budget authority (gross) ........................................
386

23.90
23.95

386
–286

24.40
24.40

24.99

Total unobligated balance, end of year ....................

100

1996 est.

1997 est.

155
160
34 ...................
30 ...................
202
207
421

367

31 ...................
69
30
100
351

30
367

451
–421

397
–367

31 ................... ...................
69
30
30

(INCLUDING TRANSFERS OF FUNDS)

For the costs 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), $160,000,000, 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 $17,400,000,000:
Provided further, That during fiscal year 1997, the Secretary shall
sell assigned mortgage notes having an unpaid principal balance of
up to $2,500,000,000, which notes are held by the Secretary under
the General Insurance and Special Risk Insurance funds: Provided
further, That of the amount provided, up to $75,000,000 shall be
derived from negative subsidy in the General Insurance and Special
Risk Insurance receipt account resulting from the sale of such assigned
mortgage notes: Provided further, That in addition to amounts otherwise provided herein, the Secretary may use 25 percent of any negative
subsidy in excess of $75,000,000 (but not to exceed $25,000,000) resulting from such mortgage note sales during fiscal year 1997 for the
costs of such guaranteed loans and for administrative expenses.
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 $120,000,000; of which not to exceed
$100,000,000 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, $207,470,000, of which
$203,299,000 shall be transferred to the appropriation for Salaries
and Expenses; and of which $4,171,000 shall be transferred to the
appropriation for the Office of Inspector General.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Unavailable Collections (in millions of dollars)
Identification code 86–0200–0–1–371

1995 actual

1996 est.

1997 est.

Balance, start of year:
01.99 Balance, subsidy downward reestimate, start of year
803
Receipts:
02.01 Negative Subsidies ........................................................
525
02.02 Negative Subsidies, legislative proposal ....................... ...................

434
267
1,386 ...................

02.99

1,209

2,944

Total receipts .............................................................

525

1,820

267

Total: Balances and collections ....................................
Appropriation:
05.01 General and special risk program account ...................

1,328

3,029

3,211

–119

–85

–75

04.00

New budget authority (gross), detail:
Appropriation:
40.00
Appropriation .............................................................
267
40.00
Appropriation, 221(g)(4) auction .............................. ...................
40.00
FHA Multifamily Demonstration ................................. ...................
40.25 Appropriation (special fund, indefinite) ........................
119

202
292
34 ...................
30 ...................
85
75

43.00

Appropriation (total) ..................................................

386

351

367

70.00

Total new budget authority (gross) ..........................

386

351

367

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

59
286
–315

30
421
–416

35
367
–367

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

280
35

317
100

303
64

87.00

Total outlays (gross) .................................................

315

416

367

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

386
315

351
416

367
367

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0200–0–1–371

1995 actual

1996 est.

1997 est.

Direct loan levels supportable by subsidy budget authority:
1150 Single-family PMMs .......................................................
1150 Multifamily bridge loans ................................................

20
200

20
100

1159

220

120

Total direct loan levels .............................................

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Multifamily development ................................................
755
805
1,538
2150 Refinance of FHA-insured mortgages ............................
937
1,199
1,249
2150 Risk sharing programs ..................................................
452
571 ...................
2150 Mixed Income ................................................................. ................... ...................
90
2150 Cooperatives ................................................................... ................... ...................
45
2150 Health and residential care facilities ...........................
814
1,200
1,805
2150 Indian Housing ............................................................... ................... ...................
2
2150 Preservation ...................................................................
844
542
150
2150 Single family, negative ..................................................
5,081
5,750
5,750
2150 Title I guarantees ..........................................................
1,255
1,757
2,304

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
2150

Standby commitment authority ..................................... ...................

2159

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Multifamily development ................................................
2320 Refinance of multifamily mortgages .............................
2320 Risk sharing programs ..................................................
2320 Mixed Income .................................................................
2320 Cooperatives ...................................................................
2320 Health and residential care facilities ...........................
2320 Preservation ...................................................................
2320 Single family programs .................................................
2320 Title I ..............................................................................

5,576

4,467

10,138

17,400

13.40
3.44
5.97
0.00
0.00
–1.96
–1.42
–1.32
–1.48

11.93
2.54
5.00
0.00
0.00
–2.31
–1.87
–1.34
–1.49

8.78
–0.79
0.00
12.26
30.47
0.00
0.00
–1.55
–1.66

2329

Weighted average subsidy rate .................................
–0.39
0.34
1.06
Guaranteed loan subsidy budget authority:
2330 Multifamily development ................................................
47
95
135
2330 Refinance .......................................................................
18
31 ...................
2330 Risk sharing programs ..................................................
24
29 ...................
2330 Mixed Income ................................................................. ................... ...................
11
2330 Cooperatives ................................................................... ................... ...................
14
2339

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Multifamily development ................................................
2340 Refinance .......................................................................
2340 Risk sharing ...................................................................

155

160

76
40
2

102
18
30

79
28
53

2349

Total subsidy outlays ................................................

118

150

160

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays from new authority ...........................................

197
197

202
202

207
207

00.03
00.04
00.05
00.08
00.09
00.10
00.11
00.12
10.00

Object Classification (in millions of dollars)
Identification code 86–0200–0–1–371

41.0
99.0
99.9

1995 actual

1996 est.

1997 est.

Direct obligations: Grants, subsidies, and contributions ...........................................................................
Reimbursable obligations: Subtotal, reimbursable obligations .......................................................................

219

160

197

202

207

Total obligations ........................................................

286

421

367

FHA—GENERAL

AND

SPECIAL RISK GUARANTEED LOAN FINANCING
ACCOUNT

Identification code 86–4077–0–3–371

Obligations by program activity:
Capital investment, claims and other:
00.01
Default claims and other ..........................................

1995 actual

1996 est.

481

272
964
66

173
726
62

1,386 ...................
40 ...................
3,400

1,664

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New financing authority (gross) ....................................
22.60 Redemption of debt .......................................................

272
1,534
–21

435
3,035
–70

1
1,927
–264

1,785
–1,350

3,400
–3,400

1,664
–1,664

21.90

23.90
23.95
24.90

435

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ...................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
1,552
68.10
Change in receivables from program account .........
–18
67.15

1 ...................

1,032 ...................
1,999
1,927
5 ...................

Spending authority from offsetting collections
(total) ................................................................

1,534

2,004

1,927

Total new financing authority (gross) ......................

1,534

3,035

1,927

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Appropriation .............................
72.95
Receivables from program account ..........................

–51
61

16
43

2
48

10
1,350
–1,301

59
3,400
–3,409

50
1,664
–1,595

74.40
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: Appropriation .............................
Receivables from program account ..........................

16
43

2
48

71
48

74.99

Total unpaid obligations, end of year ..................

119

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

2,117
221

2,762 ...................
464 ...................

87.00

Total financing disbursements (gross) .....................

1,301

3,409

70.00

72.99
73.10
73.20

1,595

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from program account .....................
–83
–253
–160
88.00
Modification adjustment transfer from liquidating/section 223(a)(7) ...........................
–3
–3 ...................
88.00
Collections ........................................................
–25 ................... ...................
88.25
Interest on uninvested funds ...............................
–17 ................... ...................
Non-Federal sources:
88.40
Fees and premiums ..........................................
–195
–241
–272
88.40
Recoveries on defaulted mortgages .................
–49
–131
–139
88.40
Interest and other income ................................ ...................
–114
–134
88.40
Proceeds from sale of mortgage notes ............
–1,083
–1,160
–918
88.40
Repayment of principal and interest from liquidating account ..........................................
–97
–97
–304
Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–1,552
18

–1,999
–1,927
–5 ...................

Net financing authority and financing disbursements:
Financing authority ........................................................ ...................
Financing disbursements ...............................................
–251

1,031 ...................
1,410
–332

1997 est.

89.00
90.00
189

5
119
90

1,350

88.90
88.95

Program and Financing (in millions of dollars)

4
122
65

Total obligations ...................................................

68.90

Multifamily Product Mix.—The FHA intends to phase out
insuring activity that has traditionally been performed under
various sections of the National Housing Act. The FHA seeks
to streamline the delivery of insurance products under two
main categories: development and refinance. The development
category will include new construction, substantial rehabilitation and risk sharing with various partners. The refinance
category will involve purchase, refinance, as well as risk sharing with various institutions. Insurance of nursing home
mortgages will be separated into three categories: skilled
nursing facilities; residential care facilities; and mixed-use
continuum facilities.
Subsidy Costs and Administrative Expenses.—As required
by the Federal Credit Reform Act of 1990, this account
records, for the single family, multifamily and Title I insurance programs of FHA’s General 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.

Working Capital Fund reimbursements .....................
4
Payment of negative subsidy to receipt account
132
Interest paid to Treasury ...........................................
30
Asset sale negative subsidy payment to receipt
account .................................................................
399
Asset sale payment to liquidating account ..............
566
Cost of mortgage note sales ....................................
30
Portfolio restructuring legislation, modification savings ....................................................................... ...................
1996 Waiver of PD law, savings .............................. ...................

533

489

HOUSING PROGRAMS—Continued
Federal Funds—Continued

534

1 Preliminary results pending final audit. Subsidy reestimates will be performed for the Mid-Session review of
the Budget.

Credit accounts—Continued
FHA—GENERAL

AND

SPECIAL RISK GUARANTEED LOAN FINANCING
ACCOUNT—Continued

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4077–0–3–371

1995

actual1

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders ..............................................................................
20,885
2112 Uncommitted loan guarantee limitation .......................
–10,747
2113 Uncommitted limitation carried forward ....................... ...................
2150

Total guaranteed loan commitments ........................

2290

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

FHA—GENERAL

1996 est.

Identification code 86–4105–0–3–371

17,400
17,400
–16,323
–4,467
10,747 ...................
11,824

12,933

26,228
9,622
–214

35,457
9,971
–6,164

38,972
10,741
–5,066

–55

–120

–55

–122

–166

–196

–2

–6

–7

35,457

38,972

44,389

38
55
–1
–6
1

87
120
–1,180
272
864

163
55
–946
173
726

2390

163

171

1 Preliminary

Balance Sheet (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 .......................................

1999
2103
2204
2999
3999
4999

1995 actual

1996 est.

1997 est.

00.01
00.02

Obligations by program activity:
Direct Loans ................................................................... ...................
Interest paid to Treasury ............................................... ...................

120
4

120
13

10.00

Total obligations ........................................................ ...................

124

133

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) .................................... ...................
New obligations ............................................................. ...................

124
–124

133
–133

120

67.15
68.00

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ...................
Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ...................

70.00

Total new financing authority (gross) ...................... ...................

124

133

73.10
73.20

124
–124

133
–133

87.00

Outlays (gross), detail:
Total financing disbursements (gross) ......................... ...................

124

133

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.40
Interest received on loans .................................... ...................

–4

–13

88.90

Total, offsetting collections (cash) .................. ...................

–4

–13

89.00
90.00

120
120

results pending final audit.

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.

1599

SPECIAL RISK DIRECT LOAN FINANCING
ACCOUNT

Program and Financing (in millions of dollars)

10,138

35,457

AND

1997 est.

THE BUDGET FOR FISCAL YEAR 1997

Net value of assets related to defaulted guaranteed loan ..........................................................

1995 actual1

1996 est.

1997 est.

451

344

324

476

1,665

1,461

Identification code 86–4105–0–3–371

1210
1231
1290

87
69
–77

163
325
–212

171
356
–273

276

254

Total assets ...............................................................
LIABILITIES:
Federal liabilities: Debt .................................................
Non-Federal liabilities: Liabilities for loan guarantees

1,006

2,285

2,039

476
530

1,665
620

1,461
578

Total liabilities ..........................................................
NET POSITION:

1,006

2,285

2,039

Status of Direct Loans (in millions of dollars)

1,006

2,285

2,039

1995 actual

1996 est.

1997 est.

220
120
120
–220 ................... ...................

Total direct loan obligations ..................................... ...................

120

Cumulative balance of direct loans outstanding:
Outstanding, start of year ............................................. ................... ...................
Disbursements: Direct loan disbursements ................... ...................
120

120
120

Outstanding, end of year .......................................... ...................

120

240

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 and Special Risk Insurance Fund programs. The amounts
in this account are a means of financing and are not included
in the budget totals.
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.

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Balance Sheet (in millions of dollars)

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

535

72.90

Identification code 86–4105–0–3–371

1994 actual

1995 actual

1996 est.

1997 est.

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........

..................
..................

120
..................

240
..................

..................

120

240

1499

Net present value of assets related
to direct loans ...........................

1999

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Treasury borrowing ....

..................

120

240

..................

120

240

2999

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

..................

120

240

..................

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

..................

120

240

FHA—GENERAL

AND

SPECIAL RISK INSURANCE FUNDS LIQUIDATING
ACCOUNT

Program and Financing (in millions of dollars)
Identification code 86–4072–0–3–371

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Operating expenses:
00.02
Interest on debentures ..............................................
15
00.03
Other operating costs ................................................
45
00.04
Working capital fund reimbursements ...................... ...................
00.05
Repayment to financing account ..............................
97
00.06
Prior Year Adjustment ............................................... ...................

15
15
137
142
12
15
97
97
25 ...................

00.91

286

269

21
1,160
479
724
4
187
3
1
90

15
1,183
416
229
1
243
3
4
90

01.01
01.02
01.03
01.04
01.06
01.07
01.08
01.09
01.10

Total operating expenses ......................................
157
Capital investment: Claims and other:
Acquisition of defaulted Title I notes .......................
29
Assignment of defaulted mortgages .........................
488
Acquisition of real properties ....................................
325
Rehabilitation of real properties ............................... ...................
Assignment of current mortgages ............................ ...................
Capitalized property expenses ...................................
231
Loss on defaulted guaranteed loans ........................
12
Interest subsidy on auctioned mortgages ................
4
Tax advances on held mortgages .............................
90

01.91

Total capital investment .......................................

1,179

2,669

2,184

10.00

Total obligations ........................................................

1,336

2,955

2,453

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested balance ...................................................
21.91
U.S. Securities: Par value .........................................

1,040
15

1,637
5

767
5

Total unobligated balance, start of year .............
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................
Redemption of debt .......................................................

1,055
1,947

1,642
2,126

772
2,275

2,978
–1,336

3,727
–2,955

3,006
–2,453

24.40
24.91

1,637
5

767
5

548
5

24.99

Total unobligated balance, end of year ....................

1,642

772

553

21.99
22.00
22.10
22.60

366

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

970
366

2,026
929

2,087
366

87.00

Total outlays (gross) .................................................

1,336

2,955

2,453

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Fees and premiums ..........................................
–264
–241
–226
88.40
Rebates of insurance premiums ......................
7
7
7
88.40
Multifamily foreclosure sales ...........................
–24
–24
–24
88.40
Proceeds from sale of real property ................
–320
–301
–263
88.40
Repayment of mortgage notes and sales contracts ............................................................
–10
–10
–6
88.40
Proceeds from sale of mortgage notes ............
–566
–963
–726
88.40
Prior Year Adjustment ...................................... ...................
100 ...................
88.40
Recoveries from portfolio restructuring ........... ................... ...................
–96
88.40
Recoveries on defaulted mortgages .................
–368
–262
–155
88.40
Interest and operating income .........................
–334
–231
–173
88.40
Recoveries on defaulted Title I mortgages ......
–22
–22
–17
88.40
Other interest, dividends and revenue ............ ...................
–34
–50
88.40
Miscellaneous collections .................................
–5
–4
–5
88.90

Total, offsetting collections (cash) ..................

–1,906

–1,985

–1,734

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

41
–571

141
970

541
719

Summary of Budget Authority and Outlays
[In millions of dollars]

Enacted/requested:
1995 actual
1996 est.
Budget Authority .....................................................................
40
141
Outlays ....................................................................................
–570
970
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... ....................
–142
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

40
–570

141
828

1997 est.

541
719
1,051
1,051
1,592
1,770

Status of Direct Loans (in millions of dollars)
Identification code 86–4072–0–3–371

42 ................... ...................
–66
–41
–41

408
366
366
1,336
2,955
2,453
–1,336
–2,955
–2,453
–42 ................... ...................

1210
1251
1264

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

1290

Outstanding, end of year ..........................................

1995 actual

1996 est.

1997 est.

112
107
101
–10
–6
–6
5 ................... ...................
107

101

Status of Guaranteed Loans (in millions of dollars)
23.90
23.95

New budget authority (gross), detail:
Current:
40.75
Procurement reduction pursuant to P.L. 103–327
–1 ................... ...................
Permanent:
60.05
Appropriation (indefinite) .......................................... ................... ...................
500
64.00
Proceeds of loan asset sales with recourse ............. ...................
100 ...................
67.15
Authority to borrow (indefinite) .................................
41
41
41
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
1,906
1,985
1,734
70.00

Total new budget authority (gross) ..........................

1,947

2,126

2,275

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 ....................................................................
2210
2251

1995 actual

1996 est.

1997 est.

52,754
–4,171

47,729
–1,307

44,758
–593

–517

–1,181

–1,198

–325

–478

–416

–12

–5

–3

2290

Outstanding, end of year ..........................................

47,729

44,758

42,548

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

47,729

44,758

42,548

HOUSING PROGRAMS—Continued
Federal Funds—Continued

536

THE BUDGET FOR FISCAL YEAR 1997

Credit accounts—Continued
FHA—GENERAL

AND

STATUS OF INSURANCE RESERVES FROM OPERATIONS

SPECIAL RISK INSURANCE FUNDS LIQUIDATING
ACCOUNT—Continued

Status of Guaranteed Loans (in millions of dollars)—Continued
1995 actual

Identification code 86–4072–0–3–371

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 1 ................................
2364
Other adjustments, net .............................................
2390

Outstanding, end of year ......................................

1 Includes

1996 est.

1997 est.

6,822
5,201
3,420
517
1,181
1,199
–990
–1,178
–1,023
–417 ................... ...................
–731
–1,784
–1,873
5,201

3,420

1,723

foreclosures of HUD-held mortgage notes.

The General insurance fund provides for a large number
of specialized mortgage insurance programs, including the insurance 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 mortgage insurance on behalf of mortgagors eligible for interest reduction
payments 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 is not observed. Also
provided is insurance for high-risk mortgagors who normally
would not be eligible for mortgage insurance.
Budget program.—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. All new activity
in this program in 1992 and thereafter (including modifications of loan guarantees that resulted from obligations, direct
loans or commitments in any year and direct loans) is recorded in corresponding program (86–0200) and financing
(86–4077 and 86–4105) accounts.
The detailed program activities in the ‘‘Program Highlights’’
table shown below reflect the consolidated activity of the GI/
SRI accounts.

[In millions of dollars]

Insurance fund:
General and special risk insurance:
Liquidating account ...........................................................
1 Preliminary

Insurance initiation:
Mortgage insurance applications (units) ...............................

1995 actual

1996 est.

1997 est.

235,658

231,806

239,262

Mortgage insurance written:
Units ........................................................................................
Amount ....................................................................................

190,953
8,366

171,634
8,214

179,832
8,882

Title I property improvement loans insured:
Notes .......................................................................................
Amount ....................................................................................

93,107
1,255

116,000
1,757

138,000
2,304

Insurance maintenance: Outstanding balance of insurance
in force, end of year:
Mortgage insurance ................................................................
Title I property improvement loan insurance .........................

78,052
4,837

78,537
5,193

80,290
6,645

Total outstanding balance of insurance in force, end
of year .......................................................................

82,889

83,730

86,935

Insurance reserves from operations at the end of 1995 are
estimated to be in a deficit status for the GI and SRI funds.
The status of estimated insurance reserves from operations
(retained income or deficit) for the GI/SRI Liquidating Account through 1997 is as follows:

–20,510

–22,180

1997 est.

–23,587

results pending final audit.

Statement of Operations (in millions of dollars)
Identification code 86–4072–0–3–371

1994 actual1

1995 actual2

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

453
–231

517
–563

393
–2,074

321
–1,717

0109

Net income or loss (–) ............................

222

–46

–1,681

–1,396

1 As

reflected in the 1996 Budget.
results pending final audit.

2 Preliminary

Balance Sheet (in millions of dollars)
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

1799

[In millions of dollars]

1996 est.

Financial Condition.—The following tables reflect the revenues, expenses, and financial condition of the GI/SRI Liquidating Account based on Generally Accepted Accounting
Principles.

1706

PROGRAM HIGHLIGHTS

1995
actual 1

1901

1994 actual1

1995 actual2

579

1,134

262

15
4
20

5
3
20

5
4
20

140
547

98
75

112

107

101

–24

–22

–21

–20

88
6,822

85
5,201

80
3,420

75
1,723

–4,026

–2,460

–1,616

–814

1996 est.

1997 est.

2,796

2,741

1,804

909

..................
288

–543
734

–626
846

–932
1,260

Value of assets related to loan
guarantees .................................
Other Federal assets: Other assets ........

3,084
..................

2,932
38

2,024
54

1,237
65

4,477

4,390

2,622

1,621

561
7
62

63
6
86

130
18
112
10,702

131
21
408
9,997

131
21
311
9,996

131
21
208
9,996

418
..................

380
50

12,010

11,142

11,044

10,941

7,287
–22,291
7,471

6,287
–20,510
7,471

6,287
–22,180
7,471

6,797
–23,587
7,471

1999

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 ...............................................
2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............
3600 Debt Forgiveness .....................................
3999

Total net position ................................

–7,533

–6,752

–8,422

–9,319

4999

Total liabilities and net position ............

4,477

4,390

2,622

1,622

1 As

reflected in 1996 Budget.
results pending final audit.

2 Preliminary

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Object Classification (in millions of dollars)
Identification code 86–4072–0–3–371

1995 actual

Object Classification (in millions of dollars)
1996 est.

1997 est.

25.2
32.0
33.0
41.0
42.0
43.0
44.0
99.0

Other services ................................................................
Land and structures ......................................................
Investments and loans ..................................................
Grants, subsidies, and contributions ............................
Insurance claims and indemnities ................................
Interest and dividends ...................................................
Repayment to financing account ..................................
Subtotal, reimbursable obligations ...............................

45
325
607
4
243
15
97
1,336

174
1,203
1,274
1
191
15
97
2,955

158
645
1,288
4
246
15
97
2,453

99.9

Total obligations ........................................................

1,336

2,955

2,453

FHA—GENERAL

AND

Program and Financing [in millions of dollars]
1995 actual

1996 est.

1997 est.

Obligations by program activity:
Repayment of portfolio reengineering legislative savings to the financing account .................................. ................... ...................
Capital investment: Claims and other:
01.01
Change to baseline claims ....................................... ...................
–132

2,581

10.00

2,688

00.01

Total obligations ........................................................ ...................

–132

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ................................................... ................... ...................
22.00 New budget authority (gross) ........................................ ...................
10
Total budgetary resources available for obligation ...................
New obligations ............................................................. ...................
Unobligated balance available, end of year:
Uninvested balance ................................................... ...................

Total new budget authority (gross) .......................... ...................

107

142
2,688

10
132

2,830
–2,688

142

New budget authority (gross), detail:
60.05 Appropriation (indefinite) ............................................... ................... ...................
68.00 Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ...................
10
70.00

25.2
33.0
99.0
99.9

Total obligations ........................................................ ...................

HOUSING

FOR THE

ELDERLY

–132

1997 est.

107
2,581
2,688
2,688

OR HANDICAPPED FUND LIQUIDATING
ACCOUNT

1995 actual

Obligations by program activity:
Capital investment:
00.01
Housing for the elderly or handicapped loans .........
1
00.02
Maintenance security and collateral ......................... ...................

1996 est.

1997 est.

17 ...................
4
4

00.91
01.01

Capital Investment, Subtotal ................................
Operating expenses: Interest on borrowings .................

1
552

21
498

4
436

10.00

Total obligations ........................................................

553

519

440

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.47
Authority to borrow ....................................................
21.90
Fund balance .............................................................
21.99
22.00
22.10
23.90
23.95
24.90

60.05
60.47

2,688

63.00
68.00

................... ................... ...................
...................
–132
2,688
...................
132
–2,688

70.00

72.90

1996 est.

Program and Financing (in millions of dollars)

1,051
1,637

1995 actual

Repayment of financing account borrowing ................. ................... ...................
Investments and loans .................................................. ...................
–132
Subtotal, reimbursable obligations ............................... ...................
–132

Identification code 86–4115–0–3–371

(Legislative proposal, subject to PAYGO)

23.90
23.95
24.40

Identification code 86–4072–2–3–371

SPECIAL RISK INSURANCE FUNDS LIQUIDATING
ACCOUNT

Identification code 86–4072–2–3–371

537

20 ................... ...................
28
315
547

48
819

868
–553

1,066
–519

1,297
–440

315

547

858

770
–770

805
–805

735
–735

New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
Portion applied to debt reduction .................................

315
751

547
750

1 ................... ...................

Appropriation (total) .................................................. ................... ................... ...................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................
819
751
750
Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

819

751

750

72.90

................... ................... ...................

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................

–132

2,688

87.00

Total outlays (gross) ................................................. ...................

–132

2,688

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Fees and premiums .......................................... ................... ...................
88.40
Portfolio reengineering recoveries .................... ...................
–10

14
–1,651

88.90

–10

–1,637

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ...................
90.00 Outlays ........................................................................... ...................
–142

1,051
1,051

Total, offsetting collections (cash) .................. ...................

This account summarizes the impact on the FHA GI/SRI
Liquidating Account of the Administration’s proposal for
reengineering of the multifamily insurance portfolio. The account reflects the net changes to projected future cash flows
in the liquidating account arising from portfolio restructuring
activities. A net present value PAYGO savings of $1.4 billion
is estimated, which would be scored in the year of enactment.

449
390
260
553
519
440
–611
–649
–500
–1 ................... ...................
390

260

200

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

611

649

500

87.00

Total outlays (gross) .................................................

611

649

500

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–819

–751

–750

89.00
90.00

Status of Direct Loans (in millions of dollars)
Identification code 86–4115–0–3–371

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
1251 Repayments: Repayments and prepayments .................

1995 actual

8,462
7
–138

1996 est.

1997 est.

8,331
8,462
192 ...................
–61
–63

HOUSING PROGRAMS—Continued
Federal Funds—Continued

538

THE BUDGET FOR FISCAL YEAR 1997
1206

Credit accounts—Continued
HOUSING

FOR THE

ELDERLY OR HANDICAPPED FUND LIQUIDATING
ACCOUNT—Continued

Status of Direct Loans (in millions of dollars)—Continued
1995 actual

Identification code 86–4115–0–3–371

1290

Outstanding, end of year ..........................................

1996 est.

8,331

8,462

1601
1603
1997 est.

8,399

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 must include 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.
The program and financing schedule for this account summarizes the Federal government’s obligations for this loan
program. The amounts reflected in the following summary
of administrative commitments reflect outstanding section 202
fund reservations, whereas, the obligations portion of the program and financing schedule reflects commitments which
have reached the initial loan closing stage of processing.
SUMMARY OF ADMINISTRATIVE COMMITMENTS
1995 actual

1699
1901

Value of assets related to direct
loans ..........................................
Other Federal assets: Other assets ........

1999

242

167

..................

8,462

8,331

8,461

8,400

–21

–18

–19

–18

8,441

8,313

8,442

8,382

8,441
..................

8,313
–7

8,442
..................

8,382
..................

9,179

9,178

9,252

9,443

335
175
8,484

275
142
7,714

248
142
6,909

217
142
6,174

2999

8,994

8,131

7,299

6,533

456
–271

1,183
–137

1,183
769

1,183
1,726

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............
3999

Total net position ................................

185

1,046

1,952

2,909

4999

Total liabilities and net position ............

9,179

9,177

9,251

9,442

Object Classification (in millions of dollars)
Identification code 86–4115–0–3–371

32.0
33.0
43.0
99.9

1995 actual

Land and structures ...................................................... ...................
Investments and loans ..................................................
1
Interest and dividends ...................................................
552
Total obligations ........................................................

553

1996 est.

1997 est.

4
4
17 ...................
498
436
519

440

NONPROFIT SPONSOR ASSISTANCE LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 86–4042–0–3–604

1995 actual

1996 est.

1997 est.

21.90

[In millions of dollars]

Program by activities:
Capital investment:
Administrative commitments, start of year .........
Recovery of prior year obligations ........................
Administrative commitments, end of year ...........

1604

Non-Federal assets: 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 (–) ....................
Direct loans and interest receivable,
net ..................................................

1996 est.

1997 est.

20,100
¥2,570
¥17,025

17,025
......................
......................

......................
......................
......................

Subtotal, capital investment-loan obligations
Other expenses (Fee inspection) ...........................
Capital investment:
Loan obligations ...................................................
Maintenance security and collateral .........................

505
33

17,025
......................

......................
......................

505
589

17,025
3,500

......................
3,500

Total capital investment ..................................

1,094

20,525

23.90
23.95
24.90

Total budgetary resources available for obligation
6
6
6
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year: Fund
balance ......................................................................
6
6
6

70.00

New budget authority (gross), detail:
Total new budget authority (gross) ............................... ................... ................... ...................

3,500

73.10

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................

Financing.—Repayments and interest income from loans
continue to be available to pay for commitments of the fund.

87.00

Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

Statement of Operations (in millions of dollars)

89.00
90.00

Identification code 86–4115–0–3–371

1994 actual

1995 actual

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

709
–690

672
–551

690
–502

688
–439

0109

Net income or loss (–) ............................

121

188

249

Balance Sheet (in millions of dollars)
Identification code 86–4115–0–3–371

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................

1994 actual

1995 actual

1996 est.

497

705

810

1,061

–1

..................

Status of Direct Loans (in millions of dollars)
Identification code 86–4042–0–3–604

1995 actual

1996 est.

1997 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................

1290

Outstanding, end of year ..........................................

1997 est.

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.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
Federal Funds

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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.

89.00
90.00

Balance Sheet (in millions of dollars)
1994 actual

Identification code 86–4042–0–3–604

ASSETS:
1101 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 (–) ....................
1604
Direct loans and interest receivable,
net ..................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

1995 actual

1996 est.

539

–1 ................... ...................

1997 est.

Budget program.—The remaining $15 million portfolio in
the Management and Liquidating Functions Fund was redeemed at par value plus accrued interest on January 1,
1996, on which date interest ceased. Debentures and interest
earned of $15.4 million was transferred to the Treasury Department.

–1

Identification code 86–4016–0–3–371

1994 actual

1995 actual

1996 est.

1997 est.

..................

0101
0102

Revenue ...................................................
Expense ....................................................

1
..................

..................
..................

..................

0109

Net income or loss (–) ............................

..................

Total assets ........................................
NET POSITION:
3300 Cumulative results of operations ............

3999

Total net position ................................

1996 est.

1997 est.

4999

Total liabilities and net position ............

1699

Value of assets related to direct
loans ..........................................

1999

Statement of Operations (in millions of dollars)

Balance Sheet (in millions of dollars)

GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION
Federal Funds

..................

1999

Total assets ........................................
NET POSITION:
3300 Cumulative results of operations ............

..................

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

..................

FEDERAL NATIONAL MORTGAGE ASSOCIATION

The Treasury is authorized to make up to $2.25 billion
of loans to the Federal National Mortgage Association. Such
loans were made in the first few months of the Association’s
existence as a private corporation while it arranged lines
of credit with commercial banks. No loans have been made
since that time and the loan authority may be used only
at the discretion of the Secretary of the Treasury.

MANAGEMENT

AND

LIQUIDATING FUNCTIONS FUND

Program and Financing (in millions of dollars)
Identification code 86–4016–0–3–371

Budgetary resources available for obligation:
Unobligated balance available, start of year: U.S.
Securities: Par value .................................................
22.00 New budget authority (gross) ........................................
22.40 Capital transfer to general fund ...................................

1995 actual

1996 est.

1997 est.

Credit accounts:
GUARANTEES

23.90
23.95
24.91

68.00

Total budgetary resources available for obligation
15 ................... ...................
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year: U.S. Securities: Par value .....................................................
15 ................... ...................
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

1 ................... ...................

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................
Total outlays (gross) ......................................................
–2 ................... ...................

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

1 ................... ...................
1 ................... ...................

87.00

Total outlays (gross) .................................................

2 ................... ...................

MORTGAGE-BACKED SECURITIES LOAN GUARANTEE
PROGRAM ACCOUNT
(INCLUDES TRANSFER OF FUNDS)

During fiscal year 1997, new commitments to issue guarantees to
carry out section 306 of the National Housing Act, as amended (12
U.S.C. 1721(g)), shall not exceed $110,000,000,000.
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 salaries and expenses.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

21.91

16
15 ...................
1 ................... ...................
–2
–15 ...................

1995 actual

ASSETS:
Investments in US securities:
1104
Federal assets: Agency securities, par

Public enterprise funds:
LOANS

1994 actual

Identification code 86–4016–0–3–371

Unavailable Collections (in millions of dollars)
Identification code 86–0186–0–1–371

1995 actual

1996 est.

1997 est.

Balance, start of year:
Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Guarantees of mortgage backed securities guarantee
loans, negative subsidies .........................................
9
9
9
Appropriation:
05.01 Guarantees of mortgage-backed securities loan guarantee program account .............................................
–9
–9
–9
07.99 Total balance, end of year ............................................ ................... ................... ...................
01.99

Program and Financing (in millions of dollars)
Identification code 86–0186–0–1–371

1995 actual

1996 est.

1997 est.

10.00

Obligations by program activity:
Total obligations (object class 25.2) ............................

22.00

Budgetary resources available for obligation:
New budget authority (gross) ........................................

540

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
Change in unpaid obligations:
Unpaid obligations, start of year: Orders on hand
from Federal sources .................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.95 Unpaid obligations, end of year: Orders on hand
from Federal sources .................................................

Credit accounts—Continued
GUARANTEES

72.95

MORTGAGE-BACKED SECURITIES LOAN GUARANTEE
PROGRAM ACCOUNT—Continued

(INCLUDES TRANSFER OF FUNDS)—Continued

Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 86–0186–0–1–371

1996 est.

1997 est.

23.95

New obligations .............................................................

–9

40.25

New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

9
–9

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................

87.00

Total outlays (gross) .................................................

9
9

1995 actual

Guaranteed loan levels supportable by subsidy budget
authority:
2159 Total guarantee loan levels ...........................................
Guaranteed loan subsidy budget authority:
2339 Total subsidy budget authority ......................................
Guaranteed loan subsidy outlays:
2349 Total subsidy outlays .....................................................

1996 est.

142,000

110,000

–9

MORTGAGE-BACKED SECURITIES FINANCING
ACCOUNT

Program and Financing (in millions of dollars)
Identification code 86–4240–0–3–371

1995 actual

1996 est.

1997 est.

00.01

Obligations by program activity:
Payment to receipt account for administration ............

10.00

Total obligations (object class 25.2) ........................

78
32

101
36

128
36

110
–9

137
–9

164
–9

101

128

155

New financing authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in orders on hand from Federal sources

30
2

35
36
1 ...................

Spending authority from offsetting collections
(total) ................................................................

Total new financing authority (gross) ......................

70.00

–6

–2

–20

–33

–34

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–26
–2

–35
–36
–1 ...................

89.00
90.00

4 ................... ...................
–19
–26
–27

1995 actual

1996 est.

1997 est.

142,000

110,000

2150

142,000

110,000

Total guaranteed loan commitments ........................

The Housing and Urban Development Act of 1968 authorized the Government National Mortgage Association (GNMA)
to guarantee the timely payment of principal and interest
on privately issued securities that are backed by pools of
FHA, Veterans Affairs (VA) and Farmers Home Administration (FmHA) mortgages. The GNMA guarantee gives lenders
access to the capital markets for funds to originate new loans.
New FHA and VA loans are currently pooled into GNMA
securities.
Financing.—GNMA Issuers are assessed commitment, guarantee and other fees to cover costs incurred by GNMA 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 $26 million and
$27 million in 1996 and 1997 respectively. These amounts
will be retained to cover future year expenses and as a reserve against losses that may be incurred on guarantees.
Balance Sheet (in millions of dollars)
1994 actual

1995 actual

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....

74
4

93
6

100
7

108
7

1999

Total assets ........................................
NET POSITION:
3300 Cumulative results of operations ............

107

115

107

115

3999

107

115

Identification code 86–4240–0–3–371

68.90

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.25
Interest on uninvested funds ...............................
88.40
Non-Federal sources: Commitment and other
fees ...................................................................

21.90

23.90
23.95
24.90

7
9
–9

Outlays (gross), detail:
Total financing disbursements (gross) .........................

Identification code 86–4240–0–3–371

1997 est.

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

6
9
–9

Status of Guaranteed Loans (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0186–0–1–371

87.00

4
9
–7

Total net position ................................

1996 est.

1997 est.

Note.—GNMA guarantees the timely payment of principal and interest installments on securities which are
backed by FHA-insured, FmHA-insured, and VA-guaranteed mortgages. Such guarantees are excluded from the Government total of guaranteed obligations duplicating FHA, FmHA, and VA guarantees.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
GUARANTEES

88.90

MORTGAGE-BACKED SECURITIES LIQUIDATING
ACCOUNT

Program and Financing (in millions of dollars)
Identification code 86–4238–0–3–371

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Operating expenses:
00.02
Functional services ....................................................
00.03
Default expenses .......................................................
00.04
Servicing expenses ....................................................
00.05
Other expenses ..........................................................
00.06
REMIC expenses ........................................................

13
17
12
13
4

13
8
14
19
6

14
9
14
20
6

00.91

89.00
90.00

Total, offsetting collections (cash) ..................

–716

541
–846

–942

Status of Direct Loans (in millions of dollars)

01.01
01.02

Total operating expenses ......................................
Capital investment:
Advances of guaranty payments ...............................
Real estate owned properties ...................................

138
34

303
35

366
34

01.91

Total capital investment .......................................

172

338

400

10.00

Total obligations ........................................................

231

398

463

1995 actual

Identification code 86–4238–0–3–371

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Purchase of loans assets from the
public .........................................................................
1252 Repayments: Proceeds from loan asset sales to the
public or discounted .................................................
1210
1232

1290

Outstanding, end of year ..........................................

1996 est.

1997 est.

349

333

360

149

314

378

–165

–287

–329

333

360

409

Status of Guaranteed Loans (in millions of dollars)
1995 actual

Identification code 86–4238–0–3–371

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.90
Fund balance .............................................................
91
87
63
U.S. Securities:
Par value:
21.91
Par value ..........................................................
3,714
4,211
4,666
21.91
Par value (REMICs) .......................................... ...................
–17 ...................
21.92
Unrealized discounts .............................................
–10 ................... ...................

1996 est.

1997 est.

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2231 Disbursements of new guaranteed loans ......................
2251 Repayments and prepayments ......................................

444,990
63,727
–44,869

463,848
94,440
–68,691

489,597
81,575
–72,221

2290

Outstanding, end of year ..........................................

463,848

489,597

498,951

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year 1 ..............................................................

463,848

489,597

498,951

21.99
22.00

Total unobligated balance, start of year .............
New budget authority (gross) ........................................

3,795
716

4,281
846

4,729
942

23.90
23.95

4,511
–231

5,127
–398

5,671
–463

1 Ultimate liability for GNMA mortgage backed securities rests with other U.S. agencies. Total Federal contingent
liability should not be double counted.

Budget Program.—Program activity is summarized below:

24.91
24.91

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Fund balance .............................................................
U.S. Securities:
Par value:
Par value ..........................................................
Par value (REMICs) ..........................................

24.99

Total unobligated balance, end of year ....................

4,281

4,729

5,208

703

824

920

Spending authority from offsetting collections
(total) ................................................................

716

846

942

Operating results.—Fee collections, interest, and other income are expected to exceed expenses by $477 million and
$532 million in 1996 and 1997, respectively. These amounts
will be retained to cover future year expenses and as a reserve against losses that may be incurred on guarantees.

Total new budget authority (gross) ..........................

716

846

942

Statement of Operations (in millions of dollars)

24.90

Mortgage-backed Securities
4,211
4,666
5,143
–17 ................... ...................

[In millions of dollars]

1995 actual

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) ...........................................................
68.90
70.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Orders on hand from Federal sources ......................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.47 Unpaid obligations, end of year: Obligated balance:
Orders on hand from Federal Sources ......................

Commitment Limitation .................................................
Commitments Issued .....................................................
Guarantees Issued .........................................................
Securities Outstanding ..................................................

Identification code 86–4238–0–3–371

1996 est.

142,000
64,230
63,727
463,848

1997 est.

110,000
110,000
94,440
489,597

110,000
110,000
81,575
498,951

1994 actual

1995 actual

1996 est.

1997 est.

437
5

514
13

511
22

567
22

18
–2

–46
–4

–54
–2

–55
–2

72.47

65
231
–252

44
398
–374

68
463
–466

Revenue:
Revenue ...................................................
Revenue (REMICs) ...................................
Expense:
0102 Expense ....................................................
0102 Expense (REMICs) ....................................
Net income or loss (–):
0101
0101

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................

252

374

466

0109

Net income or loss (–) .......................

455

468

457

512

87.00

Total outlays (gross) .................................................

252

374

466

0109

Net income or loss (–) (REMICs) .......

0199

Net income or loss ..................................

458

477

532

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.20
Interest on U.S. securities ....................................
Non-Federal sources:
88.40
Guarantee fees .................................................
88.40
Repayments of guaranteed payments .............
88.40
Commitment and other fees ............................
88.40
Servicing income ..............................................
88.40
Receipts from sale of REO properties and
mobile home units .......................................
88.40
Interest income mortgages ..............................
88.40
Repayments on mortgages ...............................
88.40
Sale of servicing rights ....................................

–216

–199

–247

–288
–143
–18
–18

–304
–251
–27
–18

–312
–312
–27
–18

–17
–1
–9
–6

–35
–1
–5
–6

–15
–1
–4
–6

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 .....

1994 actual

1995 actual

1996 est.

1997 est.

..................

3,713
1
45
26

4,232
1
59
26

4,666
..................
52
27

5,143
..................
60
28

542

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Credit accounts—Continued
GUARANTEES

40.00

MORTGAGE-BACKED SECURITIES LIQUIDATING
ACCOUNT—Continued

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1994 actual

1601
1603
1699
1801

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 ..........................................
Other Federal assets: Cash and other
monetary assets ..................................

1999

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

1995 actual

1996 est.

1997 est.

349

333

360

409

–172

–241

–181

–225

177

179

184

3,995

4,414

4,929

5,420

45
541

29
534

24
453

30
453

586

563

477

483

3,409

3,851

4,452

4,937

3999

Total net position ................................

3,409

3,851

4,452

4,937

4999

Total liabilities and net position ............

3,995

4,414

4,929

5,420

Object Classification (in millions of dollars)
Identification code 86–4238–0–3–371

25
41
–38

28
35
–34

29
45
–39

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

17
21

14
21

18
21

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

42
38

34
34

45
39

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 contracts with industry, nonprofit research organizations, and
educational institutions, and through agreements with State
and local governments and other Federal agencies.
In 1997, the research program will focus on activities to
support the reinvention of HUD, including examination of
issues such as transformation of public housing and design
of standards for performance-based funds. National housing
surveys and research to reduce the cost of housing will continue in 1997.

Object Classification (in millions of dollars)
1995 actual

1996 est.

1997 est.

25.2
33.0

Other services ................................................................
Investments and loans ..................................................

59
172

65
333

66
397

99.9

Total obligations ........................................................

231

398

463

Identification code 86–0108–0–1–451

1995 actual

1996 est.

1997 est.

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

36
5

31
4

39
6

99.9

Total obligations ........................................................

POLICY DEVELOPMENT AND RESEARCH

FAIR HOUSING AND EQUAL OPPORTUNITY

Federal Funds

General and special funds:
RESEARCH

72.40

Balance Sheet (in millions of dollars)—Continued
Identification code 86–4238–0–3–371

New budget authority (gross), detail:
Appropriation ..................................................................

AND

TECHNOLOGY

General and special funds:

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, $45,000,000, to remain
available until September 30, 1998.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 86–0108–0–1–451

1995 actual

1996 est.

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, $33,000,000, to remain available until September 30, 1998,
of which $15,000,000 shall be to carry out activities pursuant to such
section 561.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)

1997 est.

Identification code 86–0144–0–1–751

00.01

Obligations by program activity:
Direct program ...............................................................

10.00

Total obligations ........................................................

1 ...................
34
45

1995 actual

1996 est.

1997 est.

00.01
00.02

Obligations by program activity:
Fair housing assistance ................................................
Fair housing initiatives ..................................................

7
28

16
17

18
15

10.00

Total obligations (object class 41.0) ........................

5
33

3 ...................
30
33

21.40

23.90
23.95
24.40

42
–41

35
–35

45
–45

1 ................... ...................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

38
–35

33
–33

MANAGEMENT AND ADMINISTRATION
Federal Funds

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24.40

40.00

Unobligated balance available, end of year:
Uninvested balance ...................................................

3 ................... ...................

New budget authority (gross), detail:
Appropriation ..................................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

72.40

543

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
1 ...................
22.00 New budget authority (gross) ........................................
961
963
988
22.30 Unobligated balance expiring ........................................
–1 ................... ...................
21.40

23.90
23.95
24.40

960
–958

964
–963

988
–988

37
35
–27

44
33
–21

56
33
–29

Outlays (gross), detail:
86.93 Outlays from current balances ......................................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
40.75
Reduction pursuant to P.L. 104–50 .........................

453
420
432
–1 ................... ...................

43.00

452

420

432

87.00

68.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

509

543

556

Total new budget authority (gross) ..........................

961

963

988

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

84
958
–930

112
963
–963

111
988
–988

112

111

Total outlays (gross) .................................................

33
27

30
21

33
29

The Budget proposes an appropriation of $33 million in
1997 for fair housing activities to aid in eliminating housing
discrimination. Of the amount requested, $18 million is for
the Fair Housing Assistance program and $15 million is for
the Fair Housing Initiatives program.
The Fair Housing Assistance program, 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 Fair Housing Initiatives program, 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.

MANAGEMENT AND ADMINISTRATION

70.00

1 ................... ...................

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 .........................

346
75
509

323
97
543

333
97
556

87.00

Total outlays (gross) .................................................

930

963

988

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.45
Offsetting governmental collections .....................

–509

–543

–556

88.90

Total, offsetting collections (cash) ..................

–509

–543

–556

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

452
422

420
420

432
432

Federal Funds
General and special funds:
SALARIES

AND

EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For necessary administrative and non-administrative 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, $987,558,000, of which $546,782,000 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; and $675,000 shall be provided from
the Community Opportunity Performance Funds Program account.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts in this budget are based on the levels provided
in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–99.

Program and Financing (in millions of dollars)
Identification code 86–0143–0–1–999

1995 actual

1996 est.

1997 est.

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 ...........................

214
33
34

200
31
32

211
30
31

25
143

23
134

22
138

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

449
509

420
543

432
556

10.00

Total obligations ........................................................

958

963

988

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)
Identification code 86–0143–0–1–999

11.1
11.3
11.5
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
42.0

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................
Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons .......................
Transportation of things ...........................................
Rental payments to GSA ...........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Operation and maintenance of facilities ..................
Supplies and materials .............................................
Equipment .................................................................
Insurance claims and indemnities ...........................

1995 actual

1996 est.

1997 est.

243
5
3

210
5
3

251
53
11
7
1
33

218
61
12
7
1
32

218
69
12
7
4
32

14
3
7
3

14
3
7
6

14
3
7
7

51
47
47
6
7
7
3
3
3
5
2
2
1 ................... ...................

544

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
90.00

General and special funds—Continued
SALARIES

AND

Object Classification (in millions of dollars)—Continued
1995 actual

Identification code 86–0143–0–1–999

1996 est.

1997 est.

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

449
509

420
543

432
556

99.9

Total obligations ........................................................

958

963

988

Personnel Summary

Direct:
Total compensable workyears:
1001
Full-time equivalent employment
1005
Full-time equivalent of overtime
Reimbursable:
Total compensable workyears:
2001
Full-time equivalent employment
2005
Full-time equivalent of overtime

OFFICE

EXPENSES—Continued

(INCLUDING TRANSFER OF FUNDS)—Continued

Identification code 86–0143–0–1–999

Outlays ...........................................................................

1995 actual

1996 est.

1997 est.

..............................
and holiday hours

5,280
23

4,774
25

4,452
25

..............................
and holiday hours

5,973
27

6,172
30

5,995
30
11.1
11.5

INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in carrying
out the Inspector General Act of 1978, as amended, $52,850,000, of
which $11,283,000 shall be provided from the various funds of the
Federal Housing Administration and $5,000,000 shall be provided
from the amount earmarked for Operation Safe Home in the Drug
Elimination Grants for Low Income Housing Account.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts in this budget are based on the levels provided
in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–99.

Program and Financing (in millions of dollars)
1995 actual

1996 est.

1997 est.

Obligations by program activity:
Direct program ...............................................................
Reimbursable program ..................................................

36
12

37
11

37
16

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

49
–48

48
–48

53
–53

70.00

Total new budget authority (gross) ..........................

11.9
12.1
21.0
23.1
25.1
25.2
25.3

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other personnel compensation .............................

25.7
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 ................................................................
Operation and maintenance of equipment ...............
Equipment .................................................................

99.0
99.0
99.5

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................
Below reporting threshold ..............................................

99.9

Total obligations ........................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

11
48
–49

10
48
–48

10
53
–53

Identification code 86–0189–0–1–451

1996 est.

1997 est.

19
1

20
2

21
2

20
5
2
3
1
1

22
5
2
3
1
1

23
5
3
3
1
1

2
1
1

1
1
1 ...................
1 ...................

36
37
37
11
11
16
1 ................... ...................
48

86.90
86.93
86.97

28
7
12

28
9
11

28
9
16

87.00

Total outlays (gross) .................................................

–12

–11

–16

1995 actual

Direct:
Total compensable workyears:
1001
Full-time equivalent employment ..............................
1005
Full-time equivalent of overtime and holiday hours
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

OFFICE

72.40

Net budget authority and outlays:
89.00 Budget authority ............................................................

1995 actual

Personnel Summary

00.01
01.01

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

Object Classification (in millions of dollars)
Identification code 86–0189–0–1–451

(INCLUDING TRANSFER OF FUNDS)

Identification code 86–0189–0–1–451

This appropriation provides agency-wide 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.

1996 est.

1997 est.

362
25

386
25

380
25

121

116

114

FEDERAL HOUSING ENTERPRISE OVERSIGHT
SALARIES AND EXPENSES

For carrying out the Federal Housing Enterprise Financial Safety
and Soundness Act of 1992, including not to exceed $3,000 for official
reception and representation expenses, $15,751,000, to remain available until expended, from the Federal Housing Enterprise Oversight
Fund: Provided, That such amounts shall be collected by the Director
as authorized by section 1316(a) and (b) of such Act and deposited
in the Fund under section 1316(f).
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts in this budget are based on the levels provided
in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–99.

Unavailable Collections (in millions of dollars)
Identification code 86–5272–0–2–371

1995 actual

1996 est.

1997 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ...................
Receipts:
02.01 Office of federal housing enterprise oversight .............
10
15

04.00

Total: Balances and collections ....................................
Appropriation:
05.01 Office of federal housing enterprise oversight .............

–10

–13

–16

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
07.99

Total balance, end of year ............................................ ...................

545

Intragovernmental funds:
WORKING CAPITAL FUND

Program and Financing (in millions of dollars)
1995 actual

Identification code 86–5272–0–2–371

10.00

Obligations by program activity:
Total obligations ............................................................

Program and Financing (in millions of dollars)
1996 est.

1997 est.

Identification code 86–4586–0–4–451

1995 actual

1996 est.

1997 est.

00.01
00.03

Obligations by program activity:
Operating Expenses: Data processing services .............
Capital Investment: Data processing services ..............

172
2

185
2

217
2

10.00

Total obligations ........................................................

174

187

219

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.90
Fund balance .............................................................

31 ...................
31 ...................
156
219

21.40

23.90
23.95
24.40

40.20

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation (special fund, definite) ...........................

5
10

2 ...................
13
16

1 ................... ...................
16
–15

15
–15

16
–16

2 ................... ...................

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

4
6
6
15
15
16
–11
–15
–16
–1 ................... ...................
6

10
13
16
1 ................... ...................
11

10
11

13
15

16
16

Object Classification (in millions of dollars)

11.1
12.1
23.1
25.2
31.0
99.5
99.9

1995 actual

1996 est.

Personnel Summary
Identification code 86–5272–0–2–371

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

23.90
23.95
24.90

204
–174

1995 actual

1996 est.

1997 est.

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:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
Obligated balance:
74.90
Fund balance ........................................................

1 ................... ...................
187
–187

219
–219

31 ................... ...................

167

156

219

72.90

10
20
51
174
187
219
–163
–156
–219
–1 ................... ...................

74.99

Total unpaid obligations, end of year ..................

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

163

156

219

87.00

Total outlays (gross) .................................................

163

156

219

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.45
Offsetting governmental collections .....................

–167

–156

–219

88.90

–167

–156

–219

89.00
90.00

Total, offsetting collections (cash) ..................

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 est.

Personnel compensation: Personnel Compensation ......
5
7
8
Civilian personnel benefits ............................................
1
1
2
Rental payments to GSA ................................................
1
2
2
Other services ................................................................
6
4
4
Equipment ......................................................................
2 ................... ...................
Below reporting threshold .............................................. ...................
1 ...................
Total obligations ........................................................

36
167

68.00

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 three-part capital standard
for the GSEs, and gave the regulator enhanced authority
to enforce those standards. The Department will monitor the
GSEs’ compliance with affordable housing goals that were
also contained in the Act.

Identification code 86–5272–0–2–371

72.40

86.90
86.93

21.99
22.00
22.10

Identification code 86–4586–0–4–451

1995 actual

1996 est.

1997 est.

11.1

Personnel compensation:
Full-time permanent ..................................................

11.9
12.1
13.0
21.0
22.0
23.3
25.2
26.0
31.0
99.0

Total personnel compensation ..............................
18
18
18
Civilian personnel benefits ............................................
3
3
4
Benefits for former personnel ........................................
1 ................... ...................
Travel and transportation of persons ............................ ...................
1
1
Transportation of things ................................................
1 ................... ...................
Communications, utilities, and miscellaneous charges
36
50
45
Other services ................................................................
90
102
138
Supplies and materials .................................................
4
1
1
Equipment ......................................................................
21
12
12
Subtotal, reimbursable obligations ...............................
174
187
219

99.9

Total obligations ........................................................

174

187

219

546

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Intragovernmental funds—Continued

WORKING CAPITAL FUND—Continued
Personnel Summary
Identification code 86–4586–0–4–451

2001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1995 actual

318

1996 est.

350

1997 est.

350

ADMINISTRATIVE PROVISIONS
SEC. 101. MINIMUM RENTS.—Notwithstanding section 3(a) and
8(o)(2) of the United States Housing Act of 1937, as amended, for
fiscal year 1997—
(1) public housing agencies shall require each family who is assisted under the certificate or moderate rehabilitation program
under section 8 of such Act to pay a minimum monthly rent of
up to $25;
(2) public housing agencies shall reduce the monthly assistance
payment on behalf of each family who is assisted under the voucher
program under section 8 of such Act so that the family pays a
minimum monthly rent of up to $25;
(3) with respect to housing assisted under other programs for
rental assistance under section 8 of such Act, the Secretary shall
require each family who is assisted under such program to pay
a minimum monthly rent of up to $25; and
(4) public housing agencies shall require each family who is assisted under the public housing program (including public housing
for Indian families) to pay a minimum monthly rent of up to $25.
SEC. 102. ADMINISTRATIVE FEES.—Notwithstanding section 8(q) of
the United States Housing Act of 1937, as amended—
(a) The Secretary shall establish fees for the cost of administering
the certificate, voucher and moderate rehabilitation programs.
(1)(A) For fiscal year 1997, the fee for each month for which
a dwelling unit is covered by an assistance contract shall be 7.65
percent of the base amount in the case of an agency that, on
an annual basis, is administering a program of no more than 600
units, and 7 percent of the base amount for each additional unit
above 600.
(B) The base amount shall be the higher of—
(i) the fair market rental for fiscal year 1993 for a 2-bedroom
existing rental dwelling unit in the market area of the agency;
and
(ii) such fair market rental for fiscal year 1994, but not more
than 103.5 percent of the amount determined under clause (i);
(C) The base amount shall be adjusted to reflect changes in
the wage data or other objectively measurable data that reflect
the costs of administering the program during fiscal year 1996;
except that the Secretary may require that the base amount be
not less than a minimum amount and not more than a maximum
amount.
(2) For subsequent fiscal years, the Secretary shall publish a
notice in the Federal Register, for each geographic area, establishing the amount of the fee that would apply for the agencies administering the program, based on changes in wage data or other
objectively measurable data that reflect the cost of administering
the program, as determined by the Secretary.
(3) The Secretary may increase the fee if necessary to reflect
higher costs of administering small programs and programs operating over large geographic areas.
(4) The Secretary may decrease the fee for PHA-owned units.
(b) Beginning in fiscal year 1997 and thereafter, the Secretary
shall also establish reasonable fees (as determined by the Secretary)
for—
(1) the costs of preliminary expenses, in the amount of $500,
for a public housing agency, but only in the first year it administers
a tenant-based assistance program under the United States Housing Act of 1937 and only if, immediately before the effective data
of this Act, it was not administering a tenant-based assistance
program under the 1937 Act (as in effect immediately before the
effective date of this Act), in connection with its initial increment
of assistance received;
(2) the costs incurred in assisting families who experience difficulty (as determined by the Secretary) in obtaining appropriate
housing under the program; and
(3) extraordinary costs approved by the Secretary.

SEC. 103. ESTABLISHMENT OF CEILING RENTS.—Notwithstanding
section 212(3)(D) of the United States Housing Act of 1937, as amended, section 3(a)(2) of such Act is amended to read as follows:
‘‘(2) Notwithstanding paragraph (1), a public housing agency
may—
‘‘(A) adopt ceiling rents that reflect the reasonable market
value of the housing, but that are not less than the monthly
costs—
‘‘(i) to operate the housing of the agency; and
‘‘(ii) to make a deposit to a replacement reserve (in the sole
discretion of the public housing agency): and
‘‘(B) allow families to pay ceiling rents referred to in subparagraph (A), unless, with respect to any family, the ceiling rent
established under this paragraph would exceed the amount payable as rent by that family under paragraph (1).’’.
SEC. 104. REPEAL OF FEDERAL PREFERENCES.—
(a) PUBLIC HOUSING.—Section 6(c)(4)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is amended to read as
follows:
‘‘(A) the establishment, after public notice and an opportunity
for public comment, of a written system of preferences for admission to pubic housing, if any, that is not inconsistent with the
comprehensive housing affordability strategy under title 1 of the
Cranston-Gonzalez National Affordable Housing Act;’’.
(b) SECTION 8 EXISTING AND MODERATE REHABILITATION.—Section
8(d)(1)(A) of the United States Housing Act of 1937 (42 U.S.C.
1437f(d)(1)(A)) is amended to read as follows:
‘‘(A) the selection of tenants shall be the function of the owner,
subject to the provisions of the annual contributions contract between the Secretary and the agency, except that for the certificate
and moderate rehabilitation programs only, for the purpose of selecting families to be assisted, the public housing agency may establish, after public notice and an opportunity for public comment,
a written system of preferences for selection that is not inconsistent
with the comprehensive housing affordability strategy under title
I of the Cranston-Gonzalez National Affordable Housing Act;’’.
(c) SECTION 8 VOUCHER PROGRAM.—Section 8(o)(3)(B) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B)) is amended
to read as follows:
‘‘(B) For the purpose of selecting families to be assisted under
this subsection, the public housing agency may establish, after public notice and an opportunity for public comment, a written system
of preferences for selection that is not inconsistent with the comprehensive housing affordability strategy under title I of the Cranston-Gonzalez National Affordable Housing Act.’’.
(d) SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION.—
(1) REPEAL.—Section 545(c) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 1437f note) is amended to read
as follows:
‘‘(c) [Reserved.]’’.
(2) PROHIBITION.—Notwithstanding any other provision of law,
no Federal tenant selection preferences under the United States
Housing Act of 1937 shall apply with respect to—
(i) housing constructed or substantially rehabilitated pursuant
to assistance provided under section 8(b)(2) of the United States
Housing Act of 1937 (as such section existed on the day before
October 1, 1983); or
(ii) projects financed under section 202 of the Housing Act
of 1959 (as such section existed on the day before the date of
enactment of the Cranston-Gonzalez National Affordable Housing
Act).
(e) RENT SUPPLEMENTS.—Section 101(k) of the Housing and Urban
Development Act of 1965 (12 U.S.C. 1701s(k)) is amended to read
as follows:
‘‘(k) [Reserved.].’’
(f) CONFORMING AMENDMENTS.—
(1) UNITED STATES HOUSING ACT OF 1937.—The United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended—
(A) in section 6(o), by striking ‘‘preference rules specified in’’
and inserting ‘‘written system of preferences for selection established pursuant to’’;
(B) in the second sentence of section 7(a)(2), by striking ‘‘according to the preferences for occupancy under’’ and inserting
‘‘in accordance with the written system of preferences for selection established pursuant to’’;
(C) in section 8(d)(2)(A), by striking the last sentence;

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(D) in section 8(d)(2)(H), by striking ‘‘Notwithstanding subsection (d)(1)(A)(i), an’’ and inserting ‘‘An’’;
(E) in section 16(c), in the second sentence, by striking ‘‘the
system of preferences established by the agency pursuant to section 6(c)(4)(A)(ii)’’ and inserting ‘‘the written system of preferences for selection established by the public housing agency
pursuant to section 6(c)(4)(A)’’; and
(F) in section 24(e)—
(i) by striking ‘‘(e) EXCEPTIONS’’ and all that follows through
‘‘The Secretary may’’ and inserting the following:
‘‘(e) EXCEPTION TO GENERAL PROGRAM REQUIREMENTS.—The Secretary may’’; and
(ii) by striking paragraph (2).
(2) CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT.—
Section 522(f)(6)(B) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704 et seq.) is amended by striking
‘‘any preferences for such assistance under section 8(d)(1(A)(i)’’ and
inserting ‘‘the written system of preferences for selection established pursuant to section 8(d)(1)(A)’’.
(3) HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992.—Section
655 of the Housing and Community Development Act of 1992 (42
U.S.C. 13615) is amended by striking ‘‘the preferences’’ and all
that follows up to the period at the end and inserting ‘‘any preferences’’.
(4) REFERENCES IN OTHER LAW.—Any reference in any Federal
law other than any provision of any law amended by subsection
(a) through (e) of this section to the preferences for assistance
under section 6(c)(4)(A)(i), 8(d)(1)(A)(i), or 8(o)(3)(B) of the United
States Housing Act of 1937 (as such sections existed on the day
before the date of enactment of this Act) shall be considered to
refer to the written system of preferences for selection established
pursuant to section 6(c)(4)(A), 8(d)(1)(A), or 8(o)(3)(B), respectively,
of the United States Housing Act of 1937, as amended by this
section.
SEC. 105. APPLICABILITY.—In accordance with section 201(b)(2) of
the United States Housing Act of 1937, the amendments made by
sections 101, 103, and 104 of this Act shall also apply to public
housing developed or operated pursuant to contract between the Secretary of Housing and Urban Development and an Indian housing
authority.
SEC. 106. Sections 101 through 105 shall be effective upon the
enactment of this Act and only for fiscal year 1997.

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

547

SEC. 107. TARGETING OF VOUCHERS AND CERTIFICATES.—(a) VOUCHERS.—Section 8(o)(3)(A) of the United States Housing Act of 1937,
as amended, is further amended by inserting at the end the following
new sentence:
‘‘Notwithstanding any other provision of law, at least 75 percent
of the families initially assisted under this subsection by a public
housing agency in any year shall be families with incomes equal
to or less than 30 percent of the median income for the area,
as determined by the Secretary with adjustments for smaller and
larger families. The Secretary may establish such income ceilings
higher or lower than 30 percent of the median for the area on
the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes.’’
(b) CERTIFICATE PROGRAM.—Section 8(d) of such Act is amended
by adding at the end the following new paragraph:
‘‘(5) Section 8(o)(3)(A) shall also apply to tenant-based assistance
under the certificate program established under this section.’’.
SEC. 108. TRANSFERS BETWEEN APPROPRIATIONS.—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
such appropriations or earmarked amounts, but no such appropriations or earmarked amount shall be increased or decreased by more
than 2 percent by any such transfers.
SEC. 109. (a) ‘‘TAKE ONE, TAKE ALL’’.—Section 8(t) of the United
States Housing Act of 1937 is hereby repealed.
(b) EXEMPTION FROM NOTICE REQUIREMENT FOR THE CERTIFICATE
AND VOUCHER PROGRAMS.—Section 8(c) of such Act is amended—
(1) in paragraph (8), by inserting after ‘‘section’’ the following:
‘‘(other than a contract for assistance under the certificate or voucher program)’’; and
(2) in the first sentence of paragraph (9), by striking ‘‘(but not
less than 90 days in the case of housing certificates or vouchers
under subsection (b) or (o))’’ and inserting ‘‘, other than a contract
under the certificate or voucher program.’’.
(c) ENDLESS LEASE.—Section 8(d)(1)(B) of such Act is amended—
(1) in clause (ii), by inserting ‘‘during the term of the lease,’’
after ‘‘(ii)’’; and
(2) in clause (iii), by striking ‘‘provide that’’ and inserting ‘‘during
the term of the lease.’’.
(d) APPLICABILITY.—The provisions of this section shall be effective
for fiscal year 1997 only.