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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT This chapter presents the budget and program estimates for the Department of Housing and Urban Development (HUD). For the past 4 years, the Department has been engaged in a reinvention process which has emphasized: addressing homelessness through comprehensive continuum of care strategies; transforming public and assisted housing; enhancing homeownership opportunities through new national and local partnerships; reducing racial barriers to housing; and, encouraging locally-driven solutions and leveraging private sector investment through initiatives like consolidated planning, and Empowerment Zones and Enterprise Communities. An emphasis has also been placed on reinventing HUD, itself. The 1998 budget continues to move toward a ‘‘right-side up’’ Cabinet Department that is organized, staffed, and empowered to respond to locally driven priorities rather than Federal dictates. As part of the 1997 reinvention process, the Department proposed consolidating many of its programs into three core funds—with incentives for good performance. The 1997 Appropriations Act did not implement the Department’s proposals but did enact a major reconfiguration of the Department’s housing accounts structure. Three new accounts were created: Preserving Existing Housing Investment, Development of Additional New Subsidized Housing, and Prevention of Resident Displacement. This new account structure was an important first step to better organizing the Department’s primary housing assistance programs. The 1998 budget further refines this structure to reflect the Department’s consolidation efforts. This new structure will also enhance the Department’s ability to administer and track its funds. Activities funded under the Preserving Existing Housing Investment account will be divided into two separate accounts—an operating fund and a capital fund. Assistance provided for the elderly and disabled, and Native Americans in the Development of Additional New Subsidized Housing account in 1997 is being requested separately for 1998. Funds for the elderly and disabled are in the Housing for Special Populations account in 1998 and resources allocated to the Native American population will be consolidated under a Native American Housing Block Grants program as authorized by the 104th Congress. Funding for housing certificates, Section 8 contract renewals, and amendments in 1997 was provided in the Prevention of Resident Displacement account. This budget proposes to fund these activities under the Housing Certificate Fund for 1998. The 1998 Budget includes two Presidential initiatives related to revitalizing America’s urban areas. First, the HUD Budget requests funding for a second round of Empowerment Zones and Enterprise Communities. The first round has already proven successful in leveraging private sector funds and promoting economic opportunity and community-wide revitalization. Second, the Brownfields Redevelopment program will enable cities to clean up polluted sites, returning them to productive uses that create jobs. The program will also enable cities to address the economic development needs of communities in and around such sites. The 1998 Budget maintains Community Development Block Grant (CDBG) funding. This program will continue to use a formula approach for allocating funds for a wide range of community and economic development activities. The Com- munity Development Loan Guarantee program enables communities to borrow in the private market with a Federal guarantee. Communities must develop consolidated plans which identify local needs and priorities in order to tap into CDBG and other HUD funds. The HOME Investment Partnerships program will also continue formula allocations to states and participating jurisdictions to assist in expanding the supply of affordable housing. The Homeless Assistance Grants program would consolidate HUD’s six Stewart B. McKinney homeless assistance programs into a performance-based program that would enable communities to continue their development and implementation of comprehensive, coordinated continuum of care systems to address the needs of homeless people and families. This is the fourth consecutive year that HUD has sought consolidation of its homeless assistance programs to improve program administration and effectiveness. Funding is also included, either as set-asides or as separate programs, for the following community and economic development and affordable housing programs: Economic Development Grants; Homeownership Zones; Habitat for Humanity; Youthbuild; Bridges to Work; and Capacity Building for Community Development and Affordable Housing. The Department is reproposing to consolidate several categorical housing programs. • The Public Housing Operating Fund would fund the operating costs of Public Housing. Through this fund, Public Housing Agencies will have greater flexibility in attracting and retaining low- and moderate-income families. • The Public Housing Capital Fund would address the capital needs of Public Housing. Based on the Public Housing Modernization program, this Fund will permit the upgrading of inventory and the demolition and replacement of obsolete buildings. Funds will also be available for: economic development supportive services; technical assistance and intervention to improve troubled authorities and management improvements; and the Tenant Opportunity Program. • 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. Funding for section 8 contract renewals and amendments is included within this Fund. The 1998 request includes 50,000 incremental certificates to help lowincome families move from welfare to work. • Other Housing Programs. Lead-paint hazard reduction activities will be funded within the Community Development Block Grant Fund. Several other programs that assist communities will remain as free-standing activities: Housing Opportunities for Persons with AIDS, Youthbuild, housing counseling, drug elimination activities, and assistance for severely distressed public housing. A major initiative reflected in the budget estimates is ‘‘Multifamily Portfolio Reengineering,’’ formerly known as ‘‘Markto-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. 529 530 PUBLIC AND INDIAN HOUSING Federal Funds THE BUDGET FOR FISCAL YEAR 1998 PUBLIC AND INDIAN HOUSING 86.90 86.93 Federal Funds General and special funds: øPREVENTION OF 3,985 1,619 87.00 RESIDENT DISPLACEMENT¿ HOUSING CERTIFICATE FUND For activities and assistance to prevent the involuntary displacement of low-income families, the elderly and the disabled because of the loss of affordable housing stock, expiration of subsidy contracts (other than contracts for which amounts are provided under the head ‘‘Preserving Existing Housing Investment’’) or expiration of use restrictions, or other changes in housing assistance arrangements, and for other purposes, ø$4,640,000,000¿ $10,676,000,000, to remain available until expended: Provided, That of the total amount provided under this head, ø$3,600,000,000¿ $9,232,000,000 shall be for assistance under the United States Housing Act of 1937 (42 U.S.C. 1437) for use in connection with expiring or terminating section 8 subsidy contracts: Provided further, That the Secretary may determine not to apply section 8(o)(6)(B) of the Act to housing vouchers during fiscal year ø1997¿ 1998: Provided further, That of the total amount provided under this head, $850,000,000 shall be for amendments to section 8 contracts other than contracts for projects developed under section 202 of the Housing Act of 1959, as amended: Provided further, That of the total amount provided under this head, ø$190,000,000¿ $594,000,000 shall be for section 8 rental assistance under the United States Housing Act øof 1937 (42 U.S.C. 1437)¿ including assistance to relocate residents of properties (i) that are owned by the Secretary and being disposed of or (ii) that are discontinuing section 8 project-based assistance; øor (iii) or subject to special workout assistance team intervention compliance actions;¿ for the conversion of section 23 projects to assistance under section 8; for funds to carry out the family unification program; and for the relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency ø: Provided further, That of the total amount made available under this head, $50,000,000 shall be made available to nonelderly disabled families affected by the designation of a public housing development under section 7 of such Act or the establishment of preferences in accordance with section 651 of the Housing and Community Development Act of 1992 (42 U.S.C. 1361l)¿. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 86–0311–0–1–604 Outlays (gross), detail: Outlays from new current authority .............................. ................... 1,732 Outlays from current balances ...................................... ................... ................... 1996 actual 1,732 5,604 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... 4,690 1,732 10,676 5,604 This account provides funding for some of the activities previously funded through the Annual Contributions for Assisted Housing account. These include the renewal of expiring Section 8 contracts, amending of Section 8 contracts, and the funding for additional Section 8 rental assistance. ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING All balances remaining in the Preserving Existing Housing Investment Account for Preservation shall be transferred to and merged with the amounts previously provided for those purposes under this head. Program and Financing (in millions of dollars) Identification code 86–0164–0–1–604 1997 est. 1997 est. 1998 est. Obligations by program activity: Lower income housing ................................................... Public and Indian housing ............................................ Elderly/disabled grants .................................................. Other programs .............................................................. Contract renewals .......................................................... 1,964 2,907 1,469 267 3,345 10.00 Total obligations (object class 41.0) ........................ 9,952 10,309 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance: 21.40 Uninvested balance .............................................. 21.40 Uninvested balance .............................................. 21.49 Contract authority ..................................................... 387 11,153 73 1,981 ................... 8,030 ................... 88 ................... 21.99 22.00 22.10 3,010 1,695 3,684 28 1,892 Total unobligated balance, start of year ............. 11,613 10,099 New budget authority (gross) ........................................ 9,819 –75 Resources available from recoveries of prior year obligations ....................................................................... 11,266 325 Unobligated balance transferred to other accounts ................... –41 Balance of contract authority withdrawn ...................... –12,646 ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... 1998 est. 23.90 23.95 9,997 850 594 10.00 3,096 11,441 24.40 24.40 24.49 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance: Uninvested balance .............................................. Uninvested balance .............................................. Contract authority ..................................................... 24.99 1,956 900 240 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... ................... ................... 22.00 New budget authority (gross) ........................................ ................... 4,690 1996 actual 00.01 00.02 00.03 00.04 00.05 22.21 22.75 Obligations by program activity: 00.01 Renew rental contracts .................................................. ................... 00.02 Contract amendments ................................................... ................... 00.03 New housing certificates ............................................... ................... Total obligations (object class 41.0) ........................ ................... Total outlays (gross) ................................................. ................... Total unobligated balance, end of year .................... 20,052 –9,952 10,308 ................... –10,309 ................... 1,981 ................... ................... 8,030 ................... ................... 88 ................... ................... 10,099 ................... ................... 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation ................... New obligations ............................................................. ................... Unobligated balance available, end of year: Uninvested balance ................................................... ................... 1,594 10,676 4,690 –3,096 11,441 –11,441 1,594 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 9,819 ................... ................... 41.00 Transferred to other accounts ................................... ................... –75 ................... 829 43.00 60.05 60.49 Appropriation (total) ............................................. Permanent: Appropriation (indefinite) .......................................... Portion applied to liquidate contract authority ........ 9,819 632 –632 New budget authority (gross), detail: 40.00 Appropriation .................................................................. ................... 42.00 Transferred from other accounts ................................... ................... 4,640 10,676 50 ................... 63.00 43.00 Appropriation (total) .................................................. ................... 4,690 10,676 70.00 Total new budget authority (gross) .......................... 9,819 70.00 Total new budget authority (gross) .......................... ................... 4,690 10,676 ................... ................... ................... 3,096 ................... –1,732 1,364 11,441 –5,604 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: 72.40 Appropriation ......................................................... 72.49 Contract authority ................................................. 72.90 Fund balance ........................................................ 60,721 69,331 24 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 ................... 1,364 7,201 72.99 73.10 73.20 –75 ................... 19,848 –19,848 15,541 –15,541 Appropriation (total) ............................................. ................... ................... ................... Total unpaid obligations, start of year ................ New obligations ............................................................. Total outlays (gross) ...................................................... 130,076 9,952 –20,327 –75 ................... 38,135 56,034 14,265 49,356 36,236 12,614 108,434 98,206 10,309 ................... –19,847 –15,912 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 73.31 73.45 74.40 74.49 74.90 Obligated balance transferred to other accounts ......... ................... Adjustments in unexpired accounts .............................. –11,266 Unpaid obligations, end of year: Obligated balance: Appropriation ......................................................... 38,135 Contract authority ................................................. 56,034 Fund balance ........................................................ 14,265 108,434 –367 ................... –325 ................... 49,356 36,236 12,614 51,184 20,695 10,415 98,206 82,294 74.99 Total unpaid obligations, end of year .................. 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 87.00 Total outlays (gross) ................................................. 20,327 19,847 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 9,819 20,327 –75 ................... 19,847 15,912 1,019 ................... ................... 19,308 19,847 15,912 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 1998. No new appropriation is requested for this account. Language is proposed to permit the transfer into this account of all unobligated and obligated balances for preservation assistance, which was previously made available in 1997 under the Preserving Existing Housing Investment account (See table below). Proposed Transfer of Balances 15,912 [In millions] Summary of Budget Authority and Outlays [In millions of dollars] Enacted/requested: Budget Authority ..................................................................... Outlays .................................................................................... Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... Outlays .................................................................................... Rescission proposal: Budget Authority ..................................................................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 9,819 20,327 1996 actual 9,819 20,327 1997 est. 1998 est. –75 .................... 19,847 15,912 .................... .................... .................... .................... –855 –375 –250 .................... –10 –25 –325 19,837 1996 Actual Annual Contributions: Budget Authority ..................................................................... 9,819 Outlays .................................................................................... 20,327 Preserving Existing Housing Investment: Budget Authority ..................................................................... .................... Outlays .................................................................................... .................... Total ............................................................................... Budget Authority ..................................................................... Outlays .................................................................................... 1996 actual 1997 est. 9,819 20,327 1997 est. (325) 19,837 1998 est. (855) 15,512 350 .................... 140 210 25 19,977 (855) 15,722 The 1998 budget proposes to transfer all preservation balances to the Annual Contributions for Assisted Housing account. ANNUAL CONTRIBUTIONS –855 15,512 FOR ASSISTED HOUSING (Legislative proposal, not subject to PAYGO) Status of Contract Authority (in millions of dollars) Identification code 86–0164–0–1–604 531 Program and Financing (in millions of dollars) 1998 est. Balance, start of year: 0100 Balance, start of year .................................................... 73 88 ................... 0100 Balance, start of year .................................................... 69,331 56,034 36,236 0340 Unobligated balance transferred ................................... ................... –41 ................... 0400 Appropriation to liquidate contract authority ................ –632 –19,848 –15,541 0600 Balance of contract authority withdrawn ...................... –12,646 ................... ................... Balance, end of year: 0700 Balance, end of year ..................................................... 88 ................... ................... 0700 Balance, end of year ..................................................... 56,034 36,236 20,695 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 and Family Investment Centers. 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 Identification code 86–0164–2–1–604 22.00 22.10 1996 actual 1997 est. Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... Resources available from recoveries of prior year obligations ....................................................................... ................... ................... 1998 est. –855 855 23.90 Total budgetary resources available for obligation ................... ................... ................... 40.00 40.35 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... ................... Appropriation rescinded ................................................. ................... ................... –855 43.00 Appropriation (total) .................................................. ................... ................... –855 70.00 Total new budget authority (gross) .......................... ................... ................... –855 73.20 73.45 74.40 Change in unpaid obligations: Total outlays (gross) ...................................................... ................... ................... Adjustments in unexpired accounts .............................. ................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... 375 –855 –480 86.93 Outlays (gross), detail: Outlays from current balances ...................................... ................... ................... –375 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... –855 –375 An estimated $855 million of budget authority is anticipated to be recaptured and canceled in 1998 as a result of enactment and implementation of HUD’s Multifamily Portfolio Reengineering proposal. This proposal would restructure mortgages of selected FHA-insured multifamily properties. These properties are presently subsidized at above market rates through HUD’s rental assistance programs. Budget authority remaining on these long-term, multi-year contracts would be canceled. In the future, additional outlay savings will be achieved by avoiding the need for appropriations for funds to continue subsidizing these high-cost contracts. 532 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued General and special funds—Continued PRESERVING EXISTING-HOUSING INVESTMENT øFor operating, maintaining, revitalizing, rehabilitating, preserving, and protecting existing housing developments for low-income families, and the elderly, and the disabled, $5,750,000,000, to remain available until expended: Provided, That of the total amount made available under this head, $2,900,000,000 shall be available 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): Provided further, That of the total amount made available under this head, $2,500,000,000 shall be available for modernization of existing public housing projects as authorized under section 14 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437l), of which $10,000,000 shall be for carrying out activities under section 6(j) of the United States Housing Act of 1937 and technical assistance for the inspection of public housing units, contract expertise, and training and technical assistance directly or indirectly, under grants, contracts, or cooperative agreements, to assist in the oversight and management of public 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: Provided further, That of the total amount provided under this head, $350,000,000 shall be available for use in conjunction with properties that are eligible for assistance under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the Emergency Low Income Housing Preservation Act of 1987 (ELIHPA), of which $75,000,000 shall be available for obligation until March 1, 1997 for projects (1) that are subject to a repayment or settlement agreement that was executed between the owner and the Secretary prior to September 1, 1995; (2) whose submissions were delayed as a result of their location in areas that were designated as a Federal disaster area in a Presidential Disaster Declaration; or (3) whose processing was, in fact or in practical effect, suspended, deferred, or interrupted for a period of twelve months or more because of differing interpretations, by the Secretary and an owner or by the Secretary and a State or local rent regulatory agency, concerning the timing of filing eligibility or the effect of a presumptively applicable State or local rent control law or regulation on the determination of preservation value under section 213 of LIHPRHA, as amended, if the owner of such project filed notice of intent to extend the low-income affordability restrictions of the housing, or transfer to a qualified purchaser who would extend such restrictions, on or before November 1, 1993; and of which, up to $100,000,000 may be used for rental assistance to prevent displacement of families residing in projects whose owners prepay their mortgages; and the balance of which shall be available from the effective date of this Act for sales to preferred priority purchasers: Provided further, That with the exception of projects described in clauses (1), (2), or (3) of the preceding proviso, the Secretary shall, notwithstanding any other provision of law, suspend further processing of preservation applications which have not heretofore received approval of a plan of action: Provided further, That $150,000,000 of amounts recaptured from interest reduction payment contracts for section 236 projects whose owners prepay their mortgages during fiscal year 1997 shall be rescinded: Provided further, That an owner of eligible low-income housing may prepay the mortgage or request voluntary termination of a mortgage insurance contract, so long as said owner agrees not to raise rents for sixty days after such prepayment: Provided further, That such developments have been determined to have preservation equity at least equal to the lesser of $5,000 per unit or $500,000 per project or the equivalent of eight times the most recently published monthly fair market rent for the area in which the project is located as the appropriate unit size for all of the units in the eligible project: Provided further, That the Secretary may modify the regulatory agreement to permit owners and priority purchasers to retain rental income in excess of the basic rental charge in projects assisted under section 236 of the National Housing Act, for the purpose of preserving the lowand moderate-income character of the housing: Provided further, That eligible low-income housing shall include properties meeting the requirements of this paragraph with mortgages that are held by a State agency as a result of a sale by the Secretary without insurance, which immediately before the sale would have been eligible low- THE BUDGET FOR FISCAL YEAR 1998 income housing under LIHPRHA: Provided further, That notwithstanding any other provision of law, subject to the availability of appropriated funds, each low-income family, and moderate-income family who is elderly or disabled or is residing in a low-vacancy area, residing in the housing on the date of prepayment or voluntary termination, and whose rent, as a result of a rent increase occurring no later than one year after the date of the prepayment, exceeds 30 percent of adjusted income, shall be offered tenant-based assistance in accordance with section 8 or any successor program, under which the family shall pay no less for rent than it paid on such date: Provided further, That any family receiving tenant-based assistance under the preceding proviso may elect (1) to remain in the unit of the housing and if the rent exceeds the fair market rent or payment standard, as applicable, the rent shall be deemed to be the applicable standard, so long as the administering public housing agency finds that the rent is reasonable in comparison with rents charged for comparable unassisted housing units in the market or (2) to move from the housing and the rent will be subject to the fair market rent of the payment standard, as applicable, under existing program rules and procedures: Provided further, That the tenant-based assistance made available under the preceding two provisos are in lieu of benefits provided in subsections 223(b), (c), and (d) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990: Provided further, That any sales shall be funded using the capital grant available under section 220(d)(3)(A) of LIHPRHA: Provided further, That any extensions shall be funded using a non-interest-bearing capital (direct) loan by the Secretary not in excess of the amount of the cost of rehabilitation approved in the plan of action plus 65 percent of the property’s preservation equity and under such other terms and conditions as the Secretary may prescribe: Provided further, That any capital grant shall be limited to seven times, and any capital loan limited to six times, the annual fair market rent for the project, as determined using the fair market rent for fiscal year 1997 for the area in which the project is located, using the appropriate apartment sizes and mix in the eligible project, except where, upon the request of a priority purchaser, the Secretary determines that a greater amount is necessary and appropriate to preserve low-income housing: Provided further, That section 241(f) of the National Housing Act is repealed and insurance under such section shall not be offered as an incentive under LIHPRHA and ELIHPA: Provided further, That up to $10,000,000 of the amount of $350,000,000 made available by a preceding proviso in this paragraph may be used at the discretion of the Secretary to reimburse owners of eligible properties for which plans of action were submitted prior to the effective date of this Act, but were not executed for lack of available funds, with such reimbursement available only for documented costs directly applicable to the preparation of the plan of action as determined by the Secretary, and shall be made available on terms and conditions to be established by the Secretary: Provided further, That, notwithstanding any other provision of law, a priority purchaser may utilize assistance under the HOME Investment Partnerships Act or the Low Income Housing Tax Credit: Provided further, That projects with approved plans of action which exceed the limitations on eligibility for funding imposed by this Act may submit revised plans of action which conform to these limitations by March 1, 1997, and retain the priority for funding otherwise applicable from the original date of approval of their plan of action, subject to securing any additional necessary funding commitments by August 1, 1997.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 86–0312–0–1–604 1996 actual 1997 est. 1998 est. 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... 5,750 ................... 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... New obligations ............................................................. ................... 5,750 ................... –5,750 ................... 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... 5,750 ................... 72.40 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. ................... ................... 4,218 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 73.10 73.20 74.40 New obligations ............................................................. ................... Total outlays (gross) ...................................................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... 5,750 ................... –1,532 –1,962 4,218 24.40 2,256 40.00 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. ................... 1,532 ................... 86.93 Outlays from current balances ...................................... ................... ................... 1,962 87.00 Total outlays (gross) ................................................. ................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... 1,532 1,962 5,750 ................... 1,532 1,962 (INCLUDING Unobligated balance available, end of year: Uninvested balance ................................................... ................... ................... ................... 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 ............................................................. 2,500 72.40 86.90 86.93 PUBLIC HOUSING CAPITAL FUND 533 ................... ................... ................... ................... ................... 2,500 ................... ................... –13 ................... ................... 2,487 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 13 Outlays from current balances ...................................... ................... ................... ................... 87.00 Total outlays (gross) ................................................. ................... ................... 13 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 2,500 13 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), $2,500,000,000, to remain available until expended for modernization of existing public housing projects as authorized under section 14 of such Act, of which $50,000,000 shall be available for grants to public housing agencies, non-profit corporations, and other appropriate entities for a supportive services program to assist residents of public and assisted housing, former residents of such housing receiving tenant-based assistance under section 8 of such Act (42 U.S.C. 1437f), and other low-income families and individuals to become selfsufficient: Provided, That the program shall provide supportive services, principally for the benefit of public housing residents, to the elderly and the disabled, and to families with children where the head of household would benefit from the receipt of supportive services and is working, seeking work, or is preparing for work by participating in job training or educational programs: Provided further, That the supportive services may include congregate services for the elderly and disabled, service coordinators, and coordinated educational, training, and other supportive services, including academic skills training, job search assistance, assistance related to retaining employment, vocational and entrepreneurship development and support programs, transportation, and child care: Provided further, That the Secretary shall require applicants to demonstrate firm commitments of funding or services from other sources: Provided further, That the Secretary shall select public and Indian housing agencies to receive assistance under this head on a competitive basis, taking into account the quality of the proposed program. Provided further, That of the total amounts, $45,000,000 shall be for carrying out activities under section 6(j) of such Act and technical assistance for the inspection of public housing units, contract expertise, and training and technical assistance directly or indirectly, under grants, contracts, or cooperative agreements, to assist in the oversight and management of public housing (whether or not the housing is being modernized with assistance under this proviso) or tenant-based assistance, including, but no limited to, an annual resident survey, data collection and analysis, training and technical assistance by or to officials and employees of the department and of public housing agencies and to residents in connection with the public housing program and for lease adjustments to section 23 projects; Provided further, That of the total amount, $5,000,000 shall be for activities currently eligible under the Tenant Opportunity program: Provided, That all balances, as of September 30, 1997, of funds heretofore provided (other than for Indian families) for the development or acquisition costs of public housing, for modernization of existing public housing projects, for public housing amendments, for public housing modernization and development technical assistance, for lease adjustments under the section 23 program, and for the Family Investment Centers program, shall be transferred to and merged with amounts made available under this heading. Proposed Transfer of Balances [In millions] 1996 Actual Annual Contributions: Budget Authority ..................................................................... Outlays .................................................................................... Preserving Existing Housing Investment: Budget Authority ..................................................................... Outlays .................................................................................... Public Housing Capitol Fund: Budget Authority ..................................................................... Outlays .................................................................................... Total ............................................................................... Budget Authority ..................................................................... Outlays .................................................................................... 1997 est. 1998 est. 2,711 .................... .................... 4,548 4,296 3,579 .................... .................... 2,500 .................... 0 276 .................... .................... .................... .................... 2,711 4,548 2,500 4,296 2,500 13 2,500 3,868 The 1998 budget proposes to transfer all Modernization/ Development balances to the Public Housing Capital Fund. PUBLIC HOUSING OPERATING FUND (INCLUDING TRANSFERS OF FUNDS) For payments to public housing agencies for operating subsidies for low-income housing projects as authorized by section 9 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437g), $2,900,000,000, to remain available until expended: Provided, That all balances outstanding, as of September 30, 1997, of funds heretofore provided (other than for Indian families) for payments to public housing agencies for operating subsidies for low-income housing projects, shall be transferred to and merged with amounts made available under this heading. Program and Financing (in millions of dollars) Identification code 86–0163–0–1–604 1996 actual 1997 est. 1998 est. 00.01 Obligations by program activity: Operating subsidies ....................................................... 2,800 ................... 2,900 10.00 Total obligations (object class 41.0) ........................ 2,800 ................... 2,900 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 2,800 ................... –2,800 ................... 2,900 –2,900 40.00 New budget authority (gross), detail: Appropriation .................................................................. 2,800 ................... 2,900 Program and Financing (in millions of dollars) Identification code 86–0304–0–1–604 10.00 1996 actual 1997 est. Obligations by program activity: Total obligations (object class 41.0) ............................ ................... ................... Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... ................... 23.95 New obligations ............................................................. ................... ................... 1998 est. 2,500 2,500 –2,500 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 .................................. 72.40 1,507 1,606 85 2,800 ................... 2,900 –2,688 –1,521 –1,421 –13 ................... ................... 534 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued Urban Development, and Independent Agencies Appropriations Act, 1997.) PUBLIC HOUSING OPERATING FUND—Continued (INCLUDING Program and Financing (in millions of dollars) TRANSFERS OF FUNDS)—Continued Program and Financing (in millions of dollars)—Continued 1996 actual Identification code 86–0163–0–1–604 1997 est. 1998 est. 10.00 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1,606 1996 actual Identification code 86–0197–0–1–604 85 1,564 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 ....................................................................... 1997 est. 1998 est. 243 290 290 20 290 68 290 68 290 21.40 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 87.00 Total outlays (gross) ................................................. Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 1,202 ................... 1,486 1,521 1,392 29 2,688 1,421 1,521 2,800 ................... 2,688 1,521 2,900 1,421 Proposed Transfer of Balances 23.90 23.95 24.40 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: Appropriation .................................................................. 1 ................... ................... 311 –243 358 –290 358 –290 68 68 68 290 290 290 [In millions] 1996 Actual 1997 est. 1998 est. Public Housing Operating Fund: Budget Authority ..................................................................... 2,900 .................... 2,900 Outlays .................................................................................... 2,688 1,521 1,421 Preserving Existing Housing Investment: Budget Authority ..................................................................... .................... 2,800 .................... Outlays .................................................................................... .................... 1,392 1,479 Total ............................................................................... Budget Authority ..................................................................... Outlays .................................................................................... 2,900 2,688 2,800 2,913 2,900 2,900 The 1998 budget proposes to transfer all Operating Subsidies to the Public Housing Operating Fund. Operating subsidy payments are provided to assist local Public Housing Agencies (PHAs) to meet certain deficits in the operation of PHA’s. These payments are in addition to the debt service and capital funding provided by HUD for development and modernization of low-income housing. In 1997, funding for these activities was provided under the Preserving Existing Housing Investment Fund. Beginning in 1998, funding for these activities would be provided under the Public Housing Operating Fund. In 1998, operating subsidy payments for tribally designated housing entities would be provided under the Native American Housing Block Grant program. DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING (INCLUDING TRANSFER OF FUNDS) For grants to public and Indian housing agencies for use in eliminating crime in public housing projects authorized by 42 U.S.C. 11901–11908, for grants for federally assisted low-income housing authorized by 42 U.S.C. 11909, and for drug information clearinghouse services authorized by 42 U.S.C. 11921–11925, $290,000,000, to remain available until expended, $10,000,000 of which shall be for grants, technical assistance, contracts and other assistance training, program assessment, and execution for or on behalf of public housing agencies, øand¿ resident organizations, Indian Tribes and their Tribally designated housing entities (TDHEs) (including the cost of necessary travel for participants in such training), ø$5,000,000¿ $10,000,000, of which 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, and ø$5,000,000¿ $10,000,000 of which shall be provided to the Office of Inspector General for Operation Safe Home: 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: Provided further, That notwithstanding section 5130(c) of the AntiDrug Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary may determine not to use any such funds to provide public housing youth sports grants. (Departments of Veterans Affairs and Housing and 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 ............................................................. 72.40 532 516 595 243 290 290 –259 –210 –344 –1 ................... ................... 516 595 541 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 259 210 344 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 290 259 290 210 290 344 Summary of Budget Authority and Outlays [In millions of dollars] Enacted/requested: 1996 actual 1997 est. 1998 est. Budget Authority ..................................................................... 290 290 290 Outlays .................................................................................... 259 210 344 Supplemental proposal: Budget Authority ..................................................................... .................... 30 .................... Outlays .................................................................................... .................... .................... 3 Total: Budget Authority ..................................................................... Outlays .................................................................................... 290 259 320 210 290 347 The $290 million requested for this program in FY 1998 includes funding for technical assistance for drug elimination and operation safe home activities. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING ø(HOPE VII)¿ (HOPE VI) For grants to public housing agencies for assisting in the demolition of obsolete public housing projects or portions thereof, the revitalization (where appropriate) of sites (including remaining public housing units) on which such projects are located, replacement housing which will avoid or lessen concentrations of very low-income families, and tenant-based assistance in accordance with section 8 of the United States Housing Act of 1937; and for providing replacement housing and assisting tenants to be displaced by the demolition, ø$550,000,000¿ $524,000,000, to remain available until expended, of which the Secretary may use up to $2,500,000 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 residentsø: Provided, That no funds appropriated in this title shall be used for any purpose that is not provided for herein, in the Housing Act of 1937, in the Appropriations Acts for Veterans Affairs, Housing and Urban Development, and Independent Agencies, for the fiscal years 1993, 1994, and 1995, and the Omnibus Consolidated Rescis- PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT sions and Appropriations Act of 1996: Provided further, That none of such funds shall be used directly or indirectly by granting competitive advantage in awards to settle litigation or pay judgments, unless expressly permitted herein: Provided further, That, notwithstanding any other provision of law, the funds made available to the Housing Authority of New Orleans under HOPE VI for purposes of Desire Homes, shall not be obligated or expended for on-site construction until an independent third party has determined whether the site is appropriate¿. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 1996 actual Program and Financing (in millions of dollars) 1996 actual Identification code 86–0313–0–1–604 1997 est. 1998 est. 1997 est. 1998 est. 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... ................... 485 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 485 –485 40.00 Program and Financing (in millions of dollars) Identification code 86–0218–0–1–604 535 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 485 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 Obligations by program activity: Total obligations (object class 41.0) ............................ 57 599 557 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 116 480 539 550 490 524 10.00 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: 40.00 Appropriation .................................................................. 596 –57 1,089 –599 1,014 –557 539 490 87.00 550 524 1,430 57 –110 1,377 599 –283 1,693 557 –409 1,377 1,693 1,841 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... Outlays from current balances ...................................... 110 283 12 397 Total outlays (gross) ................................................. Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 110 480 110 283 550 283 409 524 409 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. NATIVE AMERICAN HOUSING BLOCK GRANTS (INCLUDING 429 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 57 Outlays from current balances ...................................... ................... ................... ................... 87.00 72.40 86.90 86.93 ................... ................... 457 480 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 ............................................................. 86.90 86.93 ................... ................... ................... ................... ................... 485 ................... ................... –57 TRANSFER OF FUNDS) For the Native American Housing Block Grants program, as authorized under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (Public Law 104–330), $485,000,000, to remain available until expended, of which $5,000,000, shall be used to support the inspection of Indian housing units, contract expertise, training, and technical assistance in the oversight and management of Indian housing and tenant-based assistance, including up to $200,000 for related travel: Provided, That all balances outstanding as of September 30, 1997, previously appropriated under the headings ‘‘Annual Contributions for Assisted Housing’’, ‘‘Development of Additional New Subsidized Housing’’, ‘‘Preserving Existing Housing Development’’, ‘‘HOME Investment Partnerships Program’’, ‘‘Emergency Shelter Grants Program,’’ and ‘‘Homeless Assistance Funds’’, identified for Indian Housing Authorities and other agencies primarily serving Indian or Indian areas, shall be transferred to and merged with amounts made under this heading. Total outlays (gross) ................................................. ................... ................... 57 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 485 57 Proposed Transfer of Balances [In millions] 1996 est. Indian Development (Annual Contributions): Budget Authority ..................................................................... Outlays .................................................................................... Indian Development (Development of Additional New Subsidized Housing): Budget Authority ..................................................................... Outlays .................................................................................... Modernization: Budget Authority ..................................................................... Outlays .................................................................................... HOME: Budget Authority ..................................................................... Outlays .................................................................................... Homeless: Budget Authority ..................................................................... Outlays .................................................................................... Native American Block Grant: Budget Authority ..................................................................... Outlays .................................................................................... Total ............................................................................... Budget Authority ..................................................................... Outlays .................................................................................... 1997 est. 1998 est. 163 .................... .................... 252 251 214 .................... .................... 200 .................... 0 10 149 161 162 .................... 162 181 14 13 21 .................... 14 25 1 1 1 .................... 1 1 .................... .................... .................... .................... 327 427 384 428 485 57 485 488 The 1998 budget proposes to transfer all obligated and unobligated balances from Annual Contributions, Development of Additional New Subsidized Housing, Preserving Existing Housing Investment, HOME Investment Partnerships Program Emergency Shelter Grants, and Homeless Assistance for Indian housing authorities and other agencies primarily serving Indians or Indian areas to the Native American Housing Block Grants Program. Title I of the Native American Housing Assistance and SelfDetermination Act of 1996 (P.L. 104–330) authorized the Native American Housing Block Grants program. This program provides an allocation of funds on a formula basis to Indian tribes and their tribally designated housing entities to help them address housing needs within their communities. Indian tribes 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 Indian housing plan. 536 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Public enterprise funds: LOW-RENT PUBLIC HOUSING—LOANS AND 2299 OTHER EXPENSES Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 3,861 3,507 3,227 Program and Financing (in millions of dollars) Identification code 86–4098–0–3–604 1996 actual 1997 est. 1998 est. Obligations by program activity: Capital investment: Loans to public housing agencies and Indian housing authorities ................................ 38 50 50 Total obligations (object class 33.0) ........................ 38 50 50 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.60 Redemption of debt ....................................................... 6 107 –62 13 115 –65 13 118 –68 51 –38 63 –50 63 –50 13 13 13 00.01 10.00 21.40 23.90 23.95 24.40 67.15 68.00 70.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: Authority to borrow (indefinite) ..................................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 20 50 50 87 65 68 Total new budget authority (gross) .......................... 107 115 118 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: 72.40 Appropriation ......................................................... 1,288 1,176 1,064 72.90 Fund balance ........................................................ ................... ................... ................... 72.99 73.10 73.20 74.40 74.90 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 borrowings from the Treasury. Under legislation enacted during 1986 (Public Law 99–272), the borrowings from the Treasury are forgiven at the end of each fiscal year and the loans to PHAs/IHAs are forgiven as construction, acquisition, and modernization activities are completed. Under the provisions of this legislation, $20 million of borrowings from the Treasury were forgiven in 1996, an estimated $50 million will be borrowed from the Treasury and forgiven in 1997, and an estimated $50 million will be borrowed from the Treasury and forgiven in 1998. The table below shows the status of outstanding loans for the period 1996–1998. The balance at the end of each year represents administrative loans, offsite facility loans, and preliminary loans on projects never undertaken and excess financing. Total unpaid obligations, start of year ................ 1,288 1,176 1,064 New obligations ............................................................. 38 50 50 Total outlays (gross) ...................................................... –150 –162 –165 Unpaid obligations, end of year: Obligated balance: Appropriation ......................................................... 1,176 1,064 ................... Fund balance ........................................................ ................... ................... 950 74.99 Total unpaid obligations, end of year .................. 1,176 1,064 950 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 50 100 65 97 68 97 87.00 Total outlays (gross) ................................................. 150 162 165 PUBLIC HOUSING AGENCIES/INDIAN HOUSING AUTHORITIES Loans Outstanding [In millions of dollars] 1996 actual Outstanding, start of year .......................................................... Direct loan disbursements .......................................................... Repayments ................................................................................. Adjustments ................................................................................. Total loans forgiven .................................................................... Outstanding, end of year ............................................................ –62 –65 –68 –25 ................... ................... 88.90 Total, offsetting collections (cash) .................. –87 –65 –68 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 20 64 50 97 Identification code 86–4098–0–3–604 45 45 1996 actual 1997 est. 1998 est. Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1251 Repayments: Repayments and prepayments ................. 1,689 –62 1,627 –65 1,562 –65 1290 1,627 1,562 1,497 Status of Guaranteed Loans (in millions of dollars) 1996 actual 1997 est. 1998 est. 2210 2251 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Repayments and prepayments ...................................... 4,132 –271 3,861 –354 3,507 –280 2290 Outstanding, end of year .......................................... 3,861 3,507 1995 actual 1996 actual 1997 est. 1998 est. 0101 0102 Revenue ................................................... Expense .................................................... 116 –131 112 –127 108 –123 104 –119 0109 Net income or loss (–) ............................ –15 –15 –15 –15 Balance Sheet (in millions of dollars) Identification code 86–4098–0–3–604 Status of Direct Loans (in millions of dollars) Identification code 86–4098–0–3–604 45 Since 1987, new reservations of capital funds for construction, acquisition, and modernization activities have been provided directly from the Annual Contributions, Preserving Existing Housing Investment, and Development of Additional New Subsidized Housing appropriations. Operating results.—The actual and estimated net operating income for 1995, 1996, 1997, and 1998 follows: 50 97 Outstanding, end of year .......................................... 1998 est. Statement of Operations (in millions of dollars) Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... 88.40 Non-Federal sources ............................................. Identification code 86–4098–0–3–604 1997 est. 64 45 45 38 50 50 –20 .................... .................... 2 .................... .................... –39 –50 –50 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 .................................................. 1995 actual 1996 actual 1997 est. 1998 est. 1,294 1,189 1,084 979 1,791 1,726 1,661 1,596 64 6 45 3 45 3 45 3 –12 –12 –12 –12 58 36 36 36 3,227 1699 Value of assets related to direct loans .......................................... 58 36 36 36 1999 Total assets ........................................ 3,143 2,951 2,781 2,611 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LIABILITIES: Federal liabilities: 2102 Interest payable .................................. 2104 Resources payable to Treasury ........... 2207 Non-Federal liabilities: Other .................. 205 1,688 1 198 1,627 1 191 1,565 1 184 1,503 1 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 1,894 1,826 1,757 1,688 1,184 65 1,076 49 968 56 860 63 3999 Total net position ................................ 1,249 1,125 1,024 923 4999 Total liabilities and net position ............ 3,143 2,951 2,781 2,611 537 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 net present value basis. The administrative expenses are shown on a cash basis. This program provides access to sources of private financing for Indian families, Indian tribes and their tribally designated housing entities (TDHEs) who otherwise could not acquire housing financing because of the unique legal status of Indian trust land. Credit accounts: INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT INDIAN HOUSING LOAN GUARANTEE FUND FINANCING 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, to remain available until expended: Provided, That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $36,900,000. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ 1996 actual 1997 est. 3 1998 est. 3 Identification code 86–4104–0–3–604 3 –3 3 –3 New budget authority (gross), detail: Appropriation .................................................................. 3 3 3 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 3 73.10 New obligations ............................................................. 3 73.20 Total outlays (gross) ...................................................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 6 6 3 –2 6 3 –3 6 6 Outlays (gross), detail: Outlays from new current authority .............................. ................... 2 Outlays from current balances ...................................... ................... ................... 2 1 72.40 86.90 86.93 87.00 Total outlays (gross) ................................................. ................... 2 3 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ 3 Outlays ........................................................................... ................... 3 2 3 3 Total budgetary resources available for obligation 3 5 8 New obligations ............................................................. ................... ................... ................... Unobligated balance available, end of year: Fund balance ...................................................................... 3 5 8 3 Offsets: Against gross financing authority and financing disbursements: 88.00 Offsetting collections (cash) from: Federal sources: Payments from program account ......................... ................... –2 –3 Net financing authority and financing disbursements: Financing authority ........................................................ ................... 1 Financing disbursements ............................................... –1 ................... 2 –3 89.00 90.00 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4104–0–3–604 1996 actual 1997 est. 1998 est. 1997 est. 37 37 37 2159 37 37 37 37 Total guaranteed loan commitments ........................ Guaranteed amount of guaranteed loan commitments 37 37 37 37 37 ................... 2210 2231 1998 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... 1 5 6 5 11 17 2290 Outstanding, end of year .......................................... 6 11 28 2299 1996 actual Guaranteed loan levels supportable by subsidy budget authority: 2150 Loan guarantee levels ................................................... Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 6 11 ................... 37 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... 8.13 8.13 8.13 2329 8.13 8.13 8.13 3 3 3 Total subsidy budget authority ................................. 3 Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. ................... 3 3 2 3 2349 2 3 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... 5 3 2150 2199 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0223–0–1–371 3 2 2 3 –3 40.00 1998 est. New financing authority (gross), detail: Spending authority from offsetting collections (gross): Spending authority from offsetting collections, Federal sources ............................................................... ................... 68.00 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 1997 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 3 22.00 New financing authority (gross) .................................... ................... 3 22.00 23.95 1996 actual 21.90 23.90 23.95 24.90 Program and Financing (in millions of dollars) Identification code 86–0223–0–1–371 Program and Financing (in millions of dollars) 2339 Total subsidy outlays ................................................ ................... 37 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 guarantees that resulted from obligations in any year). The amounts in this account are a means of financing and not included in the budget totals. 538 PUBLIC AND INDIAN HOUSING—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 90.00 Credit accounts—Continued INDIAN HOUSING LOAN GUARANTEE FUND FINANCING ACCOUNT— Continued Balance Sheet (in millions of dollars) Identification code 86–4104–0–3–604 1995 actual 1996 actual ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1106 Receivables, net ............................. 1997 est. 1998 est. .................. 2 5 .................. .................. 1 1 .................. 1999 Total assets ........................................ LIABILITIES: 2204 Non-Federal liabilities: Liabilities for loan guarantees .................................. .................. 3 6 .................. .................. 1 1 .................. 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ .................. 1 1 .................. .................. 2 5 .................. 3999 Total net position ................................ .................. 2 5 Total liabilities and net position ............ .................. 3 6 .................. 133 165 The Housing Opportunities for Persons with AIDS program was established as a separate account in 1997. All of the balances from prior appropriations for this program have been transferred to and merged with this account. This program is now accounted for on an obligation basis. The purpose of the program is to provide States and localities with resources and incentives to devise long-term comprehensive strategies for meeting the housing needs of persons with HIV/ AIDS and their families. States and metropolitan areas receive 90 percent of the funds by formula based on the incidence of HIV/AIDS in their jurisdictions. The remaining 10 percent is awarded competitively to States, local governments, and private nonprofit entities for projects of national significance. Awards are also made to States and local governments for projects in jurisdictions which do not qualify for a formula allocation. .................. 4999 Outlays ........................................................................... ................... COMMUNITY DEVELOPMENT BLOCK GRANTS øFUND¿ (INCLUDING TRANSFERS OF FUNDS) COMMUNITY PLANNING AND DEVELOPMENT Federal Funds General and special funds: HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS For carrying out the Housing Opportunities for Persons with AIDS program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 12901), ø$171,000,000¿ $204,000,000, to remain available until expendedø: 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¿. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 86–0308–0–1–604 1996 actual 1997 est. 1998 est. 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... 237 22.00 22.22 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... Unobligated balance transferred from other accounts ................... 196 204 41 ................... 23.90 23.95 Total budgetary resources available for obligation ................... New obligations ............................................................. ................... 40.00 42.00 New budget authority (gross), detail: Appropriation .................................................................. ................... Transferred from other accounts ................................... ................... 43.00 Appropriation (total) .................................................. ................... 196 204 70.00 Total new budget authority (gross) .......................... ................... 196 204 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.32 Obligated balance transferred from other accounts 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 237 –237 204 204 –204 171 204 25 ................... 72.40 ................... ................... 471 ................... 237 204 ................... –133 –165 ................... 367 ................... ................... 471 510 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. ................... Outlays from current balances ...................................... ................... 4 129 4 161 87.00 Total outlays (gross) ................................................. ................... 133 165 89.00 Net budget authority and outlays: Budget authority ............................................................ ................... 196 204 For grants to States and units of general local government and for related expenses, not otherwise provided for, to carry out a community development grants program as authorized by title I of the Housing and Community Development Act of 1974, as amended (the ‘‘Act’’ herein) (42 U.S.C. 5301), $4,600,000,000, to remain available until September 30, ø1999,¿ 2000; of which $67,000,000 shall be for grants to Indian tribes notwithstanding section 106(a)(1) of the Actø: Provided, That $2,100,000 shall be available as a grant to the Housing Assistance Council, $1,500,000 shall be available as a grant to the National American Indian Housing Council, and $49,000,000¿; of which ø$35,000,000¿ $32,600,000 shall be øavailable¿ for grants pursuant to section 107 of such Actø, including up to $14,000,000 for the development and operation of a management information system¿; of which $50,000,000 shall be for Economic Development Grants; $50,000,000 shall be for activities to promote and implement homeownership in targeted geographic areas; $10,000,000 shall be for the Capacity Building for Community Development and Affordable Housing program; $10,000,000 shall be for a grant to Habitat for Humanity International; $10,000,000 shall be for grants to units of local government, preferably for communities designated as Empowerment Zones or Enterprise Communities, to develop strategies for Bridges to Work programs, which include assistance for job search, transportation, child care and other needed supportive services to increase job opportunities; and $60,000,000 shall be for the lead-based paint hazard reduction program: Provided further, That not to exceed 20 percent of any grant made with funds appropriated herein (other than øa grant made available under the preceding proviso to the Housing Assistance Council or the National American Indian Housing Council, or¿ a grant using funds under section 107(b)(3) of the Housing and Community Development Act of 1974, as amended) shall be expended for ‘‘Planning and Management Development’’ and ‘‘Administration’’ as defined in regulations promulgated by the Departmentø: Provided further, That for fiscal year 1997 and thereafter, section 105(a)(25) of such 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¿. øOf the amount provided under this heading, the Secretary of Housing and Urban Development may use up to $60,000,000 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 (42 U.S.C. 1437f), and other low-income families and individuals to become self-sufficient: Provided, That the program shall provide supportive services, principally for the benefit of public housing residents, to the elderly and the disabled, and to families with children where the head of household would benefit from the receipt of supportive services and is working, seeking work, or is preparing for work by participating in job training or educational programs: Provided further, That the supportive serv- COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ices may include congregate services for the elderly and disabled, service coordinators, and coordinated educational, training, and other supportive services, including academic skills training, job search assistance, assistance related to retaining employment, vocational and entrepreneurship development and support programs, transportation, and child care: Provided further, That the Secretary shall require applications to demonstrate firm commitments of funding or services from other sources: Provided further, That the Secretary shall select public and Indian housing agencies to receive assistance under this head on a competitive basis, taking into account the quality of the proposed program (including any innovative approaches, the extent of the proposed coordination of supportive services, the extent of commitments of funding or services from other sources, the extent to which the proposed program includes reasonably achievable, quantifiable goals for measuring performance under the program over a three-year period, the extent of success an agency has had in carrying out other comparable initiatives, and other appropriate criteria established by the Secretary). Provided further, That from the foregoing $60,000,000, up to $5,000,000 shall be available for the Tenant Opportunity Program, and up to $5,000,000 shall be available for the Moving to Work Demonstration for public housing families.¿ øOf the amount made available under this heading, notwithstanding any other provision of law, $20,000,000 shall be available for grants to entities managing or operating public housing developments, federally-assisted multifamily-housing developments, or other multifamily-housing developments for low-income families supported by non-Federal governmental entities or similar housing developments supported by nonprofit private sources, to reimburse local law enforcement entities for additional police presence in and around such housing developments; to provide or augment such security services by other entities or employees of the recipient agency; to assist in the investigation and/or prosecution of drug related criminal activity in and around such developments; and to provide assistance for the development of capital improvements at such developments directly relating to the security of such developments: Provided, That such grants shall be made on a competitive basis as specified in section 102 of the HUD Reform Act.¿ øOf the amount made available under this heading, notwithstanding any other provision of law, $30,000,000 shall be available for youthbuild program activities authorized by subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act, as amended, and such activities shall be an eligible activity with respect to any funds made available under this heading.¿ øOf the amount made available under this heading, notwithstanding any other provision of law, $60,000,000 shall be available for the lead-based paint hazard reduction program as authorized under sections 1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992.¿ For the cost of guaranteed loans, ø$31,750,000¿ $29,000,000, as authorized by section 108 of the Housing and Community Development Act of 1974: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed ø$1,500,000,000¿, $1,261,000,000, notwithstanding any aggregate limitation on outstanding obligations guaranteed in section 108(k) of the Housing and Community Development Act øof 1974¿. In addition, for administrative expenses to carry out the guaranteed loan program, ø$675,000¿ $1,000,000, which shall be transferred to and merged with the appropriation for departmental salaries and expenses. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 86–0162–0–1–451 1996 actual 1997 est. 1998 est. 00.01 Obligations by program activity: Grants ............................................................................ 4,415 5,326 4,600 10.00 Total obligations (object class 41.0) ........................ 4,415 5,326 4,600 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 ....................................................................... 487 4,650 726 ................... 4,600 4,600 21.40 3 ................... ................... 23.90 23.95 24.40 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 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) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 5,140 –4,415 5,326 –5,326 539 4,600 –4,600 726 ................... ................... 4,650 4,600 4,600 72.40 8,645 8,512 9,001 4,415 5,326 4,600 –4,545 –4,837 –4,641 –3 ................... ................... 8,512 9,001 8,960 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 186 4,359 91 4,746 91 4,550 87.00 Total outlays (gross) ................................................. 4,545 4,837 4,641 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 4,650 4,545 4,600 4,837 4,600 4,641 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. Section 107 Grants include funding for Insular Areas, technical assistance, Historically Black Colleges and Universities, Community Development Work Study and Community Outreach Partnership programs. A revised and enhanced Economic Development Initiative (EDI) program which will build upon the success of the existing program, is proposed for 1998. The proposal will expand funding available for job creation projects, expand the list of eligible recipients, and provide more flexibility in meeting community and economic development needs. The focus of the 1998 EDI grants will be on the need to create employment opportunities in the wake of welfare reform. The Homeownership Zones program will provide flexible grants to States and Community Development Block Grant (CDBG) entitlement units of general local government for large-scale redevelopment of abandoned neighborhoods to create viable communities of mixed income homebuyers. The Capacity Building for Community Development and Affordable Housing program provides funding to the National Community Development Initiative (NCDI) to build the capacity of community-based development corporations and housing development organizations, and to assist such entities to carry out community development and affordable housing activities. Title X of the Housing and Community Development Act of 1992 (Public Law 102–550) authorizes a Lead-Based Paint Hazard Reduction program to address lead-hazard reduction activities in privately owned housing. Habitat for Humanity International would use this grant to undertake innovative homeownership opportunities through the provision of self-help housing, under which a homeowner would contribute a significant amount of sweat equity toward the construction of the new dwelling. These decent, safe and sanitary nonluxury dwellings must be made available to eligible homeowners at prices below prevailing market prices. Eligible activities include land acquisition (including financing and closing costs) and infrastructure improvement (installing, extending, constructing, rehabilitating or otherwise improving utilities and other infrastructure). The Bridges to Work program will provide assistance to low-income work-ready, but unemployed or underemployed, 540 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued Program and Financing (in millions of dollars) COMMUNITY DEVELOPMENT BLOCK GRANTS øFUND¿—Continued Identification code 86–0314–0–1–451 1996 actual 1997 est. 1998 est. (INCLUDING TRANSFERS OF FUNDS)—Continued city residents in finding and maintaining employment. These grants will emphasize the link between transportation services and other supportive services to increase access to jobs throughout a metropolitan area. The funding will provide time-limited assistance for job search, transportation, child care and other needed supportive services to increase job opportunities. The program will build on the existing demonstration program by expanding collaborative efforts by private businesses, non-profit organizations and public agencies, including the Federal Government. The Bridges to Work program would be available on a competitive basis and would be targeted, but not limited to, Empowerment Zones and Enterprise Communities. 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... ................... 25 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 25 –25 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 25 73.10 73.20 74.40 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... 25 –1 24 86.90 EMPOWERMENT ZONES AND For grants to Empowerment Zones and Enterprise Communities, to be designated by the Secretary of the Department of Housing and Urban Development, to continue efforts to stimulate economic opportunity in America’s distressed communities, $100,000,000, to remain available until expended. (Additional authorizing legislation required.) Program and Financing (in millions of dollars) 1996 actual 1997 est. 1998 est. 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... ................... 100 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 100 –100 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 100 73.10 73.20 74.40 86.90 89.00 90.00 1 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 25 1 ENTERPRISE COMMUNITIES (Legislative proposal, not subject to PAYGO) Identification code 86–0315–2–1–451 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 100 –2 This program would make competitive economic development grants in conjunction with Section 108 loan guarantees for qualified brownfield projects. This is the first of four annual funding requests, for a total of $100 million, to be dedicated to the initiative between 1998 and 2001. This program will solicit applications from communities with the best proposals for returning these sites to productive, and employment generating uses, with an emphasis on creating substantial numbers of jobs for lower income people in physically and economically distressed neighborhoods. Grants would be made in accordance with section 108(q) selection criteria and such other criteria deemed appropriate for brownfield projects, including the extent to which an applicant is currrently operating a brownfields program and is working with appropriate environmental regulatory agencies. Priority would be given to those projects that are located in designated Empowerment Zones or Enterprise Communities. 98 HOME INVESTMENT PARTNERSHIPS PROGRAM 2 100 2 This program would provide grants to support the financing of capital projects, including housing and economic development, in urban Empowerment Zones and Enterprise Communities. Applicants would be challenged to develop their own comprehensive strategic plans for revitalization, with the input of residents and a wide array of community partners. Grants could be used for a range of activities, at local discretion, including: workforce preparation and job creation efforts linked to welfare reform, repayment of debt financed by municipal bonds; financing of projects in conjunction with the section 108 financing loan guarantee program and other economic development projects; and support for project-based rental assistance and other housing initiatives. For the HOME investment partnerships program, as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101–625), as amended, ø$1,400,000,000¿ $1,309,000,000, to remain available until expended: Provided, ø$21,000,000 shall be available for grants to Indian tribes: Provided further,¿ That up to ø0.5 percent, but not less than¿ $7,000,000 shall be available for the development and operation of integrated community development management information systemsø; Provided further, That $15,000,000 shall be available for Housing Counseling under section 106 of the Housing and Urban Development Act of 1968¿. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 86–0205–0–1–999 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 ....................................................................... 1996 actual 1997 est. 1998 est. 1,367 1,582 1,309 148 1,400 182 ................... 1,400 1,309 21.40 BROWNFIELDS REDEVELOPMENT For Economic Development Grants, as authorized by section 108 of the Housing and Community Development Act of 1974, as amended, for Brownfields redevelopment projects, $25,000,000, to remain available until expended. 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. 1 ................... ................... 1,549 –1,367 1,582 –1,582 1,309 –1,309 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24.40 40.00 Unobligated balance available, end of year: Uninvested balance ................................................... 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) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 13 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 5 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 5 10 3 182 ................... ................... 1,400 1,400 1,309 72.40 3,189 3,349 3,486 1,367 1,582 1,309 –1,206 –1,445 –1,440 –1 ................... ................... 3,349 3,486 3,355 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 28 1,178 28 1,417 26 1,414 87.00 Total outlays (gross) ................................................. 1,206 1,445 1,440 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1,400 1,206 1,400 1,445 1,309 1,440 The HOME Investment Partnership program is authorized by the National Affordable Housing Act (P.L. 101–625). This program provides assistance to States and units of local government, through formula allocation, for the purpose of expanding the supply and affordability of housing. Eligible activities include acquisition, rehabilitation, and new construction of housing and tenant-based rental assistance. The 1998 proposal includes funds to continue to develop, implement and refine integrated community development management information systems which are critical to establishing a national database of local needs and program performance, as well as to provide localities, States and community members with software to plan and track performance. Funding for technical assistance is also included. 541 3 ................... 10 3 As authorized by section 4 of the HUD Demonstration Act of 1993, this program provides funding to the National Community Development Initiative to build the capacity of community-based development corporations and housing development organizations, and to assist such corporations and organizations to carry out community development and affordable housing activities. Funding for this program was provided under the Annual Contributions for Assisted Housing account in 1996, and is requested under the Community Development Block Grant account in 1998. EMERGENCY SHELTER GRANTS PROGRAM Program and Financing (in millions of dollars) Identification code 86–0181–0–1–604 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1996 actual 1997 est. 1998 est. 72.40 36 –30 6 ................... –6 ................... 6 ................... ................... 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 30 6 ................... 30 6 ................... URBAN DEVELOPMENT ACTION GRANTS Program and Financing (in millions of dollars) Identification code 86–0170–0–1–451 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1996 actual 1997 est. 1998 est. 72.40 163 –27 136 –60 76 –45 136 76 31 27 60 45 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 government, and nonprofit organizations to provide emergency shelter and other support for the homeless. Since fiscal year 1995, this assistance has been funded under the Homeless Assistance Grants account. SUPPORTIVE HOUSING PROGRAM 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 27 60 45 Title I of the Housing and Community Development Act of 1974, as amended, authorized grants to distressed cities and distressed urban counties to fund economic development projects. The program was terminated in 1990. Of the funds made available under this heading in Public Law 102–389 and prior laws for the Supportive Housing Demonstration Program, as authorized by the Stewart B. McKinney Homeless Assistance Act, $6,000,000 of funds recaptured during fiscal year 1998 shall be rescinded. Program and Financing (in millions of dollars) Identification code 86–0188–0–1–604 10.00 CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AFFORDABLE HOUSING AND Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.20 Total outlays (gross) ...................................................... 1996 actual 1997 est. 1998 est. 13 –10 1998 est. 31 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 66 31 ................... 22.00 New budget authority (gross) ........................................ ................... ................... –6 22.10 Resources available from recoveries of prior year obligations ....................................................................... 9 ................... 6 23.90 23.95 24.40 72.40 19 –5 44 1997 est. 21.40 Program and Financing (in millions of dollars) Identification code 86–0222–0–1–451 Obligations by program activity: Total obligations (object class 41.0) ............................ 1996 actual 3 –3 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 75 –44 31 ................... –31 ................... 31 ................... ................... 542 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued SUPPORTIVE HOUSING PROGRAM—Continued Program and Financing (in millions of dollars)—Continued Identification code 86–0188–0–1–604 40.36 1996 actual 1997 est. 1998 est. New budget authority (gross), detail: Unobligated balance rescinded ..................................... ................... ................... 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 ............................................................. 575 462 336 44 31 ................... –148 –157 –144 –9 ................... –6 462 336 186 148 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 157 144 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... 148 157 –6 144 Title IV, subtitle C, of the Stewart B. McKinney Homeless Assistance Act authorizes assistance to promote the development of supportive housing and services, especially for deinstitutionalized homeless individuals, homeless families with children, homeless individuals with mental disabilities, and other persons including those with AIDS. Such assistance is available for the acquisition, rehabilitation, construction, or leasing of structures to be used for homeless persons as well as to pay for operating costs and supportive services. Since fiscal year 1995, this type of assistance has been funded under the Homeless Assistance Grants account. This proposal would rescind funding, recaptured in 1998, for approved projects in prior years which were either not undertaken or utilized less funding than originally obligated. THE Program and Financing (in millions of dollars) Identification code 86–0187–0–1–451 1996 actual 1997 est. Total budgetary resources available for obligation 1 1 1 New obligations ............................................................. ................... ................... ................... Unobligated balance available, end of year: Uninvested balance ................................................... 1 1 1 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 9 3 ................... 73.10 New obligations ............................................................. ................... ................... ................... 73.20 Total outlays (gross) ...................................................... –5 –3 ................... 73.45 Adjustments in unexpired accounts .............................. –1 ................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 3 ................... ................... Outlays (gross), detail: Outlays from current balances ...................................... 5 Program and Financing (in millions of dollars) Identification code 86–0204–0–1–604 10.00 3 ................... Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... 5 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 pro- Obligations by program activity: Total obligations (object class 41.0) ............................ 1996 actual 9 1997 est. 1998 est. 16 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 24 16 ................... 22.00 New budget authority (gross) ........................................ ................... ................... –4 22.10 Resources available from recoveries of prior year obligations ....................................................................... 1 ................... 4 21.40 23.90 23.95 24.40 40.36 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 25 –9 16 ................... –16 ................... 16 ................... ................... New budget authority (gross), detail: Unobligated balance rescinded ..................................... ................... ................... 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 ............................................................. –4 72.40 86.90 86.93 1998 est. 72.40 86.93 Of the funds made available under this heading in Public Law 102–389 and prior laws for the Shelter Plus Care program, as authorized by the Stewart B. McKinney Homeless Assistance Act, $4,000,000 of funds recaptured during fiscal year 1998 shall be rescinded. 87.00 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... ................... 1 1 22.10 Resources available from recoveries of prior year obligations ....................................................................... 1 ................... ................... 23.90 23.95 24.40 SHELTER PLUS CARE –6 72.40 SUPPLEMENTAL ASSISTANCE FOR FACILITIES TO ASSIST HOMELESS vide 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. 89.00 90.00 454 419 385 9 16 ................... –43 –50 –49 –1 ................... –4 419 385 332 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... ................... Outlays from current balances ...................................... 43 50 49 Total outlays (gross) ................................................. 43 50 49 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... 43 50 –4 49 Title IV, subtitle F, of the Stewart B. McKinney Homeless Assistance Act, authorizes the Secretary to provide rental assistance to persons with disabilities. Supportive services at least equal in value to the aggregate rental assistance must also be provided by grant recipients, using other Federal, State, local and private resources. Eligible recipients include States, units of general local government and Indian tribes. Since fiscal year 1995, this type of assistance has been funded under the Homeless Assistance Grants account. This proposal would rescind funding, recaptured in 1998, for approved projects in prior years which were either not undertaken or utilized less funding than was originally obligated. INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM Program and Financing (in millions of dollars) Identification code 86–0221–0–1–604 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.20 Total outlays (gross) ...................................................... 1996 actual 1997 est. 1998 est. 72.40 79 –20 58 –19 39 –17 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 58 39 22 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 20 19 17 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 20 19 17 Section 2 of the HUD Demonstration Act of 1993 authorized assistance for projects intended to provide a continuum of care for homeless persons and for innovative programs to assist homeless persons. Eligible recipients included States, units of local government, Indian tribes, and nonprofit organizations. Authorization for this program expired at the end of fiscal year 1994. HOMELESS ASSISTANCE øFUNDS¿ GRANTS For grants to States, units of general local government, nonprofit organizations, or public housing authorities, and for related expenses not otherwise provided for, necessary for carrying out a performancebased homeless assistance program, $823,000,000, to remain available until expended: Provided, That up to one percent of such funds shall be available to the Secretary for technical assistance. (Additional authorizing legislation required.) øFor the emergency shelter grants program (as authorized under subtitle B of title IV of the Stewart B. McKinney Homeless Assistance Act (Public Law 100–77), as amended); the supportive housing program (as authorized under subtitle C of title IV of such Act); the section 8 moderate rehabilitation single room occupancy program (as authorized under the United States Housing Act of 1937, as amended) to assist homeless individuals pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act; and the shelter plus care program (as authorized under subtitle F of title IV of such Act), $823,000,000, to remain available until expended.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 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) ............................ Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 23.90 23.95 24.40 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 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) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1996 actual 785 The Homeless Assistance Grants program consolidates the activities of HUD’s six McKinney homeless assistance programs—Shelter Plus Care, Supportive Housing, Emergency Shelter Grants, Section 8 Single Room Occupancy, Rural Homeless Grants and Safe Havens—as well as those of the Innovative Homeless Initiatives Demonstration program. This consolidation would enable localities to continue to shape and implement comprehensive, flexible, coordinated ‘‘continuum of care’’ approaches to solving rather than institutionalizing homelessness. In fact, over the last three years, many communities have made great strides in developing holistic continuum of care approaches to solving homelessness. A community-based process would be required as part of the application process. Communities will be required to include in their applications performance measures that contain specific goals that would accrue from the community’s efforts, and will be required to demonstrate tangible results on an annual basis. Approved funding would be available for a wide range of activities to assist homeless persons and prevent future homelessness. Funding is also requested for technical assistance to provide needed assistance to grantees in resolving problems that hinder successful project completion and implementation. YOUTHBUILD PROGRAM For the HOPE for Youth: Youthbuild program, authorized by subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act, as amended, $30,000,000, to remain available until expended. Program and Financing (in millions of dollars) Identification code 86–0219–0–1–604 10.00 1997 est. 1,711 1998 est. 823 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... 1997 est. 1998 est. 3 30 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 2 3 ................... 22.00 New budget authority (gross) ........................................ ................... ................... 30 22.10 Resources available from recoveries of prior year obligations ....................................................................... 1 ................... ................... 888 ................... 823 823 1 ................... ................... 1,673 –785 1996 actual 21.40 23.90 23.95 24.40 849 823 543 1,711 –1,711 823 –823 40.00 Total budgetary resources available for obligation 3 3 30 New obligations ............................................................. ................... –3 –30 Unobligated balance available, end of year: Uninvested balance ................................................... 3 ................... ................... New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 30 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 85 43 21 73.10 New obligations ............................................................. ................... 3 30 73.20 Total outlays (gross) ...................................................... –41 –25 –15 73.45 Adjustments in unexpired accounts .............................. –1 ................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 43 21 36 72.40 888 ................... ................... 823 823 823 72.40 260 857 2,283 785 1,711 823 –186 –285 –474 –1 ................... ................... 857 2,283 2,632 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 41 145 41 244 41 433 87.00 Total outlays (gross) ................................................. 186 285 474 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 823 186 823 285 823 474 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 25 15 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... 41 25 30 15 41 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. 544 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued 89.00 90.00 YOUTHBUILD PROGRAM—Continued For fiscal years 1996 and 1997, funding for the Youthbuild program was included in the Community Development Block Grants account. Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –46 –30 –39 Status of Direct Loans (in millions of dollars) 1996 actual Identification code 86–4015–0–3–451 NATIONAL CITIES IN Program and Financing (in millions of dollars) 1996 actual 1997 est. 1998 est. 1998 est. Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 2 ................... ................... 73.20 Total outlays (gross) ...................................................... –2 ................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... ................... 1210 1251 1263 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Repayments: Repayments and prepayments ................. Write-offs for default: Direct loans ............................... 388 –51 –9 328 282 –45 –40 –1 ................... 1290 SCHOOLS COMMUNITY DEVELOPMENT PROGRAM Identification code 86–0220–0–1–451 1997 est. Outstanding, end of year .......................................... 328 282 242 Status of Guaranteed Loans (in millions of dollars) 1996 actual Identification code 86–4015–0–3–451 1997 est. 1998 est. 2 ................... ................... Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... 2 ................... ................... This program provides grants for community-wide programs designed to assist at-risk youth and their families. Funding for this program was provided under the Annual Contributions for Assisted Housing account in fiscal year 1996. 2210 2251 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Repayments and prepayments ...................................... 4 –1 3 –1 2 –1 2290 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... Outstanding, end of year .......................................... 3 2 1 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 3 2 1 The Revolving fund (liquidating programs) was established by the Independent Offices Appropriation Act of 1955 for the efficient liquidation of assets acquired under a number of housing and urban development programs. Public enterprise funds: Statement of Operations (in millions of dollars) REVOLVING FUND (LIQUIDATING PROGRAMS) 1995 actual 1996 actual 0101 0102 Revenue ................................................... Expense .................................................... 19 –12 31 –18 20 –15 20 –12 0109 Net income or loss (–) ............................ 7 13 5 8 Identification code 86–4015–0–3–451 1997 est. 1998 est. Program and Financing (in millions of dollars) Identification code 86–4015–0–3–451 00.03 00.04 00.05 10.00 1996 actual Obligations by program activity: Loan servicing and other expenses ............................... 8 Maintenance of acquired security and collateral ......... ................... Administrative expenses ................................................ 1 Total obligations ........................................................ 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 ................................... 9 1997 est. 1998 est. 7 7 1 7 6 1 15 14 21.90 23.90 23.95 24.90 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 ............................................................. Outlays (gross), detail: 86.98 Outlays from permanent balances ................................ Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. 102 74 97 65 87 60 1 ................... ................... –70 –60 –60 107 –9 102 –15 87 –14 97 87 73 74 65 60 46 27 7 9 15 14 –28 –35 –21 –1 ................... ................... 27 28 7 ................... 35 21 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 ............................. 1699 Value of assets related to direct loans .......................................... 1999 Total assets ........................................ LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................................ 2207 Other ................................................... 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3200 Invested capital ....................................... 3300 Cumulative results of operations ............ 1995 actual 1996 actual 1997 est. 1998 est. 149 3 125 4 135 3 130 2 391 21 331 18 301 20 254 18 –36 –25 –39 –30 376 1 324 1 282 1 242 .................. 377 325 283 242 529 454 421 374 1 13 .................. 9 .................. 8 .................. 7 14 9 8 7 .................. .................. 514 28 301 116 28 301 84 28 301 38 3999 –74 –65 –60 Total net position ................................ 514 445 413 367 4999 Total liabilities and net position ............ 528 454 421 374 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Object Classification (in millions of dollars) Identification code 86–4015–0–3–451 1996 actual 1997 est. 1998 est. 25.2 32.0 Other services ................................................................ Land and structures ...................................................... 5 4 10 5 10 4 99.9 Total obligations ........................................................ 9 15 14 Credit accounts: COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT 3510 3590 Administrative expense data: Budget authority ............................................................ Outlays ........................................................................... 545 1 1 1 1 1 1 As required by the Federal Credit Reform Act of 1990, this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1992 and beyond (including modifications of direct loans or loan guarantees that resulted from obligations or commitments in any year), as well as administrative expenses of this program. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis. Program and Financing (in millions of dollars) Identification code 86–0198–0–1–451 1996 actual 1997 est. 1998 est. COMMUNITY DEVELOPMENT LOAN GUARANTEES FINANCING ACCOUNT Program and Financing (in millions of dollars) 00.02 00.09 Obligations by program activity: Guaranteed loan subsidy ............................................... Administrative expenses ................................................ 9 1 32 1 29 1 10.00 Total obligations (object class 33.0) ........................ 10 33 30 Identification code 86–4096–0–3–451 1996 actual 1997 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... ................... ................... 22.00 New financing authority (gross) .................................... ................... 23 1998 est. 21.90 22.00 22.30 Budgetary resources available for obligation: New budget authority (gross) ........................................ Unobligated balance expiring ........................................ 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. 10 –10 33 –33 30 –30 40.00 New budget authority (gross), detail: Appropriation .................................................................. 33 33 30 33 33 30 –23 ................... ................... 9 33 –23 19 30 –35 19 23 60 23 60 New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... ................... 23 37 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... ................... 88.25 Interest on uninvested funds ............................... ................... –22 –1 –34 –3 88.90 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. ................... 73.10 New obligations ............................................................. 10 73.20 Total outlays (gross) ...................................................... –1 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 9 72.40 23.90 24.90 –23 –37 68.00 Total budgetary resources available for obligation ................... Unobligated balance available, end of year: Fund balance ...................................................................... ................... 23 37 14 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. 1 86.93 Outlays from current balances ...................................... ................... 17 6 16 19 87.00 Total outlays (gross) ................................................. 1 23 35 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 33 1 33 23 30 35 Total, offsetting collections (cash) .................. ................... Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... ................... –23 –37 Status of Guaranteed Loans (in millions of dollars) Guaranteed Loans.—The Community Development Block Grant program includes a guaranteed loan provision (Section 108). A commitment level of $1.3 billion is proposed for the Community Development Loan Guarantees (Section 108) program for 1998. The credit subsidy/administrative cost estimate for the guaranteed loan program is $30 million in FY 1998. Identification code 86–4096–0–3–451 Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2112 Uncommitted loan guarantee limitation ....................... 1996 actual 1997 est. 1998 est. 1,500 1,380 1,261 –1,066 ................... ................... 1997 est. Total guaranteed loan commitments ........................ 434 1,380 1,261 2210 2231 2251 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... 430 360 –40 750 750 –75 1,425 1,150 –135 Outstanding, end of year .......................................... 750 1,425 2,440 2299 1996 actual 2150 2290 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0198–0–1–451 89.00 90.00 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 750 1,425 2,440 1998 est. Guaranteed loan levels supportable by subsidy budget authority: 2150 Loan guarantee levels ................................................... 1,500 1,380 1,261 2159 1,500 1,380 1,261 2.10 2.30 2.30 2.10 2.30 2.30 32 32 29 Total subsidy budget authority ................................. 32 Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. ................... 32 29 22 23 2349 22 23 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... 2329 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... 2339 Total subsidy outlays ................................................ ................... 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. As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loan guarantees committed in 1992 and beyond (including modifications of loan guaran- 546 COMMUNITY PLANNING AND DEVELOPMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued COMMUNITY DEVELOPMENT LOAN GUARANTEES FINANCING ACCOUNT—Continued tees that resulted from commitments in any year). The amounts in this account are a means of financing and are not included in the budget totals. COMMUNITY DEVELOPMENT LOAN GUARANTEES LIQUIDATING ACCOUNT erty, 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 Program and Financing (in millions of dollars) Federal Funds Identification code 86–4097–0–3–451 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ 22.60 Redemption of debt ....................................................... 23.90 68.00 1996 actual 1997 est. 50 –50 1998 est. 4 –4 General and special funds: 4 –4 Total budgetary resources available for obligation ................... ................... ................... 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 .................................................... 73.20 Total outlays (gross) ...................................................... 74.47 Unpaid obligations, end of year: Obligated balance: Authority to borrow .................................................... 50 4 4 72.47 86.98 Outlays (gross), detail: Outlays from permanent balances ................................ Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. 89.00 90.00 153 147 147 –6 ................... ................... 147 147 147 6 ................... ................... –50 –4 –4 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –44 –4 –4 Status of Direct Loans (in millions of dollars) Identification code 86–4097–0–3–451 1996 actual 1997 est. 1998 est. 1210 1251 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Repayments: Repayments and prepayments ................. 89 –50 39 –4 35 –4 1290 Outstanding, end of year .......................................... 39 35 31 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4097–0–3–451 1996 actual 1997 est. 1998 est. 2210 2231 2251 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... 246 44 –47 243 15 –55 203 10 –33 2290 Outstanding, end of year .......................................... 243 203 180 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 243 203 180 As required by the Federal Credit Reform Act of 1990, this account records all cash flows to and from the Government resulting from Federal Financing Bank (FFB) direct loans for which loan guarantees were committed prior to 1992. This account is shown on a cash basis. Guaranteed loans.—Guaranteed loan assistance under the Community Development Loan Guarantees program is provided to eligible communities to finance economic development activities, housing rehabilitation, public facilities, acquisition of real property, rehabilitation of publicly owned real prop- øDEVELOPMENT OF ADDITIONAL NEW SUBSIDIZED HOUSING¿ HOUSING FOR SPECIAL POPULATIONS For assistance for the purchase, construction, acquisition, or development of additional public and subsidized housing units for low income families under the United States Housing Act of 1937, as amended, ø(‘‘the Act’’ herein)¿ (42 U.S.C. 1437), not otherwise provided for, ø$1,039,000,000¿ $474,000,000, to remain available until expended: Provided, That of the total amount provided under this head, ø$645,000,000¿ $300,000,000 shall be for capital advances, including amendments to capital advance contracts, for housing for the elderly, as authorized by section 202 of the Housing Act of 1959, as amended, and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for the elderly under section 202(c)(2) of the Housing Act of 1959; and ø$194,000,000¿ $174,000,000 shall be for capital advances, including amendments to capital advance contracts, for supportive housing for persons with disabilities, as authorized by section 811 of the Cranston-Gonzalez National Affordable Housing Act, and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for persons with disabilities as authorized by section 811 of øthe Cranston-Gonzalez National Affordable Housing¿ such Act: Provided further, That the Secretary may designate up to 25 percent of the amounts earmarked under this paragraph for section 811 of øthe Cranston-Gonzalez National Affordable Housing¿ such Act for tenant-based assistance, as authorized under that section, including such authority as may be waived under the next proviso, which assistance is five years in duration: Provided further, That the Secretary may waive any provision of section 202 of the Housing Act of 1959 and section 811 of the National Affordable Housing Act (including the provisions governing the terms and conditions of project rental assistance and tenant-based assistance) that the Secretary determines is not necessary to achieve the objectives of these programs, or that otherwise impedes the ability to develop, operate or administer projects assisted under these programs, and may make provision for alternative conditions or terms where appropriate: Provided further, That øof the total amount provided under this head $200,000,000, shall be for the development or acquisition cost of public housing for Indian families, including amounts for housing under the mutual help homeownership opportunity program under section 202 of the Act (42 U.S.C. 1437bb)¿ all obligated and unobligated balances remaining in either the Annual Contributions for Assisted Housing account or the Development of Additional New Subsidized Housing account for capital advances, including amendments to capital advances, for housing for the elderly, as authorized by section 202 of the Housing Act of 1959, as amended, and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for the elderly, under section 202(c)(2) of such Act, shall be transferred to and merged with the amounts for those purposes under this head; and, all obligated and unobligated balances remaining in either the Annual Contributions for Assisted Housing account or the Development of Additional New Subsidized Housing account for capital advances, including amendments to capital advances, for supportive housing for persons with disabilities, as authorized by section 811 of the Cranston-Gonzales National Affordable Housing Act, and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for persons with disabilities, as authorized under section 811 of such Act, shall be transferred to and merged with the amounts for those purposes under this head. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OTHER ASSISTED HOUSING PROGRAMS Program and Financing (in millions of dollars) 1996 actual Identification code 86–0310–0–1–604 547 1997 est. RENTAL HOUSING ASSISTANCE 1998 est. (Rescissions) Obligations by program activity: 10.00 Total obligations (object class 41.0) ............................ ................... 1,039 474 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... New obligations ............................................................. ................... 1,039 –1,039 474 –474 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... 1,039 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 1998 by not more than $7,350,000 in uncommitted balances of authorizations provided for this purpose in appropriation Acts: Provided, That up to $125,000,000 of recaptured budget authority shall be canceled. 474 Program and Financing (in millions of dollars) Identification code 86–0206–0–1–999 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 ................... ................... ................... 1,039 ................... ................... 1,039 474 –15 ................... 1996 actual 1997 est. 1998 est. Obligations by program activity: Rent supplement ............................................................ Homeownership and rental housing assistance (Sections 235 and 236) ................................................... 9 39 37 16 68 64 Total obligations (object class 41.0) ........................ 25 107 101 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested balance ................................................... 21.49 Contract authority (available) ................................... 12 1,032 00.01 00.02 1,498 10.00 1,039 86.93 Outlays (gross), detail: Outlays from current balances ...................................... ................... ................... 15 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... 1,039 Outlays ........................................................................... ................... ................... 474 15 21.99 22.00 22.10 Total unobligated balance, start of year ............. 1,044 993 New budget authority (gross) ........................................ ................... ................... Resources available from recoveries of prior year obligations ....................................................................... 340 111 Balance of contract authority withdrawn ...................... –365 –38 959 –125 1,019 –25 1,079 –101 24.40 24.49 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... Contract authority (available) ................................... 24.99 Total unobligated balance, end of year .................... 993 22.75 This account consolidates the new activity under the Section 202 Housing for the Elderly Program and the Section 811 Housing for the Disabled Program. Program activity prior to 1997 is reflected in the Annual Contributions for Assisted Housing account. Renewal of prior year contracts is reflected in the Prevention of Resident Displacement account. A program level of $300 million for Housing for the Elderly grants and rental assistance is proposed for 1998. This is estimated to support the production of 3,865 additional units. A program level of $174 million is proposed for disabled housing, including $43.5 million for 1,630 5-year vouchers and $130.5 million for grant and rental assistance to support 1,488 additional units. During fiscal year 1996 funding for supportive housing for the elderly and disabled was provided under the Annual Contributions for Assisted Housing account. For 1997, funding was provided under the Development of Additional New Subsidized Housing, and in 1998 funding is proposed under the new Housing for Special Populations account. The table below shows the total budget authority and outlays associated with all three accounts. Language is being proposed in this budget to transfer the balances from Annual Contributions and Development of Additional New Housing accounts to the Housing for Special Populations account. 15 ................... 978 959 23.90 23.95 1,066 –107 15 ................... ................... 978 959 978 959 New budget authority (gross), detail: Current: 40.36 Unobligated balance canceled .................................. ................... ................... Permanent: 60.05 Appropriation (indefinite) .......................................... 709 727 60.49 Portion applied to liquidate contract authority ........ –709 –727 63.00 70.00 278 –33 978 –125 678 –678 Appropriation (total) ............................................. ................... ................... ................... Total new budget authority (gross) .......................... ................... ................... –125 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: 72.40 Administrative commitment (reserved) ................ 72.49 Contract authority ................................................. 104 22,774 140 21,687 140 20,956 72.99 73.10 73.20 73.45 21,827 107 –727 –111 21,096 101 –678 –278 140 21,687 140 20,956 140 20,101 74.99 Proposed Transfer of Balances 22,878 25 –736 –340 74.40 74.49 Total unpaid obligations, start of year ................ New obligations ............................................................. Total outlays (gross) ...................................................... Adjustments in unexpired accounts .............................. Unpaid obligations, end of year: Obligated balance: Administrative commitment reserved ................... Contract authority ................................................. Total unpaid obligations, end of year .................. 21,827 21,096 20,241 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 736 727 678 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... 736 727 –125 678 [In millions of dollars] 1996 actual Annual Contributions for Assisted Housing: Budget Authority ..................................................................... Outlays .................................................................................... Development of Additional New Subsidized Housing: Budget Authority ..................................................................... Outlays .................................................................................... Housing for Special Populations: Budget Authority ..................................................................... Outlays .................................................................................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 1997 est. 1998 est. 1,013 757 NA 853 NA 911 NA NA 839 NA NA NA NA NA NA NA 474 NA 1,013 757 839 853 474 911 Status of Contract Authority (in millions of dollars) Identification code 86–0206–0–1–999 1996 actual 1997 est. Balance, start of year: 0100 Balance, start of year .................................................... 1,032 978 0100 Balance, start of year .................................................... 22,774 21,687 Contract authority: 0200 Contract authority .......................................................... ................... ................... 1998 est. 959 20,956 –125 HOUSING PROGRAMS—Continued Federal Funds—Continued 548 THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued HOMEOWNERSHIP RENTAL HOUSING ASSISTANCE—Continued 1996 actual 0400 0600 Appropriation to liquidate contract authority ................ Balance of contract authority withdrawn ...................... Balance, end of year: 0700 Balance, end of year ..................................................... 0700 Balance, end of year ..................................................... 1997 est. 1998 est. –709 –365 –727 –38 –678 –33 978 21,687 959 20,956 978 20,101 1996 actual Identification code 86–0196–0–1–604 00.01 00.02 00.03 00.04 10.00 Obligations by program activity: Hope I ............................................................................. ................... Hope II ............................................................................ ................... Hope III ........................................................................... 3 Elderly independence ..................................................... 1 1997 est. 3 31 2 2 1998 est. ................... ................... ................... ................... Summary of Administrative Commitments [In millions of dollars] 1997 est. Total obligations (object class 41.0) ........................ 4 38 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance: 21.40 Uncommitted ......................................................... 21.40 Administratively committed .................................. OTHER ASSISTED HOUSING 1996 actual EVERYWHERE Program and Financing (in millions of dollars) Status of Contract Authority (in millions of dollars)—Continued Identification code 86–0206–0–1–999 AND OPPORTUNITY FOR PEOPLE GRANTS (HOPE GRANTS) 36 5 34 ................... 4 ................... Total unobligated balance, start of year ............. Resources available from recoveries of prior year obligations ....................................................................... 41 38 ................... 42 –4 1998 est. 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 ............................. 9 39 37 16 16 –16 68 16 –16 64 16 –16 23.90 23.95 Total obligations ............................................................ 25 107 101 24.40 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance: Uncommitted ......................................................... Administratively committed .................................. 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. 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. During 1998, as a result of foreclosures from mortgage defaults or regulatory violations, the Department will rescind up to $125 million. During 1998, as a result of foreclosures from mortgage defaults or regulatory violations, the Department will rescind up to $125 million. 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 1996, 1997, and 1998. 24.99 Total unobligated balance, end of year .................... 38 ................... ................... 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 ............................................................. 244 184 136 4 38 ................... –63 –86 –59 –1 ................... ................... 21.99 22.10 SUMMARY OF OUTLAYS [In millions of dollars] (Annual Contributions for Assisted Housing, Housing Certificate Fund, and Other Assisted Housing) 1 1996 actual Subsidized housing programs, total ........................................... 21,064 Low-income housing assistance (sec. 8) ................................... 15,779 Public housing ............................................................................. 4,548 Rent supplement ......................................................................... 57 Homeownership assistance (sec. 235) ....................................... .................... Rental housing assistance (sec. 236) ........................................ 663 College housing grants ............................................................... 17 1 Includes outlays for contract renewals. 1997 est. 22,308 17,283 4,296 58 31 623 17 1998 est. 22,494 17,937 3,867 60 31 582 17 1 ................... ................... 38 ................... –38 ................... 34 ................... ................... 4 ................... ................... 72.40 184 136 77 63 86 59 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 63 86 59 Summary of Budget Authority and Outlays [In millions of dollars] Enacted/requested: 1996 actual 1997 est. 1998 est. Budget Authority ..................................................................... .................... .................... .................... Outlays .................................................................................... 63 86 59 Supplemental proposal: Budget Authority ..................................................................... .................... –30 .................... Outlays .................................................................................... .................... –6 –8 Total: Budget Authority ..................................................................... .................... Outlays .................................................................................... 63 –30 .................... 80 51 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 1998. Approximately $30 million of HOPE unobligated balances are proposed for transfer to the Drug Elimination Grants program in 1997. This schedule reflects the liquidation of prior year balances. HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CONGREGATE SERVICES SECTION 8 MODERATE REHABILITATION Program and Financing (in millions of dollars) SINGLE ROOM OCCUPANCY Identification code 86–0178–0–1–604 10.00 549 1996 actual 1997 est. Identification code 86–0195–0–1–604 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... Budgetary resources available for obligation: 23.95 New obligations ............................................................. ................... Program and Financing (in millions of dollars) 1998 est. 1 ................... 10.00 –1 ................... 1996 actual Obligations by program activity: Total obligations (object class 41.0) ............................ 1997 est. 1998 est. 85 106 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 23.95 New obligations ............................................................. 24.40 Unobligated balance available, end of year: Uninvested balance ................................................... 191 –85 106 ................... –106 ................... 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 ............................................................. 319 85 –21 382 433 106 ................... –55 –51 382 433 382 21 55 51 21.40 Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 38 73.10 New obligations ............................................................. ................... 73.20 Total outlays (gross) ...................................................... –8 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 30 Outlays (gross), detail: 86.93 Outlays from current balances ...................................... 89.00 90.00 30 23 1 ................... –7 –7 23 8 16 7 7 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 8 7 7 106 ................... ................... 72.40 86.93 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 being requested for this program in fiscal year 1998. This schedule reflects the liquidation of prior year balances. HOUSING COUNSELING ASSISTANCE For assistance, not otherwise provided, for providing counseling and advice to tenants and homeowners, both current and prospective, with respect to property maintenance, financial management, and such other matters as may be appropriate to assist them in improving their housing conditions and meeting the responsibilities of tenancy or homeownership, as authorized by section 106 of the Housing and Urban Development Act of 1968, as amended, $23,000,000. Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 21 55 51 Section 8 assistance for single room occupancy dwellings is authorized by Title IV, subtitle E, of the Stewart B. McKinney Homeless Assistance Act, as amended by the Housing and Community Development Act of 1992. Since fiscal year 1995, these activities have been funded in the Homeless Assistance Grants account. MANUFACTURED HOME INSPECTION Identification code 86–0156–0–1–506 1996 actual 1997 est. MONITORING Unavailable Collections (in millions of dollars) Identification code 86–5271–0–2–376 Program and Financing (in millions of dollars) AND 1996 actual 1997 est. 1998 est. Balance, start of year: Balance, start of year .................................................... ................... ................... ................... Receipts: 02.01 Manufactured home inspection and monitoring ........... 13 14 16 Appropriation: 05.01 Manufactured home inspection and monitoring ........... –13 –14 –16 07.99 Total balance, end of year ............................................ ................... ................... ................... 01.99 1998 est. 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... ................... 23 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 23 –23 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 23 Program and Financing (in millions of dollars) Identification code 86–5271–0–2–376 Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 17 6 3 73.10 New obligations ............................................................. ................... ................... 23 73.20 Total outlays (gross) ...................................................... –10 –3 –3 73.40 Adjustments in expired accounts .................................. –1 ................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 6 3 23 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 3 3 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... 10 3 1998 est. Obligations by program activity: Transfer to salaries and expenses ................................ Other program costs ...................................................... 1 11 1 13 1 14 10.00 Total obligations (object class 25.2) ........................ 12 14 15 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 7 13 9 14 10 16 20 –12 23 –14 26 –15 9 10 10 New budget authority (gross), detail: Appropriation (special fund, indefinite) ........................ 13 14 16 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 2 12 2 14 3 15 21.40 23.90 23.95 24.40 60.25 The Housing Counseling Assistance program provides comprehensive housing counseling services to eligible homeowners and tenants, including pre-purchase, default and renter counseling. 1997 est. 00.01 00.02 23 3 10 1996 actual Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 72.40 550 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued MANUFACTURED HOME INSPECTION AND MONITORING—Continued Program and Financing (in millions of dollars)—Continued Identification code 86–5271–0–2–376 73.20 74.40 1996 actual 1998 est. –12 –13 –15 2 3 3 Outlays (gross), detail: Outlays from new permanent authority ......................... 12 13 15 Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 13 12 14 13 16 15 86.97 Total outlays (gross) ...................................................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1997 est. 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. Public enterprise funds: TITLE IV—CORPORATIONS Section 620 of the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended, authorizes enforcement of appropriate construction standards for the construction, design and performance of manufactured homes to assure their quality, durability, and safety. All manufactured homes produced since the standards took effect on June 15, 1976 must comply with Federal construction and safety standards. The States are actively encouraged to participate in the program under compliance plans approved by HUD. A fee is charged to the manufacturers for each manufactured home produced to cover the costs of the monitoring and enforcement activities by HUD and its contract agents. Fees are deposited in a special fund administered by the Department, and a portion of the fee receipts are transferred to the salaries and expenses account to defray the direct administrative expenses of the program. 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 limitations as provided by section 104 of the Act as may be necessary in carrying out the programs set forth in the budget for ø1997¿ 1998 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. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) RENTAL HOUSING ASSISTANCE FUND Program and Financing (in millions of dollars) INTERSTATE LAND SALES Identification code 86–4041–0–3–604 1996 actual 1997 est. 1998 est. Unavailable Collections (in millions of dollars) 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 ............................................ 1996 actual 1997 est. ................... ................... ................... ................... 1 Obligations by program activity: Total obligations (object class 25.2) ............................ 55 57 51 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New budget authority (gross) ........................................ 1 55 1 57 1 51 56 –55 57 –57 51 –51 1 1 1 55 57 51 8 55 –55 8 57 –64 1 51 –51 8 1 1 10.00 1998 est. 1 ................... –1 –1 ................... ................... ................... 21.90 23.90 23.95 24.90 Program and Financing (in millions of dollars) Identification code 86–5270–0–2–376 10.00 1996 actual Obligations by program activity: Total obligations (object class 25.2) ............................ ................... 1997 est. 1998 est. 68.00 1 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) ..................................... 1 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 ............................................................. 72.90 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... 23.95 New obligations ............................................................. ................... 1 –1 1 –1 60.25 New budget authority (gross), detail: Appropriation (special fund, indefinite) ........................ ................... 1 1 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. ................... Total outlays (gross) ...................................................... ................... 1 –1 1 –1 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... 1 1 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... ................... 1 1 1 1 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 47 8 57 51 7 ................... 87.00 The Interstate Land Sales Full Disclosure Act provides protection to the public with respect to purchases or leases of 86.97 86.98 Total outlays (gross) ................................................. 55 64 51 Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. –55 –57 –51 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... ................... 7 ................... HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 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. Statement of Operations (in millions of dollars) 1995 actual 1996 actual 0101 0102 Revenue ................................................... Expense .................................................... 61 –61 53 –53 57 –57 51 –51 0109 Net income or loss (–) ............................ .................. .................. .................. .................. 1997 est. 1997 est. 1998 est. 24.99 Total unobligated balance, end of year .................... 142 195 198 68.00 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 67 68 63 114 80 –93 101 15 –95 21 60 –73 101 21 7 Outlays (gross), detail: Outlays from permanent balances ................................ 93 95 73 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 ............................................. –56 –8 –3 –57 –8 –3 –51 –9 –3 88.90 –67 –68 –63 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: U.S. Securities: Par value ......................................... 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.91 Unpaid obligations, end of year: Obligated balance: U.S. Securities: Par value ......................................... 72.91 86.98 1998 est. Identification code 86–4041–0–3–604 551 89.00 90.00 Total, offsetting collections (cash) .................. Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 26 27 10 Balance Sheet (in millions of dollars) Identification code 86–4041–0–3–604 ASSETS: Federal assets: Fund balances with Treasury ............................................... 1206 Non-Federal assets: Receivables, net ..... 1995 actual 1996 actual Status of Direct Loans (in millions of dollars) 1996 actual Identification code 86–4044–0–3–604 1997 est. 1998 est. 1101 1999 Total assets ........................................ LIABILITIES: Federal liabilities: 2101 Accounts payable ................................ 2105 Other ................................................... 2999 Total liabilities .................................... NET POSITION: 3300 Cumulative results of operations ............ 8 7 1 .................. 1 .................. 15 15 1 1 8 .................. 4 3 .................. .................. 7 .................. .................. 7 7 1 1 3999 Total net position ................................ 7 7 1 1 4999 Total liabilities and net position ............ 15 14 1 1 FLEXIBLE SUBSIDY FUND From the Rental Housing Assistance Fund, all uncommitted balances of excess rental charges as of September 30, 1997, and any collections made during fiscal year 1998, shall be transferred to the Flexible Subsidy Fund, as authorized by section 236(g) of the National Housing Act, as amended. Program and Financing (in millions of dollars) Identification code 86–4044–0–3–604 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance: 21.90 Treasury balance: Uncommitted ........................... 21.90 Treasury balance: Administratively committed .... 21.91 U.S. Securities: Par value, uncommitted .................. 1996 actual 80 1997 est. 15 1998 est. 768 73 –3 675 768 838 Outstanding, end of year .......................................... 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. Beginning in FY 1996 these resources are no longer used for new reservations, but they continue to offset Flexible Subsidy outlays and other discretionary expenditures. 60 Summary of Administrative Commitments [In millions of dollars] 1996 actual 27 82 46 88 ................... 15 60 39 135 21.99 22.00 22.30 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ Unobligated balance expiring ........................................ 155 142 195 67 68 63 –1 ................... ................... 23.90 23.95 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 uncommitted ................... 221 –80 24.90 24.90 24.91 675 95 –2 .................. .................. 8 584 93 –2 1290 8 7 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1231 Disbursements: Direct loan disbursements ................... 1251 Repayments: Repayments and prepayments ................. 210 –15 Program by activities: Capital investments: Flexible subsidy reservations ............................................. Administrative commitments, start of year ....................... Cancellation of prior year commitments ........................... Administrative commitments, end of year ......................... Capital investment—obligations .................................. 258 –60 88 ................... 33 15 60 ................... 39 135 165 1997 est. 1998 est. 18 60 .................... 82 15 60 –5 .................... .................... –15 –60 .................... 80 15 60 Statement of Operations (in millions of dollars) Identification code 86–4044–0–3–604 0101 0102 Revenue ................................................... Expense .................................................... 1995 actual 1996 actual 71 –86 66 –64 1997 est. 65 –82 1998 est. 60 –62 552 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 New budget authority (gross), detail: Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... ................... 68.45 Portion not available for obligation (limitation on obligations) ........................................................... ................... Public enterprise funds—Continued FLEXIBLE SUBSIDY FUND—Continued Statement of Operations (in millions of dollars)—Continued Identification code 86–4044–0–3–604 0109 Net income or loss (–) ............................ 1995 actual 1996 actual –15 1997 est. 2 1998 est. –17 68.90 –2 Balance Sheet (in millions of dollars) 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 ............................. 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 1901 Value of assets related to direct loans .......................................... Other Federal assets: Other assets ........ 1999 Total assets ........................................ LIABILITIES: 2201 Non-Federal liabilities: Accounts payable 2999 4 4 –4 –4 Spending authority from offsetting collections (total) ................................................................ ................... ................... ................... 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 ............................................................. 72.90 1995 actual 1996 actual 1997 est. 1998 est. 126 120 76 44 82 6 140 4 156 .................. 172 .................. 584 676 768 838 –493 –536 –609 –665 91 26 140 4 159 .................. 173 .................. 331 408 391 389 2 1 .................. .................. Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 2 1 .................. 217 191 217 174 217 172 3999 Total net position ................................ 329 408 391 389 4999 Total liabilities and net position ............ 331 409 391 389 Outlays (gross), detail: Outlays from permanent balances ................................ –1 –1 –1 31 ................... ................... 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 –3 –1 88.90 Total, offsetting collections (cash) .................. ................... –4 –4 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... 31 –4 –4 –4 –4 .................. 217 112 86.98 –1 –1 –1 31 ................... ................... –31 ................... ................... HOMEOWNERSHIP ASSISTANCE FUND Unavailable Collections (in millions of dollars) Identification code 86–4043–0–3–604 01.99 03.00 04.00 07.99 1996 actual 1997 est. 1998 est. Balance, start of year: Balance, start of year .................................................... ................... ................... Offsetting Collections .................................................... ................... Total: Balances and collections .................................... ................... Total balance, end of year ............................................ ................... 4 4 4 4 4 8 8 Status of Contract Authority (in millions of dollars) 1996 actual Identification code 86–4043–0–3–604 0100 0700 Balance, start of year .................................................... Balance, end of year ..................................................... 1997 est. 57 57 1998 est. 57 57 57 57 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) Program and Financing (in millions of dollars) Identification code 86–4043–0–3–604 1996 actual Identification code 86–4043–0–3–604 1997 est. 1998 est. 00.01 Obligations by program activity: Refunds of offsetting collections .................................. 31 ................... ................... 10.00 Total obligations (object class 44.0) ........................ 1995 actual 1996 actual 1997 est. 1998 est. 0101 0102 Revenue ................................................... Expense .................................................... 4 .................. 2 .................. 4 .................. 4 .................. 0109 Net income or loss (–) ............................ 4 2 4 4 31 ................... ................... Balance Sheet (in millions of dollars) Budgetary resources available for obligation: Unobligated balance available, start of year: 21.49 Contract authority ..................................................... 21.90 Treasury balance ....................................................... 21.91 U.S. Securities: Par value ......................................... 21.99 Total unobligated balance, start of year ............. 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Contract authority ..................................................... Treasury balance ....................................................... U.S. Securities: Par value ......................................... 24.49 24.90 24.91 24.99 Total unobligated balance, end of year .................... Identification code 86–4043–0–3–604 57 2 49 57 2 18 57 2 18 108 77 77 108 77 77 –31 ................... ................... 57 2 18 77 57 2 18 77 57 2 18 77 1995 actual 1996 actual 2 1 1997 est. 1998 est. ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1102 Treasury securities, par .................. 49 18 21 21 1999 Total assets ........................................ NET POSITION: 3300 Cumulative results of operations ............ 51 19 23 23 51 19 23 23 3999 Total net position ................................ 51 19 23 23 4999 Total liabilities and net position ............ 51 19 23 23 2 2 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT NEHEMIAH HOUSING OPPORTUNITY FUND Unavailable Collections (in millions of dollars) Identification code 86–0183–0–1–371 Program and Financing (in millions of dollars) Identification code 86–4071–0–3–604 Obligations by program activity: 10.00 Total obligations (object class 33.0) ............................ Budgetary resources available for obligation: 21.90 Unobligated balance available, start of year: Fund balance ...................................................................... 22.10 Resources available from recoveries of prior year obligations ....................................................................... 23.90 23.95 24.90 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... 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 ............................................................. 1996 actual 2 18 1997 est. 1998 est. 21 ................... 21 ................... 5 ................... ................... 23 –2 553 21 ................... –21 ................... 21 ................... ................... 1996 actual 1997 est. Receipts: 02.01 FHA Mutual Mortgage Insurance Guaranteed Loan, negative subsidies .................................................... 523 351 02.02 FHA Mutual Mortgage Insurance Guaranteed Loan, negative subsidies, legislative proposal not subject to PAYGO ................................................................... ................... ................... 02.03 FHA Mutual Mortgage Insurance Guaranteed Loan, negative subsidies, legislative proposal subject to PAYGO ........................................................................ ................... ................... 02.99 Total receipts ............................................................. Appropriation: 05.01 FHA mutual mortgage insurance program account ...... 05.99 07.99 1998 est. 1,576 52 370 523 351 1,998 –523 –351 –333 Subtotal appropriation ................................................... –523 –351 Total balance, end of year ............................................ ................... ................... –333 1,665 Program and Financing (in millions of dollars) 72.90 18 11 22 2 21 ................... –4 –10 –21 –5 ................... ................... Identification code 86–0183–0–1–371 1996 actual 1997 est. 1998 est. 22 1 4 10 21 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 4 10 21 The Nehemiah grants program was authorized by the Housing and Community Development Act of 1987 to provide loans to eligible families to assist in the purchase of new or substantially rehabilitated units. This schedule reflects the liquidation of remaining reserved and obligated balances. During fiscal year 1997, up to $20 million of unobligated balances were available for homeownership activities pursuant to Public Law 104–204. Obligations by program activity: Administrative expenses ................................................ Subsidy rate reestimate ................................................. 10.00 Total obligations ........................................................ 523 351 333 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 523 –523 351 –351 333 –333 New budget authority (gross), detail: Current: 40.25 Appropriation (special fund, definite) ....................... Permanent: 60.25 Appropriation (special fund, indefinite) .................... 342 351 333 70.00 Total new budget authority (gross) .......................... 523 351 333 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. Total outlays (gross) ...................................................... 523 –523 351 –351 333 –333 86.90 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from new permanent authority ......................... 87.00 11 00.09 00.10 Total outlays (gross) ................................................. 523 351 333 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 523 523 351 351 333 333 342 351 333 181 ................... ................... 181 ................... ................... 342 351 333 181 ................... ................... Credit accounts: FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT (INCLUDING TRANSFERS OF FUNDS) During fiscal year ø1997¿ 1998, 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 $110,000,000,000ø: 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 the purposes included under this heading¿. During fiscal year ø1997¿ 1998, 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 for- merly insured under øsection 203 of such Act¿ the Mutual Mortgage Insurance Fund. For administrative expenses necessary to carry out the guaranteed and direct loan program, ø$350,595,000¿ $333,421,000, to be derived from the FHA-mutual mortgage insurance guaranteed loans receipt account, of which not to exceed ø$343,483,000¿ $326,309,000 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. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0183–0–1–371 1996 actual 1997 est. 1998 est. Direct loan levels supportable by subsidy budget authority: 1150 Direct loan levels ........................................................... 200 200 200 1159 Total direct loan levels ............................................. Direct loan subsidy (in percent): 1320 Subsidy rate ................................................................... 200 200 200 0.00 0.00 0.00 1329 0.00 0.00 0.00 Guaranteed loan levels supportable by subsidy budget authority: 2150 MMI Fund, Section 203(b) ............................................. 74,324 2150 Standby commitment authority ..................................... ................... 93,173 16,827 83,450 26,550 74,324 110,000 110,000 –2.77 Weighted average subsidy rate ................................. 2159 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... –2.88 –2.62 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 MMI Section 203(b) negative subsidy ........................... –2.77 –2.88 –2.62 –1,549 –1,855 –1,523 2339 –1,549 –1,855 –1,523 2329 Total subsidy budget authority ................................. 554 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT— Continued (INCLUDING TRANSFERS OF FUNDS)—Continued Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)—Continued Identification code 86–0183–0–1–371 1996 actual 1997 est. 1998 est. 2340 Guaranteed loan subsidy outlays: Subsidy outlays .............................................................. –1,549 –1,855 –1,523 2349 Total subsidy outlays ................................................ –1,549 –1,855 –1,523 FHA will continue to provide mortgage insurance to encourage lenders to make credit available to expand homeownership. FHA will continue to predominantly serve borrowers that the conventional market does not adequately serve: firsttime homebuyers; minorities; lower-income families; and, residents of underserved areas (central cities and rural areas). Currently, the maximum mortgage amount for FHA-insured one-family loans is set at 95 percent of area median house price, provided that the amount is never less than 38 percent of the conforming loan limit—the maximum mortgage amount for loans purchased by the housing secondary market Government-Sponsored Enterprises, Fannie Mae and Freddie Mac— and never more than 75 percent of the conforming loan limit. The Administration proposes to increase the maximum mortgage amount for FHA-insured loans in all areas to equal the conforming loan limit. In addition, starting in 1997, FHA hopes to test the viability of sharing single-family mortgage risk between the Federal Government and other partners, including private mortgage insurers and state agencies. Credit Subsidy and Administrative Expenses.—As required by the Federal Credit Reform Act of 1990, this account records administrative expenses for this program, as well as the subsidy costs associated with the loan guarantees committed in 1992 and thereafter, if any. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis. Object Classification (in millions of dollars) Identification code 86–0183–0–1–371 99.0 99.9 1996 actual 1997 est. 1998 est. Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... 523 351 333 Total obligations ........................................................ 523 351 333 FHA-MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT (Legislative proposal, subject to PAYGO) Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0183–4–1–371 1996 actual 1997 est. 1998 est. Guaranteed loan levels supportable by subsidy budget authority: 2150 MMI Fund, Section 203(b) ............................................. ................... ................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... ................... ................... –0.37 2329 Weighted average subsidy rate ................................. ................... ................... Guaranteed loan subsidy budget authority: 2330 MMI Section 203(b) negative subsidy ........................... ................... ................... –0.37 2339 –370 7,094 –370 Total subsidy budget authority ................................. ................... ................... Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. ................... ................... –370 2349 –370 Total subsidy outlays ................................................ ................... ................... This adjustment reflects the effect of two pieces of legislation. The first is the Administration’s proposal to increase the maximum mortgage amount for single family FHA-in- sured loans in all areas to equal the GSE conforming loan limits. If enacted, this change is anticipated to increase insurance written by $7 billion in 1998, generating $206 million in additional negative credit subsidy. The second is anticipated action by the Congress to eliminate permanently the assignment program and replace it with additional loss mitigation tools. This change has already been enacted for insurance endorsed in all prior years. If enacted permanently, it would decrease the (negative) credit subsidy rate for MMI loans in 1998 by 0.37 percent, producing $164 million in negative credit subsidy in 1998. These two changes would result in additional outlay reductions in subsequent years. FHA—MUTUAL MORTGAGE INSURANCE DIRECT LOAN FINANCING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4242–0–3–371 00.01 00.02 00.03 10.00 1996 actual 1997 est. Obligations by program activity: Direct loans .................................................................... 3 200 Interest paid to Treasury ............................................... ................... 7 Claims & other .............................................................. ................... ................... Total obligations ........................................................ 1998 est. 200 11 4 3 207 215 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... ................... 22.00 New financing authority (gross) .................................... 4 1 267 61 311 4 –3 268 –207 372 –215 1 61 157 3 200 200 1 67 111 21.90 23.90 23.95 24.90 67.15 68.00 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) .............................................. 70.00 Total new financing authority (gross) ...................... 4 267 311 73.10 73.20 87.00 Change in unpaid obligations: New obligations ............................................................. Total financing disbursements (gross) ......................... Total financing disbursements (gross) ......................... 3 –3 3 207 –207 207 215 –215 215 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.25 Interest on uninvested funds ............................... ................... ................... 88.40 Other collections from non-Federal sources ......... –1 –67 –2 –109 88.90 Total, offsetting collections (cash) .................. –1 –67 –111 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... 3 2 200 140 200 104 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 1998 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 moderate-income buyers. The use of PMMs provides a tool for State and local nonprofit organizations to use in revitalizing communities, and creates HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT enhanced homeownership opportunities for low- and moderate-income families. Status of Direct Loans (in millions of dollars) 1996 actual Identification code 86–4242–0–3–371 1111 1112 Position with respect to appropriations act limitation on obligations: Limitation on direct loans ............................................. Unobligated direct loan limitation ................................ 1150 Total direct loan obligations ..................................... 1210 1231 1251 1263 1290 1997 est. 1998 est. 200 200 200 –197 ................... ................... 3 200 145 200 –88 –3 88.40 88.40 88.40 Non-Federal sources: Fees and premiums .......................................... Recoveries on defaulted notes ......................... Gross proceeds from asset sales ..................... –2,515 –670 –1,613 –2,519 –2,709 –945 –1,053 –1,095 ................... 88.90 Total, offsetting collections (cash) .................. –4,912 –4,722 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... Outstanding, end of year .......................................... 2 255 1,527 ................... ................... 1,350 –414 –207 1996 actual Identification code 86–4587–0–3–371 145 –3,908 Status of Guaranteed Loans (in millions of dollars) 200 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. ................... 2 Disbursements: Direct loan disbursements ................... 3 200 Repayments: Repayments and prepayments ................. –1 –57 Write-offs for default: Direct loans ............................... ................... ................... 555 Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2112 Uncommitted loan guarantee limitation ....................... 2150 Total guaranteed loan commitments ........................ 1997 est. 1998 est. 110,000 –35,676 110,000 –16,827 110,000 –26,550 74,324 93,173 83,450 203,414 59,221 –18,616 242,407 65,440 –22,858 283,605 60,718 –22,458 –416 –145 –231 –1,154 –1,118 –1,365 –42 –121 –166 Balance Sheet (in millions of dollars) Identification code 86–4242–0–3–371 1995 actual 1996 actual ASSETS: Net value of assets related to post– 1991 direct loans receivable: 1401 Direct loans receivable, gross ............ 1499 1999 1997 est. 1998 est. .................. 2 145 254 Net present value of assets related to direct loans ........................... .................. 2 145 254 Total assets ........................................ .................. 2 145 254 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 2290 Program and Financing (in millions of dollars) Identification code 86–4587–0–3–371 1996 actual 1997 est. 1998 est. 00.01 00.04 00.05 00.06 00.07 00.08 00.09 Obligations by program activity: Default claims and other .............................................. Working capital fund reimbursements .......................... Payment of negative subsidy to receipt account .......... Payment of negative subsidy to liquidating account Subsidy reestimate paid to liquidating account ........... Interest payments to Treasury ....................................... Payment to liquidating account for asset sale ............ 10.00 Total obligations ........................................................ 6,233 4,309 3,701 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New financing authority (gross) .................................... 701 6,439 907 4,722 1,321 3,908 7,140 –6,233 5,629 –4,309 5,229 –3,701 907 1,321 1,528 1,698 1,562 1,944 19 19 19 342 351 1,523 1,473 1,182 ................... 1,227 ................... ................... 153 184 215 1,321 1,011 ................... 21.90 23.90 23.95 24.90 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... 242,407 283,605 320,103 2299 FHA—MUTUAL MORTGAGE INSURANCE GUARANTEED LOAN FINANCING ACCOUNT Outstanding, end of year .......................................... Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 242,407 283,605 320,103 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2364 Other adjustments, net ............................................. 413 416 –1 38 866 145 –36 –157 818 232 –34 –161 2390 866 818 855 Outstanding, end of year ...................................... As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loans insured in 1992 and thereafter. The amounts in this account are considered a means of financing and are not included in the budget totals. Balance Sheet (in millions of dollars) Identification code 86–4587–0–3–371 ASSETS: Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 acquired defaulted guaranteed loans receivable: 1501 Defaulted guaranteed loans receivable, gross ...................................... 1504 Foreclosed property ............................. 1505 Allowance for subsidy cost ................. 1995 actual 1 1996 actual 1997 est. 1998 est. 1101 67.15 68.00 70.00 4,912 4,722 3,908 Total new financing authority (gross) ...................... 6,439 4,722 3,908 77 6,233 –6,263 47 4,309 –4,309 47 3,701 –3,701 47 6,263 47 4,309 47 3,701 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Obligated balance ..................................................... 73.10 New obligations ............................................................. 73.20 Total financing disbursements (gross) ......................... 74.90 Unpaid obligations, end of year: Obligated balance: Obligated balance ..................................................... 87.00 Total financing disbursements (gross) ......................... 1,527 ................... ................... 72.90 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.25 Interest on uninvested funds ............................... –114 –163 –146 777 954 1,368 724 413 324 –429 866 521 –405 818 534 –399 855 609 –437 308 982 953 1,027 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Federal liabilities, Debt ..................................................... 2204 Non-Federal liabilities: Liabilities for loan guarantees .................................. 1,085 1,936 2,321 1,751 1,171 2,698 2,698 1,838 –86 –762 –377 –87 2999 New financing authority (gross), detail: Authority to borrow (indefinite) ..................................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. Total liabilities .................................... 1,085 1,936 2,321 1,751 4999 Total liabilities and net position ............ 1,085 1,936 2,321 1,751 1599 Net value of assets related to defaulted guaranteed loan ............ 1999 556 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 88.40 FHA—MUTUAL MORTGAGE INSURANCE GUARANTEED LOAN FINANCING ACCOUNT—Continued 1 As reflected in the 1997 Budget. Subsidy reestimates for fiscal year 1996 disbursements will be performed for the mid-session review of the Budget. FHA—MUTUAL MORTGAGE AND COOPERATIVE HOUSING INSURANCE FUNDS LIQUIDATING ACCOUNT 88.40 88.40 88.40 88.40 88.40 88.40 Rebate of unearned prepaid premiums collected ........................................................... 287 48 16 Proceeds from sale of real property ................ –1,901 –962 –485 Proceeds from sale of mortgage notes ............ –1,321 –1,011 ................... Repayment of mortgage notes and sales contracts ............................................................ –1 –1 –1 Interest and operating income ......................... –31 –37 –46 Recoveries on defaulted mortgages ................. –237 –142 –22 Other interest, dividends and revenues ........... ................... –1 –43 Payment from financing account ..................... –2,700 –1,164 ................... Miscellaneous collections ................................. –10 ................... ................... Other income .................................................... 65 ................... ................... 88.90 Credit accounts—Continued Total, offsetting collections (cash) .................. 88.40 88.40 88.40 Program and Financing (in millions of dollars) Identification code 86–4070–0–3–371 1996 actual 1997 est. –6,472 –4,027 –1,438 1998 est. Obligations by program activity: Operating expenses: 00.03 Other operating costs ................................................ 00.04 Working Capital Fund reimbursements ..................... 00.05 Participation payments ............................................. 216 31 1 147 31 1 146 31 1 00.91 89.00 90.00 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 ........................................ 248 179 178 465 2,017 39 264 2 18 309 785 39 159 10 73 73 485 39 76 8 59 01.91 Total capital investment ....................................... 2,805 1,375 Total obligations ........................................................ 3,053 1,554 Status of Direct Loans (in millions of dollars) 740 10.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –3,441 –2,473 –520 918 01.02 01.03 01.05 01.07 01.08 01.09 Identification code 86–4070–0–3–371 1996 actual 1210 1251 1264 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Repayments: Repayments and prepayments ................. Write-offs for default: Other adjustments, net ............. 15 –1 –7 1290 Outstanding, end of year .......................................... 1997 est. 7 1998 est. 7 5 –1 ................... –1 ................... 5 5 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4070–0–3–371 1996 actual 1997 est. 1998 est. Budgetary resources available for obligation: Unobligated balance available, start of year: 21.90 Treasury balance ....................................................... U.S. Securities: 21.91 Par value ............................................................... 21.92 Unrealized discounts ............................................. –163 2,905 1,242 6,673 –66 7,045 –87 11,161 –67 21.99 22.00 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ 6,444 6,472 9,863 4,027 12,336 1,438 23.90 23.95 12,916 –3,053 13,890 –1,554 13,774 –918 2,905 1,242 965 2290 Outstanding, end of year .......................................... 121,587 107,374 94,864 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 ............................................. 7,045 –87 11,161 –67 11,958 –67 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 121,587 107,374 94,864 24.99 Total unobligated balance, end of year .................... 9,863 12,336 12,856 3,886 1,862 465 309 –1,725 –1,111 –763 –702 –1 ................... 358 73 –63 –28 –1 24.90 New budget authority (gross), detail: 68.00 Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 6,472 4,027 1,438 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: 72.90 Fund balance ........................................................ 659 ................... 685 72.91 U.S. Securities: Par value ..................................... ................... 685 ................... 72.99 73.10 73.20 73.32 74.90 74.91 Total unpaid obligations, start of year ................ 659 685 685 New obligations ............................................................. 3,053 1,554 918 Total outlays (gross) ...................................................... –3,031 –1,554 –918 Obligated balance transferred from other accounts 4 ................... ................... Unpaid obligations, end of year: Obligated balance: Fund balance ........................................................ ................... 685 685 U.S. Securities: Par value ..................................... 685 ................... ................... 74.99 Total unpaid obligations, end of year .................. 685 685 685 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 2,372 659 869 685 233 685 87.00 Total outlays (gross) ................................................. 3,031 1,554 918 –531 –676 –785 –92 –81 –72 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.20 Interest on U.S. securities .................................... Non-Federal sources: 88.40 Fees and premiums .......................................... Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2262 Terminations for default that result in acquisition of property ............................................................. 2263 Terminations for default that result in claim payments .................................................................... 2264 Other adjustments, net ............................................. 2210 2251 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2361 Write-offs of loans receivable ................................... 2364 Other adjustments, net ............................................. 2390 Outstanding, end of year ...................................... 96,145 –15,754 121,587 –13,036 107,374 –11,885 –465 –309 –73 –2,017 –784 –485 –20 –84 –67 43,698 ................... ................... 1,862 358 339 The Federal Housing Administration Fund currently consists of four separate insurance funds. In order to present more clearly the operations of the various funds, FHA’s budget transactions are separated into two major business segments. The basic single-family insurance programs in the Mutual Mortgage Insurance Fund and the multifamily Cooperative Management Housing insurance funds (MMI/CMHI) form one segment. All other multifamily and other specialized insurance programs in the General Insurance and Special Risk Insurance funds (GI/SRI) form the other segment. The Federal Credit Reform Act of 1990 creates a structure of three accounts for existing credit 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 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT September 30, 1991; and, a program account which records the transactions associated with the program subsidy costs, if any, and the costs of administering the program. This liquidating account records, for this program, all cash flows to and from the Government resulting from MMI/CMHI loans insured prior to fiscal year 1992, and is shown on a cash basis. All new activity in this program in 1992 and thereafter (including modifications of loans insured in any year) is recorded in the corresponding program (86–0183) and financing (86–4587 and 86–4242) accounts. The program activity in the ‘‘Program Highlights’’ table shown below reflects only the activity in the MMI/CMHI liquidating and financing accounts. The GI/SRI program activity can be found with the GI/SRI liquidating account (86–4072). 1706 PROGRAM HIGHLIGHTS 1799 [In millions of dollars] Insurance initiation: Mortgage insurance applications (units) .................. 1996 1997 est. 1,016,302 Mortgage insurance written: Units .......................................................................... Amount ...................................................................... 739,603 59,221 810,439 65,440 737,002 60,718 Insurance maintenance: Outstanding balance of insurance in force, end of year: Mortgage insurance ................................................... 363,995 390,979 414,967 preliminary results. Insurance reserves from operations at the end of 1996 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 1998 for the MMI/ CMHI account follows: [In millions of dollars] Insurance fund: 1996 est.1 1997 est. Mutual mortgage/CMHI: 2 ......................................................... 8,776 10,288 Liquidating account Receipt Account 2 ............................................................... .................... .................... 1998 est. 10,877 1,414 1 Unaudited preliminary results. 2 Reflects impact from the transfer of negative subsidy from the Financing account to the Liquidating account in 1996 and 1997. Negative subsidy transfers are to the Receipt Account in 1998. 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) 1996 actual 2 1997 est. 1998 est. 0101 0102 Revenue ................................................... Expense .................................................... 2,821 –1,123 2,103 –1,097 1,935 –421 958 –368 0109 Net income or loss (–) ............................ 1,698 1,006 1,514 590 1 As reflected in the 1997 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 ................ 1995 actual 1 1704 1705 1996 actual 7 6 4 –3 –1 –1 –1 12 3,886 6 1,862 5 358 3 339 –738 –495 –95 –90 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 ............................. 3,148 1,367 263 249 –526 1,379 –354 872 –140 344 –71 174 Value of assets related to loan guarantees ................................. Other Federal assets: Other assets ........ 4,001 .................. 1,885 18 467 7 352 15 11,480 12,707 13,615 14,060 1999 Total assets ........................................ LIABILITIES: 2101 Federal liabilities: Accounts payable ...... Non-Federal liabilities: 2201 Accounts payable ................................ 2206 Pension and other actuarial liabilities 2207 Unearned revenue and advances ....... 2999 4 .................. .................. .................. 496 2,254 1,805 676 2,175 1,061 567 1,729 1,013 542 1,626 997 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 4,559 3,912 3,309 3,165 19 6,902 19 8,776 18 10,288 18 10,877 3999 Total net position ................................ 6,921 8,795 10,306 10,895 4999 Total liabilities and net position ............ 11,480 12,707 13,615 14,060 1 As reflected in the 1997 Budget. Object Classification (in millions of dollars) 1996 actual Identification code 86–4070–0–3–371 STATUS OF INSURANCE RESERVES FROM OPERATIONS 1995 actual 1 1701 1703 15 1998 est. 1,152,163 Identification code 86–4070–0–3–371 1699 1901 actual 1 977,702 1 Unaudited 1601 1603 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 (–) .................... 557 1997 est. 1998 est. 495 2,905 1,724 1,728 6,673 7,729 11,230 11,780 –67 123 72 –87 106 .................. –69 106 .................. –69 106 .................. 159 12 207 –62 207 –62 207 –62 1997 est. 1998 est. 25.2 32.0 33.0 42.0 44.0 Other services ................................................................ Land and structures ...................................................... Investments and loans .................................................. Insurance claims and indemnities ................................ Refunds .......................................................................... 246 2,282 504 20 1 178 943 348 84 1 177 560 112 68 1 99.0 Subtotal, direct obligations .................................. 3,053 1,554 918 99.9 Total obligations ........................................................ 3,053 1,554 918 FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT (INCLUDING TRANSFERS OF FUNDS) For the cost of guaranteed loans, as authorized by sections 238 and 519 of the National Housing Act (12 U.S.C. 1715z–3 and 1735c), including the cost of loan guarantee modifications (as that term is defined in section 502 of the Congressional Budget Act of 1974, as amended) ø$85,000,000¿ $81,000,000, to remain available until expended: Provided, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, of up to $17,400,000,000: øProvided further, That during fiscal year 1997, the Secretary shall sell assigned 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 any amounts made available in any prior appropriations Act for the cost (as such term is defined in section 502 of the Congressional Budget Act of 1974) of guaranteed loans that are obligations of the funds established under section 238 or 519 of the National Housing Act that have not been obligated or that are deobligated shall be available to the Secretary of Housing and Urban Development in connection with the making of such guarantees and shall remain available until expended, notwithstanding the expiration of any period of availability otherwise applicable to such amounts. 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 for- 558 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT—Continued 73.20 74.40 Total outlays (gross) ...................................................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. –398 –371 –396 46 88 78 (INCLUDING TRANSFERS OF FUNDS)—Continued merly insured under such Act; and of which not to exceed $20,000,000 shall be for loans to nonprofit and governmental entities in connection with the sale of single-family real properties owned by the Secretary and formerly insured under such Act. In addition, for administrative expenses necessary to carry out the guaranteed and direct loan programs, ø$207,470,000¿ $222,305,000, of which ƒ$203,299,000≈ $218,134,000, including $25,000,000 for the enforcement of housing standards on FHA-insured multifamily projects, shall be transferred to the appropriation for departmental salaries and expenses; and of which $4,171,000 shall be transferred to the appropriation for the Office of Inspector General. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Unavailable Collections (in millions of dollars) Identification code 86–0200–0–1–371 1996 actual 1997 est. 1998 est. Balance, start of year: Balance, subsidy downward reestimate, start of year 1,209 1,506 2,119 Receipts: 02.01 Negative Subsidies ........................................................ 721 613 122 02.02 Negative Subsidies, legislative proposal ....................... ................... ................... 665 02.03 Downward reestimates of subsidies .............................. 110 ................... ................... 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 307 91 271 100 283 113 87.00 Total outlays (gross) ................................................. 398 371 396 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 905 398 302 371 303 396 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 86–0200–0–1–371 1996 actual 1997 est. 1998 est. Direct loan levels supportable by subsidy budget authority: 1150 Single-family PMMs ....................................................... 1150 Multifamily bridge loans ................................................ 20 100 20 100 20 100 1159 120 120 120 Total direct loan levels ............................................. 01.99 02.99 Total receipts ............................................................. 831 613 787 Total: Balances and collections .................................... Appropriation: 05.01 General and special risk program account ................... 07.99 Total balance, end of year ............................................ 2,040 2,119 2,906 04.00 –534 ................... ................... 1,506 2,119 2,906 Program and Financing (in millions of dollars) Identification code 86–0200–0–1–371 1996 actual 1997 est. 1998 est. Obligations by program activity: 00.01 Guaranteed loan subsidy ............................................... 143 176 154 00.02 Prior year adjustment .................................................... 32 ................... ................... 00.03 Indirect modification subsidy ........................................ 37 ................... ................... 00.04 FHA multi-family demonstration .................................... ................... 30 10 00.09 Administrative expenses ................................................ 202 207 222 10.00 Total obligations ........................................................ 414 413 386 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance: 21.40 Uncommitted ......................................................... 21.40 Administratively committed .................................. 31 69 534 56 439 40 21.99 22.00 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ 100 905 590 302 479 303 23.90 23.95 1,005 –414 892 –413 782 –386 24.40 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance: Uncommitted ......................................................... Administratively committed .................................. 534 56 439 40 358 38 24.99 Total unobligated balance, end of year .................... 590 479 Guaranteed loan levels supportable by subsidy budget authority: 2150 Multifamily development ................................................ 2150 Refinance of FHA-insured mortgages ............................ 2150 Risk sharing programs .................................................. 2150 Mixed Income ................................................................. 2150 Cooperatives ................................................................... 2150 Health and residential care facilities ........................... 2150 Neighborhood improvement program ............................. 2150 Small Projects ................................................................ 2150 Micro Loans .................................................................... 2150 Indian Housing ............................................................... 2150 Preservation ................................................................... 2150 Single family, negative .................................................. 2150 Title I guarantees .......................................................... 2159 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Multifamily development ................................................ 2320 Refinance of multifamily mortgages ............................. 2320 Mixed Income ................................................................. 2320 Cooperatives ................................................................... 2320 Nursing Homes ............................................................... 2320 Hospitals ........................................................................ 2320 Preservation ................................................................... 2320 234c/Other single family programs ............................... 2320 Single family indian housing ........................................ 2320 Title I .............................................................................. 1,013 1,170 1,053 1,134 1,000 927 337 577 876 ................... 404 150 31 25 20 694 1,748 2,052 ................... ................... 100 ................... 374 537 ................... 671 895 ................... 2 2 267 150 ................... 7,619 8,569 8,388 1,656 2,710 2,400 12,751 17,400 17,400 11.96 2.51 0.00 27.04 –1.98 –3.78 –1.96 –1.34 0.00 –1.44 8.78 –0.79 12.26 30.47 0.00 0.00 0.00 –1.55 9.51 –1.59 8.51 –0.75 12.13 29.21 –0.70 1.75 0.00 –1.32 9.12 –1.50 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... 0.00 –0.21 –0.22 703 95 81 2339 2329 396 202 ................... ................... 37 ................... ................... 30 10 ................... 85 ................... ................... 534 292 303 43.00 50.05 Appropriation (total) .................................................. Reappropriation (indefinite) ........................................... 888 302 303 17 ................... ................... 70.00 Total new budget authority (gross) .......................... 905 302 303 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 30 414 46 413 88 386 72.40 703 95 81 196 164 174 2349 New budget authority (gross), detail: Appropriation: 40.00 Appropriation ............................................................. 40.00 Indirect modification subsidy .................................... 40.00 FHA multi-family demonstration ............................... 40.00 Appropriation ............................................................. 40.25 Appropriation (special fund, indefinite) ........................ Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. Total subsidy outlays ................................................ 196 164 174 3510 3590 Administrative expense data: Budget authority ............................................................ Outlays from new authority ........................................... 202 202 207 207 222 222 Multifamily Products.—This account includes budget authority for multifamily insurance programs requiring positive credit subsidies, as well as for salaries and expenses for all General and Special Risk Insurance Fund programs. The credit subsidy appropriation of $81 million requested for 1998 will be used in conjunction with $71 million of carryover budget authority to provide a total program level of $152 million. The $222.3 million requested in 1998 for administrative expenses includes $25 million to support enhanced measures being undertaken to enforce standards for multifamily housing projects. 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 insur- HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ance 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. Object Classification (in millions of dollars) Identification code 86–0200–0–1–371 41.0 99.0 Direct obligations: Grants, subsidies, and contributions ........................................................................... Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... 1996 actual 88.00 88.00 88.00 88.25 88.40 88.40 88.40 Modification subsidy, program acct. ............... –37 –20 –20 Repayment of principal and interest from liquidating account .......................................... –137 –117 –117 Repayment of portfolio reengineering savings borrowed ....................................................... ................... ................... –67 Interest on uninvested funds ............................... –35 –27 –23 Non-Federal sources: Fees and premiums .......................................... –234 –379 –483 Recoveries on defaulted mortgages ................. –135 –276 –350 Proceeds from sale of mortgage notes ............ –2,038 –1,077 ................... 88.90 88.95 1997 est. 559 Total, offsetting collections (cash) .................. Change in receivables from program accounts ............ 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... –2,788 –2,060 –1,234 43 ................... ................... 1998 est. 212 206 164 202 207 413 166 85 760 712 222 414 –14 –292 386 Status of Guaranteed Loans (in millions of dollars) 99.9 Total obligations ........................................................ 1996 actual Identification code 86–4077–0–3–371 FHA—GENERAL AND SPECIAL RISK GUARANTEED LOAN FINANCING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4077–0–3–371 1996 actual 1997 est. 1998 est. Obligations by program activity: Capital investment, claims and other: 00.01 Default claims and other .......................................... 376 822 1,052 00.03 Working capital fund reimbursements ...................... 5 5 5 00.04 Payment of negative subsidy to receipt account 142 119 122 00.05 Interest paid to Treasury ........................................... 31 42 82 00.06 Downward subsidy rate reestimate ........................... 110 ................... ................... 00.08 Asset sale negative subsidy payment to receipt account ................................................................. 534 414 ................... 00.09 Asset sale payment to liquidating account .............. 1,204 643 ................... 00.10 Modification of pre–1992 guarantees, costs ............ 37 20 20 00.11 Portfolio reengineering legislative savings ............... ................... ................... 665 00.12 Waiver of PD/mortgage sale law, savings ................ 40 80 ................... 1997 est. 1998 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2112 Uncommitted loan guarantee limitation ....................... 17,400 17,400 17,400 –4,649 ................... ................... 2150 12,751 Total guaranteed loan commitments ........................ Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. 35,457 Disbursements of new guaranteed loans ...................... 12,220 Repayments and prepayments ...................................... –5,510 Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... –90 2262 Terminations for default that result in acquisition of property ............................................................. –247 2263 Terminations for default that result in claim payments .................................................................... ................... 2210 2231 2251 17,400 17,400 41,830 14,652 –3,646 52,076 15,005 –2,594 –399 –552 –251 –295 –110 –125 Total obligations ................................................... Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New financing authority (gross) .................................... 22.60 Redemption of debt ....................................................... 2,479 2,145 Outstanding, end of year .......................................... 41,830 52,076 63,515 2299 10.00 2290 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 41,830 52,076 63,515 1,946 21.90 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... New financing authority (gross), detail: 61.00 Transferred to other accounts ....................................... 67.15 Authority to borrow (indefinite) ..................................... Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.10 Change in receivables from program account ......... 68.90 70.00 87.00 553 1,994 –135 3,026 –2,479 2,698 –2,145 2,412 –1,946 547 553 –100 ................... ................... 86 166 760 2,788 2,060 1,234 –43 ................... ................... 2,745 2,060 1,234 Total new financing authority (gross) ...................... 2,731 2,226 1,994 Total unpaid obligations, start of year ................ New obligations ............................................................. Total financing disbursements (gross) ......................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. Total financing disbursements (gross) ......................... Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: Federal sources: 88.00 Payments from program account ..................... 88 159 539 90 399 552 –9 –19 –25 –10 ................... ................... 159 466 Spending authority from offsetting collections (total) ................................................................ Change in unpaid obligations: Unpaid obligations, start of year: 72.40 Obligated balance: Appropriation ............................. 72.95 Receivables from program account .......................... 72.99 73.10 73.20 74.40 547 2,226 –75 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 ................................... 2390 23.90 23.95 24.90 435 2,731 –140 Outstanding, end of year ...................................... 539 1,066 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. Balance Sheet (in millions of dollars) 1 16 42 42 43 ................... ................... 59 2,479 –2,496 42 2,145 –2,145 42 1,946 –1,946 42 2,496 42 2,145 42 1,946 –172 –164 –174 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 ................. 1995 actual 1996 actual 1997 est. 1998 est. 451 589 504 152 476 336 299 780 87 69 –77 159 118 –164 539 153 –437 1,066 271 –850 560 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 1290 Credit accounts—Continued FHA—GENERAL AND SPECIAL RISK GUARANTEED LOAN FINANCING ACCOUNT—Continued Balance Sheet (in millions of dollars) 1—Continued 1995 actual 1996 actual 79 113 255 487 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Debt ........................... 2204 Non-Federal liabilities: Liabilities for loan guarantees .................................. 1,006 1,038 1,058 1,419 476 421 385 533 530 617 673 886 2999 Total liabilities .................................... 1,006 1,038 1,058 1,419 4999 Total liabilities and net position ............ 1,006 1,038 1,058 1,419 Identification code 86–4077–0–3–371 1599 Net value of assets related to defaulted guaranteed loan ............ 1999 1997 est. 1998 est. Outstanding, end of year .......................................... ................... 40 140 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. Balance Sheet (in millions of dollars) 1 Preliminary results pending final audit. Subsidy reestimates for fiscal year 1996 disbursements will be performed for the Mid-Session review of the Budget. Identification code 86–4105–0–3–371 FHA—GENERAL AND Program and Financing (in millions of dollars) 1996 actual ASSETS: Net value of assets related to post– 1991 direct loans receivable: 1401 Direct loans receivable, gross ............ SPECIAL RISK DIRECT LOAN FINANCING ACCOUNT 1995 actual .................. .................. 40 140 .................. .................. 40 140 40 140 1499 Identification code 86–4105–0–3–371 1996 actual 1997 est. 1998 est. Net present value of assets related to direct loans ........................... 1998 est. 10.00 Obligations by program activity: Direct loans .................................................................... ................... Interest paid to Treasury ............................................... ................... Total obligations ........................................................ ................... 40 3 43 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... ................... ................... 22.00 New financing authority (gross) .................................... ................... 45 23.90 23.95 24.40 67.15 68.00 70.00 Total budgetary resources available for obligation ................... New obligations ............................................................. ................... Unobligated balance available, end of year: Uninvested balance ................................................... ................... New financing authority (gross), detail: Authority to borrow (indefinite) ..................................... ................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ................... Total new financing authority (gross) ...................... ................... Change in unpaid obligations: 73.10 New obligations ............................................................. ................... 73.20 Total financing disbursements (gross) ......................... ................... 87.00 Total financing disbursements (gross) ......................... ................... Offsets: Against gross financing authority and financing disbursements: 88.40 Offsetting collections (cash) from: Interest received on loans ................................................................ ................... Net financing authority and financing disbursements: 89.00 Financing authority ........................................................ ................... 90.00 Financing disbursements ............................................... ................... 120 10 130 2 142 45 –43 14 40 120 5 22 45 142 .................. .................. .................. .................. 40 140 2999 Total liabilities .................................... .................. .................. 40 140 Total liabilities and net position ............ .................. .................. 40 140 FHA—LOAN GUARANTEE RECOVERY FUND—FINANCING ACCOUNT 144 –130 2 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Treasury borrowing .... 4999 00.01 00.02 1999 1997 est. Program and Financing (in millions of dollars) Identification code 86–4106–0–3–371 1996 actual 1997 est. 1998 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... ................... ................... 22.00 New financing authority (gross) .................................... ................... 4 21.90 –5 40 38 130 –130 130 4 5 4 5 New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... ................... 4 1 Offsets: Against gross financing authority and financing disbursements: 88.00 Offsetting collections (cash) from: Federal sources ................... 43 –43 43 23.90 24.90 –4 –1 68.00 Total budgetary resources available for obligation ................... Unobligated balance available, end of year: Fund balance ...................................................................... ................... 4 1 –22 120 108 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... ................... –4 –1 Status of Guaranteed Loans (in millions of dollars) Status of Direct Loans (in millions of dollars) Identification code 86–4106–0–3–371 Identification code 86–4105–0–3–371 1996 actual 1997 est. 1998 est. 1996 actual 1997 est. 1998 est. 1150 120 –120 Total direct loan obligations ..................................... ................... 120 120 –80 ................... 40 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. ................... ................... 1231 Disbursements: Direct loan disbursements ................... ................... 40 1251 Repayments: Repayments and prepayments ................. ................... ................... 10 ................... 2150 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ............................................. 1112 Unobligated direct loan limitation ................................ Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... 10 ................... Total guaranteed loan commitments ........................ ................... 120 40 120 –20 2210 2231 2290 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. ................... ................... Disbursements of new guaranteed loans ...................... ................... 7 Outstanding, end of year .......................................... ................... 7 7 3 10 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... 7 10 Section 4 of the Church Arson Prevention Act of 1996 (P.L. 104–155), entitled ‘‘Loan Guarantee Recovery Fund,’’ authorizes the Secretary of Housing and Urban Development to guarantee loans made by financial institutions to assist certain nonprofit organizations that have been damaged as a result of acts of arson or terrorism. FHA—GENERAL AND SPECIAL RISK INSURANCE FUNDS LIQUIDATING ACCOUNT 561 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: Non-Federal sources: 88.40 Fees and premiums .......................................... –245 –219 –205 88.40 Rebates of insurance premiums ...................... 8 8 8 88.40 Multifamily foreclosure sales ........................... ................... –42 –96 88.40 Proceeds from sale of real property ................ –261 –128 –132 88.40 Proceeds from sale of mortgage notes ............ –1,204 –643 ................... 88.40 Mortgage sale accounting adjustment ............ 323 –323 ................... 88.40 Prior year adjustment ....................................... –5 ................... ................... 88.40 Recoveries on defaulted mortgages ................. –284 –14 –14 88.40 Interest and operating income ......................... –210 –221 –225 88.40 Recoveries on defaulted Title I mortgages ...... –19 –17 –14 88.40 Other interest, dividends and revenue ............ –34 –12 –11 88.40 Modification subsidy ........................................ –37 –20 –20 88.90 Total, offsetting collections (cash) .................. –1,968 –1,631 –709 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 166 –872 66 –325 66 1,496 Program and Financing (in millions of dollars) Identification code 86–4072–0–3–371 Obligations by program activity: Operating expenses: 00.02 Interest on debentures .............................................. 00.03 Other operating costs ................................................ 00.04 Working capital fund reimbursements ...................... 00.05 Legislative savings repayments ................................ 00.91 01.01 01.02 01.03 01.04 01.06 01.07 01.08 01.10 01.11 01.91 10.00 1996 actual 1997 est. 1998 est. 18 41 13 138 19 148 15 117 20 148 15 117 Total operating expenses ...................................... 210 Capital investment: Claims and other: Acquisition of defaulted Title I notes ....................... 36 Assignment of defaulted mortgages ......................... 210 Acquisition of real properties .................................... 299 Rehabilitation of real properties ............................... ................... Assignment of current mortgages ............................ ................... Capitalized property expenses ................................... 182 Loss on defaulted guaranteed loans ........................ 23 Tax advances on held mortgages ............................. 70 Claims, other ............................................................. ................... 299 300 36 372 112 236 1 97 66 70 17 36 1,152 89 140 1 117 287 70 13 1,007 1,905 Total capital investment ....................................... 820 Total obligations ........................................................ 1,030 1,306 2,205 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested balance ................................................... 21.91 U.S. Securities: Par value ......................................... 1,637 5 1,818 7 2,143 7 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ Resources available from recoveries of prior year obligations ....................................................................... Redemption of debt ....................................................... Balance of permanent authority withdrawn .................. 1,642 2,134 1,825 1,697 2,855 –1,030 3,456 –1,306 2,859 –2,205 1,818 7 2,143 7 647 7 [In millions of dollars] 1996 actual 1997 est. Enacted/requested: Budget Authority ..................................................................... 166 66 Outlays .................................................................................... –872 –325 Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 21.99 22.00 22.10 Identification code 86–4072–0–3–371 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1251 Repayments: Repayments and prepayments ................. 1264 Write-offs for default: Other adjustments, net ............. 22.60 22.70 23.90 23.95 24.40 24.91 1290 24.99 Total unobligated balance, end of year .................... 62.00 67.15 68.00 New budget authority (gross), detail: Transferred from other accounts ................................... Authority to borrow (indefinite) ..................................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 1,968 1,631 Total new budget authority (gross) .......................... 2,134 1,697 775 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Net obligated balance: Fund balance ....................... 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.31 Obligated balance transferred to other accounts ......... 73.45 Adjustments in unexpired accounts .............................. 74.90 Unpaid obligations, end of year: Obligated balance: Obligated balance ..................................................... 1,825 2,150 654 66 –325 66 1,496 523 523 589 2,019 1996 actual 1997 est. 1998 est. 107 –8 –2 97 –9 –3 85 –7 –2 97 85 76 Status of Guaranteed Loans (in millions of dollars) 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 709 70.00 Outstanding, end of year .......................................... Identification code 86–4072–0–3–371 18 ................... ................... –70 –66 –66 –869 ................... ................... 166 –872 1998 est. Status of Direct Loans (in millions of dollars) 2,150 775 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... U.S. Securities: Par value ......................................... Summary of Budget Authority and Outlays 1996 actual 1997 est. 1998 est. 53,756 –3,843 49,346 –2,531 46,247 –1,387 –246 –408 –1,188 –298 –112 –89 –23 –48 –287 2290 Outstanding, end of year .......................................... 49,346 46,247 43,296 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 49,346 46,247 43,296 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 ............................................. 5,234 246 –395 –1,271 –881 100 ................... ................... 66 66 66 72.90 366 278 278 1,030 1,306 2,205 –1,096 –1,306 –2,205 –4 ................... ................... –18 ................... ................... 2390 278 278 Outstanding, end of year ...................................... 2,933 2,933 1,801 408 1,188 –142 –313 –755 –152 –643 ................... 1,801 2,524 278 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 731 365 66 1,240 757 1,448 87.00 Total outlays (gross) ................................................. 1,096 1,306 2,205 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. 562 HOUSING PROGRAMS—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 1703 Credit accounts—Continued FHA—GENERAL AND SPECIAL RISK INSURANCE FUNDS LIQUIDATING ACCOUNT—Continued Allowance for estimated uncollectible loans and interest (–) .................... Defaulted guaranteed loans and interest receivable, net ..................... Allowance for uncollectables from foreclosed property ......................... Foreclosed property ............................. 1704 1705 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 was not observed. Insurance is also provided 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. New insurance and direct loan activity in 1992 and thereafter in the GI/ SRI programs is recorded in corresponding program (86–0200) and financing (86–4077 and 86–4105) accounts. The program activities in the ‘‘Program Highlights’’ table shown below reflect the consolidated activity of the GI/SRI accounts. PROGRAM HIGHLIGHTS 1706 1799 Value of assets related to loan guarantees ................................. Other Federal assets: Other assets ........ 1901 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 ..................................... –2,460 –1,957 –1,198 –1,678 2,741 983 603 845 –543 734 –479 632 –293 387 –371 490 2,932 38 1,136 .................. 697 236 964 .................. 4,390 3,502 3,590 2,093 63 6 86 373 .................. .................. 373 .................. .................. 373 .................. .................. 131 21 408 9,997 131 .................. 82 8,890 131 .................. 82 8,890 131 .................. 82 8,890 380 50 111 209 111 209 111 209 11,142 9,796 9,796 9,796 6,287 –20,510 7,471 5,350 –19,115 7,471 5,350 –19,026 7,471 5,350 –20,525 7,471 3999 Total net position ................................ –6,752 –6,294 –6,205 –7,704 4999 Total liabilities and net position ............ 4,390 3,502 3,591 2,092 [In millions of dollars] Insurance commitments: Mortgage insurance applications (units) ............................... 1996 actual 1997 est. 300,794 402,018 1998 est. 434,744 1 As Mortgage and loan insurance written: Units ........................................................................................ Amount .................................................................................... Insurance maintenance: Outstanding balance of insurance in force, end of year: Mortgage insurance ................................................................ 301,730 12,220 370,341 14,602 95,386 103,367 407,501 14,988 110,878 Financial Condition.—The following tables reflect the revenues, expenses, and financial condition of the GI/SRI Liquidating Account based on Generally Accepted Accounting Principles. 1995 actual 1 1996 actual 2 1997 est. Revenue ................................................... Expense .................................................... 517 –563 370 –167 359 –271 322 –1,821 0109 Net income or loss (–) ............................ –46 203 88 –1,499 reflected in the 1997 Budget. 2 Preliminary results pending final audit. Balance Sheet (in millions of dollars) 1699 1701 Value of assets related to direct loans .......................................... Defaulted guaranteed loans, gross .... 1996 actual 1997 est. 1998 est. 25.2 32.0 33.0 42.0 43.0 44.0 Other services ................................................................ Land and structures ...................................................... Investments and loans .................................................. Insurance claims and indemnities ................................ Interest and dividends ................................................... Repayments to financing account ................................. 55 299 246 275 18 137 164 348 426 233 18 117 164 229 1,433 244 18 117 99.9 Total obligations ........................................................ 1,030 1,306 2,205 AND SPECIAL RISK INSURANCE FUNDS LIQUIDATING ACCOUNT (Legislative proposal, not subject to PAYGO) Program and Financing (in millions of dollars) Identification code 86–4072–2–3–371 1996 actual 1997 est. 1998 est. 1995 actual 1 1996 actual 1997 est. 1998 est. 1,134 2,092 2,392 871 5 3 20 7 16 .................. 7 16 .................. 7 16 .................. 98 75 175 .................. 175 .................. 175 .................. Obligations by program activity: Capital investment: Claims and other: 01.01 Change to baseline claims ....................................... ................... ................... 01.02 Change to repair and holding costs ......................... ................... ................... 01.03 Legislative savings repayments ................................ ................... ................... 449 –19 67 01.91 Total capital investment ....................................... ................... ................... 497 10.00 1 As 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 (–) .................... Identification code 86–4072–0–3–371 1998 est. 0101 0102 Identification code 86–4072–0–3–371 Object Classification (in millions of dollars) FHA—GENERAL Statement of Operations (in millions of dollars) Identification code 86–4072–0–3–371 reflected in 1997 Budget. Total obligations ........................................................ ................... ................... 497 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 497 –497 85 76 –22 –21 –18 Total new budget authority (gross) .......................... ................... ................... 497 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... 497 –497 86.97 97 –26 70.00 107 New budget authority (gross), detail: Appropriation (indefinite) ............................................... ................... ................... Spending authority from offsetting collections: Change to offsetting collections (cash) ................................. ................... ................... Outlays (gross), detail: Outlays from new permanent authority ......................... ................... ................... 497 60.05 68.00 –16 85 5,201 76 2,940 67 1,801 60 2,523 523 HOUSING PROGRAMS—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Change to recoveries on defaults ............................................. ................... ................... 1996 actual 1997 est. 523 523 1998 est. 32.0 33.0 44.0 Land and structures ...................................................... ................... ................... Investments and loans .................................................. ................... ................... Repayment to financing account .................................. ................... ................... –19 449 67 99.9 Total obligations ........................................................ ................... ................... 497 HOUSING FOR THE ELDERLY OR HANDICAPPED FUND LIQUIDATING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4115–0–3–371 Obligations by program activity: Capital investment: 00.01 Housing for the elderly or handicapped loans ......... 00.02 Maintenance security and collateral ......................... 1996 actual 3 2 1997 est. 1998 est. 14 ................... 4 4 00.91 01.01 Capital Investment, Subtotal ................................ Operating expenses: Interest on borrowings ................. 5 572 18 435 4 361 10.00 Total obligations ........................................................ 577 453 365 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 ....................................................................... 315 722 462 751 760 751 21.90 23.90 23.95 24.90 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... 2 189 ................... –71 –71 –72 44 ................... ................... Outstanding, end of year .......................................... 26 Object Classification (in millions of dollars) Identification code 86–4072–2–3–371 Disbursements: Direct loan disbursements ................... Repayments: Repayments and prepayments ................. Write-offs for default: Other adjustments, net ............. 1290 Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... 90.00 Outlays ........................................................................... ................... ................... 1231 1251 1264 563 2 ................... ................... 1,039 –577 1,213 –453 1,511 –365 462 760 1,146 8,306 8,424 8,352 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. For FY 1998, funding is being requested for assistance on behalf of the elderly and disabled under the Housing for Special Populations Account. 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 New budget authority (gross), detail: 60.05 Appropriation (indefinite) ............................................... 60.47 Portion applied to debt reduction ................................. 63.00 68.00 70.00 735 –735 Total new budget authority (gross) .......................... Outlays (gross), detail: 86.97 Outlays from new permanent authority ......................... Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. 722 751 390 425 251 577 453 365 –540 –627 –439 –2 ................... ................... 425 251 176 540 627 1997 est. 1998 est. 17 4 ¥14 14 ...................... ...................... ...................... ...................... ...................... Subtotal, capital investment-loan obligations Other expenses (Fee inspection) ........................... Capital investment: Loan obligations ................................................... Maintenance security and collateral ......................... 3 ...................... 14 ...................... ...................... ...................... 3 2 14 4 ...................... 4 Total capital investment .................................. 5 18 4 439 Financing.—Repayments and interest income from loans continue to be available to pay for commitments of the fund. Statement of Operations (in millions of dollars) 1995 actual 1996 actual 0101 0102 Revenue ................................................... Expense .................................................... 672 –551 700 –573 680 –439 679 –364 0109 Net income or loss (–) ............................ 121 127 241 315 Identification code 86–4115–0–3–371 –722 –751 –751 Status of Direct Loans (in millions of dollars) Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1996 actual Program by activities: Capital investment: Administrative commitments, start of year ......... Recovery of prior year obligations ........................ Administrative commitments, end of year ........... 751 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –182 –124 –311 Identification code 86–4115–0–3–371 [In millions of dollars] 881 –881 Appropriation (total) .................................................. ................... ................... ................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 722 751 751 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 ............................................................. 89.00 90.00 805 –805 1996 actual 8,331 8,306 1998 est. 8,424 1998 est. Balance Sheet (in millions of dollars) Identification code 86–4115–0–3–371 1997 est. 1997 est. ASSETS: 1101 Federal assets: Fund balances with Treasury ............................................... 1206 Non-Federal assets: Receivables, net ..... 1995 actual 1996 actual 705 167 887 83 1997 est. 1998 est. 1,011 .................. 1,322 .................. HOUSING PROGRAMS—Continued Federal Funds—Continued 564 THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued HOUSING FOR THE Balance Sheet (in millions of dollars) ELDERLY OR HANDICAPPED FUND LIQUIDATING ACCOUNT—Continued 1601 1603 1604 1699 1901 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 .................................................. Value of assets related to direct loans .......................................... Other Federal assets: Other assets ........ 1999 1997 est. 1996 actual 6 6 6 6 1 1 1 1 –1 –1 –1 –1 Total assets ........................................ NET POSITION: 3300 Cumulative results of operations ............ 6 6 6 6 6 6 6 6 3999 Balance Sheet (in millions of dollars)—Continued Identification code 86–4115–0–3–371 1995 actual Total net position ................................ 6 6 6 6 4999 Total liabilities and net position ............ 6 6 6 6 Identification code 86–4042–0–3–604 1995 actual 1996 actual 1998 est. 8,331 8,306 8,424 8,353 –18 –20 –20 –20 8,313 8,286 8,404 8,333 8,313 –7 8,286 1 8,404 .................. 8,333 .................. Total assets ........................................ LIABILITIES: Federal liabilities: 2102 Interest payable .................................. 2104 Resources payable to Treasury ........... 2207 Non-Federal liabilities: Other .................. 9,178 9,257 9,415 291 8 6,909 222 8 6,174 184 8 5,293 2999 8,131 7,208 6,404 1999 5,485 1997 est. 1998 est. 9,655 275 142 7,714 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 (–) .................... Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 1,183 –137 2,021 28 2,756 256 3,637 534 3999 Total net position ................................ 1,046 2,049 3,011 4,170 4999 Total liabilities and net position ............ 9,177 9,257 9,416 9,656 Object Classification (in millions of dollars) Identification code 86–4115–0–3–371 1996 actual 1997 est. 1998 est. 32.0 33.0 43.0 Land and structures ...................................................... Investments and loans .................................................. Interest and dividends ................................................... 2 3 572 4 4 14 ................... 435 361 99.9 Total obligations ........................................................ 577 453 365 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION Federal Funds The Housing and Urban Development Act of 1968 authorized the Government National Mortgage Association (Ginnie Mae) to guarantee the timely payment of principal and interest on privately issued securities that are backed by pools of FHA, Veterans Affairs (VA) and Rural Housing Service mortgages. The Ginnie Mae guarantee gives lenders access to the capital markets for funds to originate new loans. New FHA and VA loans are currently pooled into Ginnie Mae securities. Financing.—Ginnie Mae issuers are assessed commitment, guarantee and other fees to cover costs incurred by Ginnie Mae and to fund a reserve against possible future payments under the guarantee. Operating results.—Fee collections, interest, and other income are expected to exceed expenses by $23 million and $60 million in 1997 and 1998 respectively. NONPROFIT SPONSOR ASSISTANCE LIQUIDATING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4042–0–3–604 1996 actual MANAGEMENT 1997 est. 1998 est. LIQUIDATING FUNCTIONS FUND Program and Financing (in millions of dollars) Budgetary resources available for obligation: 21.90 Unobligated balance available, start of year: Fund balance ...................................................................... 6 6 6 23.95 New obligations ............................................................. ................... ................... ................... 24.90 Unobligated balance available, end of year: Fund balance ...................................................................... 6 6 6 89.00 90.00 AND Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... ................... ................... ................... Identification code 86–4016–0–3–371 Budgetary resources available for obligation: Unobligated balance available, start of year: U.S. Securities: Par value ................................................. 22.40 Capital transfer to general fund ................................... 1996 actual 1997 est. 1998 est. 21.91 23.90 23.95 24.91 15 ................... ................... –15 ................... ................... Total budgetary resources available for obligation ................... ................... ................... New obligations ............................................................. ................... ................... ................... Unobligated balance available, end of year: U.S. Securities: Par value ..................................................... ................... ................... ................... Status of Direct Loans (in millions of dollars) Identification code 86–4042–0–3–604 1996 actual 1997 est. 86.97 86.98 1998 est. 1210 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. 1 1 1 1290 Outstanding, end of year .......................................... 1 1 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... ................... ................... Outlays from permanent balances ................................ ................... ................... ................... 87.00 Total outlays (gross) ................................................. ................... ................... ................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... ................... ................... ................... 1 As required by the Federal Credit Reform Act of 1990, this account records, for this program, all cash flows to and from the Government resulting from direct loans obligated prior to 1992. This account is shown on a cash basis. The Nonprofit Sponsor Assistance fund provided interestfree loans to nonprofit organizations to plan housing projects to be financed under the section 202 housing for the elderly or disabled program. 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. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 565 87.00 Statement of Operations (in millions of dollars) Identification code 86–4016–0–3–371 1995 actual 1996 actual 1997 est. Revenue ................................................... Expense .................................................... 1 .................. .................. .................. .................. .................. .................. .................. 0109 Net income or loss (–) ............................ 1 .................. .................. .................. 9 9 9 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 9 9 9 9 9 9 1998 est. 0101 0102 Total outlays (gross) ................................................. Balance Sheet (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 1995 actual 1996 actual 1997 est. 1998 est. ASSETS: Investments in US securities: 1104 Federal assets: Agency securities, par 15 .................. .................. .................. 1999 Total assets ........................................ NET POSITION: 3300 Cumulative results of operations ............ 15 .................. .................. .................. 15 .................. .................. .................. 3999 Total net position ................................ 15 .................. .................. 4999 Total liabilities and net position ............ 15 .................. .................. .................. 1996 actual 1997 est. 1998 est. .................. Identification code 86–4016–0–3–371 Credit accounts: GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE PROGRAM ACCOUNT (INCLUDES TRANSFER OF FUNDS) During fiscal year ø1997¿ 1998, new commitments to issue guarantees to carry out the purposes of section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)), shall not exceed ø$110,000,000,000¿ $130,000,000,000. For administrative expenses necessary to carry out the guaranteed mortgage-backed securities program, $9,383,000, to be derived from the Ginnie Mae-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. øDuring fiscal year 1996 and in addition to commitments previously provided, additional 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 $20,000,000,000.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 1996 actual 1997 est. 1998 est. 130,000 110,000 130,000 0.00 0.00 –0.32 –9 –9 –9 –9 –9 –9 The schedule above reflects new methodology under credit reform for GNMA. During transition to the new methodology, negative subsidy will not match disbursement from the GNMA financing account to the GNMA receipt account. As required by the Federal Credit Reform Act of 1990, this account records the administrative expenses of this program. The administrative expenses are estimated on a cash basis. GUARANTEES OF MORTGAGE-BACKED SECURITIES FINANCING ACCOUNT Program and Financing (in millions of dollars) Identification code 86–4240–0–3–371 Obligations by program activity: Payment to receipt account for administration ............ Payment to receipt account for negative subsidy ........ Payment to receipt account for multi-class savings proposals ................................................................... 00.04 Operating expenses ........................................................ 00.05 Capital investment ........................................................ 00.01 00.02 00.03 10.00 Unavailable Collections (in millions of dollars) Identification code 86–0186–0–1–371 Guaranteed loan levels supportable by subsidy budget authority: 2159 Total loan guarantee levels ........................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... Guaranteed loan subsidy budget authority: 2339 Total subsidy budget authority ...................................... Guaranteed loan subsidy outlays: 2349 Total subsidy outlays ..................................................... 1996 actual 1997 est. 1998 est. 9 9 ................... ................... 9 45 ................... ................... ................... ................... ................... ................... 27 15 6 Total obligations (object class 25.2) ........................ 9 9 102 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New financing authority (gross) .................................... 99 37 127 32 150 102 21.90 Balance, start of year: Balance, start of year .................................................... ................... ................... ................... Receipts: 02.01 Guarantees of mortgage backed securities guarantee loans, negative subsidies ......................................... 9 9 81 Appropriation: 05.01 Guarantees of mortgage-backed securities loan guarantee program account ............................................. –9 –9 –9 07.99 Total balance, end of year ............................................ ................... ................... 72 01.99 23.90 23.95 24.90 68.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... 136 –9 159 –9 252 –102 127 150 150 New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 37 32 102 Program and Financing (in millions of dollars) Identification code 86–0186–0–1–371 1996 actual 1997 est. 1998 est. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Authority to borrow .................................................... –6 ................... ................... 73.10 New obligations ............................................................. 9 9 102 73.20 Total financing disbursements (gross) ......................... –3 –9 –102 74.47 Unpaid obligations, end of year: Obligated balance: Authority to borrow .................................................... ................... ................... ................... 87.00 Total financing disbursements (gross) ......................... 3 9 102 72.47 10.00 Obligations by program activity: Total obligations (object class 25.2) ............................ 9 9 9 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 9 –9 9 –9 9 –9 New budget authority (gross), detail: 40.25 Appropriation (special fund, indefinite) ........................ 9 9 9 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. Total outlays (gross) ...................................................... 9 –9 9 –9 9 –9 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. 9 9 9 Outlays from current balances ...................................... ................... ................... ................... 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 ................................................................... –8 –2 –2 –29 –30 –100 88.90 –37 –32 –102 89.00 Total, offsetting collections (cash) .................. Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... 566 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 01.02 OF MORTGAGE-BACKED SECURITIES FINANCING ACCOUNT—Continued 13 13 12 Total capital investment ....................................... 142 158 123 10.00 GUARANTEES Real estate owned properties ................................... 01.91 Credit accounts—Continued Total obligations ........................................................ 190 215 179 87 82 52 Program and Financing (in millions of dollars)—Continued 1996 actual Identification code 86–4240–0–3–371 90.00 Financing disbursements ............................................... 1997 est. –35 1998 est. –23 ................... Status of Direct Loans (in millions of dollars) 1996 actual Identification code 86–4240–0–3–371 1997 est. 1998 est. Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. ................... ................... ................... 1232 Disbursements: Purchase of loans assets from the public ......................................................................... ................... ................... 5 1252 Repayments: Proceeds from loan asset sales to the public or discounted ................................................. ................... ................... –5 1290 Outstanding, end of year .......................................... ................... ................... ................... Status of Guaranteed Loans (in millions of dollars) 1996 actual Identification code 86–4240–0–3–371 1997 est. 1998 est. Budgetary resources available for obligation: Unobligated balance available, start of year: 21.90 Treasury balance ....................................................... U.S. Securities: Par value: 21.91 Par value .......................................................... 21.91 Par value (REMICs) .......................................... 4,211 4,762 5,341 –17 ................... ................... 21.99 22.00 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ 4,281 753 4,844 765 5,393 735 23.90 23.95 5,034 –190 5,609 –215 6,128 –179 24.90 24.91 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ............................................................. U.S. Securities: Par value ......................................... 82 4,762 52 5,341 45 5,903 24.99 Total unobligated balance, end of year .................... 4,844 5,393 5,948 742 743 714 11 22 21 Spending authority from offsetting collections (total) ................................................................ 753 765 735 Total new budget authority (gross) .......................... 753 765 735 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 ...................... –87 190 –181 –78 215 –185 –48 179 –173 –78 –48 –41 181 185 173 –264 –261 –277 –305 –120 –17 –16 –311 –130 –28 –16 –297 –102 –27 –15 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) ........................................................... Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. 2112 Uncommitted loan guarantee limitation ....................... 130,000 110,000 130,000 –20,000 ................... ................... 68.90 2150 110,000 70.00 2210 2231 2251 2290 Total guaranteed loan commitments ........................ 110,000 130,000 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. ................... ................... ................... Disbursements of new guaranteed loans ...................... ................... ................... 75,799 Repayments and prepayments ...................................... ................... ................... ................... Outstanding, end of year .......................................... ................... ................... 75,799 Memorandum: 2299 Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... ................... ................... 72.47 86.98 Outlays (gross), detail: Outlays from permanent balances ................................ ASSETS: Federal assets: Fund balances with Treasury ............................................... 1206 Non-Federal assets: Receivables, net ..... 93 6 127 .................. 137 .................. 149 105 1999 Total assets ........................................ NET POSITION: 3300 Cumulative results of operations ............ 99 127 137 254 99 127 137 254 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 Repayments on mortgages ............................... 88.40 Sale of servicing rights .................................... 3999 99 127 137 254 88.90 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. 89.00 90.00 Balance Sheet (in millions of dollars) Identification code 86–4240–0–3–371 1995 actual 1996 actual 1997 est. 1998 est. 1101 Total net position ................................ GUARANTEES OF 1997 est. 1998 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 ........................................................ 12 8 9 15 4 13 9 10 20 5 13 8 10 19 6 00.91 48 57 56 01.01 Total operating expenses ...................................... Capital investment: Advances of guaranty payments ............................... 129 145 –765 –735 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –571 –580 –562 Identification code 86–4238–0–3–371 Program and Financing (in millions of dollars) 1996 actual –753 Status of Direct Loans (in millions of dollars) MORTGAGE-BACKED SECURITIES LIQUIDATING ACCOUNT Identification code 86–4238–0–3–371 Total, offsetting collections (cash) .................. –11 –11 –10 –12 ................... ................... –8 –8 –7 111 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 actual 1997 est. 1998 est. 333 321 327 128 144 111 –140 –138 –109 321 327 329 Status of Guaranteed Loans (in millions of dollars) Identification code 86–4238–0–3–371 Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. 1996 actual 463,848 1997 est. 497,433 1998 est. 533,333 POLICY DEVELOPMENT AND RESEARCH Federal Funds DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2231 2251 Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... 101,540 –67,955 79,560 ................... –43,660 –45,465 2290 Outstanding, end of year .......................................... 497,433 533,333 Memorandum: 2299 Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 487,868 567 Object Classification (in millions of dollars) 1996 actual Identification code 86–4238–0–3–371 1997 est. 1998 est. 25.2 33.0 99.0 497,433 503,333 487,868 Other services ................................................................ Investments and loans .................................................. Subtotal, reimbursable obligations ............................... 48 142 190 57 158 215 56 123 179 99.9 Total obligations ........................................................ 190 215 179 Budget Program.—Program activity is summarized below: Mortgage-backed Securities POLICY DEVELOPMENT AND RESEARCH [In millions of dollars] 1996 actual Commitment limitation .................................................. Commitments issued ..................................................... Guarantees issued ......................................................... Securities outstanding ................................................... 1997 est. 130,000 110,000 101,540 497,423 Federal Funds 1998 est. 110,000 110,000 79,560 533,333 * * * * General and special funds: RESEARCH AND TECHNOLOGY Operating results.—Fee collections, interest, and other income are expected to exceed expenses by $570 million in 1996 and $570 million in 1997 and 1998, respectively. These amounts will be retained to cover future year expenses and as a reserve against losses that may be incurred on guarantees. For contracts, grants, and necessary expenses of programs of research and studies relating to housing and urban problems, not otherwise provided for, as authorized by title V of the Housing and Urban Development Act of 1970, as amended (12 U.S.C. 1701z–1 et seq.), including carrying out the functions of the Secretary under section 1(a)(1)(i) of Reorganization Plan No. 2 of 1968, ø$34,000,000¿ $39,000,000, to remain available until September 30, ø1998¿ 1999. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Statement of Operations (in millions of dollars) Program and Financing (in millions of dollars) * 1998 figures are reflected in the GNMA financing account. Identification code 86–4238–0–3–371 Revenue: 0101 Revenue ................................................... 0101 Revenue (REMICs) ................................... Expense: 0102 Expense .................................................... 0102 Expense (REMICs) .................................... Net income or loss (–): 1995 actual 1996 actual 1997 est. 1998 est. 514 13 576 11 602 22 602 21 –46 –4 –96 –4 –52 –2 –51 –2 Identification code 86–0108–0–1–451 1996 actual 1997 est. 1998 est. 00.01 Obligations by program activity: Direct program ............................................................... 33 36 39 10.00 Total obligations ........................................................ 33 36 39 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 1 34 2 ................... 34 39 35 –33 36 ................... –36 –39 21.40 0109 Net income or loss (–) ....................... 468 480 550 551 0109 Net income or loss (–) (REMICs) ....... 9 7 20 19 0199 Net income or loss .................................. 477 487 570 570 23.90 23.95 24.40 Balance Sheet (in millions of dollars) Identification code 86–4238–0–3–371 1995 actual 1996 actual 1997 est. 1998 est. 40.00 ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1102 Treasury securities, par .................. 1104 Agency securities, par .................... 1106 Receivables, net ............................. 1206 Non-Federal assets: Receivables, net ..... Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............................. 1603 Allowance for estimated uncollectible loans and interest (–) .................... 1699 1801 Value of assets related to direct loans .......................................... Other Federal assets: Cash and other monetary assets .................................. 1999 Total assets ........................................ LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................................ 2207 Other ................................................... 2999 Total liabilities .................................... NET POSITION: 3300 Cumulative results of operations ............ .................. 4 4 4 4,232 1 59 26 4,785 .................. 60 28 5,341 .................. 60 28 5,903 .................. 64 27 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 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 ............................................................. 2 ................... ................... 34 34 39 28 33 –36 25 36 –32 29 39 –37 25 29 31 72.40 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 14 22 14 18 16 21 333 321 327 329 86.90 86.93 –241 –288 –163 –162 87.00 Total outlays (gross) ................................................. 36 32 37 92 33 164 167 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 34 36 34 32 39 37 4 5 5 6 4,414 4,915 5,602 6,171 29 534 36 473 45 471 53 471 563 509 516 524 3,851 4,406 5,085 5,647 3999 Total net position ................................ 3,851 4,406 5,085 5,647 4999 Total liabilities and net position ............ 4,414 4,915 5,601 6,171 Note.—Ginnie Mae 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. 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 1998, the research program will focus on activities to support the reinvention of HUD, including examination of issues such as the 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 1998. 568 POLICY DEVELOPMENT AND RESEARCH—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued RESEARCH AND TECHNOLOGY—Continued Object Classification (in millions of dollars) 1996 actual Identification code 86–0108–0–1–451 1997 est. 1998 est. 25.2 41.0 Other services ................................................................ Grants, subsidies, and contributions ............................ 29 4 32 4 34 5 99.9 Total obligations ........................................................ 33 36 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. 39 MANAGEMENT AND ADMINISTRATION Federal Funds General and special funds: FAIR HOUSING AND EQUAL OPPORTUNITY SALARIES Federal Funds FAIR HOUSING ACTIVITIES For contracts, grants, and other assistance, not otherwise provided for, as authorized by title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988, and section 561 of the Housing and Community Development Act of 1987, as amended, ø$30,000,000¿ $39,000,000, to remain available until September 30, ø1998¿ 1999, of which ø$15,000,000¿ $24,000,000 shall be to carry out activities pursuant to such section 561. øNo funds made available under this heading shall be used to lobby the executive or legislative branches of the Federal Government in connection with a specific contract, grant or loan.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) 1996 actual 1997 est. 19 24 15 24 10.00 Total obligations (object class 41.0) ........................ 20 43 39 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 3 30 13 ................... 30 39 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 ............................................................. Program and Financing (in millions of dollars) Identification code 86–0143–0–1–999 11 9 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 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, ø$976,840,000, of which $15,000,000 may be used for additional retraining, relocation, permanent change of station, and other activities related to downsizing only upon submission of a detailed and specific, multi-year downsizing plan to the Committees on Appropriations of the House of Representatives and the Senate, and¿ ø$955,471,000,¿ $1,005,826,000 of which $544,443,000 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 ø$675,000¿ $1,000,000 shall be provided from the Community Development Grants Program account. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 1998 est. Obligations by program activity: 00.01 Fair housing assistance ................................................ 00.02 Fair housing initiatives .................................................. 23.90 23.95 24.40 EXPENSES (INCLUDING TRANSFER OF FUNDS) General and special funds: Identification code 86–0144–0–1–751 AND 1996 actual 1997 est. 1998 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 ........................... 94 59 59 95 60 59 121 61 60 51 154 51 155 52 157 39 –39 00.91 01.01 Total direct program ............................................. Reimbursable program .................................................. 417 546 420 557 451 555 13 ................... ................... 10.00 Total obligations ........................................................ 963 977 1,006 33 –20 30 43 –43 30 39 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.30 Unobligated balance expiring ........................................ 21.40 1 ................... ................... 965 977 1,006 –4 ................... ................... 44 20 –32 32 43 –24 51 39 –27 32 51 63 Outlays (gross), detail: Outlays from current balances ...................................... 32 24 27 Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 40.75 Reduction pursuant to P.L. 104–134 ....................... 420 420 451 –1 ................... ................... 30 32 30 24 39 27 43.00 Appropriation (total) ............................................. Permanent: Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 419 420 546 557 555 Total new budget authority (gross) .......................... 965 977 1,006 112 136 963 977 –928 –977 –11 ................... 136 1,006 –998 –8 86.93 23.90 23.95 24.40 68.00 The Budget proposes an appropriation of $39 million in 1998 for fair housing activities to aid in eliminating housing discrimination. Of the amount requested, $15 million is for the Fair Housing Assistance program and $24 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. 70.00 Total budgetary resources available for obligation 962 977 1,006 New obligations ............................................................. –963 –977 –1,006 Unobligated balance available, end of year: Uninvested balance ................................................... ................... ................... ................... 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 ............................................................. 451 72.40 136 136 136 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 86.90 86.93 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 321 61 546 324 96 557 347 96 555 87.00 Total outlays (gross) ................................................. 928 977 998 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –546 –557 –555 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 419 382 420 420 451 443 89.00 90.00 Program and Financing (in millions of dollars) 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. 1996 actual 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 25.7 26.0 31.0 42.0 Direct obligations: Personnel compensation: Full-time permanent ............................................. Other than full-time permanent ........................... Other personnel compensation ............................. 1997 est. 1998 est. 223 4 5 222 4 5 217 4 5 Total personnel compensation ......................... 232 Civilian personnel benefits ....................................... 49 Benefits for former personnel ................................... 1 Travel and transportation of persons ....................... 6 Transportation of things ........................................... ................... Rental payments to GSA ........................................... 32 Communications, utilities, and miscellaneous charges ................................................................. 10 Printing and reproduction ......................................... 3 Advisory and assistance services ............................. 13 Other services ............................................................ 2 Purchases of goods and services from Government accounts ................................................................ 54 Operation and maintenance of facilities .................. 6 Operation and maintenance of equipment ............... ................... Supplies and materials ............................................. 3 Equipment ................................................................. 6 Insurance claims and indemnities ........................... ................... 231 49 1 7 3 33 226 47 1 11 2 34 13 3 10 2 15 3 25 2 53 71 6 6 1 ................... 3 3 4 4 1 1 99.0 99.0 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 417 546 420 557 451 555 99.9 Total obligations ........................................................ 963 977 1,006 Personnel Summary 1996 actual Identification code 86–0143–0–1–999 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 Identification code 86–0189–0–1–451 OF 1997 est. 1998 est. 00.01 01.01 Obligations by program activity: Direct program ............................................................... Reimbursable program .................................................. 36 12 37 16 37 21 10.00 Total obligations ........................................................ 48 53 58 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 49 –48 53 –53 58 –58 37 37 37 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 12 16 21 Total new budget authority (gross) .......................... 49 53 58 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 ............................................................. 10 48 –40 18 53 –53 18 58 –58 18 18 18 70.00 1997 est. 1998 est. .............................. and holiday hours 4,565 24 4,491 24 4,443 25 .............................. and holiday hours 5,977 32 5,956 32 5,518 31 86.90 86.93 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 23 5 12 28 9 16 28 9 21 87.00 Total outlays (gross) ................................................. 40 53 58 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –12 –16 –21 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 37 28 37 37 37 37 89.00 90.00 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. Object Classification (in millions of dollars) Identification code 86–0189–0–1–451 11.1 11.5 OFFICE 1996 actual 72.40 Object Classification (in millions of dollars) Identification code 86–0143–0–1–999 569 INSPECTOR GENERAL (INCLUDING TRANSFER OF FUNDS) For necessary expenses of the Office of Inspector General in carrying out øthe provisions of¿ the Inspector General Act of 1978, as amended, ø$52,850,000¿ $57,850,000, of which $11,283,000 shall be provided from the various funds of the Federal Housing Administration and ø$5,000,000¿ $10,000,000 shall be provided from the amount earmarked for Operation Safe Home in the Drug Elimination Grants for Low Income Housing Account. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 11.9 12.1 21.0 23.1 25.1 25.2 25.3 25.7 99.0 99.0 Direct obligations: Personnel compensation: Full-time permanent ............................................. Other personnel compensation ............................. 1996 actual 20 2 1997 est. 21 2 1998 est. 21 2 Total personnel compensation ......................... 22 23 23 Civilian personnel benefits ....................................... 5 5 5 Travel and transportation of persons ....................... 2 3 3 Rental payments to GSA ........................................... 4 3 3 Advisory and assistance services ............................. 1 1 1 Other services ............................................................ ................... 1 1 Purchases of goods and services from Government accounts ................................................................ 1 1 1 Operation and maintenance of equipment ............... 1 ................... ................... Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 36 12 37 16 37 21 570 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 73.20 74.40 General and special funds—Continued OFFICE OF INSPECTOR GENERAL—Continued Total outlays (gross) ...................................................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. –14 –16 –16 7 6 6 (INCLUDING TRANSFER OF FUNDS)—Continued 86.90 Object Classification (in millions of dollars)—Continued 1996 actual Identification code 86–0189–0–1–451 99.9 Total obligations ........................................................ 48 1997 est. 1996 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 OF 14 16 16 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 15 14 16 16 16 16 1998 est. 53 58 Personnel Summary Identification code 86–0189–0–1–451 Outlays (gross), detail: Outlays from new current authority .............................. 1997 est. 1998 est. 372 1 376 1 367 1 120 167 214 FEDERAL HOUSING ENTERPRISE OVERSIGHT SALARIES AND EXPENSES For carrying out the Federal Housing Enterprise Financial Safety and Soundness Act of 1992, ø$15,500,000¿ including not to exceed $3,000 for official reception and representation expenses, $16,312,000, to remain available until expended, from the Federal Housing Enterprise Oversight Fund: Provided, That øsuch 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).¿ not to exceed such amount shall be available from the General Fund of the Treasury to the extent necessary to incur obligations and make expenditures pending the receipt of collections to the Fund: Provided further, That the General Fund amount shall be reduced as collections are received during the fiscal year so as to result in a final appropriation from the General Fund estimated at not more than $0. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) This appropriation funds the Office of Federal Housing Enterprise Oversight (the Office), which was established in 1992 to regulate the financial safety and soundness of the two housing Government Sponsored Enterprises (GSEs)—the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. The Office was authorized in the Federal Housing Enterprise Safety and Soundness Act of 1992, which also instituted a risk-based capital standard for the GSEs, and gave the regulator enhanced authority to enforce those standards. The office is also required by statute to conduct on-site annual examinations at the GSEs to determine the condition of each enterprise for the purpose of ensuring their financial safety and soundness. Object Classification (in millions of dollars) 1996 actual Identification code 86–5272–0–2–371 1997 est. 1998 est. 11.1 12.1 23.1 25.2 Personnel compensation: Personnel Compensation ...... Civilian personnel benefits ............................................ Rental payments to GSA ................................................ Other services ................................................................ 6 2 2 5 7 2 2 5 7 2 2 5 99.9 Total obligations ........................................................ 15 16 16 Personnel Summary Identification code 86–5272–0–2–371 1001 1996 actual Total compensable workyears: Full-time equivalent employment ............................................................... 66 1997 est. 1998 est. 78 78 Unavailable Collections (in millions of dollars) Identification code 86–5272–0–2–371 1996 actual 1997 est. 1998 est. Intragovernmental funds: Balance, start of year: 01.99 Balance, start of year .................................................... Receipts: 02.01 Office of federal housing enterprise oversight ............. 2 2 2 WORKING CAPITAL FUND 13 16 16 Program and Financing (in millions of dollars) 04.00 15 18 18 –15 2 –16 2 –16 2 Total: Balances and collections .................................... Appropriation: 05.01 Office of federal housing enterprise oversight ............. 07.99 Total balance, end of year ............................................ 1996 actual 1997 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.30 Unobligated balance expiring ........................................ 2 ................... ................... 15 16 16 –2 ................... ................... 16 16 21.40 Total budgetary resources available for obligation 15 16 16 New obligations ............................................................. –15 –16 –16 Unobligated balance available, end of year: Uninvested balance ................................................... ................... ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 1998 est. 00.01 00.03 Obligations by program activity: Operating expenses: Data processing services ............. Capital investment: Data processing services .............. 196 2 217 2 257 2 Total obligations ........................................................ 198 219 259 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 ....................................................................... 31 198 32 219 33 259 21.90 15 New budget authority (gross), detail: 40.20 Appropriation (special fund, definite) ........................... 1997 est. 1998 est. Obligations by program activity: 10.00 Total obligations ............................................................ 23.90 23.95 24.40 1996 actual 10.00 Program and Financing (in millions of dollars) Identification code 86–5272–0–2–371 Identification code 86–4586–0–4–451 15 16 16 23.90 23.95 24.90 New budget authority (gross), detail: Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.10 Change in orders on hand from Federal sources 68.15 Adjustment to orders on hand from Federal sources 68.90 72.40 6 15 7 16 6 16 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... 70.00 1 1 ................... 230 –198 252 –219 292 –259 32 33 33 183 219 259 14 ................... ................... 1 ................... ................... Spending authority from offsetting collections (total) ................................................................ 198 219 259 Total new budget authority (gross) .......................... 198 219 259 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Change in unpaid obligations: Unpaid obligations, start of year: 72.90 Obligated balance: Fund balance ............................. 72.95 Orders on hand from Federal sources ...................... 72.99 73.10 73.20 73.45 74.40 74.90 74.95 –1 10 –3 24 –3 24 Total unpaid obligations, start of year ................ 9 21 21 New obligations ............................................................. 198 219 259 Total outlays (gross) ...................................................... –185 –219 –259 Adjustments in unexpired accounts .............................. –1 –1 ................... Unpaid obligations, end of year: Obligated balance: Appropriation ......................................................... ................... ................... ................... Fund balance ........................................................ –3 –3 –3 Orders on hand from Federal sources ...................... 24 24 24 74.99 Total unpaid obligations, end of year .................. 21 21 21 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... 185 219 259 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources 88.95 Change in orders on hand from Federal sources ......... 88.96 Adjustment to orders on hand from Federal sources 89.00 90.00 –183 –219 –259 –14 ................... ................... –1 ................... ................... Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 2 ................... ................... 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) 1996 actual Identification code 86–4586–0–4–451 1997 est. 1998 est. 11.1 12.1 21.0 23.3 25.2 26.0 31.0 Personnel compensation: Full-time permanent ............. Civilian personnel benefits ............................................ Travel and transportation of persons ............................ Communications, utilities, and miscellaneous charges Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... 18 3 1 45 94 5 32 18 4 1 53 125 3 15 19 4 1 50 169 1 15 99.9 Total obligations ........................................................ 198 219 259 Personnel Summary Identification code 86–4586–0–4–451 2001 Total compensable workyears: Full-time equivalent employment ............................................................... 1996 actual 301 1997 est. 330 1998 est. 330 ADMINISTRATIVE PROVISIONS SEC. 201. EXTENDERS.—(a) PUBLIC HOUSING FUNDING FLEXIBILITY.—Section 201(a)(2) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 is amended by striking ø‘‘1996’’¿ ‘‘1997’’ and inserting ø‘‘1997’’¿ ‘‘1998’’. (b) ONE-FOR-ONE REPLACEMENT OF PUBLIC AND INDIAN HOUSING.— Section 1002(d) of Public Law 104–19 is amended by striking ø‘‘before September 30, 1996’’¿ ‘‘1997’’ and inserting ø‘‘on or before September 30, 1997’’¿ ‘‘1998’’. (c) PUBLIC AND ASSISTED HOUSING RENTS, INCOME ADJUSTMENTS, AND PREFERENCES.—(1)ø(A)¿ Section 402(a) of The Balanced Budget Downpayment Act, I is amendedø—¿ ø(i)¿ by striking ‘‘øeffective for fiscal year 1996 and no later than October 30, 1995’’ and inserting ‘‘and subsection (f) of this section, effective for¿ fiscal year 1997’’ø;¿, and inserting ‘‘fiscal year 1998.’’ ø(ii) in paragraphs (1), (2), and (4), by striking ‘‘not less than $25, and may require a minimum monthly rent of’’; and (iii) in paragraph (3), by striking ‘‘not less than $25 for the unit, and may require a minimum monthly rent of’’. (B) Section 230 of Public Law 104–134 is hereby repealed.¿ 571 (2) Section 402(f) of The Balanced Budget Downpayment Act, I is amended by striking ø‘‘fiscal year 1996’’ and inserting¿ ‘‘fiscal years 1996 and 1997’’ and inserting ‘‘fiscal years 1996, 1997, and 1998’’. (d) APPLICABILITY TO IHAS.—In accordance with section 201(b)(2) of the United States Housing Act of 1937, the amendments made by subsections (a), (b), and (c) shall apply to public housing developed or operated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian housing authority. (e) STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE.—Section 203(d) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 is amended by striking ø‘‘fiscal year 1996’’ and inserting¿ ‘‘fiscal years 1996 and 1997’’ and inserting ‘‘fiscal year 1996, 1997, and 1998.’’ (f) SECTION 8 FAIR MARKET RENTALS øAND DELAY IN REISSUANCE.¿—ø(1)¿ The first sentence of section 403(a) of the Balanced Budget Downpayment Act, I, is amended by striking ø‘‘1996’’¿ ‘‘1997’’ and inserting ø‘‘1997’’¿ ‘‘1998’’. ø(2) Section 403(c) of such Act is amended— (A) by striking ‘‘fiscal year 1996’’ and inserting ‘‘fiscal years 1996 and 1997’’; and (B) by inserting before the semicolon the following: ‘‘for assistance made available during fiscal year 1996 and October 1, 1997 for assistance made available during fiscal year 1997’’.¿ (g) SECTION 8 RENT ADJUSTMENTS.—Section 8(c)(2)(A) of the United States Housing Act of 1937 is amended— (1) in the third sentence, by striking ‘‘fiscal year 1997’’ and inserting ‘‘fiscal years 1997 and 1998’’; (2) in the last sentence, by striking ‘‘fiscal year 1997’’ and inserting ‘‘fiscal year 1997 and 1998’’. ø(1) in the third sentence by inserting ‘‘, fiscal year 1996 prior to April 26, 1996, and fiscal year 1997’’ after ‘‘1995’’; (2) in the fourth sentence, by striking ‘‘For’’ and inserting ‘‘Except for assistance under the certificate program, for’’; (3) after the fourth sentence, by inserting the following new sentence: ‘‘In the case of assistance under the certificate program, 0.01 shall be subtracted from the amount of the annual adjustment factor (except that the factor shall not be reduced to less than 1.0), and the adjusted rent shall not exceed the rent for a comparable unassisted unit of similar quality, type, and age in the market area.’’; and (4) in the last sentence, by— (A) striking ‘‘sentence’’ and inserting ‘‘two sentences’’; and (B) inserting ‘‘, fiscal year 1996 prior to April 26, 1996, and fiscal year 1997’’ after ‘‘1995’’.¿ SEC. 202. SECTION 8 ADMINISTRATIVE FEES.—Section 202(a)(1)(A) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, is amended by— (1) striking ‘‘7.5 percent’’ and inserting ‘‘7.65 percent’’; (2) striking ‘‘a program of’’ and inserting ‘‘one or more such programs totaling’’; and (3) inserting before the final period, ‘‘of such total units.’’ The amendments made by this section shall take effect on October 1, 1997. øADMINISTRATIVE 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 7.5 percent of the base amount, adjusted as provided herein, 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, adjusted as provided herein, 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. 572 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued Intragovernmental funds—Continued ADMINISTRATIVE PROVISIONS—Continued (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 date 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.¿ øSEC. 203. SINGLE FAMILY ASSIGNMENT PROGRAM.—Section 407(c) of the Balanced Budget Downpayment Act, I (12 U.S.C. 1710 note), is amended by striking ‘‘October 1, 1996’’ and inserting ‘‘October 1, 1997’’.¿ øSEC. 204. FLEXIBLE AUTHORITY.—During fiscal year 1997 and fiscal years thereafter, the Secretary may manage and dispose of multifamily properties owned by the Secretary and multifamily mortgages held by the Secretary on such terms and conditions as the Secretary may determine, notwithstanding any other provision of law.¿ øSEC. 205. USE OF AVAILABLE FUNDING FOR HOMEOWNERSHIP.— Up to $20,000,000 of amounts of unobligated balances that are or become available from the Nehemiah Housing Opportunity Grant program, repealed under section 289(b) of the Cranston-Gonzalez National Affordable Housing Act, Public Law 101–625, shall be available for use for activities relating to promotion and implementation of homeownership in targeted geographic areas, as determined by the Secretary. Any grant or assistance made under this section shall be made in accordance with section 102 of the Department of Housing and Urban Development Reform Act of 1989 on a competitive basis.¿ øSEC. 206. DEBT FORGIVENESS.—The Secretary of Housing and Urban Development shall cancel the indebtedness of the Greene County Rural Health Center relating to a loan received under the Public Facility Loan program to establish the health center (Loan #Mis–22–PFL0096). The Greene County Rural Health Center is hereby relieved of all liability to the Federal Government for such loan and any fees and charges payable in connection with such loan.¿ øSEC. 207. 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.¿ øSEC. 208. RENTAL HOUSING ASSISTANCE.—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.¿ øSEC. 209. D.C. MODERNIZATION FUNDING.—Notwithstanding the provisions of section 14(k)(5)(D) of the United States Housing Act of 1937, the withheld modernization funds that became credited in fiscal years 1993, 1994, and 1995, due to the troubled status of the former Department of Public and Assisted Housing of the District of Columbia, shall be made available without diminution to its successor, the District of Columbia Housing Authority, at such time between the effective date of this Act and the end of fiscal year 1998 as the District of Columbia Housing Authority is no longer deemed ‘‘mod-troubled’’ under section 6(j)(2)(A)(i) of such Act; after fiscal year 1998, the District of Columbia Housing Authority shall become sub- THE BUDGET FOR FISCAL YEAR 1998 ject to the provisions of section 14(k)(5)(D) of such Act should it remain mod-troubled.¿ SEC. ø210. (a)¿ 203. FINANCING ADJUSTMENT FACTORS.—Fifty per centum of the amounts of budget authority, or in lieu thereof 50 per centum of the cash amounts associated with such budget authority, that are recaptured from projects described in section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100– 628, 102 Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be remitted to the Treasury, and such amounts of budget authority or cash recaptured and not rescinded or remitted to the Treasury shall be used by State housing finance agencies or local governments or local housing agencies with projects approved by the Secretary of Housing and Urban Development for which settlement occurred after January 1, 1992, in accordance with such section. ø(b) In addition to amounts otherwise provided by this Act, $464,442 is appropriated to the Department of Housing and Urban Development for payment to the Utah Housing Finance Agency, in lieu of amounts lost to such agency in bond refinancings during 1994, for its use in accordance with subsection (a).¿ SEC. 204. SECTION 8 CONTRACT RENEWALS.—Section 405(a) of the Balanced Budget Downpayment Act, I is amended by inserting at the end the following new sentences: ‘‘Notwithstanding the preceding sentence, upon the expiration of a contract with rent levels that exceed the section 8 Existing Fair Market Rents, if the Secretary determines that (i) the primary financing or mortgage insurance for the multifamily housing project that is covered by that expiring contract was provided by a public agency and the financing does not involve mortgage insurance under the National Housing Act, or (ii) the project is a section 202 project or a section 515 project, the Secretary may, at the request of the owner and, in the case of projects under clause (i), the public agency, provide assistance under section 8 at rent levels that are equal to those under the expiring contract as of the date on which the contract expires, which assistance shall be in accordance with terms and conditions prescribed by the Secretary.’’. øSEC. 211. SECTION 8 CONTRACT RENEWAL AUTHORITY.—(a) DEFINITIONS.— For purposes of this section— (1) the term ‘‘expiring contract’’ means a contract for project-based assistance under section 8 of the United States Housing Act of 1937 that expires during fiscal year 1997; (2) the term ‘‘family’’ has the same meaning as in section 3(b) of the United States Housing Act of 1937; (3) the term ‘‘multifamily housing project’’ means a property consisting of more than 4 dwelling units that is covered in whole or in part by a contract for project-based assistance under section 8 of the United States Housing Act of 1937; (4) the term ‘‘owner’’ has the same meaning as in section 8(f) of the United States Housing Act of 1937; (5) the term ‘‘project-based assistance’’ means rental assistance under section 8 of the United States Housing Act of 1937 that is attached to a multifamily housing project; (6) the term ‘‘public agency’’ means a State housing finance agency, a local housing agency, or other agency with a public purpose and status; (7) the term ‘‘Secretary’’ means the Secretary of Housing and Urban Development; and (8) the term ‘‘tenant-based assistance’’ has the same meaning as in section 8(f) of the United States Housing Act of 1937. (b) SECTION 8 CONTRACT RENEWAL AUTHORITY.— (1) IN GENERAL.—Notwithstanding section 405(a) of the Balanced Budget Downpayment Act, I, upon the request of the owner of a multifamily housing project that is covered by an expiring contract, the Secretary shall use amounts made available for the renewal of assistance under section 8 of the United States Housing Act of 1937 to renew the expiring contract as project-based assistance for a period of not more than one year, at rent levels that are equal to those under the expiring contract as of the date on which the contract expires: Provided, That those rent levels do not exceed 120 percent of the fair market rent for the market area in which the project is located. For an FHA-insured multifamily housing project with an expiring contract at rent levels that exceed 120 percent of the fair market rent for the market area, the Secretary shall provide, at the request of the owner, section 8 project-based assistance, for a period of not more than one year, at rent levels that do not exceed 120 percent of the fair market rent. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (2) EXEMPTION FOR STATE AND LOCAL HOUSING AGENCY PROJECTS.—Notwithstanding paragraph (1), upon the expiration of a contract with rent levels that exceed the percentage described in that paragraph, if the Secretary determines that the primary financing or mortgage insurance for the multifamily housing project that is covered by that expiring contract was provided by a public agency, the Secretary shall, at the request of the owner and the public agency, renew the expiring contract— (A) for a period of not more than one year; and (B) at rent levels that are equal to those under the expiring contract as of the date on which the contract expires. (3) SECTION 202, SECTION 811, AND SECTION 515 PROJECTS.—Notwithstanding paragraph (1), for section 202 projects, section 811 projects and section 515 projects, upon the expiration of a section 8 contract, the Secretary shall, at the request of the owner, renew the expiring contract— (A) for a period of not more than one year; and (B) at rent levels that are equal to those under the expiring contract as of the date on which the contract expires. (4) OTHER CONTRACTS.— (A) PARTICIPATION IN DEMONSTRATION.—For a contract covering an FHA-insured multifamily housing project that expires during fiscal year 1997 with rent levels that exceed the percentage described in paragraph (1) and after notice to the tenants, the Secretary shall, at the request of the owner of the project and after notice to the tenants, include that multifamily housing project in the demonstration program under section 212 of this Act. The Secretary shall ensure that a multifamily housing project with an expiring contract in fiscal year 1997 shall be allowed to be included in the demonstration. (B) EFFECT OF MATERIAL ADVERSE ACTIONS AND OMISSIONS.— Notwithstanding paragraph (1) or any other provision of law, the Secretary shall not renew an expiring contract if the Secretary determines that the owner of the multifamily housing project has engaged in material adverse financial or managerial actions or omissions with regard to the project (or with regard to other similar projects if the Secretary determines that such actions or omissions constitute a pattern of mismanagement that would warrant suspension or debarment by the Secretary). (C) TRANSFER OF PROPERTY.—For properties disqualified from the demonstration program because of actions by an owner or purchaser in accordance with subparagraph (B), the Secretary shall establish procedures to facilitate the voluntary sale or transfer of the property, with a preference for tenant organizations and tenant-endorsed community-based nonprofit and public agency purchasers meeting such reasonable qualifications as may be established by the Secretary. The Secretary may include the transfer of section 8 project-based assistance. (5) TENANT PROTECTIONS.—Any family residing in an assisted unit in a multifamily housing project that is covered by an expiring contract that is not renewed, shall be offered tenant-based assistance before the date on which the contract expires or is not renewed.¿ øSEC. 212. FHA MULTIFAMILY DEMONSTRATION AUTHORITY.— (a) IN GENERAL.— (1) REPEAL.— (A) IN GENERAL.—Section 210 of the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996 (110 Stat. 1321) is repealed. (B) EXCEPTION.—Notwithstanding the repeal under subparagraph (A), amounts made available under section 210(f) the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996 shall remain available for the demonstration program under this section through the end of fiscal year 1997. (2) SAVINGS PROVISIONS.—Nothing in this section shall be construed to affect any commitment entered into before the date of enactment of this Act under the demonstration program under section 210 of the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996. (3) DEFINITIONS.—For purposes of this section— (A) the term ‘‘demonstration program’’ means the program established under subsection (b); (B) the term ‘‘expiring contract’’ means a contract for projectbased assistance under section 8 of the United States Housing Act of 1937 that expires during fiscal year 1997; (C) the term ‘‘family’’ has the same meaning as in section 3(b) of the United States Housing Act of 1937; MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued 573 (D) the term ‘‘multifamily housing project’’ means a property consisting of more than 4 dwelling units that is covered in whole or in part by a contract for project-based assistance; (E) the term ‘‘owner’’ has the same meaning as in section 8(f) of the United States Housing Act of 1937; (F) the term ‘‘project-based assistance’’ means rental assistance under section 8 of the United States Housing Act of 1937 that is attached to a multifamily housing project; (G) the term ‘‘Secretary’’ means the Secretary of Housing and Urban Development; and (H) the term ‘‘tenant-based assistance’’ has the same meaning as in section 8(f) of the United States Housing Act of 1937. (b) DEMONSTRATION AUTHORITY.— (1) IN GENERAL.—Subject to the funding limitation in subsection (l), the Secretary shall administer a demonstration program with respect to multifamily projects— (A) whose owners agree to participate; (B) with rents on units assisted under section 8 of the United States Housing Act of 1937 that are, in the aggregate, in excess of 120 percent of the fair market rent of the market area in which the project is located; and (C) the mortgages of which are insured under the National Housing Act. (2) PURPOSE.—The demonstration program shall be designed to obtain as much information as is feasible on the economic viability and rehabilitation needs of the multifamily housing projects in the demonstration, to test various approaches for restructuring mortgages to reduce the financial risk to the FHA Insurance Fund while reducing the cost of section 8 subsidies, and to test the feasibility and desirability of— (A) ensuring, to the maximum extent practicable, that the debt service and operating expenses, including adequate reserves, attributable to such multifamily projects can be supported at the comparable market rent with or without mortgage insurance under the National Housing Act and with or without additional section 8 rental subsidies; (B) utilizing section 8 rental assistance, while taking into account the capital needs of the projects and the need for adequate rental assistance to support the low- and very low-income families residing in such projects; and (C) preserving low-income rental housing affordability and availability while reducing the long-term cost of section 8 rental assistance. (c) GOALS.— (1) IN GENERAL.—The Secretary shall carry out the demonstration program in a manner that will protect the financial interests of the Federal Government through debt restructuring and subsidy reduction and, in the least costly fashion, address the goals of— (A) maintaining existing affordable housing stock in a decent, safe, and sanitary condition; (B) minimizing the involuntary displacement of tenants; (C) taking into account housing market conditions; (D) encouraging responsible ownership and management of property; (E) minimizing any adverse income tax impact on property owners; and (F) minimizing any adverse impacts on residential neighborhoods and local communities. (2) BALANCE OF COMPETING GOALS.—In determining the manner in which a mortgage is to be restructured or a subsidy reduced under this subsection, the Secretary may balance competing goals relating to individual projects in a manner that will further the purposes of this section. (d) PARTICIPATION ARRANGEMENTS.— (1) IN GENERAL.—In carrying out the demonstration program, the Secretary may enter into participation arrangements with designees, under which the Secretary may provide for the assumption by designees (by delegation, by contract, or otherwise) of some or all of the functions, obligations, responsibilities and benefits of the Secretary. (2) DESIGNEES.—In entering into any arrangement under this subsection, the Secretary shall select state housing finance agencies, housing agencies or nonprofits (separately or in conjunction with each other) to act as designees to the extent such agencies are determined to be qualified by the Secretary. In locations where there is no qualified State housing finance agency, housing agency or nonprofit to act as a designee, the Secretary may act as a designee. Each participation arrangement entered into under this 574 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued Intragovernmental funds—Continued ADMINISTRATIVE PROVISIONS—Continued subsection shall include a designee as the primary partner. Any organization selected by the Secretary under this section shall have a long-term record of service in providing low-income housing and meet standards of fiscal responsibility, as determined by the Secretary. (3) DESIGNEE PARTNERSHIPS.—For purposes of any participation arrangement under this subsection, designees are encouraged to develop partnerships with each other, and to contract or subcontract with other entities, including— (A) public housing agencies; (B) financial institutions; (C) mortgage servicers; (D) nonprofit and for-profit housing organizations; (E) the Federal National Mortgage Association; (F) the Federal Home Loan Mortgage Corporation; (G) Federal Home Loan Banks; and (H) other State or local mortgage insurance companies or bank lending consortia. (e) LONG-TERM AFFORDABILITY.— (1) IN GENERAL.—After the renewal of a section 8 contract pursuant to a restructuring under this section, the owner shall accept each offer to renew the section 8 contract, for a period of 20 years from the date of the renewal under the demonstration, if the offer to renew is on terms and conditions, as agreed to by the Secretary or designee and the owner under a restructuring. (2) AFFORDABILITY REQUIREMENTS.—Except as otherwise provided by the Secretary, in exchange for any mortgage restructuring under this section, a project shall remain affordable for a period of not less than 20 years. Affordability requirements shall be determined in accordance with guidelines established by the Secretary or designee. The Secretary or designee may waive these requirements for good cause. (f) PROCEDURES.— (1) NOTICE OF PARTICIPATION IN DEMONSTRATION.—Not later than 45 days before the date of expiration of an expiring contract (or such later date, as determined by the Secretary, for good cause), the owner of the multifamily housing project covered by that expiring contract shall notify the Secretary or designee and the residents of the owner’s intent to participate in the demonstration program. (2) DEMONSTRATION CONTRACT.—Upon receipt of a notice under paragraph (1), the owner and the Secretary or designee shall enter into a demonstration contract, which shall provide for initial section 8 project-based rents at the same rent levels as those under the expiring contract or, if practical, the budget-based rent to cover debt service, reasonable operating expenses (including reasonable and appropriate services), and a reasonable return to the owner, as determined solely by the Secretary. The demonstration contract shall be for the minimum term necessary for the rents and mortgages of the multifamily housing project to be restructured under the demonstration program, but shall not be for a period of time to exceed 180 days, unless extended for good cause by the Secretary. (g) PROJECT-BASED SECTION 8.—The Secretary shall renew all expiring contracts under the demonstration as section 8 project-based contracts, for a period of time not to exceed one year, unless otherwise provided under subsection (h). (h) DEMONSTRATION ACTIONS.— (1) DEMONSTRATION ACTIONS.—For purposes of carrying out the demonstration program, and in order to ensure that contract rights are not abrogated, subject to such third party consents as are necessary (if any), including consent by the Government National Mortgage Association if it owns a mortgage insured by the Secretary, consent by an issuer under the mortgage-backed securities program of the Association, subject to the responsibilities of the issuer to its security holders and the Association under such program, and consent by parties to any contractual agreement which the Secretary proposes to modify or discontinue, the Secretary or, except with respect to subparagraph (B), designee, subject to the funding limitation in subsection (l), shall take not less than one of the actions specified in subparagraphs (G), (H), and (I) and may take any of the following actions: (A) REMOVAL OF RESTRICTIONS.— (i) IN GENERAL.—Consistent with the purposes of this section, subject to the agreement of the owner of the project and after consultation with the tenants of the project, the Secretary or THE BUDGET FOR FISCAL YEAR 1998 designee may remove, relinquish, extinguish, modify, or agree to the removal of any mortgage, regulatory agreement, projectbased assistance contract, use agreement, or restriction that had been imposed or required by the Secretary, including restrictions on distributions of income which the Secretary or designee determines would interfere with the ability of the project to operate without above-market rents. (ii) ACCUMULATED RESIDUAL RECEIPTS.—The Secretary or designee may require an owner of a property assisted under the section 8 new construction/substantial rehabilitation program under the United States Housing Act of 1937 to apply any accumulated residual receipts toward effecting the purposes of this section. (B) REINSURANCE.—With respect to not more than 5,000 units within the demonstration during fiscal year 1997, the Secretary may enter into contracts to purchase reinsurance, or enter into participations or otherwise transfer economic interest in contracts of insurance or in the premiums paid, or due to be paid, on such insurance, on such terms and conditions as the Secretary may determine. Any contract entered into under this paragraph shall require that any associated units be maintained as lowincome units for the life of the mortgage, unless waived by the Secretary for good cause. (C) PARTICIPATION BY THIRD PARTIES.—The Secretary or designee may enter into such agreements, provide such concessions, incur such costs, make such grants (including grants to cover all or a portion of the rehabilitation costs for a project) and other payments, and provide other valuable consideration as may reasonably be necessary for owners, lenders, servicers, third parties, and other entities to participate in the demonstration program. The Secretary may establish performance incentives for designees. (D) SECTION 8 ADMINISTRATIVE FEES.—Notwithstanding any other provision of law, the Secretary may make fees available from the section 8 contract renewal appropriation to a designee for contract administration under section 8 of the United States Housing Act of 1937 for purposes of any contract restructured or renewed under the demonstration program. (E) FULL OR PARTIAL PAYMENT OF CLAIM.—Notwithstanding any other provision of law, the Secretary may make a full payment of claim or partial payment of claim prior to default. (F) CREDIT ENHANCEMENT.— (i) IN GENERAL.—The Secretary or designee may provide FHA multifamily mortgage insurance, reinsurance, or other credit enhancement alternatives, including retaining the existing FHA mortgage insurance on a restructured first mortgage at market value or using the multifamily risk-sharing mortgage programs, as provided under section 542 of the Housing and Community Development Act of 1992. Any limitations on the number of units available for mortgage insurance under section 542 shall not apply to insurance issued for purposes of the demonstration program. (ii) MAXIMUM PERCENTAGE.—During fiscal year 1997, not more than 25 percent of the units in multifamily housing projects with expiring contracts in the demonstration, in the aggregate, may be restructured without FHA insurance, unless otherwise agreed to by the owner of a project. (iii) CREDIT SUBSIDY.—Any credit subsidy costs of providing mortgage insurance shall be paid from amounts made available under subsection (l). (G) MORTGAGE RESTRUCTURING.— (i) IN GENERAL.—The Secretary or designee may restructure mortgages to provide a restructured first mortgage to cover debt service and operating expenses (including a reasonable rate of return to the owner) at the market rent, and a second mortgage equal to the difference between the restructured first mortgage and the mortgage balance of the eligible multifamily housing project at the time of restructuring. (ii) CREDIT SUBSIDY.—Any credit subsidy costs of providing a second mortgage shall be paid from amounts made available under subsection (l). (H) DEBT FORGIVENESS.—The Secretary or designee, for good cause and at the request of the owner of a multifamily housing project, may forgive at the time of the restructuring of a mortgage any portion of a debt on the project that exceeds the market value of the project. (I) BUDGET-BASED RENTS.—The Secretary or designee may renew an expiring contract, including a contract for a project DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT in which operating costs exceed comparable market rents, for a period of not more than one year, at a budget-based rent that covers debt service, reasonable operating expenses (including all reasonable and appropriate services), and a reasonable rate of return to the owner, as determined solely by the Secretary, provided that the contract does not exceed the rent levels under the expiring contract. The Secretary may establish a preference under the demonstration program for budget-based rents for unique housing projects, such as projects designated for occupancy by elderly families and projects in rural areas. (J) SECTION 8 TENANT-BASED ASSISTANCE.—For not more than 10 percent of units in multifamily housing projects that have had their mortgages restructured in any fiscal year under the demonstration, the Secretary or designee may provide, with the agreement of an owner and in consultation with the tenants of the housing, section 8 tenant-based assistance for some or all of the assisted units in a multifamily housing project in lieu of section 8 project-based assistance. Section 8 tenant-based assistance may only be provided where the Secretary determines and certifies that there is adequate available and affordable housing within the local area and that tenants will be able to use the section 8 tenant-based assistance successfully. (2) OFFER AND ACCEPTANCE.—Notwithstanding any other provision of law, an owner of a project in the demonstration must accept any reasonable offer made by the Secretary or a designee under this subsection. An owner may appeal the reasonableness of any offer to the Secretary and the Secretary shall respond within 30 days of the date of appeal with a final offer. If the final offer is not acceptable, the owner may opt out of the program. (i) COMMUNITY AND TENANT INPUT.—In carrying out this section, the Secretary shall develop procedures to provide appropriate and timely notice, including an opportunity for comment and timely access to all relevant information, to officials of the unit of general local government affected, the community in which the project is situated, and the tenants of the project. (j) TRANSFER OF PROPERTY.—The Secretary shall establish procedures to facilitate the voluntary sale or transfer of multifamily housing projects under the demonstration to tenant organizations and tenant-endorsed community-based nonprofit and public agency purchasers meeting such reasonable qualifications as may be established by the Secretary. (k) LIMITATION ON DEMONSTRATION AUTHORITY.—The Secretary shall carry out the demonstration program with respect to mortgages not to exceed 50,000 units. (l) FUNDING.—In addition to the $30,000,000 made available under section 210 of the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996 (110 Stat. 1321), for the costs (including any credit subsidy costs associated with providing direct loans or mortgage insurance) of modifying and restructuring loans held or guaranteed by the Federal Housing Administration, as authorized under this section, $10,000,000 is hereby appropriated, to remain available until September 30, 1998. (m) REPORT TO CONGRESS.— (1) IN GENERAL.— (A) QUARTERLY REPORTS.—Not less than every 3 months, the Secretary shall submit to the Congress a report describing and assessing the status of the projects in the demonstration program. (B) FINAL REPORT.—Not later than 6 months after the end of the demonstration program, the Secretary shall submit to the Congress a final report on the demonstration program. (2) CONTENTS.—Each report submitted under paragraph (1)(A) shall include a description of— (A) each restructuring proposal submitted by an owner of a multifamily housing project, including a description of the physical, financial, tenancy, and market characteristics of the project; (B) the Secretary’s evaluation and reasons for each multifamily housing project selected or rejected for participation in the demonstration program; (C) the costs to the FHA General Insurance and Special Risk Insurance funds; (D) the subsidy costs provided before and after restructuring; (E) the actions undertaken in the demonstration program, including the third-party arrangements made; and (F) the demonstration program’s impact on the owners of the projects, including any tax consequences. MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued 575 (3) CONTENTS OF FINAL REPORT.—The report submitted under paragraph (1)(B) shall include— (A) the required contents under paragraph (2); and (B) any findings and recommendations for legislative action.¿ øSEC. 213. HAWAIIAN HOME LANDS.—Section 282 of the CranstonGonzalez National Affordable Housing Act (42 U.S.C. 12832) is amended by adding at the end the following new sentence: ‘‘The Secretary may waive this section in connection with the use of funds made available under this title on lands set aside under the Hawaiian Homes Commission Act, 1920 (42 Stat. 108).’’.¿ øSEC. 214. USES OF CERTAIN ASSISTED HOUSING AMOUNTS.—(a) Transfer Authority.—The Secretary may transfer recaptured section 8 amounts from the Annual Contributions for Assisted Housing account under Public Law 104–134 (approved April 26, 1996; 110 Stat. 1321, 1321–265) and prior laws to the accounts and for the purposes set forth in subsection (b). The amounts transferred under this section shall be made available for use as prescribed under this section notwithstanding section 8(bb) of the United States Housing Act of 1937. (b) RECEIVING ACCOUNTS.— (1) PREVENTION OF RESIDENT DISPLACEMENT.—The Secretary may transfer to the Prevention of Resident Displacement account an amount up to $50,000,000, in addition to amounts in such account, that may be used to extend, under existing terms and conditions, existing project-based section 8 contracts in effect before a Plan of Action was approved, so that these contracts expire 5 years from the date on which funds were obligated for the Plan of Action approved under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 or the Emergency Low Income Housing Preservation Act of 1987. The Secretary shall transfer all amounts that the Secretary determines to be necessary for fiscal year 1997 for the purposes of this paragraph before transferring any amounts under any other paragraph in this subsection. (2) HOPWA.—The Secretary may transfer to the Housing Opportunities for Persons with AIDS account up to $25,000,000, for use in addition to amounts appropriated in such account.¿ øSEC. 215. REQUIREMENT FOR HUD TO MAINTAIN PUBLIC NOTICE AND COMMENT RULEMAKING.—The Secretary of Housing and Urban Development shall maintain all current requirements under part 10 of the Department of Housing and Urban Development’s regulations (24 CFR part 10) with respect to the Department’s policies and procedures for the promulgation and issuance of rules, including the use of public participation in the rulemaking process.¿ øSEC. 216. COMMUNITY DEVELOPMENT BLOCK GRANTS.—Section 102(a)(6)(D) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)(6)(D)) is amended— (1) in clause (iv), by striking ‘‘or’’ at the end; (2) in clause (v), by striking the period at the end and inserting ‘‘; or’’; and (3) by adding at the end the following new clause: ‘‘(vi) has entered into a local cooperation agreement with a metropolitan city that received assistance under section 106 because of such classification, and has elected under paragraph (4) to have its population included with the population of the county for the purposes of qualifying as an urban county, except that to qualify as an urban county under this clause, the county must— ‘‘(I) have a combined population of not less than 210,000, excluding any metropolitan city located in the county that is not relinquishing its metropolitan city classification, according to the 1990 decennial census of the Bureau of the Census of the Department of Commerce; ‘‘(II) including any metropolitan cities located in the county, have had a decrease in population of 10,061 from 1992 to 1994, according to the estimates of the Bureau of the Census of the Department of Commerce; and ‘‘(III) have had a Federal naval installation that was more than 100 years old closed by action of the Base Closure and Realignment Commission appointed for 1993 under the Base Closure and Realignment Act of 1990, directly resulting in a loss of employment by more than 7,000 Federal Government civilian employees and more than 15,000 active duty military personnel, which naval installation was located within one mile of an enterprise community designated by the Secretary pursuant to section 1391 of the Internal Revenue Code of 1986, which enterprise community has a population of not less than 20,000, according to the 1990 decennial census of the Bureau of the Census of the Department of Commerce.’’.¿ 576 MANAGEMENT AND ADMINISTRATION—Continued Federal Funds—Continued Intragovernmental funds—Continued ADMINISTRATIVE PROVISIONS—Continued øSEC. 217. FAIR HOUSING AND FREE SPEECH.—None of the amounts made available under this Act may be used during fiscal year 1997 to investigate or prosecute under the Fair Housing Act any otherwise lawful activity engaged in by one or more persons, including the filing or maintaining of a nonfrivolous legal action, that is engaged in solely for the purpose of achieving or preventing action by a government official or entity, or a court of competent jurisdiction.¿ øSEC. 218. ACCOUNT TRANSITION.—The amounts of obligated balances in appropriations accounts, as set forth in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 and prior Acts that are recaptured hereafter, to the extent not governed by the specific language in an account or provision in this Act, shall be held in reserve subject to reprogramming, notwithstanding any other provision of law.¿ øSEC. 219. TREATMENT OF CERTAIN PROPERTIES.—Notwithstanding any other provision of law, rehabilitation activities undertaken in projects using the Low-Income Housing Tax Credit allocated to developments in the city of New Brunswick, New Jersey, in 1991, are deemed to have met the requirements for rehabilitation in accordance with clause (ii) of the third sentence of section 8(d)(2)(A) of the United States Housing Act of 1937, as in effect before the date of the enactment of this Act.¿ øSEC. 220. AMENDMENT RELATING TO COMMUNITY DEVELOPMENT ASSISTANCE.—Section 105(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking ‘‘through 1997’’ and inserting ‘‘through 1998’’.¿ øSEC. 221. SECTION 236 PROGRAM AMENDMENTS.—(a) Section 236(f)(1) of the National Housing Act (12 U.S.C. 1715z–1), as amended by section 405(d)(1) of The Balanced Budget Downpayment Act, I, and by section 228(a) of The Balanced Budget Downpayment Act, II, is amended— (1) in the second sentence, by striking ‘‘the lower of (i)’’; (2) in the second sentence, by striking ‘‘or (ii) the fair market rental established under section 8(c) of the United States Housing Act of 1937 for the market area in which the housing is located, or (iii) the actual rent (as determined by the Secretary) paid for a comparable unit in comparable unassisted housing in the market area in which the housing assisted under this section is located,’’; and (3) by inserting after the second sentence the following: ‘‘However, in the case of a project which contains more than 5,000 THE BUDGET FOR FISCAL YEAR 1998 units, is subject to an interest reduction payments contract, and is financed under a State or local program, the Secretary may reduce the rental charge ceiling, but in no case shall the rent be below basic rent. For plans of action approved for Capital Grants under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the Emergency Low Income Housing Preservation Act of 1987 (ELIHPA), the rental charge for each dwelling unit shall be at the basic rental charge or such greater amount, not exceeding the lower of (i) the fair market rental charge determined pursuant to this paragraph, or (ii) the actual rent paid for a comparable unit in comparable unassisted housing in the market area in which the housing assisted under this section is located, as represents 30 percent of the tenant’s adjusted income, but in no case shall the rent be below basic rent.’’. (b) Section 236(f) of the National Housing Act is amended by adding the following new paragraph at the end: ‘‘(7) The Secretary shall determine whether and under what conditions the provisions of this subsection shall apply to mortgages sold by the Secretary on a negotiated basis.’’. (c) Section 236(g) of the National Housing Act is amended to read as follows: ‘‘The project owner shall, as required by the Secretary, accumulate, safeguard, and periodically pay the Secretary or such other entity as determined by the Secretary and upon such terms and conditions as the Secretary deems appropriate, all rental charges collected on a unit-by-unit basis in excess of the basic rental charges. Unless otherwise directed by the Secretary, such excess charges shall be credited to a reserve fund to be used by the Secretary to make additional assistance payments as provided in paragraph (3) of subsection (f). However, a project owner with a mortgage project use if authorized by the Secretary and upon such terms and conditions insured under this section may retain some or all of such excess charges for project use if authorized by the Secretary and upon such terms and conditions as established by the Secretary.’’.¿ SEC. 205. 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 amounts shall be increased or decreased by more than 2 percent by any such transfers. (Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.)