Full text of Budget of the United States Government - Appendix : Fiscal Year 1998 : Department of Housing and Urban Development

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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

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.

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

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) ............................................. ................... ................... ...................

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

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

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) ................................................. ................... ...................

89.00
90.00

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

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

20
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

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

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

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

599

557

116
480

539
550

490
524

10.00

21.40

23.90
23.95
24.40

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) .................................................

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

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) ................................................. ................... ...................

89.00
90.00

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

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

6
107
–62

13
115
–65

13
118
–68

51
–38

63
–50

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) ..............................................

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

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

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

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

–12

3,227

1699

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

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.

1998 est.

Identification code 86–4104–0–3–604

3
–3

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

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

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) ................................................. ...................

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

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.

2159

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

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

11 ...................

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................

8.13

2329

8.13

Total subsidy budget authority .................................
3
Guaranteed loan subsidy outlays:
2340 Subsidy outlays .............................................................. ...................

2349

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

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.

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

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.

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

1999

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

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

2999

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

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

3999

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

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

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

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

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

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

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) ............................ ................... ...................

22.00
23.95

25
–25

40.00

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

73.10
73.20
74.40

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

100
–100

40.00

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

100

73.10
73.20
74.40

86.90

89.00
90.00

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.

HOME INVESTMENT PARTNERSHIPS PROGRAM

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) ............................

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

86.93

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

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
5
10
3

182 ................... ...................

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

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

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

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

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

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

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

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

–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 ......................................

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

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

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) .................................................

–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

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

86.93

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

89.00
90.00

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.

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

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

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

89.00
90.00

30
15

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.

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 86–4015–0–3–451

NATIONAL CITIES

Program and Financing (in millions of dollars)
1996 actual

1997 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 ................... ...................

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

2299

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

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 (–) ............................

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

1997 est.

1998 est.

7
7
1

7
6
1

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

46
27
7
9
15
14
–28
–35
–21
–1 ................... ...................
27

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

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

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

Credit accounts:
COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT

3510
3590

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

545

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) ........................

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
–23 ................... ...................

9
33
–23

19
30
–35

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ...................

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

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) .................................................

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

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

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

2.10

2.30

Total subsidy budget authority .................................
32
Guaranteed loan subsidy outlays:
2340 Subsidy outlays .............................................................. ...................

2349

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

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

6 ................... ...................

–50

–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 ..........................................

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4097–0–3–451

1996 actual

1997 est.

1998 est.

2210
2231
2251

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

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

................... ...................
...................
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) ...................................................

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

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

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

–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

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) ........................

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

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

16
16
–16

68
16
–16

64
16
–16

23.90
23.95

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

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

86.93

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

89.00
90.00

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.

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

319
85
–21

382
433
106 ...................
–55
–51

382

433

382

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

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

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) ............................ ................... ...................

22.00
23.95

23
–23

40.00

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

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

89.00
90.00

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) ........................

7
13

9
14

10
16

20
–12

23
–14

26
–15

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

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

1996 actual

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

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

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.

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

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

1
55

1
57

1
51

56
–55

57
–57

51
–51

8
55
–55

8
57
–64

1
51
–51

10.00

1998 est.

...................
–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

60.25

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

73.10
73.20

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

1
–1

86.97

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

89.00
90.00

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) .................................................

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

–55

–57

–51

89.00
90.00

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.

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) .....................................

114
80
–93

101
15
–95

21
60
–73

101

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

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.20
Interest on U.S. securities ....................................
88.40
Non-Federal sources .............................................

–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) ..................

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

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

4
3

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

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

3999

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

4999

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

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

1997 est.

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.

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

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

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

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.

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

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

82
6

140
4

156
..................

172
..................

584

676

768

838

–493

–536

–609

–665

91
26

140
4

159
..................

173
..................

331

408

391

389

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

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

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

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

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

88.90

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

–4

89.00
90.00

–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
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

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

0109

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

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

108

108
77
77
–31 ................... ...................
57
2
18
77

57
2
18
77

1995 actual

1996 actual

1997 est.

1998 est.

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury securities, par ..................

1999

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

3999

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

4999

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

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

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

1997 est.

1998 est.

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

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.

86.93

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

89.00
90.00

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

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

1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

200

0.00

1329

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

–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

207

215

1
267

61
311

4
–3

268
–207

372
–215

157

200

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) ......................

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

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

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

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.

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

145

254

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

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

145

254

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

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

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

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

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

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

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

15
–1
–7

1290

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

1997 est.

1998 est.

7
5
–1 ...................
–1 ...................
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

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

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

–3

–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

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

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

1998 est.

1,152,163

Identification code 86–4070–0–3–371

1699

1901
actual 1

977,702

1 Unaudited

1601
1603

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

159
12

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

–398

–371

–396

(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

1159

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

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

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

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

30
414

46
413

88
386

72.40

703

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

–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.

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

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

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

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

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

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

140

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

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

120

142

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

140

2999

Total liabilities ....................................

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

140

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

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

140

FHA—LOAN GUARANTEE RECOVERY FUND—FINANCING ACCOUNT

144
–130

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

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ...................

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

4
1

–22

120
108

89.00
90.00

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

10 ...................

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

120

40
120
–20

2210
2231
2290

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

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

Status of Guaranteed Loans (in millions of dollars)

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

131
21
408
9,997

131
..................
82
8,890

380
50

111
209

11,142

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

–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
..................

98
75

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

497
–497

–22

–21

–18

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

497

73.10
73.20

497
–497

86.97

–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

315
722

462
751

760
751

21.90

23.90
23.95
24.90

2
189 ...................
–71
–71
–72
44 ................... ...................

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

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

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

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

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

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.

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

–1

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

3999

Balance Sheet (in millions of dollars)—Continued
Identification code 86–4115–0–3–371

1995 actual

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

4999

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

Identification code 86–4042–0–3–604

1995 actual

1996 actual

1998 est.

8,331

8,306

8,424

8,353

–18

–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

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

1290

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

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

87.00

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

89.00
90.00

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 (–) ............................

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

89.00
90.00

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

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

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

1999

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

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

3999

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

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

4999

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

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

1996 actual

1997 est.

1998 est.

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

Identification code 86–4016–0–3–371

Credit accounts:
GUARANTEES

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

–0.32

–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

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) ........................

102

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

136
–9

159
–9

252
–102

127

150

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

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) ............................

22.00
23.95

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

9
–9

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

73.10
73.20

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

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

–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

MORTGAGE-BACKED SECURITIES FINANCING
ACCOUNT—Continued

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

142

158

123

10.00

GUARANTEES

Real estate owned properties ...................................

01.91

Credit accounts—Continued

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

190

215

179

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

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

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) ...........................................................

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

127

137

254

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

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

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

01.01

Total operating expenses ......................................
Capital investment:
Advances of guaranty payments ...............................

129

145

–765

–735

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

10.00

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

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) .......

0199

Net income or loss ..................................

477

487

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

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

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

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

28
33
–36

25
36
–32

29
39
–37

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) .................................................

164

167

89.00
90.00

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

34
36

34
32

39
37

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

The Fair Housing Initiatives program, authorized by the
Housing and Community Development Act of 1987, as amended by the Housing and Community Development Act of 1992,
provides support to public and private organizations for the
purpose of eliminating or preventing discrimination in housing and for enhancing fair housing opportunities.

MANAGEMENT AND ADMINISTRATION
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) ........................

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

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

43
–43

1 ................... ...................
965
977
1,006
–4 ................... ...................

44
20
–32

32
43
–24

51
39
–27

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

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

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

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

22.00
23.95

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

49
–48

53
–53

58
–58

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

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

10
48
–40

18
53
–53

18
58
–58

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

23
5
12

28
9
16

28
9
21

87.00

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

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

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

INSPECTOR GENERAL—Continued

–14

–16

(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 ........................................................

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

89.00
90.00

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

15
14

16
16

1998 est.

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

99.9

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

Personnel Summary
Identification code 86–5272–0–2–371

1001

1996 actual

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

1998 est.

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

WORKING CAPITAL FUND

Program and Financing (in millions of dollars)

04.00

–15
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.

2 ................... ...................
15
16
16
–2 ................... ...................

21.40

Total budgetary resources available for obligation
15
16
16
New obligations .............................................................
–15
–16
–16
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ................... ...................

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

31
198

32
219

33
259

21.90

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

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

70.00

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

230
–198

252
–219

292
–259

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

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

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

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;

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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

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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.

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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.’’.¿

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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.)

Full text of Budget of the United States Government - Appendix : Fiscal Year 1998 : Department of Housing and Urban Development

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