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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
This chapter presents the budget and program estimates
for the Department of Housing and Urban Development
(HUD).
For the past 4 years, the Department has been engaged
in a reinvention process which has emphasized: addressing
homelessness through comprehensive continuum of care strategies; transforming public and assisted housing; enhancing
homeownership opportunities through new national and local
partnerships; reducing racial barriers to housing; and, encouraging locally-driven solutions and leveraging private sector
investment through initiatives like consolidated planning, and
Empowerment Zones and Enterprise Communities. Emphasis
has also been placed on reinventing HUD, itself. The 1999
Budget continues to move toward a ‘‘right-side up’’ Cabinet
Department that is organized, staffed, and empowered to respond to locally driven priorities rather than Federal dictates.
The 1999 Budget request would continue funding the Community Development Block Grant (CDBG) program at an increased level. This program will continue to use a formula
approach for allocating funds for a wide range of community
and economic development activities. The Community Development Loan Guarantee program will also be maintained to
enable communities to borrow in the private market with
a Federal guarantee. Communities must develop consolidated
plans which identify local needs and priorities in order to
tap into CDBG and other HUD funds.
The HOME Investment Partnerships program will also continue formula allocations to states and participating jurisdictions to assist in expanding the supply of affordable housing.
The Homeless Assistance Grants program consolidated
HUD’s six Stewart B. McKinney homeless assistance programs. This program enables communities to continue their
development and implementation of comprehensive, coordinated continuum of care systems to address the needs of
homeless people and families. Homeless programs are maintained in their current structure although they are increased
and augmented by incremental vouchers.
Major changes in funding levels and approach will occur
in community and economic development programs. Significant funding is included for an Economic Development Initiative/Community Empowerment Fund program to finance a
variety of economic development efforts and to help establish
a secondary market for expanded and improved operation
of the Section 108 Loan Guarantee program. Proposed as
separate programs are: Lead Hazard Reduction, Homeownership Zones, and Urban Empowerment Zones, (which is proposed as a ten year mandatory program). Several set-asides
remain within the block grant program including Regional
Connections, Supportive Services, Section 107 and Grants to
Indian tribes.
The HOPE VI, Public and Indian Housing Operating Fund,
and the Public Housing Capital Fund retain their current
form. In total, the budget will provide almost 140,000 new
or replacement subsidies and would provide for the renewal
of all expiring units. The Housing Certificate Fund and the
homeless and elderly/disabled programs account for approximately 90,000 new or replacement subsidies. Also, an Administrative Fee Bonus program is proposed as part of the President’s Housing Mobility Initiative.
In addition, a new separate account is proposed for 50,000
new Welfare-to-Work vouchers as a part of the President’s
Welfare-to-Work Initiative.
FHA and GNMA programs are retained, although the FHA
guarantee limitation is proposed to be increased to the con-

forming limit, and separate funding within the program account for contractual support is requested to conform with
credit reform rules.

PUBLIC AND INDIAN HOUSING
Federal Funds
General and special funds:
HOUSING CERTIFICATE FUND
(INCLUDING TRANSFERS OF FUNDS)

For activities and assistance to prevent the involuntary displacement of low-income families, the elderly and the disabled because
of the loss of affordable housing stock, expiration of subsidy contracts
(other than contracts for which amounts are provided under another
heading in this Act) or expiration of use restrictions, or other changes
in housing assistance arrangements, and for other purposes,
ø$9,373,000,000¿ $8,981,187,705, to remain available until expended:
Provided, That of the total amount provided under this heading,
ø$8,180,000,000¿ $7,190,645,675 shall be for assistance under the
United States Housing Act of 1937 (42 U.S.C. 1437) for use in connection with expiring or terminating section 8 subsidy contracts, øfor
enhanced vouchers as provided under the ‘‘Preserving Existing Housing Investment’’ account in the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104–204),¿ and contracts entered
into pursuant to section 441 of the Stewart B. McKinney Homeless
Assistance Act: Provided further, That the Secretary may determine
not to apply section 8(o)(6)(B) of the Act to housing vouchers during
fiscal year ø1998¿ 1999: Provided further, That of the total amount
provided under this heading, ø$850,000,000¿ $1,337,000,000 shall be
for amendments to section 8 contracts other than contracts for
projects developed under section 202 of the Housing Act of 1959,
as amended: Provided further, That of the total amount provided
under this heading, ø$343,000,000 shall be for section 8 rental assistance under the United States Housing Act of 1937 including assistance to relocate residents of properties: (1) that are owned by the
Secretary and being disposed of; or (2) that are discontinuing section
8 project-based assistance; for the conversion of section 23 projects
to assistance under section 8; for funds to carry out the family unification program; and for the relocation of witnesses in connection
with efforts to combat crime in public and assisted housing pursuant
to a request from a law enforcement or prosecution agency: Provided
further, That of the total amount made available in the preceding
proviso, $40,000,000 shall be made available to nonelderly disabled
families affected by the designation of a public housing development
under section 7 of such Act, the establishment of preferences in
accordance with section 651 of the Housing and Community Development Act of 1992 (42 U.S.C. 1361l), or the restriction of occupancy
to elderly families in accordance with section 658 of such Act, and
to the extent the Secretary determines that such amount is not needed to fund applications for such affected families, to other nonelderly
disabled families: Provided further, That the amount made available
under the fifth proviso under the heading ‘‘Prevention of Resident
Displacement’’ in title II of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, Public Law 104–204, shall also be made available
to nonelderly disabled families affected by the restriction of occupancy
to elderly families in accordance with section 658 of the Housing
and Community Development Act of 1992: Provided further, That
to the extent the Secretary determines that the amount made available under the fifth proviso under the heading ‘‘Prevention of Resident Displacement’’ in title II of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997, Public Law 104–204, is not needed to fund
applications for affected families described in the fifth proviso, or
in the preceding proviso under this heading in this Act, the amount
not needed shall be made available to other nonelderly disabled fami437

438

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999
90.00

General and special funds—Continued

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

193

4,780

6,394

HOUSING CERTIFICATE FUND—Continued
(INCLUDING TRANSFERS OF FUNDS)—Continued

lies:¿ $433,542,030 shall be for section 8 rental assistance under the
United States Housing Act of 1937, including relocation assistance,
for residents of properties that are owned by the Secretary and are
being disposed of, or that are discontinuing section 8 project-based
assistance, and for enhanced vouchers as provided under the ‘‘Preserving Existing Housing Investment’’ account in the Departments of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997 (Public Law 104–204), for families
eligible for assistance under such Act: Provided further that of the
total amount provided under this head, $20,000,000 shall be for Regional Opportunity Counseling: Provided further, That all balances,
as of September 30, ø1997¿ 1998, remaining in the ø‘‘Annual Contributions for Assisted Housing’’ account and the¿ ‘‘Prevention of Resident Displacement’’ account øfor use in connection with expiring or
terminating section 8 subsidy contracts and for amendments to section 8 contracts other than contracts for projects developed under
section 202 of the Housing Act of 1959, as amended,¿ shall be transferred to and merged with the amounts provided for those purposes
under this heading. (Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0319–0–1–604

00.01
00.02
00.03
00.04
00.05
10.00

1997 actual

1998 est.

1999 est.

Obligations by program activity:
Contract renewals ..........................................................
756
11,215
7,191
Section 8 amendments ..................................................
401
1,228
1,337
Relocation & other .........................................................
30
661
393
Preservation amendments .............................................
17
8 ...................
Incremental rental assistance ....................................... ................... ...................
60
Total obligations (object class 41.0) ........................

1,204

13,112

8,981

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

2,306 ...................
1,180 ...................

21.99
22.00
22.22

Total unobligated balance, start of year ............. ...................
New budget authority (gross) ........................................
4,690
Unobligated balance transferred from other accounts ...................

3,486 ...................
9,373
8,981
253 ...................

23.90
23.95

24.40
24.40

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

24.99

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

3,486 ................... ...................

40.00
42.00

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

4,640
9,373
8,981
50 ................... ...................

43.00

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

4,690

9,373

8,981

70.00

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

4,690

9,373

8,981

4,690
–1,204

13,112
–13,112

8,981
–8,981

2,306 ................... ...................
1,180 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested ................................................................. ...................
73.10 New obligations .............................................................
1,204
73.20 Total outlays (gross) ......................................................
–193
73.32 Obligated balance transferred from other accounts ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
1,011

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
193
Outlays from current balances ...................................... ...................

1,011
15,219
13,112
8,981
–4,780
–6,394
5,876 ...................
15,219

17,806

478
4,302

898
5,496

87.00

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

193

4,780

6,394

89.00

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

4,690

9,373

8,981

The funds requested will support the following activities
for 1999:
1. Contract Renewals. Contract renewals provide funding
to renew expiring Section 8 rental assistance contracts covering certificates, vouchers, and moderate rehabilitation (renewed as certificates or vouchers), Loan Management, New
Construction/Substantial Rehabilitation, Property Disposition,
and Preservation. In 1999, $7.2 billion is requested to support
2 million units.
2. Section 8 Amendments. The need for amendment funding
results from insufficient funding being provided for long-term
contracts funded in the 1970’s and 1980’s. During those years,
the Department provided contracts for terms of up to 40
years. Estimating funding needs over such a long period of
time proved to be problematic, and as a result many of these
Section 8 contracts were inadequately funded. The current
practice of providing contracts for 1-year terms helps to ensure that the problem of inadequately funded contracts is
not repeated. However, older long-term contracts must still
be provided additional funding to maintain the current inventory of assisted rental housing. For 1999, $1,800 million is
proposed for Section 8 Amendment contracts. This is partially
offset by $463 million in recaptures, resulting in a net requirement of $1,337 million in budget authority in 1999.
3. Incremental Rental Assistance. For 1999, the Department
is requesting $60 million in budget authority to support a
total of 10,655 incremental certificates and vouchers. A portion of this assistance may be used for family unification,
witness relocation, settlement of litigation, section 23 conversions, and for families exercising portability.

Public and Indian Housing
Regional Opportunity Counseling. The Department is committed to increasing the housing opportunities available to
low-income families. The Budget request includes $20 million
to pay for special counseling conducted by public housing
agencies in partnership with local non-profit agencies to expand housing opportunities and deconcentrate the number
of families living in high poverty neighborhoods.
Some of the results the Department expects to receive by
providing intense regional opportunity counseling include: (1)
expanding landlord participation in the Section 8 program
and increases in the number and diversity of neighborhoods
in which Section 8 recipients locate; (2) assisting and encouraging Section 8 families to move to low poverty neighborhoods
that offer high quality housing, education, and employment
opportunities; (3) addressing existing barriers to mobility and
choice in the Section 8 program, including administrative barriers to portability; (4) promoting greater cooperation and
joint problem-solving among Section 8 programs operating in
a metropolitan housing market; and, (5) creating or strengthening institutions that administer the Section 8 program on
a regional basis, including the provision of regional mobility
counseling.
Family Self-Sufficiency (FSS) Coordinators. In 1990, the
National Affordable Housing Act established the Family SelfSufficiency Program. In establishing the program, Congress
mandated that any housing agency that received any funding
for rental vouchers and certificates in 1993 and subsequent
would be required to establish a self-sufficiency program
equal to the number of rental vouchers or certificates received.
Since that time Congress has appropriated funds to support
approximately one service coordinator in approximately 375
Public Housing Authorities over a 3-year period. The PHAs
that receive the special funding for FSS service coordinators
were the smallest agencies that administered less than 1,000
rental vouchers and certificates.

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

The Department is committed to administering the FSS
program for families receiving assistance under the rental
voucher and certificate programs. The request for this account
includes $24 million to allow the smallest housing agencies
to hire FSS coordinators. Under the FSS program, families
will receive job training and employment that should lead
to a decrease in their dependency on welfare programs and
move them toward economic self-sufficiency.

Housing
Tenant Protection Set-Asides. The Housing Certificate Fund
also serves a role in supporting families in FHA-insured, privately owned assisted housing projects affected by changes
in project status. It is intended that income-eligible families
who, through no fault of their own, are affected by HUD’s
management of the multifamily inventory be aided through
the Housing Certificate Fund.
The $373 million requested for 1999 Housing tenant protections will be used to provide funding for an estimated 17,000
preservation prepayment vouchers, and for 15,000 vouchers
for residents in properties which are proposed for disposition
from the assisted housing inventory, voluntarily terminating
project-based assistance, terminations due to HUD housing
quality enforcement actions, or which are undergoing portfolio
re-engineering.
Of this amount, $130 million is included for Housing tenant
protections to accommodate the more aggressive enforcement
activities of the Department, including the cost of relocating
affected families, and to address the potential need to modify
current assistance payment standards and eligibility to avoid
undue hardship or displacement of currently assisted families.
WELFARE

TO

WORK HOUSING VOUCHERS

For tenant-based assistance under the United States Housing Act
of 1937 to help eligible families make the transition from welfare
to work, $283,000,000, to be administered by public housing agencies
(including Indian housing authorities, as defined by the Secretary
of Housing and Urban Development), and to remain available until
expended: Provided, That families initially selected to receive assistance under this head (a) shall be eligible to receive, shall be currently
receiving, or shall have received within the preceding year, assistance
or services funded under the Temporary Assistance for Needy Families
(TANF) program under part A of title IV of the Social Security Act
or as part of a State’s qualified State expenditure under section
409(a)(7)(B)(i) of such Act; (b) shall be determined by the agency
to be families for which tenant-based housing assistance is critical
to successfully obtaining or retaining employment; and (c) shall not
already be receiving tenant-based assistance: Provided further, That
each application shall (a) describe the proposed program, which shall
be developed by the public housing agency in consultation with the
State, local or Tribal entity administering the TANF program and
the entity, if any, administering the Welfare-to-Work grants allocated
by the United States Department of Labor pursuant to section
403(a)(5)(A) of the Social Security Act, and which shall take into
account the particular circumstances of the community; (b) demonstrate that tenant-based housing assistance is critical to the success
of assisting eligible families to obtain or retain employment; (c) specify
the criteria for selecting among eligible families to receive housing
assistance under this head; (d) describe the proposed strategy for tenant counseling and housing search assistance and landlord outreach;
(e) include any requests for waivers of any administrative requirements or any provisions of the United States Housing Act of 1937,
with a demonstration of how approval of the waivers would substantially further the objective of this head; (f) include certifications from
the State, local, or Tribal entity administering assistance under the
TANF program and from the entity, if any, administering the Welfareto-Work grants allocated by the United States Department of Labor,
that the entity supports the proposed program and will cooperate
with the public housing agency that administers the housing assistance to assure that such assistance is coordinated with other welfare
reform and welfare to work initiatives; however, if either does not
respond to the public housing agency within a reasonable time period,
its concurrence shall be assumed, and if either objects to the applica-

439

tion, its concerns shall accompany the application to the Secretary,
who shall take them into account in this funding decision; and (g)
include such other information as the Secretary may require and
meet such other requirements as the Secretary may establish: Provided
further, That the Secretary, after consultation with the Secretary of
Health and Human Services and the Secretary of Labor, shall select
public housing agencies to receive assistance under this head on a
competitive basis, taking into account the need for and quality of
the proposed program (including innovative approaches), the extent
to which the assistance will be coordinated with welfare reform and
welfare to work initiatives, the extent to which the application demonstrates that tenant-based assistance is critical to the success of assisting eligible families to obtain or retain employment, and other
appropriate criteria established by the Secretary: Provided further,
That the Secretary may waive any administrative requirement or any
provision of the United States Housing Act of 1937 if the Secretary
determines that the waiver would substantially further the objective
of the assistance under this head, and in the event of any waiver,
may make provision for alternative conditions or terms where appropriate: Provided further, That the Secretary may use up to one percent
of the amount available under this head, directly or indirectly, to
conduct detailed evaluations of the effect of providing assistance under
this head.
Program and Financing (in millions of dollars)
Identification code 86–0321–0–1–604

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Welfare-to-work housing assistance ............................. ................... ...................

283

10.00

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

283

22.00
23.95

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

283
–283

40.00

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

283

73.10
73.20
74.40

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

283
–27
256

86.90

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

27

89.00
90.00

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

283
27

These funds would provide 50,000 housing vouchers to be
used to help families make the transition from welfare to
work. Lack of affordable, stable housing, or housing located
close to employment, impedes the efforts of families moving
from welfare to work. These vouchers will provide States and
communities with a new flexible tool to help families who
need housing assistance in order to achieve self-sufficiency.
The additional vouchers will be available on a competitive
basis to the local housing agencies, including Indian housing
authorities. Local housing agencies will submit an application
plan, developed in consultation with the State, local, or Tribal
welfare agency and the local Welfare-To-Work formula funds
grantee (generally the local Private Industry Council), allowing both state and local participation in the effort. The vouchers will be used where they are essential to a successful
transition from welfare to work, that is, where housing assistance is critical for a family to achieve or maintain employment. For example, a family could use a welfare-to-work housing voucher to move to an area where there are more job
opportunities, to reduce an extremely long commute, or to
stabilize its housing situation in order to improve attendance
and performance at work.
Families who receive the vouchers must initially be eligible
for, or be currently receiving, Temporary Assistance for Needy

440

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
WELFARE

TO

ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING
ø(INCLUDING

WORK HOUSING VOUCHERS—Continued

Families (TANF) or have received TANF within the past year.
However, local agencies will have great flexibility to design
and operate the welfare-to-work voucher program within
broad national guidelines. For example, the agencies would
propose whether to focus on particular groups of welfare recipients and how to structure the assistance to meet local
needs. The application would request any waivers of administrative provisions or statutory provisions of the United States
Housing Act of 1937 that are needed to substantially further
the objectives of the program. The Department of Housing
and Urban Development (HUD) will review and select the
local plans after consultation with the Department of Health
and Human Services and the Department of Labor. HUD
will evaluate the impact of this program.

SECTION 8 RESERVE PRESERVATION ACCOUNT
The amounts recaptured during fiscal year ø1998¿ 1999 that were
heretofore made available to public housing agencies for tenant-based
assistance under the section 8 existing housing certificate and housing voucher programs from the Annual Contributions for Assisted
Housing account shall be collected in the account under this heading,
for use as provided for under this heading, as set forth under the
Annual Contributions for Assisted Housing heading in chapter 11
of Public Law 105–18, approved June 12, 1997. (Departments of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0316–0–1–604

1997 actual

1998 est.

1999 est.

Obligations by program activity:
00.01 Contract Renewals ......................................................... ...................

700

3,652

10.00

700

3,652

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

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ...................
22.00 New budget authority (gross) ........................................ ...................
22.22 Unobligated balance transferred from other accounts
4,202
21.40

23.90
23.95
24.40

40.36

4,202
3,652
–550 ...................
700 ...................
3,652
–3,652

Identification code 86–0164–0–1–604

1997 actual

1998 est.

1999 est.

4,407
...................
...................
...................
...................

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

00.01
00.02
00.03
00.04
00.05

Obligations by program activity:
Lower income housing ...................................................
Public and Indian housing ............................................
Elderly/disabled grants ..................................................
Other programs ..............................................................
Contract renewals ..........................................................

879
1,327
1,340
53
1,463

10.00

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

5,062

4,407 ...................

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

1,981
8,029
89

495 ...................
4,090 ...................
73 ...................

21.99
22.00
22.10
22.21
22.22
22.75
23.90
23.95

Total unobligated balance, start of year .............
10,099
4,658
New budget authority (gross) ........................................
–3,725 ...................
Resources available from recoveries of prior year obligations .......................................................................
7,780
700
Unobligated balance transferred to other accounts
–4,245
–968
Unobligated balance transferred from other accounts ...................
17
Balance of contract authority withdrawn ......................
–190 ...................
9,719
–5,062

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

24.40
24.40
24.49

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

4,407 ...................
–4,407 ...................

24.99

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

4,658 ................... ...................

495 ................... ...................
4,090 ................... ...................
73 ................... ...................

3,652 ...................

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

New budget authority (gross), detail:
Current:
40.36
Unobligated balance rescinded .................................
41.00
Transferred to other accounts ...................................

–3,650 ................... ...................
–75 ................... ...................

–550 ...................

43.00

–3,725 ................... ...................

60.05
60.49

72.40

................... ...................
...................
700
...................
–350

350
3,652
–2,176

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

350

1,826

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

350

2,176

89.00
90.00

Program and Financing (in millions of dollars)

Total budgetary resources available for obligation
4,202
New obligations ............................................................. ...................
Unobligated balance available, end of year:
Uninvested .................................................................
4,202

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

4,352
–700

RESCISSION AND TRANSFER OF FUNDS)¿

øNotwithstanding any other provision of law, of the amounts recaptured under this heading during fiscal year 1998 and prior years,
$550,000,000, heretofore maintained as section 8 reserves made available to housing agencies for tenant-based assistance under the section
8 existing housing certificate and housing voucher programs, are rescinded.¿
øAll balances outstanding as of September 30, 1997, in the Preserving Existing Housing Investment Account for the Preservation program shall be transferred to and merged with the amounts previously
provided for those purposes under this heading.¿ (Departments of
Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

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

–550 ...................
350
2,176

The Section 8 Reserve Preservation Account was authorized
by P.L. 105–17. This account contains funds which were recaptured from project reserve accounts maintained by Housing Authorities nationwide. These funds will be used to renew
expiring contracts during 1999 to reduce the requirements
for new contract renewal funding in the Housing Certificate
Fund.

63.00
70.00

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

74.40
74.49
74.99

10,706
–10,706

7,552
–7,552

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

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Uninvested ............................................................
72.49
Contract authority .................................................
72.99
73.10
73.20
73.31
73.32
73.45

595
–595

–3,725 ................... ...................

52,400
56,034

29,723
55,249

–700
59,591

Total unpaid obligations, start of year ................
108,434
New obligations .............................................................
5,062
Total outlays (gross) ......................................................
–20,375
Obligated balance transferred to other accounts .........
–368
Obligated balance transferred from other accounts ...................
Adjustments in unexpired accounts ..............................
–7,780
Unpaid obligations, end of year:
Obligated balance:
Uninvested ............................................................
29,723
Contract authority .................................................
55,249

84,972
4,407
–10,869
–19,070
150
–700

58,891
...................
–7,552
...................
...................
...................

–700
59,591

–700
52,039

58,891

51,339

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

84,972

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

86.93

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

20,375

89.00
90.00

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

–3,725 ................... ...................
20,375
10,869
7,552

10,869

7,552

Status of Contract Authority (in millions of dollars)
Identification code 86–0164–0–1–604

0100
0400
0600
0700

Balance, start of year ....................................................
Appropriation to liquidate contract authority ................
Balance of contract authority withdrawn ......................
Balance, end of year .....................................................

1997 actual

1998 est.

56,123
55,322
59,591
–595
–10,706
–7,552
–190 ................... ...................
55,322
59,591
52,039

Obligations by program activity:
Modernization .................................................................
Preservation ...................................................................
Operating Subsidies .......................................................
Operating Subsidies .......................................................

10.00

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

1,186
336
2,786
4

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

5,757 ................... ...................
–4,312 ................... ...................
1,445 ................... ...................

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

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

5,753 ................... ...................

4 ................... ...................
5,757 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested ................................................................. ...................
2,825 ...................
73.10 New obligations .............................................................
4,312 ................... ...................
73.20 Total outlays (gross) ......................................................
–1,487 ................... ...................
73.31 Obligated balance transferred to other accounts ......... ...................
–2,825 ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
2,825 ................... ...................
72.40

86.90
86.97

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

1,483 ................... ...................
4 ................... ...................

87.00

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

1,487 ................... ...................

Offsets:
Against gross budget authority and outlays:
88.45
Offsetting collections (cash) from: Offsetting governmental collections ............................................

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

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

5,753 ................... ...................
1,483 ................... ...................

89.00
90.00

Object Classification (in millions of dollars)
Identification code 86–0312–0–1–604

41.0
99.0
99.9

Direct obligations: Grants, subsidies, and contributions ...........................................................................
Reimbursable obligations: Subtotal, reimbursable obligations .......................................................................
Total obligations ........................................................

1997 actual

1998 est.

1999 est.

4,308 ................... ...................
4 ................... ...................
4,312 ................... ...................

This account includes funding provided in 1997 for preservation, modernization, public housing development, Indian
housing development, and public housing operating subsidies.
Pursuant to P.L. 103–65: (1) all balances for preservation
were transferred to the Annual Contributions for Assisted
Housing account; (2) all balances for modernization and public
housing development were transferred to the Public Housing
Capital Fund; (3) all balances for Indian housing development
were transferred to the Indian Housing Block Grants; and,
(4) and all balances for operating subsidies were transferred
to the Public Housing Operating Fund.

(INCLUDING TRANSFERS OF FUNDS)

Program and Financing (in millions of dollars)

00.01
00.02
00.03
09.01

23.90
23.95
24.40

PUBLIC HOUSING CAPITAL FUND

PRESERVING EXISTING-HOUSING INVESTMENT

1997 actual

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ...................
1,445 ...................
22.00 New budget authority (gross) ........................................
5,757 ................... ...................
22.21 Unobligated balance transferred to other accounts ...................
–1,445 ...................
21.40

1999 est.

The Annual Contributions for Assisted Housing account
provided assistance under three major categories.
Low-income housing (section 8).—Included within the section 8 category was incremental rental assistance in the form
of housing certificates and housing vouchers; Public Housing
and Housing Relocation/Replacement opt-out units; Housing
Opportunities for Persons with AIDS; section 23 conversions;
and loan management and property disposition activities.
Housing for the elderly and disabled (section 202 and
811).—The Cranston-Gonzales National Affordable Housing
Act authorized a grant program to make new construction
assistance available to elderly and disabled persons. Both the
grant funding and the Rental Assistance—or operating subsidy—needed to aid these low-income tenants was provided
under this account.
Public and Indian housing.—New development funding was
provided for both Public Housing and for Indian Housing
within this account. In addition, funding was provided for
public and Indian housing modernization activities and public/
Indian housing amendments and lease adjustments. Funding
was also provided for Public Housing Service Coordinators
and Family Investment Centers.
This account provided funding for a wide range of housing
assistance through the Low-Income Housing (Section 8),
Housing for the Elderly and Disabled, and the Public and
Indian Housing programs. In addition, various housing-related programs were carried out through funding provided under
this account.
The account now displays the spendout of all remaining
balances. Pursuant to P.L. 105–65: (1) all balances for Public
Housing Development, Modernization, Family Investment
Centers, Public Housing Amendments, and Leave Adjustments were transferred to the Public Housing Capital Fund;
(2) all balances for Section 8 Amendments and Contract Renewals were transferred to the Housing Certificate Fund; (3)
all balances for the Supportive Housing for the Elderly and
Supportive Housing for the Disabled were transferred to the
Housing for Special Populations account; and, (4) all balances
for Indian Housing were transferred to the Indian Housing
Block Grants account. The $550 million rescission of recaptured 1998 and prior years section 8 reserves, enacted in
the fiscal year 1998 Appropriations Act, can be found under
the Section 8 Reserve Preservation Account.

Identification code 86–0312–0–1–604

441

1998 est.

1999 est.

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

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

4,312 ................... ...................

For the Public Housing Capital Fund Program for modernization
of existing public housing projects as authorized under section 14
of the United States Housing Act of 1937, as amended (42 U.S.C.
1437), ø$2,500,000,000¿ $2,550,000,000, to remain available until expended: Provided, That of the total amount, ø$30,000,000¿ up to
$100,000,000 shall be for carrying out activities under section 6(j)
of such Act and technical assistance for the inspection of public housing units, contract expertise, and training and technical assistance
directly or indirectly, under grants, contracts, or cooperative agreements, to assist in the oversight and management of public housing

442

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued

PUBLIC HOUSING OPERATING FUND
ø(INCLUDING

PUBLIC HOUSING CAPITAL FUND—Continued
(INCLUDING TRANSFERS OF FUNDS)—Continued

(whether or not the housing is being modernized with assistance
under this proviso) or tenant-based assistance, including, but not
limited to, an annual resident survey, data collection and analysis,
training and technical assistance by or to officials and employees
of the Department and of public housing agencies and to residents
in connection with the public housing øprogram¿ programs and for
lease adjustments to section 23 projects: øProvided further, That of
the amount available under this heading, up to $5,000,000 shall
be for the Tenant Opportunity Program:¿ Provided further, That all
balances, as of September 30, ø1997¿ 1998, of funds heretofore provided ø(other than for Indian families) for the development or acquisition costs of public housing, for modernization of existing public housing projects, for public housing amendments, for public housing modernization and development technical assistance, for lease adjustments under the section 23 program, and for the Family Investment
Centers program,¿ for section 673 public housing service coordinators
shall be transferred to and merged with amounts made available
under this heading. (Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0304–0–1–604

1997 actual

1998 est.

TRANSFERS OF FUNDS)¿

For payments to public housing agencies for operating subsidies
for low-income housing projects as authorized by section 9 of the
United States Housing Act of 1937, as amended (42 U.S.C. 1437g),
ø$2,900,000,000¿ $2,818,000,000, to remain available until
expendedø: Provided, That all balances outstanding, as of September
30, 1997, of funds heretofore provided (other than for Indian families)
for payments to public housing agencies for operating subsidies for
low-income housing projects, shall be transferred to and merged with
amounts made available under this heading¿. (Departments of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
1997 actual

Identification code 86–0163–0–1–604

1998 est.

1999 est.

00.01

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

2,901

2,931

10.00

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

2,901

2,931

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ................... ...................
113
22.00 New budget authority (gross) ........................................ ...................
2,900
2,818
22.22 Unobligated balance transferred from other accounts ...................
114 ...................
21.40

1999 est.

Obligations by program activity:
00.01 Direct program ............................................................... ...................

3,782

2,550

10.00

3,782

23.90
23.95
24.40

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

3,014
–2,901

2,931
–2,931

2,550

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

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ...................
22.22 Unobligated balance transferred from other accounts ...................

40.00
2,500
2,550
1,282 ...................

23.90
23.95

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

3,782
–3,782

2,550
–2,550

40.00

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

2,500

2,550

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.32 Obligated balance transferred from other accounts
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

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

7,270

3,810

3,511

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

2,500
3,810

2,550
3,509

89.00
90.00

The Public Housing Capital Fund, which is a comprehensive
formula-driven program based on need, is designed to respond
to the capital and management improvement requirements
of public housing. The fund consolidates the following programs: public housing modernization; public housing development; Major Reconstruction of Obsolete Public Housing
(MROP) Projects; public housing amendments; lease adjustments; and Family Investment Centers.
The 1999 Budget proposes to transfer all balances reflected
in the Annual Contributions for Assisted Housing account
for the Public Housing Service Coordinators program to the
Public Housing Capital Fund.
Pursuant to P.L. 105–65, all balances for modernization
and public housing development previously funded under the
Annual Contributions for Assisted Housing and Preserving
Existing Housing Investment accounts were transferred to
the Public Housing Capital Fund.

2,818

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
1,606
74
1,395
73.10 New obligations ............................................................. ...................
2,901
2,931
73.20 Total outlays (gross) ......................................................
–1,529
–3,090
–2,861
73.32 Obligated balance transferred from other accounts ...................
1,510 ...................
73.40 Adjustments in expired accounts ..................................
–3 ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
74
1,395
1,465

86.90
86.93
87.00

6,311

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

2,900

72.40

72.40

................... ...................
7,270
...................
3,782
2,550
...................
–3,810
–3,509
...................
7,299 ...................

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

113 ...................

89.00
90.00

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
Outlays from current balances ......................................
1,529

1,392
1,698

1,353
1,508

1,529

3,090

2,861

Net budget authority and outlays:
Budget authority ............................................................ ...................
Outlays ...........................................................................
1,529

2,900
3,090

2,818
2,861

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

Operating subsidies are provided to public housing authorities (PHAs) to assist in funding the operation and maintenance expenses of public housing units in accordance with
Section 9 of the United States Housing Act of 1937, as amended. Annual subsidy requirements are calculated on the basis
of the Performance Funding System (PFS) formula. It is anticipated that sufficient funds will be available to provide
100 percent of PFS requirements in 1999.
Pursuant to P.L. 105–65, all balances of operating subsidy
funding that were provided under the Preserving Existing
Housing Investment account in 1997 were transferred to this
account.
DRUG ELIMINATION GRANTS
ø(INCLUDING

FOR

LOW-INCOME HOUSING

TRANSFER OF FUNDS)¿

For grants to public housing agencies and tribally designated housing entities for use in eliminating crime in public housing projects
authorized by 42 U.S.C. 11901–11908, for grants for federally assisted
low-income housing authorized by 42 U.S.C. 11909, and for drug
information clearinghouse services authorized by 42 U.S.C. 11921–

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
11925, $310,000,000, to remain available until expended, of which
$10,000,000 shall be for grants, technical assistance, contracts and
other assistance, training, and program assessment and execution
for or on behalf of public housing agencies, resident organizations,
and Indian tribes and their tribally designated housing entities (including the cost of necessary travel for participants in such training);
$10,000,000 shall be used in connection with efforts to combat violent
crime in public and assisted housing under the Operation Safe Home
program administered by the Inspector General of the Department
of Housing and Urban Development; $10,000,000 shall be provided
to the Office of Inspector General for Operation Safe Home; and
$20,000,000 shall be available for a program named the New Approach Anti-Drug program which will provide competitive grants to
entities managing or operating public housing developments, federally
assisted multifamily housing developments, or other multifamily
housing developments for low-income families supported by non-Federal governmental entities or similar housing developments supported
by nonprofit private sources in order to provide or augment security
(including personnel costs), to assist in the investigation and/or prosecution of drug-related criminal activity in and around such developments, and to provide assistance for the development of capital improvements at such developments directly relating to the security
of such developments: Provided, That grants for the New Approach
Anti-Drug program shall be made on a competitive basis as specified
in section 102 of the Department of Housing and Urban Development
Reform Act of 1989: Provided further, That the term ‘‘drug-related
crime’’, as defined in 42 U.S.C. 11905(2), shall also include other
types of crime as determined by the Secretary: Provided further,
That, notwithstanding section 5130(c) of the Anti-Drug Abuse Act
of 1988 (42 U.S.C. 11909(c)), the Secretary may determine not to
use any such funds to provide public housing youth sports grants.
(Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0197–0–1–604

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Direct program ...............................................................

78

591

310

10.00

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

78

591

310

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

68
290

21.40

23.90
23.95
24.40

40.00

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

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

281 ...................
310
310

1 ................... ...................
359
–78

591
–591

310
–310

281 ................... ...................

290

310

310

72.40

516
302
605
78
591
310
–291
–288
–273
–1 ................... ...................
302

605

642

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

291

288

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

290
291

310
288

310
273

Housing Authorities (PHAs) and Tribally Designated Housing
Entities (TDHEs) for their anti-drug, anti-crime efforts. To
combat the concentration of crime in and around public housing, staff and residents use these resources to increase police
coverage and security as well as to provide alternative activities to residents. Eligible activities include reimbursing local
law enforcement for additional services, security contracts,
investigators, and training residents for volunteer resident
programs. Recent appropriation acts have expanded the definition of crime beyond drug-related patrols, physical changes
to enhance security, drug prevention, and intervention and
treatment; thus allowing housing authorities greater scope
in targeting crime and developing successful alternatives.
Of the $310 million requested in 1999, $243.8 million will
be targeted to PHA and TDHE grants and clearinghouse information services. In addition, $50 million will be available
to HUD for: (1) technical assistance, training, and information
dissemination; (2) Operation Safe Home; and, (3) the New
Approach Anti-Drug program. An additional $16.2 million is
estimated to be available for other Federally assisted lowincome housing grants.
REVITALIZATION

OF

SEVERELY DISTRESSED PUBLIC HOUSING
(HOPE VI)

For grants to public housing agencies for assisting in the demolition
of obsolete public housing projects or portions thereof, the revitalization (where appropriate) of sites (including remaining public housing
units) on which such projects are located, replacement housing which
will avoid or lessen concentrations of very low-income families, and
tenant-based assistance in accordance with section 8 of the United
States Housing Act of 1937; and for providing replacement housing
and assisting tenants displaced by the demolition, $550,000,000, to
remain available until expended, of which the Secretary may use
up to $10,000,000 for technical assistance and contract expertise,
to be provided directly or indirectly by grants, contracts or cooperative
agreements, including training and cost of necessary travel for participants in such training, by or to officials and employees of the
Department and of public housing agencies and to residents: Provided, That øof the amount made available under this heading,
$26,000,000 shall be made available, including up to $10,000,000
for Heritage House in Kansas City, Missouri, for the demolition of
obsolete elderly public housing projects and the replacement, where
appropriate, and revitalization of the elderly public housing as new
communities for the elderly designed to meet the special needs and
physical requirements of the elderly: Provided further, That no funds
appropriated under this heading shall be used for any purpose that
is not provided for herein, in the United States Housing Act of 1937,
in the Appropriations Acts for the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies,
for the fiscal years 1993, 1994, 1995, and 1997, and the Omnibus
Consolidated Rescissions and Appropriations Act of 1996¿ for purposes of environmental review pursuant to the National Environment
Policy Act of 1969, a grant under this head or under prior appropriations Acts for this head shall be treated as assistance under title
I of the United States Housing Act of 1937 and shall be subject
to the regulations issued by the Secretary to implement section 26
of such Act: Provided further, That none of such funds shall be used
directly or indirectly by granting competitive advantage in awards
to settle litigation or pay judgments, unless expressly permitted herein. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

273

86.93

443

Program and Financing (in millions of dollars)
Identification code 86–0218–0–1–604

1997 actual

1998 est.

1999 est.

00.01

The $310 million requested for this program in 1999 includes funding for technical assistance for drug elimination,
operation safe home activities and the new approach antidrug program.
The Public Housing Drug Elimination Grants program has
been authorized since 1988, and provides funds to Public

Obligations by program activity:
Direct program ...............................................................

391

604

550

10.00

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

391

604

550

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

539
550

698
550

644
550

21.40

444

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
REVITALIZATION

Program and Financing (in millions of dollars)

SEVERELY DISTRESSED PUBLIC HOUSING
(HOPE VI)—Continued

OF

Identification code 86–0313–0–1–604

1997 actual

00.01
00.02

1997 actual

Identification code 86–0218–0–1–604

23.90
23.95
24.40

40.00

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

1,089
–391

1998 est.

1,248
–604

703
600
4 ...................
707

600

698

644

644

22.00
22.21
22.22

550

550

550

23.90
23.95

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

707
–707

600
–600

40.00

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

600

600

1,377
391
–205

1,563
604
–405

1,761
550
–524

1,563

1,761

1,787

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

205

405

524

550
205

550
405

550
524

This program utilizes Federal resources to rehabilitate and
restore severely distressed public housing projects, thereby
expanding the supply of decent, safe, and affordable housing
for low-income renters. The funds may also be used for project
demolition, hard replacement units, as well as tenant-based
rental assistance.

øNATIVE AMERICAN¿ INDIAN HOUSING BLOCK GRANTS
ø(INCLUDING

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

1,194
–550

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

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

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

1999 est.

1999 est.

72.40

86.93

Obligations by program activity:
Indian Housing Block Grants ......................................... ...................
Title VI Indian Federal Guarantees ................................ ...................

10.00

Program and Financing (in millions of dollars)—Continued

1998 est.

TRANSFER OF FUNDS)¿

For the øNative American¿ Indian Housing Block Grants program,
as authorized under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (Public Law 104–330),
$600,000,000, to remain available until expended, of which
ø$5,000,000¿ up to $6,000,000 shall be used to support the inspection
of Indian housing units, contract expertise, training, and technical
assistance in the oversight and management of Indian housing and
tenant-based assistance, including up to ø$200,000¿ $300,000 for related travelø: Provided, That of the amount provided under this heading, $5,000,000 shall be made available for the cost of guaranteed
notes and other obligations, as authorized by title VI of the Native
American Housing Assistance and Self-Determination Act of 1996:
Provided further, That such costs, including the costs of modifying
such notes and other obligations, shall be as defined in section 502
of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize the total principal
amount of any notes and other obligations, any part of which is
to be guaranteed, not to exceed $217,000,000: Provided further, That
the funds made available in the first proviso are for a demonstration
on ways to enhance economic growth, to increase access to private
capital, and to encourage the investment and participation of traditional financial institutions in tribal and other Native American
areas: Provided further, That all balances outstanding as of September 30, 1997, previously appropriated under the headings ‘‘Annual
Contributions for Assisted Housing’’, ‘‘Development of Additional New
Subsidized Housing’’, ‘‘Preserving Existing Housing Investment’’,
‘‘HOME Investment Partnerships Program’’, ‘‘Emergency Shelter
Grants Program’’, and ‘‘Homeless Assistance Funds’’, identified for
Indian Housing Authorities and other agencies primarily serving Indians or Indian areas, shall be transferred to and merged with amounts
made available under this heading¿. (Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.31 Obligated balance transferred to other accounts .........
73.32 Obligated balance transferred from other accounts
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

600
600
–1 ...................
108 ...................

72.40

................... ...................
2,400
...................
707
600
...................
–81
–240
...................
–3 ...................
...................
1,777 ...................
...................

2,400

2,760

86.90
86.93

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

71
10

70
170

87.00

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

81

240

89.00
90.00

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

600
81

600
240

Title I of the Native American Housing Assistance and SelfDetermination Act of 1996 (P.L. 104–330) authorized the Native American Housing Block Grants program. This program
provides an allocation of funds on a formula basis to Indian
tribes and their tribally designated housing entities to help
them address housing needs within their communities. Indian
tribes use performance measures and benchmarks that are
consistent with the national goals of the program but can
base these measures on the needs and priorities they establish in their own Indian housing plan.
Pursuant to P.L. 105–65, all balances previously appropriated under Annual Contributions for Assisted Housing, Development of Additional New Subsidized Housing, Preserving
Existing Housing Investment, HOME Investment Partnerships Program, Emergency Shelter Grants Program, and
Homeless Assistance Funds identified for Indian Housing Authorities and other agencies primarily serving Indians or Indian areas were transferred to this account.
Public enterprise funds:
LOW-RENT PUBLIC HOUSING—LOANS

AND

OTHER EXPENSES

Program and Financing (in millions of dollars)
Identification code 86–4098–0–3–604

1997 actual

1998 est.

1999 est.

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

82

60

50

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

82

60

50

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
22.00 New budget authority (gross) ........................................
22.60 Redemption of debt .......................................................

13
152
–80

3
130
–70

3
121
–71

00.01
10.00

21.40

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
23.90
23.95
24.40

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

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

85
–82

63
–60

53
–50

3

3

3

85

60

50

Operating results.—The actual and estimated net operating
income for 1996, 1997, 1998, and 1999 follows:
Statement of Operations (in millions of dollars)
1996 actual

1997 actual

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

112
–127

108
–99

104
–95

100
–91

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

–15

9

9

9

Identification code 86–4098–0–3–604

67

70

71

0101
0102

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

152

130

121

0109

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

1,176
82
–189

1,068
60
–164

964
50
–149

1,068

964

865

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

67
122

60
104

50
99

87.00

189

164

149

70.00

Identification code 86–4098–0–3–604

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

–65
–70
–71
–2 ................... ...................

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1602
Interest receivable ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1604
Direct loans and interest receivable,
net ..................................................

88.90

–67

1699

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

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

–70

85
122

60
94

–71

50
78

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

1998 est.

1999 est.

Balance Sheet (in millions of dollars)

72.40

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

445

1997 actual

1998 est.

1999 est.

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

1999

1996 actual

1997 actual

1998 est.

1999 est.

1,189

1,072

968

854

1,726

1,656

1,585

1,513

45
3

45
6

35
3

24
3

–12

–13

–12

–12

36

38

26

15

36

38

26

15

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

2,951

2,766

2,579

2,382

198
1,627
1

189
1,561
1

181
1,491
1

173
1,420
1

2999

1,826

1,751

1,673

1,594

1,076
49

972
43

866
40

757
31

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

1,627
–65

1,562
–70

1,492
–71

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

1290

1,562

1,492

1,421

3999

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

1,125

1,015

906

788

4999

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

2,951

2,766

2,579

2,382

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

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

1997 actual

1998 est.

1999 est.

Credit accounts:

2210
2251

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

3,861
–275

3,586
–280

3,306
–280

2290

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

3,586

3,306

3,026

2299

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

3,586

3,306

3,026

The Low-Rent Public Housing Loan Fund provides direct
Federal loans to fund remaining Public Housing Agency and
Indian Housing Authority construction, acquisition, and modernization activities reserved under the Annual Contributions
appropriation through 1986. These loans are made from borrowings from the Treasury. Under legislation enacted during
1986 (Public Law 99–272), the borrowings from the Treasury
are forgiven at the end of each fiscal year and the loans
to PHAs/IHAs are forgiven as construction, acquisition, and
modernization activities are completed. Under the provisions
of this legislation, $85 million of borrowings from the Treasury were forgiven in 1997, an estimated $60 million will
be borrowed from the Treasury and forgiven in 1998, and
an estimated $50 million will be borrowed from the Treasury
and forgiven in 1999.
Since 1987, new reservations of capital funds for construction, acquisition, and modernization activities have been provided directly from the Annual Contributions and Public
Housing Capital Fund appropriations.

INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT
For the cost of guaranteed loans, as authorized by section 184
of the Housing and Community Development Act of 1992 (106 Stat.
3739), ø$5,000,000¿ $6,000,000, to remain available until expended:
Provided, That such costs, including the costs of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act
of 1974, as amended: Provided further, That these funds are available
to subsidize total loan principal, any part of which is to be guaranteed, not to exceed ø$73,800,000¿ $68,881,000.
In addition, for administrative expenses to carry out the guaranteed
loan program, up to $400,000, which shall be transferred to and
merged with the appropriation for departmental salaries and expenses,
to be used only for the administrative costs of these guarantees. (Departments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0223–0–1–371

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Direct program ...............................................................

4

5

6

10.00

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

4

5

6

22.00
23.95
24.40

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

4
–4

5
–5

6
–6

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

446

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999
22.00

INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT—
Continued

New financing authority (gross) ....................................

1

3

3

23.90
24.40

Credit accounts—Continued

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

2

5

8

2

5

8

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Federal sources .........................................................

1

3

3

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

–1

–3

–3

Program and Financing (in millions of dollars)—Continued
Identification code 86–0223–0–1–371

1997 actual

1998 est.

1999 est.

68.00

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
50.00 Reappropriation ..............................................................

3
5
6
1 ................... ...................

70.00

4

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

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

5

6

5
6
8
4
5
6
–1
–3
–3
–2 ................... ...................

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ...............................................
–1
–3
–3

Status of Guaranteed Loans (in millions of dollars)
6

8

11
1997 actual

Identification code 86–4104–0–3–604

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
1
86.93 Outlays from current balances ...................................... ...................

1
2

1
3

87.00

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

1

3

3

89.00
90.00

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

4
1

5
3

6
3

1998 est.

47

62

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

47
47

62
62

69
69

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

6
11

17
20

37
34

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

17

37

71

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

17

37

71

69

2159

2150
2199

2290

1999 est.

53
62
69
–6 ................... ...................

2299

1997 actual

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................
Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................

47

62

69

8.13

8.13

8.13

2329

8.13

8.13

8.13

4

5

6

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

4

5

6

1

3

3

2349

1

3

3

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................
2339

Total subsidy outlays ................................................

1999 est.

2210
2231

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0223–0–1–371

1998 est.

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

As required by the Federal Credit Reform Act of 1990,
this nonbudgetary account records all cash flows to and from
the Government resulting from the loan guarantees committed in 1992 and beyond (including modifications of loan guarantees that resulted from obligations in any year). The
amounts in this account are a means of financing and not
included in the budget totals. As required by the Federal
Credit Reform Act of 1990, no administrative expenses can
be recorded in the financing account.
Balance Sheet (in millions of dollars)

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1992 and beyond (including modifications of guarantees that resulted from
obligations in any year). The subsidy amounts are estimated
on a net present value basis. The administrative expenses
are shown on a cash basis.
This program provides access to sources of private financing
for Indian families, Indian tribes and their tribally designated
housing entities who otherwise could not acquire housing financing because of the unique legal status of Indian trust
land.
It is anticipated that the funding requested for 1999 will
support 420 loans.

1996 actual

Identification code 86–4104–0–3–604

1997 actual

1998 est.

1999 est.

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

2

2

3

4

1

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

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

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

1999

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

3

2

3

4

1

2

3

3

2999

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

1

2

3

3

2

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

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

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

3999

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

2

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

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

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

4999

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

3

2

3

3

INDIAN HOUSING LOAN GUARANTEE FUND FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 86–4104–0–3–604

21.40

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

1997 actual

1

TITLE VI INDIAN FEDERAL GUARANTEES PROGRAM ACCOUNT
1998 est.

1999 est.

2

(INCLUDING

5

TRANSFER OF FUNDS)

For the cost of guaranteed loans, $5,000,000, to remain available
until expended, as authorized by title VI of the Native American
Housing Assistance and Self-Determination Act of 1996: Provided,

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

447

That such costs, including the costs of modifying such loans, shall
be as defined in section 502 of the Congressional Budget Act of 1974,
as amended; Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed,
not to exceed $43,636,000. In addition, for administrative expenses
to carry out the guaranteed loan program, up to $200,000, which
shall be transferred to and merged with the appropriation for departmental salaries and expenses, to be used only for the administrative
costs of these guarantees; Provided further, That all balances, as of
September 30, 1998, of funds previously provided for the cost of guaranteed notes and other obligations under the heading, ‘‘Indian Housing Block Grants,’’ shall be transferred to and merged with amounts
made available under this heading.

Title VI of the Native American Housing Assistance and
Self-Determination Act of 1996 (P.L. 104–330) authorized the
Federal Guarantees for Financing for Tribal Housing Activities. This program provides for the guarantee of notes or
other obligations issued by Indian tribes or tribally designated
housing entities for the purposes of financing affordable housing activities described in section 202 of the Act. In 1998,
$5,000,000 was set aside for this program under the Indian
Housing Block Grants appropriation. The 1999 budget proposes a separate appropriation for this program.

Program and Financing (in millions of dollars)

TITLE VI INDIAN FEDERAL GUARANTEES FINANCING ACCOUNT

Identification code 86–0322–0–1–604

1997 actual

1998 est.

Program and Financing (in millions of dollars)

1999 est.

Obligations by program activity:
Title VI Indian Federal loan guarantees ........................ ................... ...................

6

10.00

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

6

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested ................................................................. ................... ...................
1
22.00 New budget authority (gross) ........................................ ................... ...................
5
22.22 Unobligated balance transferred from other accounts ...................
1 ...................
23.90
23.95
24.40

Total budgetary resources available for obligation ...................
1
6
New obligations ............................................................. ................... ...................
–6
Unobligated balance available, end of year:
Uninvested ................................................................. ...................
1 ...................

New budget authority (gross), detail:
40.00 Appropriation .................................................................. ................... ...................
Change in unpaid obligations:
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.32 Obligated balance transferred from other accounts
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

5

................... ...................
6
................... ...................
–1
...................
3 ...................
3

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

1

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

5
1

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0322–0–1–604

1997 actual

1998 est.

23.90
24.40

9

4

9

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

4

5

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

–4

–5

68.00

89.00
90.00

11.00

2329

1997 actual

Identification code 86–4244–0–3–604

1998 est.

1999 est.

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ...................
45
44
2112 Uncommitted loan guarantee limitation ....................... ................... ................... ...................

44

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

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ............................................... ...................
–4
–5

Status of Guaranteed Loans (in millions of dollars)

2210
2231

2159

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

4
5

4

1999 est.

44

1999 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ................... ...................
22.00 New financing authority (gross) .................................... ...................
4

2150
2199

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ................................................... ................... ...................

1998 est.

21.40

5

89.00
90.00

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

1997 actual

Identification code 86–4244–0–3–604

00.01

Total guaranteed loan commitments ........................ ...................
Guaranteed amount of guaranteed loan commitments ...................

45
45

44
44

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year ............................................. ................... ...................
Disbursements of new guaranteed loans ...................... ...................
11

11
11

2290

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

11

22

2299

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

11

22

11.00

Weighted average subsidy rate ................................. ................... ...................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ............................................... ................... ...................
2339

5

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

1

2349

1

Total subsidy outlays ................................................ ................... ...................

5

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1998 and beyond (including modifications of guarantees that resulted from
obligations in any year), as well as administrative expenses
of this program. The subsidy amounts are estimated on a
present value basis; the administrative expenses are estimated on a cash basis.

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The
amounts in this account are a means of financing and are
not included in the budget totals. As required by the Federal
Credit Reform Act of 1990, no administrative expenses can
be recorded in the financing account.
Balance Sheet (in millions of dollars)
Identification code 86–4244–0–3–604

1996 actual

1997 actual

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............

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

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

1998 est.

1999 est.

4

5

448

PUBLIC AND INDIAN HOUSING—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

86.90
86.93

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

4
126

4
164

5
171

87.00

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

130

168

176

89.00
90.00

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

196
130

204
168

225
176

Credit accounts—Continued
TITLE VI INDIAN FEDERAL GUARANTEES FINANCING ACCOUNT—
Continued
Balance Sheet (in millions of dollars)—Continued
1996 actual

Identification code 86–4244–0–3–604

1106

Investments in US securities:
Receivables, net .............................

1997 actual

1998 est.

1999 est.

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

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

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

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

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

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

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

4

5

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

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

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

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

2999

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

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

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

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

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

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

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

4

5

3999

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

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

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

4

5

4999

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

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

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

4

5

1999

COMMUNITY PLANNING AND DEVELOPMENT
Federal Funds
General and special funds:
HOUSING OPPORTUNITIES

FOR

PERSONS

WITH

AIDS

For carrying out the Housing Opportunities for Persons with AIDS
program, as authorized by the AIDS Housing Opportunity Act (42
U.S.C. 12901), ø$204,000,000¿ $225,000,000, to remain available until
expended: Provided, That up to 1 percent of such funds shall be
available to the Secretary for technical assistanceø: Provided, That
of the amount made available under this heading for non-formula
allocation, the Secretary may designate, on a noncompetitive basis,
one or more nonprofit organizations that provide meals delivered
to homebound persons with acquired immunodeficiency syndrome or
a related disease to receive grants, not exceeding $250,000 for any
grant, and the Secretary shall assess the efficacy of providing such
assistance to such persons¿. (Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0308–0–1–604

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Housing for AIDs victims ...............................................

201

240

225

10.00

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

201

240

225

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ...................
36 ...................
22.00 New budget authority (gross) ........................................
196
204
225
22.22 Unobligated balance transferred from other accounts
41 ................... ...................
21.40

23.90
23.95
24.40

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

237
–201

240
–240

225
–225

36 ................... ...................

40.00
42.00

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

43.00

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

196

204

225

70.00

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

196

204

225

171
204
225
25 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested ................................................................. ...................
439
511
73.10 New obligations .............................................................
201
240
225
73.20 Total outlays (gross) ......................................................
–130
–168
–176
73.32 Obligated balance transferred from other accounts
368 ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
439
511
560
72.40

The Housing Opportunities for Persons with AIDS program
was established as a separate account in 1997. All of the
balances from prior appropriations for this program have been
transferred to and merged with this account, and it is now
accounted for on an obligational basis. The purpose of the
program is to provide States and localities with resources
and incentives to devise long-term comprehensive strategies
for meeting the housing needs of persons with HIV/AIDS
and their families.
States and metropolitan areas receive 90 percent of the
funds by formula based on the incidence of HIV/AIDS in
their jurisdictions. The remaining 10 percent is awarded competitively to States, local governments, and private nonprofit
entities for projects of national significance. Awards are also
made to States and local governments for projects in jurisdictions which do not qualify for a formula allocation.
COMMUNITY DEVELOPMENT BLOCK GRANTS
(INCLUDING TRANSFERS OF FUNDS)

For grants to States and units of general local government and
for related expenses, not otherwise provided for, to carry out a community development grants program as authorized by title I of the
Housing and Community Development Act of 1974, as amended (the
‘‘Act’’ herein) (42 U.S.C. 5301), ø$4,675,000,000¿ $4,725,000,000, to
remain available until September 30, ø2000¿ 2001: Provided, That
$67,000,000 shall be for grants to Indian tribes notwithstanding section 106(a)(1) of such Act; ø$2,100,000 shall be available as a grant
to the Housing Assistance Council; $1,500,000 shall be available as
a grant to the National American Indian Housing Council;
$32,000,000¿ $50,000,000 shall be for grants pursuant to section 107
of such Act; ø$7,500,000 shall be for the Community Outreach Partnership program; $16,700,000 shall be for grants pursuant to section
11 of the Housing Opportunity Program Extension Act of 1996 (Public
Law 104–120)¿ $20,000,000 shall be provided to Habitat for Humanity: Provided further, That not to exceed 20 percent of any grant
made with funds appropriated herein (other than øa grant made
available under the preceding proviso to the Housing Assistance
Council or the National American Indian Housing Council, or¿ a
grant using funds under section 107(b)(3) of the Housing and Community Development Act of 1974, as amended) shall be expended for
‘‘Planning and Management Development’’ and ‘‘Administration’’ as
defined in regulations promulgated by the Department.
øOf the amount made available under this heading, $15,000,000
shall be made available for ‘‘Capacity Building for Community Development and Affordable Housing’’, as authorized by section 4 of the
HUD Demonstration Act of 1993 (Public Law 103–120), as in effect
immediately before June 12, 1997, with not less than $5,000,000
of the funding to be used in rural areas, including tribal areas.¿
Of the amount provided under this heading, the Secretary of Housing and Urban Development may use up to $55,000,000 for a public
and assisted housing self-sufficiency program, of which øup to
$5,000,000 may be used for the Moving to Work Demonstration, and¿
at least $7,000,000 shall be used for grants for service coordinators
and congregate services for the elderly and disabled: Provided, That
for self-sufficiency activities, the Secretary may make grants to public
housing agencies (including Indian tribes and their tribally designated housing entities), nonprofit corporations, and other appropriate entities for a supportive services program to assist residents
of public and assisted housing, former residents of such housing receiving tenant-based assistance under section 8 of such Act (42 U.S.C.
1437f), and other low-income families and individuals: Provided further, That the program shall provide supportive services, principally
for the benefit of public housing residents, to the elderly and the
disabled, and to families with children where the head of household
would benefit from the receipt of supportive services and is working,

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
seeking work, or is preparing for work by participating in job training
or educational programs: Provided further, That the supportive services may include congregate services for the elderly and disabled,
service coordinators, and coordinated education, training, and other
supportive services, including øacademic¿ Case management skills
training, job search assistance, assistance related to retaining employment, vocational and entrepreneurship development and support
programsø,¿ such as transportation, and child care: Provided further,
That the Secretary shall require applications to demonstrate firm
commitments of funding or services from other sources: Provided
further, That the Secretary shall select public and Indian housing
agencies to receive assistance under this heading on a competitive
basis, taking into account the quality of the proposed program, including any innovative approaches, the extent of the proposed coordination of supportive services, the extent of commitments of funding
or services from other sources, the extent to which the proposed
program includes reasonably achievable, quantifiable goals for measuring performance under the program over a three-year period, the
extent of success an agency has had in carrying out other comparable
initiatives, and other appropriate criteria established by the Secretary
(except that this proviso shall not apply to renewal of grants for
service coordinators and congregate services for the elderly and disabled).
øOf the amount made available under this heading, notwithstanding any other provision of law, $35,000,000 shall be available for
YouthBuild program activities authorized by subtitle D of title IV
of the Cranston-Gonzalez National Affordable Housing Act, as amended, and such activities shall be an eligible activity with respect to
any funds made available under this heading. Local YouthBuild programs that demonstrate an ability to leverage private and nonprofit
funding shall be given a priority for YouthBuild funding.¿
øOf the amount made available under this heading, $25,000,000
shall be available for the Secretary, in consultation with the Secretary
of Agriculture, to make grants, not to exceed $4,000,000 each, for
rural and tribal areas, including at least one Native American area
in Alaska and one rural area in each of the States of Iowa and
Missouri, to test comprehensive approaches to developing a job base
through economic development, developing affordable low- and moderate-income rental and homeownership housing, and increasing the
investment of both private and nonprofit capital.¿
øOf the amount made available under this heading, $138,000,000
shall be available for the Economic Development Initiative (EDI) to
finance a variety of efforts, including $100,000,000 for making grants
for targeted economic investments in accordance with the terms and
conditions specified for such grants in the conference report and the
joint explanatory statement of the committee of conference accompanying this Act.¿
øOf the amount made available under this heading, notwithstanding any other provision of law, $60,000,000 shall be available for
the lead-based paint hazard reduction program as authorized under
sections 1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992.¿
øOf the amount made available under this heading, $25,000,000,
including $15,000,000 for the County of San Bernardino, California,
shall be used for neighborhood initiatives that are utilized to improve
the conditions of distressed and blighted areas and neighborhoods,
and to determine whether housing benefits can be integrated more
effectively with welfare reform initiatives.¿
Of the amount made available under this heading, $100,000,000
shall be for Regional Connections, for grants to facilitate existing
and new coordinated regional approaches to economic growth, housing, and community development, and to encourage and stimulate
the development of coordinated regional strategies that promote economic empowerment of a region’s low- and moderate-income residents:
Provided, That such grants shall be made to entities eligible under
title I of the Housing and Community Development Act of 1974, for
activities which may be assisted under section 105 of such Act.
For the cost of guaranteed loans, $29,000,000, as authorized by
section 108 of the Housing and Community Development Act of 1974:
Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act
of 1974, as amended: Provided further, That these funds are available
to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $1,261,000,000, notwithstanding any aggregate
limitation on outstanding obligations guaranteed in section 108(k)
of the Housing and Community Development Act of 1974. In addition,
for administrative expenses to carry out the guaranteed loan pro-

449

gram, $1,000,000, which shall be transferred to and merged with
the appropriation for departmental salaries and expenses.
øOf the $500,000,000 made available under the heading ‘‘Community Development Block Grants Fund’’ in the 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and
for Overseas Peacekeeping Efforts, Including Those in Bosnia (Public
Law 105–18), not more than $3,500,000 shall be made available for
the non-Federal cost-share for a levee project at Devils Lake, North
Dakota: Provided, That the Secretary of Housing and Urban Development shall provide the State of North Dakota with a waiver to allow
the use of its annual Community Development Block Grant allocation
for use in funding the non-Federal cost-share for a levee project
at Devils Lake, North Dakota: Provided further, That notwithstanding any other provision of law, the Secretary is prohibited from providing waivers, other than those provided herein, for funds in excess
of $100,000 in emergency Community Development Block Grants
funds for the non-Federal cost-share of projects funded by the Secretary of the Army through the Corps of Engineers.¿ (Departments
of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0162–0–1–451

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Community development ................................................

4,804

5,701

4,725

10.00

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

4,804

5,701

4,725

726
4,854

777 ...................
4,924
4,725

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

23.90
23.95
24.40

40.00
40.15
40.79
42.00

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

2 ................... ...................
–1 ................... ...................
5,581
–4,804

5,701
–5,701

4,725
–4,725

777 ................... ...................

New budget authority (gross), detail:
Appropriation ..................................................................
4,600
4,675
4,725
Appropriation (emergency) .............................................
250
250 ...................
Line item veto cancellation ........................................... ...................
–1 ...................
Transferred from other accounts ...................................
4 ................... ...................

43.00

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

4,854

4,924

4,725

70.00

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

4,854

4,924

4,725

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

8,512
8,793
9,505
4,804
5,701
4,725
–4,517
–4,989
–4,959
–4 ................... ...................
–2 ................... ...................
8,793

9,505

9,271

86.90
86.93

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

194
4,323

98
4,891

95
4,864

87.00

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

4,517

4,989

4,959

89.00
90.00

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

4,854
4,517

4,924
4,989

4,725
4,959

Title I of the Housing and Community Development Act
of 1974, as amended, authorizes the Secretary to make grants
to units of general local government and States to fund local
community development programs.
Funds are allocated to Indian tribes and, on an entitlement
basis, to metropolitan cities and urban counties which receive
their grants using the higher of two objective formulas. States
and small cities are also allocated a portion of the available
funds. The proposed level of funding for CDBG and the Sec-

450

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

General and special funds—Continued
COMMUNITY DEVELOPMENT BLOCK GRANTS—Continued
(INCLUDING TRANSFERS OF FUNDS)—Continued

tion 108 Loan Guarantee Program will support an estimated
276,000 jobs. These funds will also help to rehabilitate
171,100 housing units.
Section 107 Grants include funding for Insular Areas, technical assistance, Historically Black Colleges and Universities,
management information systems support, and the Community Development Work Study and Community Outreach
Partnership programs.
Habitat for Humanity International would use this funding
to undertake innovative homeownership opportunities
through the provision of self-help housing, under which a
homeowner would contribute a significant amount of sweat
equity toward the construction of the new dwelling. These
decent, safe and sanitary nonluxury dwellings must be made
available to eligible homeowners at prices below prevailing
market prices. Eligible activities include land acquisition (including financing and closing costs) and infrastructure improvement (installing, extending, constructing, rehabilitating
or otherwise improving utilities and other infrastructure).
The 1999 request includes funding of $55 million for the
Resident Opportunity and Supportive Services (ROSS) program. Formerly called the Economic Development and Supportive Services (EDSS) and Tenant Opportunity Program
(TOP) programs, ROSS is intended to fuse the objectives of
the two predecessor programs. The program will also address
the expanded needs among residents and housing authorities
brought upon by welfare reform legislation that sets time
limits on how long recipients can receive welfare assistance.
Principally for the benefit of public housing residents, ROSS
grants are intended to assist the elderly and disabled, and
families with children where the head of the household is
working, seeking work, or participating in job training or
educational programs. Eligible services under ROSS include
academic skills training, residential management, microenterprise and small business development and start-ups, and social service support programs.
The Regional Connections initiative will make funds available to States and localities to develop and implement strategic plans that address key regional issues facing the nation’s
metropolitan areas and rural communities. The initiative will
help communities address the significant demographic and
economic shifts that are taking place in metropolitan regions
by encouraging regional strategies that emphasize coordinated
metropolitan economic growth and regional solutions to a
range of environmental and social equity issues.
The initiative will enable communities to address one or
more of the following topics: regional economic development
strategies, that tap the competitive advantage or location efficiency of the inner city; sustainable growth or compact development strategies; regional job training and access to work
initiatives; regional affordable housing strategies; or, other
regional concerns identified by communities themselves. Proposed outcomes include: strengthened partnerships between
city and suburban governments and their private sector partners; enhanced regional coordination of Federal resources and
planning requirements; expanded use of HUD’s existing Consolidated Planning process; and, increased community capacity to implement more comprehensive, regional solutions to
local problems.
Funds for this initiative will be distributed by competition
and are intended to: (1) maximize local innovation and creativity; (2) maximize participation by local partners, including
multiple jurisdictions and private sector and community
stakeholders; and, (3) maximize and enhance coordination
with existing planning and regional development efforts. HUD
will undertake this initiative in close cooperation with other

THE BUDGET FOR FISCAL YEAR 1999

Federal agencies and will utilize the expertise of an Advisory
Board of distinguished urban planners, economists and regional experts to implement the program.
ECONOMIC DEVELOPMENT INITIATIVE
For grants for the Economic Development Initiative (EDI), as authorized by section 108(q) of the Housing and Community Development
Act of 1974, to finance a variety of economic development efforts,
$400,000,000, to remain available until expended.
Program and Financing (in millions of dollars)
Identification code 86–0173–0–1–451

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Economic development .................................................. ................... ...................

400

10.00

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

400

22.00
23.95

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

400
–400

40.00

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

400

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

392

86.90

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

8

89.00
90.00

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

400
8

73.10
73.20
74.40

400
–8

Funding requested for the Economic Development Initiative
(EDI)/Community Empowerment Fund (CEF) will support the
financing for a variety of economic development efforts, in
tandem with the existing Section 108 guaranteed loan program, to facilitate and encourage use of the Section 108 Program by State and local governments. The purpose of the
EDI program is to help communities enhance the security
of the Section 108 guaranteed loans and to improve the viability of projects financed with these loans.
The EDI/CEF financing will support new jobs, thereby assisting former welfare recipients to successfully move from
welfare to work. It will be used in conjunction with Section
108 Loan Guarantees to support a variety of employmentgenerating investments, including: (1) revolving loan funds
for business expansion or modernization; (2) startup funds
for new, small- and medium-sized businesses; (3) preservation
and expansion of new and existing industrial facilities; (4)
neighborhood-based commercial revitalization efforts; and, (5)
regional economic strategies. The 1999 request of $400 million
will leverage an estimated $2 billion in private sector loans
and will support an estimated 280,000 jobs when projects
are completed.
The EDI/CEF grants will include mechanisms to: (1) assist
state and local governments to standardize the underwriting
and documentation of loans to businesses in distressed areas;
(2) expand credit for economic and community development
lending; (3) augment communities’ underwriting and loan
servicing capacity; and, (4) use funds more efficiently for credit enhancement. These mechanisms will help reduce risk to
the communities’ and States’ CDBG program funds and remove the impediments to the use of Section 108.
In 1998, Congress provided $138 million for EDI, including
$100 million for Congressionally earmarked projects. The Administration has objected repeatedly to the inclusion of earmarked projects in Appropriations Acts. The Administration

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

urges the Congress to permit a merit selection process for
all communities for EDI grants in 1999.
øEMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES¿ URBAN
EMPOWERMENT ZONES
øFor planning grants, technical assistance, contracts and other assistance, and training in connection with Empowerment Zones and
Enterprise Communities, designated by the Secretary of Housing and
Urban Development, to continue efforts to stimulate economic opportunity in America’s distressed communities, $5,000,000, to remain
available until expended.¿ (Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

1997 actual

Identification code 86–0315–0–1–451

1998 est.

URBAN EMPOWERMENT ZONES
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)

Obligations by program activity:
Develop urban sites ....................................................... ...................

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

10.00

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

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

22.00
23.95

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

5 ...................
–5 ...................

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

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

................... ...................
5
...................
5 ...................
................... ...................
–2
5

89.00
90.00

1999 est.

150

10.00

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

150

22.00
23.95

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

150
–150

40.00

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

150

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

147

86.90

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

3

89.00
90.00

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

150
3

73.10
73.20
74.40

3

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

1998 est.

Obligations by program activity:
Urban empowerment zones ............................................ ................... ...................

72.40

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

1997 actual

00.01

1999 est.

00.01

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

financing of projects in conjunction with the Section 108 loan
guarantee program and other economic development projects;
support for project-based rental assistance; and, financing
other housing activities.
Preliminary reports indicate that the Round I EZ’s are stimulating billions of dollars in private investment, reviving
inner city neighborhoods once given up for dead, and supporting jobs and helping families move from welfare to work.
The second round will build on these successes.

Identification code 86–0315–4–1–451

Program and Financing (in millions of dollars)

451

2

Net budget authority and outlays:
Budget authority ............................................................ ...................
5 ...................
Outlays ........................................................................... ................... ...................
2

150
–3

In 1999, the Administration is proposing mandating funding of $150 million a year (for 10 years) for this program.

Summary of Budget Authority and Outlays

BROWNFIELDS REDEVELOPMENT

(in millions of dollars)

For Economic Development Grants, as authorized by section 108(q)
of the Housing and Community Development Act of 1974, as amended, for Brownfields redevelopment projects, ø$25,000,000¿
$50,000,000, to remain available until expended: Provided, That the
Secretary of Housing and Urban Development shall make these
grants available on a competitive basis as specified in section 102
of the Department of Housing and Urban Development Reform Act
of 1989. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998.)

Enacted/requested:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................

1997 actual

1998 est.

1999 est.

....................
5 ....................
.................... ....................
2
.................... ....................
.................... ....................

150
3

Total:
Budget Authority ..................................................................... ....................
5
Outlays .................................................................................... .................... ....................

150
5

Program and Financing (in millions of dollars)

The goal of the Empowerment Zone (EZ) initiative is to
revitalize city neighborhoods in a way that will retain and
attract middle-class residents and provide employment opportunities that will move people from welfare to work. Grant
funds will allow the 15 new urban EZs that were authorized
by the Taxpayer Relief Act of 1997, in accordance with their
strategic plans, to create economic opportunity in America’s
distressed communities, with a special emphasis on stimulating job creation linked to welfare reform. Flexible grant funds
will be used to integrate human capital needs with economic
development initiatives.
Funding will be available for a broad range of activities
aimed at assisting residents, businesses and organizations
in urban EZs, including: community policing; health care;
neighborhood development; brownfields clean-up and redevelopment; support for financing of capital projects; education;
work force preparation and job creation efforts linked to welfare reform; repayment of debt financing by municipal bonds;

Identification code 86–0314–0–1–451

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Cleanup and develop contaminated sites ..................... ...................

25

50

10.00

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

25

50

22.00
23.95

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

25
–25

50
–50

40.00

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

25

50

................... ...................
...................
25
...................
–1

24
50
–10

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

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

24

64

452

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
BROWNFIELDS REDEVELOPMENT—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 86–0314–0–1–451

86.90
86.93

1997 actual

1998 est.

1999 est.

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
1
Outlays from current balances ...................................... ................... ...................

1
9

87.00

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

1

10

89.00
90.00

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

25
1

50
10

The Brownfields Redevelopment program was first provided
an initial appropriation of $25 million in 1998. The $50 million request for FY 1999 represents an acceleration of the
President’s commitment to help communities clean up and
redevelop the approximately 450,000 brownfields sites nationwide. This level of funding is expected to leverage $200 million in Section 108 loan guarantee commitments, which will
support more than 28,000 jobs.
This program provides competitive economic development
grants in conjunction with Section 108 loan guarantees for
qualified brownfield projects. Eligible communities will be invited to submit proposals to return contaminated sites to productive and employment-generating uses, with an emphasis
on creating substantial numbers of jobs for lower-income people in physically and economically distressed neighborhoods.
Grants will be made in accordance with section 108(q) selection criteria and such other criteria deemed appropriate for
brownfield projects, including the extent to which an applicant is currently operating a brownfields program and is
working with appropriate environmental regulatory agencies.
Priority would be given to those projects that are located
in designated Empowerment Zones or Enterprise Communities.
HOMEOWNERSHIP ZONES

mately five zones at an average of $5 million each, and would
create 1,500 new homeowners. The Homeownership Zones
program will provide flexible grants on a competitive basis
to local governments for large-scale redevelopment of abandoned neighborhoods to create viable communities of mixed
income homebuyers. Applications will be evaluated on specific
criteria, such as the degree to which the proposed activities
meet the goal of the program, the financial soundness of
the proposals, level of economic distress of the area to be
served, and the capacity of applicants to carry out the proposal. Funds will be used to create new housing opportunities
in distressed areas. Eligible activities will include: property
acquisition; housing construction; housing rehabilitation; demolition; site preparation; homeownership counseling; relocation; housing marketing; activities to further fair housing;
and, other activities essential to homeownership.

YOUTHBUILD PROGRAM
For the Hope for Youth: Youthbuild program, authorized by subtitle
D of title IV of the Cranston-Gonzalez National Affordable Housing
Act, as amended, $45,000,000, to remain available until expended.
Program and Financing (in millions of dollars)
Identification code 86–0219–0–1–604

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Youth training ................................................................

3 ...................

45

10.00

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

3 ...................

45

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
3 ................... ...................
22.00 New budget authority (gross) ........................................ ................... ...................
45
21.40

23.90
23.95

40.00

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

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

45
–45

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

45

(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 86–0323–2–1–451

1997 actual

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

1998 est.

1999 est.

00.01

Obligations by program activity:
Develop homeownership ................................................. ................... ...................

25

10.00

Total obligations (object class 41.0) ........................ ................... ...................
Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

25
–25

5
45
–5

25

22.00
23.95

43
13
3 ...................
–32
–8

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

73.10
73.20
74.40

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

25

25
–1
24

86.90

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

1

89.00
90.00

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

25
1

The 1999 request includes $25 million for Homeownership
Zones in 1999. This level of funding would support approxi-

13

5

45

32

86.93

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

8

5

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ...........................................................................
32
8

45
5

This program provides resources to educate, train, and provide stipends for economically disadvantaged young adults
through their participation in the construction and rehabilitation of housing for low-income and homeless persons. The
program has expanded the supply of affordable housing and,
at the same time, has enabled high school dropouts to obtain
the education and employment skills necessary to achieve
self-sufficiency. The 1999 request will provide 5,000–6,000
young people with skills they need to get jobs and will provide
750–800 families with homes in distressed communities.
For 1996 through 1998, funding for the Youthbuild program
was included in the Community Development Block Grants
account.

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
74.40

HOME INVESTMENT PARTNERSHIPS PROGRAM
øINCLUDING

TRANSFER OF FUNDS¿

For the HOME investment partnerships program, as authorized
under title II of the Cranston-Gonzalez National Affordable Housing
Act (Public Law 101–625), as amended, ø$1,500,000,000¿
$1,883,000,000, to remain available until expended: Provided, That
$1,550,000,000 shall be for grants under the HOME Investment Partnerships Program,ø:¿ øProvided, That¿ including up to $7,000,000
øshall be available¿ for the development and operation of integrated
community development management information systemsø: Provided
further, That¿, and including $25,000,000 øshall be available¿ for
Housing Counseling under section 106 of the Housing and Urban
Development Act of ø1968: Provided further, That up to $10,000,000
shall be available to carry out a demonstration program in which
the Secretary makes grants to up to three organizations exempt from
Federal taxation under section 501(c)(3) of the Internal Revenue
Code, selected on a competitive basis, to demonstrate methods of
expanding homeownership opportunities for low-income borrowers
through expanding the secondary market for non-conforming home
mortgage loans to low-wealth borrowers: Provided further, That
grantees for such demonstration program shall have experience in
working with lenders who make non-conforming loans to low-income
borrowers, have experience in expanding the secondary market for
such loans, have demonstrated success in carrying out such activities
including raising non-Federal grants and capital on concessionary
terms for the purpose of expanding the secondary market for loans
in the previous two years in amounts equal to or exceeding the
amount awarded to such organization under this paragraph, and
have demonstrated the ability to provide data on the performance
of such loans sufficient to allow for future analysis of the investment
risk of such loans¿ 1986: Provided further, That $159,000,000 shall
be available for housing for the elderly under a formula block grant
program, including funds for capital advance contracts and project
rental assistance: Provided further, That $50,000,000 shall be used
to provide tenant-based assistance for the elderly under section 8(o)
of the United States Housing Act of 1937: Provided further, That
$174,000,000 shall be available for a grant program, including
amendments to capital advance contracts and project rental assistance, for housing for persons with disabilities, of which at least 25
percent will be designated by the Secretary for tenant-based assistance
for persons with disabilities under section 8(o) of the United States
Housing Act of 1937. (Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1998; additional authorizing legislation required.)
Program and Financing (in millions of dollars)
Identification code 86–0205–0–1–604

00.01
00.02
00.03
00.04
10.00

1997 actual

1998 est.

Obligations by program activity:
HOME grants ..................................................................
1,373
1,697
Elderly program .............................................................. ................... ...................
Disabled program .......................................................... ................... ...................
Elderly vouchers ............................................................. ................... ...................
Total obligations (object class 41.0) ........................

1,373

1,697

1999 est.

1,550
109
174
50
1,883

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
182
210 ...................
22.00 New budget authority (gross) ........................................
1,400
1,500
1,883
22.10 Resources available from recoveries of prior year obligations .......................................................................
1 ................... ...................
22.21 Unobligated balance transferred to other accounts ...................
–13 ...................
21.40

23.90
23.95
24.40

40.00

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

1,583
–1,373

1,697
–1,697

1,883
–1,883

210 ................... ...................

1,400

1,500

86.90
86.93

Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

3,511

3,614

3,972

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
Outlays from current balances ......................................
1,211

30
1,529

31
1,494

87.00

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

1,211

1,559

1,525

89.00
90.00

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

1,400
1,211

1,500
1,559

1,883
1,525

The HOME Investment Partnership program is authorized
by the National Affordable Housing Act (P.L. 101–625). This
program provides assistance to States and units of local government, through formula allocation, for the purpose of expanding the supply and affordability of housing. Eligible activities include acquisition, rehabilitation, and new construction of housing and tenant-based rental assistance. The 1999
request of $1.550 billion will result in the production of 78,500
units of affordable housing through new construction, rehabilitation, or acquisition. In addition, tenant-based rental assistance will be provided for 11,200 units.
Funding is included for a new component of the HOME
program, integrating housing assistance for the elderly and
disabled into the HOME account. The consolidated program
will include project-based assistance through the current nonprofit delivery system. For the elderly, a total of $159 million
is proposed, including $50 million to fund an estimated 8,839
section 8 vouchers and 1,938 new units for the elderly. For
persons with disabilities, $174 million is proposed, of which
at least 25 percent shall be used for tenant-based rental assistance in order to provide 3,118 units for the disabled.
The HOME request also includes up to $7 million to continue to develop, implement and refine integrated community
development management information systems in order to establish a national database of local programs. Funding for
technical assistance is also included.
HOMELESS ASSISTANCE GRANTS
øFor the emergency shelter grants program (as authorized under
subtitle B of title IV of the Stewart B. McKinney Homeless Assistance
Act, as amended); the supportive housing program (as authorized
under subtitle C of title IV of such Act); the section 8 moderate
rehabilitation single room occupancy program (as authorized under
the United States Housing Act of 1937, as amended) to assist homeless individuals pursuant to section 441 of the Stewart B. McKinney
Homeless Assistance Act; and the shelter plus care program (as authorized under subtitle F of title IV of such Act), $823,000,000, to
remain available until expended.¿
For grants to States, units of general government, nonprofit organizations, or public housing authorities, and for related expenses not
otherwise provided for, to carry out a comprehensive homeless assistance program that emphasizes performance, $1,150,000,000, to remain
available until expended, of which $192,000,000 shall be for section
8 rental assistance under the United States Housing Act of 1937
(42 U.S.C. 1437): Provided, That up to one percent of the funds provided shall be available to the Secretary for technical assistance: Provided further, That the Secretary may determine not to apply section
8(o)(6)(B) of the Act to housing vouchers funded under this account
heading during fiscal year 1999. (Additional authorizing legislation
required.) (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)

1,883

Identification code 86–0192–0–1–604

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
3,350
3,511
3,614
73.10 New obligations .............................................................
1,373
1,697
1,883
73.20 Total outlays (gross) ......................................................
–1,211
–1,559
–1,525
73.31 Obligated balance transferred to other accounts ......... ...................
–35 ...................
73.45 Adjustments in unexpired accounts ..............................
–1 ................... ...................

453

00.01
00.02
10.00

1997 actual

1998 est.

Obligations by program activity:
Homeless assistance grants ..........................................
758
1,778
Homeless vouchers ........................................................ ................... ...................
Total obligations (object class 41.0) ........................

758

1,778

1999 est.

958
192
1,150

454

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued

housing will allow HUD to assist even more homeless persons
through existing emergency and transitional programs.

HOMELESS ASSISTANCE GRANTS—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 86–0192–0–1–604

1997 actual

1998 est.

URBAN DEVELOPMENT ACTION GRANTS

1999 est.

Program and Financing (in millions of dollars)
Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested .................................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
23.90
23.95
24.40

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

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

888
823

955 ...................
823
1,150

1 ................... ...................
1,712
–758

1,778
–1,778

1,150
–1,150

Identification code 86–0170–0–1–451

22.00
22.10
23.90

955 ................... ...................
41.00
823

823

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................

1997 actual

1998 est.

1999 est.

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

Total budgetary resources available for obligation ................... ................... ...................
New budget authority (gross), detail:
Transferred to other accounts .......................................

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

1,150

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
857
1,294
2,461
73.10 New obligations .............................................................
758
1,778
1,150
73.20 Total outlays (gross) ......................................................
–319
–609
–798
73.31 Obligated balance transferred to other accounts ......... ...................
–2 ...................
73.45 Adjustments in unexpired accounts ..............................
–1 ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
1,294
2,461
2,813

86.90
86.93

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

41
278

41
568

67
731

87.00

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

319

609

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

72.40

136
102
52
–30
–50
–30
–4 ................... ...................
102

52

22

50

30

86.93

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

30

89.00
90.00

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

–4 ................... ...................
30
50
30

798

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

823
319

823
609

1,150
798

The Homeless Assistance Grants program consolidates the
activities of HUD’s six McKinney homeless assistance programs—Shelter Plus Care, Supportive Housing, Emergency
Shelter Grants, Section 8 Single Room Occupancy, Rural
Homeless Grants and Safe Havens—as well as those of the
Innovative Homeless Initiatives Demonstration program. This
consolidation enables localities to continue to shape and implement comprehensive, flexible, coordinated ‘‘continuum of
care’’ approaches to solving rather than institutionalizing
homelessness. In fact, over the last four years, many communities have made great strides in developing holistic continuum of care approaches to solving homelessness. A community-based process is required as part of the application process. Communities are required to include in their applications
performance measures that contain specific goals that would
accrue from the community’s efforts, and are required to demonstrate tangible results on an annual basis. Requested funding would be available for a wide range of activities to assist
homeless persons and prevent future homelessness. The 1999
request will provide between 125,000–140,000 transitional
and 59,000–62,500 permanent housing beds.
Funding is also requested for technical assistance to provide
needed assistance to grantees in resolving problems that
hinder successful project completion and implementation.
Funding for incremental housing vouchers will be used to
provide permanent housing vouchers for up to 34,000 families
or individuals who have achieved a sufficient level of independence to move to permanent housing linked to services.
These vouchers will offer the ongoing assistance so desperately needed to help move homeless people into the housing mainstream when they are ready to do so. These vouchers
are intended for homeless individuals and families who would
otherwise have the most difficult time in securing permanent
housing resources, as determined through the approved Continuum of Care strategy. Helping them secure permanent

Title I of the Housing and Community Development Act
of 1974, as amended, authorized grants to distressed cities
and distressed urban counties to fund economic development
projects. The program was terminated in 1990.
CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT
AFFORDABLE HOUSING

AND

Program and Financing (in millions of dollars)
Identification code 86–0222–0–1–451

00.01
10.00

1997 actual

1998 est.

1999 est.

Obligations by program activity:
Build capacity of community development organizations ........................................................................... ...................

30 ...................

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

30 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ...................
30 ...................
22.00 New budget authority (gross) ........................................
30 ................... ...................
21.40

23.90
23.95
24.40

42.00

Total budgetary resources available for obligation
30
30 ...................
New obligations ............................................................. ...................
–30 ...................
Unobligated balance available, end of year:
Uninvested .................................................................
30 ................... ...................
New budget authority (gross), detail:
Transferred from other accounts ...................................

30 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
13
73.10 New obligations ............................................................. ...................
73.20 Total outlays (gross) ......................................................
–8
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
5
72.40

86.93

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

89.00
90.00

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

8

5
23
30 ...................
–12
–15
23

8

12

15

30 ................... ...................
8
12
15

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

As authorized by section 4 of the HUD Demonstration Act
of 1993, this program provides funding to the National Community Development Initiative to build the capacity of community-based development corporations and housing development organizations, and to assist such corporations and organizations to carry out community development and affordable
housing activities. Funding for this program was provided
under the Annual Contributions for Assisted Housing account
in 1996. Public Law 105–18 amended authorizing legislation
to include additional eligible recipients and provided funding
for this program through a transfer from the Homeownership
and Opportunity for People Everywhere Grants account in
1997. Public Law 105–65 provided funding for this program
under the Community Development Block Grant Account in
1998. No funding is being requested for 1999.
EMERGENCY SHELTER GRANTS PROGRAM
Program and Financing (in millions of dollars)
Identification code 86–0181–0–1–604

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

1997 actual

1998 est.

1999 est.

72.40

6
–4

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

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

86.93

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

89.00
90.00

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

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

Title IV, subtitle B, of the Stewart B. McKinney Homeless
Assistance Act (Public Law 100–77) authorizes the Secretary
to make Emergency Shelter Grants to States and units of
local government to provide emergency shelter and other support for the homeless. Since 1995, this assistance has been
funded under the Homeless Assistance Grants account.

462
15
–159
–3

315
182
19 ...................
–146
–112
–6 ...................

315

182

70

159

146

112

86.93

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

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ...................
Outlays ...........................................................................
159

–6 ...................
146
112

Title IV, subtitle C, of the Stewart B. McKinney Homeless
Assistance Act authorizes assistance to promote the development of supportive housing and services, especially for: deinstitutionalized homeless individuals; homeless families with
children; homeless individuals with mental disabilities; and
other persons including those with AIDS. Such assistance
is available for the acquisition, rehabilitation, construction,
or leasing of structures to be used for homeless persons as
well as to pay for operating costs and supportive services.
Since 1995, this type of assistance has been funded under
the Homeless Assistance Grants account.
Public Law 105–65 included a $6 million rescission of funding, recaptured in 1998, for approved projects from prior years
which were either not undertaken or utilized less funding
than was originally obligated.

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
4
2 ...................

4

455

SUPPLEMENTAL ASSISTANCE FOR FACILITIES TO ASSIST
HOMELESS

THE

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

1997 actual

1998 est.

1999 est.

øOf the funds made available under this heading in Public Law
102–389 and prior laws for the Supportive Housing Demonstration
Program, as authorized by the Stewart B. McKinney Homeless Assistance Act, $6,000,000 of funds recaptured during fiscal year 1998
shall be rescinded.¿ (Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0188–0–1–604

1997 actual

1998 est.

1999 est.

Obligations by program activity:
00.01 Homelessness prevention ...............................................

15
15

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

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

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

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

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
1
1 ...................
23.95 New obligations ............................................................. ...................
–1 ...................
24.40 Unobligated balance available, end of year:
Uninvested .................................................................
1 ................... ...................
21.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
3
1
73.10 New obligations ............................................................. ...................
1
73.20 Total outlays (gross) ......................................................
–2
–2
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
1 ...................
72.40

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

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

10.00

Obligations by program activity:
Homelessness prevention ............................................... ...................

10.00

SUPPORTIVE HOUSING PROGRAM

00.01

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

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
31
22.00 New budget authority (gross) ........................................ ...................
22.10 Resources available from recoveries of prior year obligations .......................................................................
3
21.40

23.90
23.95
24.40

40.36

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

34
–15

19 ...................
–6 ...................
6 ...................
19 ...................
–19 ...................

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

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

–6 ...................

86.93

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

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
2
2 ...................

2

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

Title IV, subtitle D, of the Stewart B. McKinney Homeless
Assistance Act authorized the Supplemental Assistance for
Facilities To Assist the Homeless program (SAFAH) to provide comprehensive assistance for particularly innovative programs or alternative methods of meeting the immediate and
long-term needs of the homeless. The authority for the
SAFAH program was terminated by section 1403 of the Housing and Community Development Act of 1992.

456

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
89.00
90.00

SHELTER PLUS CARE
øOf the funds made available under this heading in Public Law
102–389 and prior laws for the Shelter Plus Care program, as authorized by the Stewart B. McKinney Homeless Assistance Act,
$4,000,000 of funds recaptured during fiscal year 1998 shall be rescinded.¿ (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0204–0–1–604

1997 actual

1998 est.

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
21
17
14

Section 2 of the HUD Demonstration Act of 1993 authorized
assistance for projects intended to provide a continuum of
care for homeless persons and for innovative programs to
assist homeless persons. Eligible recipients included States,
units of local government, Indian tribes, and nonprofit organizations. Authorization for this program expired at the end
of 1994.

1999 est.

00.01

Obligations by program activity:
Homelessness prevention ...............................................

8

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

10.00

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

8

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

Public enterprise funds:
REVOLVING FUND (LIQUIDATING PROGRAMS)
Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested .................................................................
16
22.00 New budget authority (gross) ........................................ ...................
22.10 Resources available from recoveries of prior year obligations .......................................................................
2
23.90
23.95
24.40

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

18
–8

Identification code 86–4015–0–3–451

10 ...................
–4 ...................
4 ...................
10 ...................
–10 ...................

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

09.01
09.02
09.03
10.00

1997 actual

1998 est.

Obligations by program activity:
Loan servicing ................................................................
5
Maintenance of acquired security and collateral ......... ...................
Administrative expenses ................................................
1
Total obligations ........................................................

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

1999 est.

7
6
1

7
6
1

6

14

14

97
71

103
60

89
55

21.40

40.36

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

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

–4 ...................

72.40

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

89.00
90.00

419
8
–58
–2

367
326
10 ...................
–47
–49
–4 ...................

367

326

23.90
23.95
24.40

Net budget authority and outlays:
Budget authority ............................................................ ...................
Outlays ...........................................................................
58

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

109
–6

103
–14

89
–14

103

89

75

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

71

60

55

277
68.00

58

1 ................... ...................
–60
–60
–55

47

49

–4 ...................
47
49

Title IV, subtitle F, of the Stewart B. McKinney Homeless
Assistance Act authorizes the Secretary to provide rental assistance to persons with disabilities. Supportive services at
least equal in value to the aggregate rental assistance must
also be provided by grant recipients using other Federal,
State, local and private resources. Eligible recipients include
States and units of general local government.
Since 1995, this type of assistance has been funded under
the Homeless Assistance Grants account.
Public Law 105–65 included a $4 million rescission of funding, recaptured in 1998, for approved projects from prior years
which were either not undertaken or utilized less funding
than was originally obligated.

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

27
19
9
6
14
14
–14
–24
–23
–1 ................... ...................
19

9 ...................

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

14

24

23

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

–71

–60

–55

86.98

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–57
–36
–32

Status of Direct Loans (in millions of dollars)
INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM
Identification code 86–4015–0–3–451

Program and Financing (in millions of dollars)
Identification code 86–0221–0–1–604

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

1997 actual

1998 est.

1210
1251
1263

1999 est.

72.40

58
–21

37
–17

20
–14

37

20

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

1290

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

6

21

17

1998 est.

1999 est.

328
271
231
–52
–40
–40
–5 ................... ...................
271

231

191

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4015–0–3–451

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

1997 actual

14
2210

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

1997 actual

3

1998 est.

1999 est.

2

1

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
2251

Repayments and prepayments ......................................

–1

2290

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

2

–1

2

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

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

23.90
23.95

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

7
–7

30
–30

30
–30

40.00

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

32

30

30

1997 actual

9
7
–3

13
30
–16

27
30
–17

13

27

40

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

1998 est.

1999 est.

0101
0102

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

31
–18

15
–12

14
–11

13
–10

0109

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

13

3

3

3

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Non-Federal assets:
1206
Receivables, net ..................................
1207
Advances and prepayments ................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1602
Interest receivable ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1604
Direct loans and interest receivable,
net ..................................................
1606
Foreclosed property .............................
Value of assets related to direct
loans ..........................................

1999

Total assets ........................................
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2207
Other ...................................................
2999

30

32
30
30
–25 ................... ...................

1997 actual

1998 est.

1999 est.

125

121

115

110

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

3
1

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

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

331
18

274
18

233
18

193
18

–25

–24

–20

–18

324
1

268
1

231
..................

193
..................

325

269

231

193

454

394

348

305

..................
9

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

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

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

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3200 Invested capital .......................................
3300 Cumulative results of operations ............

9

8

7

6

28
301
116

25
172
189

23
126
192

21
83
195

3999

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

445

386

341

299

4999

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

454

394

348

305

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

1
2

5
11

5
14

87.00

1996 actual

1101

1699

30

86.90
86.93

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

7

72.40

Statement of Operations (in millions of dollars)
1996 actual

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

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

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

Identification code 86–4015–0–3–451

10.00

22.00
22.30

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

–1

457

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

3

16

17

89.00
90.00

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

32
3

30
16

30
17

Guaranteed Loans.—The Community Development Block
Grant program includes a guaranteed loan provision (Section
108). A commitment level of $1.3 billion is proposed for the
Community Development Loan Guarantees (Section 108) program for 1999. The credit subsidy/administrative cost estimate for the guaranteed loan program is $30 million in 1999.
Section 108 loan guarantees are used by entitlement and
nonentitlement communities (assisted by their State), to cover
the cost of: acquiring real property; rehabilitating publicly
owned real property; housing rehabilitation; and, certain other
economic development activities. In addition, Section 108 has,
in some cases, been used to finance the construction of housing by nonprofit organizations.
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0198–0–1–451

1997 actual

1998 est.

1999 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

1,380

1,261

1,261

2159

1,380

1,261

1,261

2.30

2.30

2.30

2.30

2.30

2.30

31

29

29

31

29

29

2

15

16

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................
2329

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................

Object Classification (in millions of dollars)
Identification code 86–4015–0–3–451

1997 actual

1998 est.

1999 est.

2339

25.2
32.0

Other services ................................................................
Land and structures ......................................................

1
5

6
8

6
8

99.9

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

6

14

14

COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT
Program and Financing (in millions of dollars)

Obligations by program activity:
Community development loan guarantee credit subsidy ............................................................................
00.09 Administrative expense ..................................................

1997 actual

1998 est.

1999 est.

00.02

6
1

29
1

29
1

2349

Total subsidy outlays ................................................

2

15

16

3510
3590

Credit accounts:

Identification code 86–0198–0–1–451

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

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

1
1

1
1

1
1

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1992 and beyond (including modifications of direct loans or loan guarantees that resulted from obligations or commitments in any
year), as well as administrative expenses of this program.
The subsidy amounts are estimated on a present value basis;
the administrative expenses are estimated on a cash basis.

458

COMMUNITY PLANNING AND DEVELOPMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

Credit accounts—Continued

COMMUNITY DEVELOPMENT LOAN GUARANTEES LIQUIDATING
ACCOUNT

COMMUNITY DEVELOPMENT LOAN GUARANTEES FINANCING ACCOUNT

Program and Financing (in millions of dollars)
Program and Financing (in millions of dollars)
Identification code 86–4097–0–3–451
Identification code 86–4096–0–3–451

1997 actual

1998 est.

22.00
22.60

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested ................................................................. ...................
22.00 New financing authority (gross) ....................................
2
23.90
24.40

68.00

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

2
16

18
18

18

2

36

23.90

68.00
2

18

36

2

16

18

–15
–1

–16
–2

88.90

–16

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

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

–2

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

89.00
90.00
Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ...............................................
–2
–16
–18

2150

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

4
–4

3

4

4

147

147

147

147

147

147

–3

–4

–4

1997 actual

1998 est.

1999 est.

1998 est.

1999 est.

1210
1251

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

39
–3

36
–4

32
–4

1290

1997 actual

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

36

32

28

1,389
1,261
1,261
–1,111 ................... ...................
278

1,261

1,261

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

1997 actual

1998 est.

1999 est.

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

633
189
–47

775
1,000
–135

1,640
1,000
–200

2290

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

775

1,640

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
243
2231 Disbursements of new guaranteed loans ...................... ...................
2251 Repayments and prepayments ......................................
–45

198
10
–33

175
10
–30

2290

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

198

175

155

2299

2210
2231
2251

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

198

175

155

2,440

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

4
–4

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–3
–4
–4

Identification code 86–4097–0–3–451

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

3
–3

Status of Direct Loans (in millions of dollars)

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4096–0–3–451

1999 est.

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

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

–18

89.00
90.00

1998 est.

72.40

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
–2
88.25
Interest on uninvested funds ............................... ...................
Total, offsetting collections (cash) ..................

1997 actual

1999 est.

775

1,640

2,440

Guaranteed loans.—The Community Development Loan
Guarantees program provides a mechanism for the Federal
guarantee of private loans. There is an accompanying liquidating account which shows activity for Federal Financing
Bank (FFB) direct loan activity, obligated prior to July 1,
1986. Also following is a status of privately financed guaranteed loan commitments made prior to 1992.
As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The
amounts in this account are a means of financing and are
not included in the budget totals. As required by the Federal
Credit Reform Act of 1990, no administrative expenses can
be recorded in the financing account.

As required by the Federal Credit Reform Act of 1990,
this account records all cash flows to and from the Government resulting from Federal Financing Bank (FFB) direct
loans for which loan guarantees were committed prior to
1992. This account is shown on a cash basis.
Guaranteed loans.—Guaranteed loan assistance under the
Community Development Loan Guarantees program is provided to eligible communities to finance economic development
activities, housing rehabilitation, public facilities, acquisition
of real property, rehabilitation of publicly owned real property, and certain related expenses. In the past, the FFB financed these guaranteed loans. The Consolidated Omnibus
Budget Reconciliation Act of 1985 required private financing
of all loan guarantees committed after July 1, 1986. FFB
will continue disbursing loans for commitments approved
prior to July 1, 1986. The activity shown in the above account
reflects privately financed guaranteed loans for which commitments were made prior to 1992.

HOUSING PROGRAMS
Federal Funds

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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

HOME LOAN GUARANTEE PROGRAM ACCOUNT
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 86–0175–2–1–604

1997 actual

1998 est.

459

1999 est.

89.00
90.00

00.01

Obligations by program activity:
Housing loan credit subsidy .......................................... ................... ...................
Total obligations (object class 33.0) ........................ ................... ...................

11

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

11

10.00

–3

11
–11

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

11

73.10
73.20
74.40

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

1997 actual

Identification code 86–4245–2–3–604

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

40.00

Status of Guaranteed Loans (in millions of dollars)

11
–3
8

1998 est.

1999 est.

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

100

2150

100

2210
2231
2251

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

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year ............................................. ................... ................... ...................
Disbursements of new guaranteed loans ...................... ................... ...................
27
Repayments and prepayments ...................................... ................... ................... ...................

89.00
90.00

2290

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

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

27

2299

86.90

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

27

3

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

11
3

The HOME Loan Guarantee program will complement the
existing HOME program. The proposal will authorize loan
guarantees for up to five times a Participating Jurisdiction’s
latest HOME allocation, and will enable the jurisdictions to
formulate and implement neighborhood strategies to build or
rehabilitate large numbers of units as a single undertaking
within a short period of time. A loan guarantee option would
greatly magnify the impact of HOME Federal housing dollars.

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The
amounts in this account are a means of financing and are
not included in the budget totals. As required by the Federal
Credit Reform Act of 1990, no administrative expenses can
be recorded in the financing account.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0175–2–1–604

1997 actual

1998 est.

HOUSING PROGRAMS

1999 est.

Federal Funds

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ................................................... ................... ...................

100

2159

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

100
11.00

2329

11.00

Weighted average subsidy rate ................................. ................... ...................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ............................................... ................... ...................
2339

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

General and special funds:

11
11
3

DEVELOPMENT

OF

ADDITIONAL NEW SUBSIDIZED HOUSING

Program and Financing (in millions of dollars)
Identification code 86–0310–0–1–604

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Direct program ...............................................................

190 ................... ...................

10.00

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

190 ................... ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ...................
849 ...................
22.00 New budget authority (gross) ........................................
1,039 ................... ...................
22.21 Unobligated balance transferred to other accounts ...................
–849 ...................
21.40

2349

Total subsidy outlays ................................................ ................... ...................

3

23.90
23.95
24.40

HOME LOAN GUARANTEE FINANCING ACCOUNT
(Legislative proposal, not subject to PAYGO)

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

1,039 ................... ...................
–190 ................... ...................
849 ................... ...................

Program and Financing (in millions of dollars)
Identification code 86–4245–2–3–604

22.00
24.40

68.00

1997 actual

1998 est.

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
Unobligated balance available, end of year:
Uninvested ................................................................. ................... ...................
New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ................... ...................

1999 est.

40.00

3
3

3

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

1,039 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested ................................................................. ...................
188 ...................
73.10 New obligations .............................................................
190 ................... ...................
73.20 Total outlays (gross) ......................................................
–2 ................... ...................
73.31 Obligated balance transferred to other accounts ......... ...................
–188 ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
188 ................... ...................
72.40

460

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
DEVELOPMENT

OF

ADDITIONAL NEW SUBSIDIZED HOUSING—
Continued

Program and Financing (in millions of dollars)—Continued
1997 actual

Identification code 86–0310–0–1–604

1998 est.

of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
1997 actual

Identification code 86–0320–0–1–604

1998 est.

1999 est.

1999 est.

00.01

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

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

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

1,039 ................... ...................
2 ................... ...................

In 1997, elderly, disabled and Indian housing development
were funded in this program. Pursuant to P.L. 105–65, all
balances for elderly and disabled housing were transferred
to the Housing for Special Populations program and all balances for Indian housing development were transferred to
the Indian Housing Block Grants program.

Obligations by program activity:
Direct program ............................................................... ...................

1,640 ...................

10.00

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

1,640 ...................

22.00
22.22

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

839 ...................
801 ...................

23.90
23.95

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

1,640 ...................
–1,640 ...................

40.00

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

839 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.32 Obligated balance transferred from other accounts
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
72.40

HOUSING

FOR

SPECIAL POPULATIONS

(INCLUDING TRANSFERS OF FUNDS)

øFor assistance for the purchase, construction, acquisition, or development of additional public and subsidized housing units for lowincome families under the United States Housing Act of 1937, as
amended (42 U.S.C. 1437), not otherwise provided for, $839,000,000,
to remain available until expended: Provided, That of the total
amount provided under this heading, $645,000,000 shall be for capital
advances, including amendments to capital advance contracts, for
housing for the elderly, as authorized by section 202 of the Housing
Act of 1959, as amended, and for project rental assistance, and
amendments to contracts for project rental assistance, for the elderly
under section 202(c)(2) of the Housing Act of 1959, and for supportive
services associated with the housing; and $194,000,000 shall be for
capital advances, including amendments to capital advance contracts,
for supportive housing for persons with disabilities, as authorized
by section 811 of the Cranston-Gonzalez National Affordable Housing
Act, for project rental assistance, for amendments to contracts for
project rental assistance, and supportive services associated with the
housing for persons with disabilities as authorized by section 811
of such Act: Provided further, That the Secretary may designate up
to 25 percent of the amounts earmarked under this paragraph for
section 811 of such Act for tenant-based assistance, as authorized
under that section, including such authority as may be waived under
the next proviso, which assistance is five years in duration: Provided
further, That the Secretary may waive any provision of section 202
of the Housing Act of 1959 and section 811 of the Cranston-Gonzalez
National Affordable Housing Act (including the provisions governing
the terms and conditions of project rental assistance and tenantbased assistance) that the Secretary determines is not necessary to
achieve the objectives of these programs, or that otherwise impedes
the ability to develop, operate or administer projects assisted under
these programs, and may make provision for alternative conditions
or terms where appropriate: Provided further, That all balances, as
of September 30, 1997, remaining in either the ‘‘Annual Contributions
for Assisted Housing’’ account or the ‘‘Development of Additional New
Subsidized Housing’’ account for capital advances, including amendments to capital advances, for housing for the elderly, as authorized
by section 202 of the Housing Act of 1959, as amended, and for
project rental assistance, and amendments to contracts for project
rental assistance, for supportive housing for the elderly, under section
202(c)(2) of such Act, shall be transferred to and merged with the
amounts for those purposes under this heading; and, all balances,
as of September 30, 1997, remaining in either the ‘‘Annual Contributions for Assisted Housing’’ account or the ‘‘Development of Additional
New Subsidized Housing’’ account for capital advances, including
amendments to capital advances, for supportive housing for persons
with disabilities, as authorized by section 811 of the Cranston-Gonzalez National Affordable Housing Act, and for project rental assistance, and amendments to contracts for project rental assistance, for
supportive housing for persons with disabilities, as authorized under
section 811 of such Act, shall be transferred to and merged with
the amounts for those purposes under this heading.¿ (Departments

................... ...................
6,498
...................
1,640 ...................
...................
–650
–759
...................
5,508 ...................
...................

6,498

5,739

86.93

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

650

759

89.00
90.00

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

839 ...................
650
759

This account consolidates activity under the Section 202
Housing for the Elderly Program and the Section 811 Housing
for the Disabled Program. Program activity prior to 1997 was
reflected in the Annual Contributions for Assisted Housing
account. Renewal of prior year contracts is reflected in the
Housing Certificate Fund.
For 1999, funding is being requested for assistance on behalf of the elderly and disabled as a new component of the
HOME Investment Partnerships Program. Language is being
proposed to transfer the obligated and unobligated balances
from Housing for Special Populations to the HOME Investment Partnerships account.

OTHER ASSISTED HOUSING PROGRAMS
RENTAL HOUSING ASSISTANCE
ø(RESCISSION)¿
øThe limitation otherwise applicable to the maximum payments
that may be required in any fiscal year by all contracts entered
into under section 236 of the National Housing Act (12 U.S.C. 1715z–
1) is reduced in fiscal year 1998 by not more than $7,350,000 in
uncommitted balances of authorizations provided for this purpose
in appropriation Acts: Provided, That up to $125,000,000 of recaptured budget authority shall be canceled.¿ (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–0206–0–1–999

1997 actual

1998 est.

1999 est.

Obligations by program activity:
Rent supplement ............................................................
14
9
7
Homeownership and rental housing assistance (Sections 235 and 236) ...................................................
19
70
60
00.03 College housing debt service ........................................
2 ................... ...................
00.04 IRP Rehab Grants .......................................................... ...................
26
727
00.01
00.02

10.00

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

35

105

794

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested .................................................................
21.49
Contract authority (available) ...................................
21.99
22.00
22.10
22.75
23.90
23.95

15
978

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

8
970

993
–152

9
1,250

978
1,259
–125 ...................

8,642
512
1,018
–8,472 ................... ...................
1,011
–35

1,365
–105

2,277
–794

24.40
24.49

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

8
970

9
1,250

9
1,474

24.99

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

978

1,259

1,483

New budget authority (gross), detail:
Current:
Unobligated balance rescinded:
40.36
Preservation prepayment rescission .....................
–150 ................... ...................
40.36
Multifamily enforcement rescission ...................... ...................
–125 ...................
40.36
Other unobligated balances rescinded .................
–2 ................... ...................
43.00
60.05
60.49
63.00
70.00

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

–152

–125 ...................

741
–741

18
–18

18
–18

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

–152

–125 ...................

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

140
21,687

127
12,338

21,827
35
–755
–8,642

12,465
105
–754
–512

11,305
794
–676
–1,018

74.40
74.49

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
Obligated balance:
Administrative commitment reserved ...................
Contract authority .................................................

127
12,338

129
11,176

130
10,275

74.99

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

12,465

11,305

The Other Assisted Housing Account contains the programs
listed below:
Rent supplement.—Rent supplement assistance payments
will continue to be made on behalf of qualified low-income
tenants in approximately 20,000 units which have not converted to section 8.
Section 235.—The Housing and Urban-Rural Recovery Act
of 1983 (Public Law 98–181) authorized a restructured section
235 (Homeownership Assistance) program based on a 10-year
interest reduction subsidy. This replaced earlier versions of
the program, the original and the revised versions. All were
below interest rate mortgages for single family homes.
Section 236.—The Housing and Urban Development Act of
1968, as amended, authorizes the section 236 Rental Housing
Assistance Program which subsidizes the monthly mortgage
payment that an owner of a rental or cooperative project
is required to make. This interest subsidy reduces rents for
lower income tenants.
IRP Rehab Grants.—Title V of the 1998 Appropriations Act
(P.L. 105–65) establishes a program of rehabilitation grants
for owners of projects eligible for the program of multifamily
portfolio re-engineering. An estimated $727 millon of such
grants are expected in 1999.
The table below reflects the consolidated outlay total for:
the Annual Contributions for Assisted Housing account; the
Housing Certificate Fund; the Public Housing Capital Fund;
the Section 8 Reserve Preservation account; and the Other
Assisted Housing account, for 1997, 1998, and 1999.

129
11,176

72.99
73.10
73.20
73.45

461

10,405

SUMMARY OF OUTLAYS 1
[In millions of dollars]

1997 actual

1 Includes

755

754

1999 est.

21,213
16,649
3,810
58
79
601
16

21,066
16,881
3,509
59
70
531
16

outlays for contract renewals.

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

1998 est.

Subsidized housing programs, total ...........................................
21,323
Low-income housing assistance (sec. 8) ...................................
20,568
Public housing capital fund ....................................................... ....................
Rent supplement .........................................................................
56
Homeownership assistance (sec. 235) .......................................
79
Rental housing assistance (sec. 236) ........................................
604
College housing grants ...............................................................
16

AND OPPORTUNITY FOR PEOPLE
GRANTS (HOPE GRANTS)

EVERYWHERE

676

Program and Financing (in millions of dollars)
Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

–152
755

–125 ...................
754
676

00.01
00.02
00.03

Status of Contract Authority (in millions of dollars)
1997 actual

Identification code 86–0206–0–1–999

0100

Balance, start of year ....................................................
Contract authority:
0200 Contract authority ..........................................................
0400 Appropriation to liquidate contract authority ................
0600 Balance of contract authority withdrawn ......................
0700 Balance, end of year .....................................................

22,665

Identification code 86–0196–0–1–604

1998 est.

13,308

1997 actual

Obligations by program activity:
Hope 1 ............................................................................
1
Hope 2 ............................................................................ ...................
Hope 3 ............................................................................
1

1998 est.

1999 est.

3 ...................
5 ...................
3 ...................

1999 est.

12,426

–152
–125 ...................
–741
–18
–18
–8,472 ................... ...................
13,308
12,426
11,749

10.00

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

2

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

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

34
4

10 ...................
1 ...................

21.99
22.00
22.10

OTHER ASSISTED HOUSING
Summary of Administrative Commitments

Total unobligated balance, start of year .............
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................

38
11 ...................
–30 ................... ...................
5 ................... ...................

[In millions of dollars]

1997 actual

1998 est.

1999 est.

Assistance contracts:
Rent supplement ................................................................
14
9
7
Homeownership and rental housing assistance (sections
235 and 236) .................................................................
19
70
60
College Housing ......................................................................
2 .................... ....................
IRP Rehab Grants ................................................................... ....................
26
727
Administrative commitments, start of year ...........................
16
16
16
Administrative commitments, end of year .............................
–16
–16
–16
Total obligations ............................................................

35

105

794

23.90
23.95
24.40
24.40

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

13
–2

11 ...................
–11 ...................

24.99

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

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

41.00

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

–30 ................... ...................

10 ................... ...................
1 ................... ...................

462

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued

HOUSING COUNSELING ASSISTANCE

HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EVERYWHERE
GRANTS (HOPE GRANTS)—Continued

Program and Financing (in millions of dollars)
Identification code 86–0156–0–1–506

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

1997 actual

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

86.93

1999 est.

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

1998 est.

1999 est.

72.40

185
132
92
2
11 ...................
–49
–51
–42
–5 ................... ...................

6
–3

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

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

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

49

92

51

86.93

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

89.00
90.00

132

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

89.00
90.00

1998 est.

1997 actual

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
3
2 ...................

50

3

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

42

–30 ................... ...................
49
51
42

The Homeownership and Opportunity for People Everywhere Program provided affordable homeownership opportunities for low-income families. Units were converted to homeownership from public and Indian housing properties in
HOPE 1, from FHA-insured and Government-held multifamily properties in HOPE 2, and from Government-owned or
-held single family properties in HOPE 3. HOPE Grants were
used for property acquisition, rehabilitation, mortgage subsidies, security measures, and technical assistance. In addition, grants have been devoted to counseling and training
of residents, and other activities intended to help them become economically self-sufficient homeowners. No funding is
being requested for 1999. This schedule reflects the liquidation of prior year balances.

The Housing Counseling Assistance program provides comprehensive housing counseling services to eligible homeowners
and tenants, including pre-purchase, default and renter counseling.
In 1997, housing counseling was appropriated as a $15
million set-aside in the HOME Investment Partnerships Program. The program was funded at $20 million in 1998. The
Budget proposes Housing Counseling as a $25 million HOME
set-aside for 1999.
SECTION 8 MODERATE REHABILITATION
SINGLE ROOM OCCUPANCY

Program and Financing (in millions of dollars)
Identification code 86–0195–0–1–604

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Homelessness prevention ...............................................

20

86 ...................

10.00

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

20

86 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
23.95 New obligations .............................................................
24.40 Unobligated balance available, end of year:
Uninvested .................................................................

106
–20

86 ...................
–86 ...................

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

382
20
–25

376
404
86 ...................
–58
–56

376

404

348

25

58

56

CONGREGATE SERVICES
Program and Financing (in millions of dollars)
Identification code 86–0178–0–1–604

10.00

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

Budgetary resources available for obligation:
23.95 New obligations .............................................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

1997 actual

21.40
1998 est.

1999 est.

72.40

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

72.40

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

89.00
90.00

86 ................... ...................

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

30
22
15
1 ................... ...................
–7
–7
–7
22

7

15

7

86.93

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

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
25
58
56

7

7

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
7
7
7

Under the Congregate Services program, HUD contracted
directly with local public housing agencies and section 202
housing for the elderly or disabled sponsors to supply support
services, including meals and other services. Funding for this
activity will be requested in the supportive services set-aside
within the Community Development Block Grant account for
1999. This schedule reflects the liquidation of prior year balances from the separately appropriated Congregate Services
Program.

Section 8 assistance for single room occupancy dwellings
is authorized by Title IV, subtitle E, of the Stewart B. McKinney Homeless Assistance Act, as amended by the Housing
and Community Development Act of 1992. Since 1995, these
activities have been funded in the Homeless Assistance
Grants account.
CAPITAL GRANTS/CAPITAL LOANS PRESERVATION ACCOUNT
øAt the discretion of the Secretary, to reimburse owners, nonprofits,
and tenant groups for which plans of action were submitted with
regard to eligible properties under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Emergency Low Income Housing Preservation Act of 1987 (ELIHPA)
prior to the effective date of this Act, but were not executed for
lack of available funds, with such reimbursement available only for
documented costs directly applicable to the preparation of the plan
of action or any purchase agreement as determined by the Secretary,
on terms and conditions to be established by the Secretary,
$10,000,000 shall be made available.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1998.)

60.25

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

463

14

17

2
14
–13

3
15
–13

3
16
–15

3

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

16

3

3

72.40

Program and Financing (in millions of dollars)
86.97
Identification code 86–0231–0–1–604

1997 actual

1998 est.

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

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

22.00
23.95

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

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

40.00

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

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

72.40

86.90
86.93

................... ...................
6
...................
10 ...................
...................
–4
–6
...................

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

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
4 ...................
Outlays from current balances ...................................... ................... ...................
6

87.00

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

89.00
90.00

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

13

13

15

89.00
90.00

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

14
13

16
13

17
15

1999 est.

10.00

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

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

4

6

10 ...................
4
6

Funds were provided in 1998 to permit the Secretary, at
his discretion, to reimburse groups who submitted plans of
action under the preservation program that were not funded.
As this is a non-recurring cost, no additional funds are requested for this activity.

Section 620 of the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended, authorizes enforcement of appropriate construction standards for
the construction, design and performance of manufactured
homes to assure their quality, durability, and safety. All manufactured homes produced since the standards took effect on
June 15, 1976 must comply with Federal construction and
safety standards. The States are actively encouraged to participate in the program under compliance plans approved by
HUD.
A fee is charged to the manufacturers for each manufactured home produced to cover the costs of the monitoring
and enforcement activities by HUD and its contract agents.
Fees are deposited in a special fund administered by the
Department, and a portion of the fee receipts are transferred
to the salaries and expenses account to defray the direct
administrative expenses of the program. In 1997, an estimated 403,000 manufactured homes and 600,000 transportable sections were produced.
INTERSTATE LAND SALES
Unavailable Collections (in millions of dollars)
Identification code 86–5270–0–2–376

1997 actual

1998 est.

1999 est.

Balance, start of year:
Balance, start of year ....................................................
1 ................... ...................
Receipts:
02.01 Interstate land sales ..................................................... ...................
1
1
01.99

MANUFACTURED HOME INSPECTION

AND

MONITORING

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

1997 actual

04.00

1998 est.

1999 est.

Balance, start of year:
Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Manufactured home inspection and monitoring ...........
14
16
17
Appropriation:
05.01 Manufactured home inspection and monitoring ...........
–14
–16
–17
07.99 Total balance, end of year ............................................ ................... ................... ...................

Total: Balances and collections ....................................
1
1
1
Appropriation:
05.01 Interstate land sales .....................................................
–1
–1
–1
07.99 Total balance, end of year ............................................ ................... ................... ...................

01.99

Identification code 86–5270–0–2–376

1998 est.

1999 est.

1
13

1
14

1
15

10.00

14

15

23.90
23.95
24.40

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

1999 est.

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

1

1

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
1
New obligations ............................................................. ...................

1
–1

1
–1

60.25

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

1

1

1

Change in unpaid obligations:
New obligations ............................................................. ...................
Total outlays (gross) ......................................................
–1

1
–1

1
–1

86.97

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

1

1

1

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
1
Outlays ........................................................................... ...................

1
1

1
1

16

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

1998 est.

73.10
73.20

1997 actual

Obligations by program activity:
00.01 Transfer to salaries and expenses ................................
00.02 Other program costs ......................................................
Total obligations (object class 25.2) ........................

1997 actual

10.00

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

Program and Financing (in millions of dollars)

9
14

9
16

10
17

23
–14

25
–15

27
–16

9

10

11

464

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
INTERSTATE LAND SALES—Continued

The Interstate Land Sales Full Disclosure Act provides protection to the public with respect to purchases or leases of
subdivision lots. Statements of record must be filed with the
Secretary before subdivisions with 100 or more lots may be
sold in interstate commerce, except when the subdivision is
eligible for exemption.
The Secretary is authorized to charge a fee, to be paid
by the developer when filing a statement of record. The fee
receipts are permanently appropriated and have helped finance a portion of the direct administrative expenses incurred
in program operations.
The estimated annual program activity level will continue
at 1,700 filings, approximately the same level as in recent
years.

236 projects. The Housing and Community Development Act
of 1980 amended the 1978 Act by authorizing the transfer
of excess rent collections regardless of when collected. This
Budget proposes that the resources from the Rental Housing
Assistance Fund continue to be transferred to the Flexible
Subsidy Fund.
Statement of Operations (in millions of dollars)
1996 actual

1997 actual

0101
0102

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

53
–53

55
–53

47
–47

42
–42

0109

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

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

2

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

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

1998 est.

1999 est.

Identification code 86–4041–0–3–604

1998 est.

1999 est.

Balance Sheet (in millions of dollars)

1998 est.

1999 est.

52

47

42

10.00

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

52

47

42

21.40

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

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

1
52

1
47

53
–52

48
–47

1

1

1

1

1

4
3

17
5

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

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

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

7

22

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

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

7

9

1

1

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

7

9

1

1

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

14

31

1

1

52

47

42

2999

FLEXIBLE SUBSIDY FUND
(TRANSFER OF FUNDS)

8
52
–37

22 ...................
47
42
–69
–42

From the Rental Housing Assistance Fund, all uncommitted balances of excess rental charges as of September 30, ø1997¿ 1998,
and any collections made during fiscal year ø1998¿ 1999, shall be
transferred to the Flexible Subsidy Fund, as authorized by section
236(g) of the National Housing Act, as amended. (Departments of
Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 86–4044–0–3–604

22 ................... ...................

87.00

89.00
90.00

31

43
–42

Outlays (gross), detail:
86.97 Outlays from new permanent authority .........................
37
86.98 Outlays from permanent balances ................................ ...................

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

15

1
42

72.40

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

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

4999

1997 actual

Obligations by program activity:
Reimbursable program ..................................................

68.00

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

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2105
Other ...................................................

09.00

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

22
9

1999

Program and Financing (in millions of dollars)

23.90
23.95
24.40

8
7

3999

RENTAL HOUSING ASSISTANCE FUND

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

1997 actual

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....

Public enterprise funds:

Identification code 86–4041–0–3–604

1996 actual

Identification code 86–4041–0–3–604

37

–52

1997 actual

1998 est.

1999 est.

09.00

Obligations by program activity:
Reimbursable program ..................................................

14

19

43

47
42
22 ...................

10.00

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

14

19

43

69

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested .................................................................
21.41
U.S. Securities: Par value .........................................

103
39

73
106

114
106

179
60

220
21

–47

42

–42

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–14
22 ...................

The Housing and Urban Development Act of 1968 authorized the Secretary to establish a revolving fund into which
rental collections in excess of the established basic rents for
units in section 236 subsidized projects would be deposited.
The Housing and Community Development Amendment of
1978 authorized the Secretary, subject to approval in appropriation acts, to transfer excess rent collections received after
1978 to the Troubled Projects Operating Subsidy program,
renamed the Flexible Subsidy Fund. Prior to that time, collections were used for paying tax and utility increases in section

21.99
22.00
22.10

Total unobligated balance, start of year .............
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................

142
52

23.90
23.95

195
–14

239
–19

241
–43

24.40
24.41

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

73
106

114
106

90
106

24.99

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

179

220

196

68.00

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

52

60

21

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
U.S. Securities: Par value .........................................

101

44

1

72.41

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

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
73.10
73.20
73.45
74.41

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

14
19
43
–71
–62
–33
–1 ................... ...................

Investments in US securities:
Treasury securities, par ..................
Receivables, net .............................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Direct loans, gross ..............................
Allowance for estimated uncollectible
loans and interest (–) ....................

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

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.20
Interest on U.S. securities ....................................
88.40
Non-Federal sources .............................................
88.90
88.95

1

62

33

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

150
9

150
..................

150
..................

676

743

802

831

–536

–607

–654

–678

140
4

136
..................

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

153
..................

1999

408

387

386

414

11

71

140
4

2999

86.98

44

1102
1106

465

1601
1603
1699

–38
–9
–5

–47
–9
–4

–7
–10
–4

Total, offsetting collections (cash) ..................
–52
–60
–21
Change in orders on hand from Federal sources ......... ................... ................... ...................

1901

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

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

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

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

1

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

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

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

217
191

217
169

217
168

217
196

3999

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

408

386

385

413

4999

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ...........................................................................
18
2
12

1

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

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

409

386

385

413

Status of Direct Loans (in millions of dollars)
1997 actual

Identification code 86–4044–0–3–604

1998 est.

1999 est.

1210
1231
1251

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

676
71
–3

744
62
–4

802
33
–4

1290

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

744

802

831

HOMEOWNERSHIP ASSISTANCE FUND
Program and Financing (in millions of dollars)
Identification code 86–4043–0–3–604

The Flexible Subsidy Fund assisted financially troubled
subsidized projects under certain FHA authorities. The subsidies were intended to prevent potential losses to the FHA
fund resulting from project insolvency and to preserve these
projects as a viable source of housing for low and moderateincome tenants. Priority was given to projects with Federal
insurance-in-force and then to those with mortgages that had
been assigned to the Department of Housing and Urban Development.
A portion of Flexible Subsidy capital improvement loans
were used, along with incentives available in the Emergency
Low-Income Housing Preservation program, to extend affordability requirements for projects eligible to prepay mortgages.
The budget assumes that the account will continue to serve
as a repository of excess rental charges appropriated from
the Rental Housing Assistance Fund. Since 1996, these resources have not been used for new reservations but they
continue to offset Flexible Subsidy outlays and other discretionary expenditures.
Summary of Administrative Commitments
[In millions of dollars]

1997 actual

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

19
15
–19

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

1998 est.

15

1996 actual

1997 actual

1998 est.

43

1999 est.

0101
0102

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

66
–64

65
–81

60
–62

1
18
60

21.99
22.00
22.22

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

79
82
82
2
2
2
2 ................... ...................

23.90

83

84

84

24.40
24.41
24.49

Total budgetary resources available for obligation
Unobligated balance available, end of year:
Uninvested .................................................................
U.S. Securities: Par value .........................................
Contract authority .....................................................

3
18
61

3
18
61

3
18
61

24.99

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

82

82

82

68.00

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

2

2

2

–1

–1

–1

–1

–1

–1

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

0109

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

2

–16

–2

49

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............

120

1997 actual

92

1998 est.

88

3
18
61

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources: Interest on U.S. securities ......... ................... ................... ...................
88.40
Non-Federal sources .............................................
–2
–2
–2
88.90

89.00
90.00

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

–2

–2

–2

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–2
–2
–2

Status of Contract Authority (in millions of dollars)
Identification code 86–4043–0–3–604

0100
0700

Balance Sheet (in millions of dollars)
1996 actual

3
18
61

72.40

55
–6

Identification code 86–4044–0–3–604

1999 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested .................................................................
21.41
U.S. Securities: Par value .........................................
21.49
Contract authority .....................................................

Statement of Operations (in millions of dollars)
Identification code 86–4044–0–3–604

1998 est.

1999 est.

43 ....................
19
43
–43 ....................
19

1997 actual

Balance, start of year ....................................................
Balance, end of year .....................................................

1997 actual

60
61

1998 est.

61
61

1999 est.

61
61

1999 est.

111

The Homeownership Assistance Fund was established by
the Housing and Urban-Rural Recovery Act of 1983. It provided for the receipt of recaptures of budget authority, cash,

466

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

Public enterprise funds—Continued

Credit accounts:
FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

HOMEOWNERSHIP ASSISTANCE FUND—Continued

and interest earnings under the restructured section 235 program. The funds were authorized to be used, to the extent
approved in Appropriation Acts, by the Secretary to provide
additional section 235 assistance payments for mortgagors
who are unable to assume the full payment due under the
mortgage after the termination of the original 10-year assistance payments contract.
Statement of Operations (in millions of dollars)
Identification code 86–4043–0–3–604

1996 actual

1997 actual

1998 est.

1999 est.

0101
0102

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

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

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

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

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

0109

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

2

1

1

1

Balance Sheet (in millions of dollars)
Identification code 86–4043–0–3–604

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury securities, par ..................
1106
Receivables, net .............................

1996 actual

1997 actual

1998 est.

1999 est.

1

3

3

3

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

18
1

18
1

18
1

19

22

22

22

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

12
9

12
9

12
9

(INCLUDING TRANSFERS OF FUNDS)

During fiscal year ø1998¿ 1999, commitments to guarantee loans
to carry out the purposes of section 203(b) of the National Housing
Act, as amended, shall not exceed a loan principal of
$110,000,000,000.
During fiscal year ø1998¿ 1999, obligations to make direct loans
to carry out the purposes of section 204(g) of the National Housing
Act, as amended, shall not exceed ø$200,000,000¿ $50,000,000: Provided, That the foregoing amount shall be for loans to nonprofit
and governmental entities in connection with sales of single family
real properties owned by the Secretary and formerly insured under
the Mutual Mortgage Insurance Fund.
For administrative expenses necessary to carry out the guaranteed
and direct loan program, ø$338,421,000¿ $328,888,000, to be derived
from the FHA-mutual mortgage insurance guaranteed loans receipt
account, of which not to exceed ø$326,309,000¿ $324,866,000 shall
be transferred to the appropriation for departmental salaries and
expenses; and of which not to exceed ø$12,112,000¿ $4,022,000 shall
be transferred to the appropriation for the Office of Inspector General.
In addition, for non-overhead administrative expenses necessary to
carry out the Mutual Mortgage Insurance guaranteed and direct loan
program, $200,000,000, to be derived from the FHA-mutual mortgage
insurance guaranteed loan receipt account. (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Unavailable Collections (in millions of dollars)

1999

Total assets ........................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............
3999

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

19

21

21

21

4999

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

19

21

21

21

Identification code 86–0183–0–1–371

1997 actual

1998 est.

1999 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 FHA Mutual Mortgage Insurance Guaranteed Loan,
negative subsidies ....................................................
351
338
529
Appropriation:
05.01 FHA mutual mortgage insurance program account ......
–351
–338
–529
07.99 Total balance, end of year ............................................ ................... ................... ...................

NEHEMIAH HOUSING OPPORTUNITY FUND
Program and Financing (in millions of dollars)
Program and Financing (in millions of dollars)
Identification code 86–0183–0–1–371
Identification code 86–4071–0–3–604

1997 actual

1998 est.

1997 actual

1998 est.

1999 est.

1999 est.

Obligations by program activity:
Other administrative expenses, FHA .............................. ................... ...................
Administrative expenses, salaries & expenses transfer
351
338

Obligations by program activity:
09.00 Reimbursable program .................................................. ...................

21 ...................

00.09
00.10

10.00

21 ...................

10.00

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

351

338

529

22.00
23.95

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

351
–351

338
–338

529
–529

40.25

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

351

338

529

73.10
73.20

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

351
–351

338
–338

529
–529

86.90

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

351

338

529

89.00
90.00

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

351
351

338
338

529
529

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

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
21
21 ...................
23.95 New obligations ............................................................. ...................
–21 ...................
24.40 Unobligated balance available, end of year:
Uninvested .................................................................
21 ................... ...................
21.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
10
73.10 New obligations ............................................................. ...................
73.20 Total outlays (gross) ......................................................
–3
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
7
72.40

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

89.00
90.00

3

7
20
21 ...................
–8
–4
20

8

200
329

16

4

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
3
8
4

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

The Nehemiah grants program was authorized by the Housing and Community Development Act of 1987 to provide loans
to eligible families to assist in the purchase of new or substantially rehabilitated units. This schedule reflects the liquidation of remaining reserved and obligated balances.

1997 actual

1998 est.

1999 est.

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

200

200

50

1159

200

200

50

Total direct loan levels .............................................

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Guaranteed loan levels supportable by subsidy budget
authority:
2150 MMI Fund, Section 203(b) .............................................
2150 Standby commitment authority .....................................
2159

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................
2329

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
22.00 New financing authority (gross) ....................................
21.40

75,432
34,568

82,260
27,740

83,494
26,506

110,000

110,000

110,000

–2.88

–2.99

–2.62

–2.88

–2.99

–2.62

23.90
23.95
24.40

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 MMI Section 203(b) negative subsidy ...........................
2330 Subsidy budget authority—reestimate .........................
2330 Subsidy—Note Sales .....................................................
2330 Indirect modification Assignment Reform .....................

–1,392
–1,653
–1,594
–340 ................... ...................
–448
–128 ...................
–56 ................... ...................

67.15
68.00

2339

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

–2,236

–1,781

–1,594

70.00

–2,236

–1,781

–1,594

2349

–2,236

–1,781

–1,594

Total subsidy outlays ................................................

The Federal Housing Administration provides mortgage insurance to encourage lenders to make credit available to expand homeownership, and to predominantly serve borrowers
that the conventional market does not adequately provide
for including: first-time homebuyers; minorities; lower-income
families; and, residents of underserved areas (central cities
and rural areas). Currently, the maximum mortgage amount
for FHA-insured one-family loans is set at 95 percent of area
median house price, provided that the amount is never less
than 38 percent of the conforming loan limit—the maximum
mortgage amount for loans purchased by the housing secondary market Government-Sponsored Enterprises, Fannie Mae
and Freddie Mac—and never more than 75 percent of the
conforming loan limit. The Administration proposes to increase the maximum mortgage amount for FHA-insured loans
in all areas to equal the conforming loan limit. FHA has
also proposed new legislation to allow greater flexibility in
single family property disposition.
As required by the Federal Credit Reform Act of 1990,
this account records administrative expenses for this program,
as well as the subsidy costs associated with the loan guarantees committed in 1992 and thereafter, if any. The subsidy
amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis.
Beginning in 1999, an appropriation of $200,000,000 is requested, to be derived from the negative subsidy account,
for certain administrative expenses. All administrative expenses will be recorded in the program account. The transfer
is derived from negative credit subsidy amounts associated
with guaranteed loan activities.

25.2
25.3
99.9

1997 actual

1998 est.

Other services ................................................................ ................... ...................
Purchases of goods and services from Government
accounts ....................................................................
351
338
Total obligations ........................................................

351

338

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

1

3

5

1

25

50

2

4

10

3

29

60

2
27
–27

2
58
–55

2
27

5
55

–1
–1

–3
–1

–7
–3

88.90

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

–2

–4

–10

89.00
90.00

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

1
–1

25
23

50
45

Status of Direct Loans (in millions of dollars)

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

1997 actual

200
–197
3

1998 est.

1999 est.

200
50
–175 ...................
25

50

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
2
2
Disbursements: Direct loan disbursements ...................
1
27
Repayments: Repayments and prepayments .................
–1
–1
Write-offs for default: Direct loans ............................... ................... ...................

28
50
–2
–1

1999 est.

50
6
2

1210
1231
1251
1263

10.00

58

1290

27

63
–58

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.25
Interest on uninvested funds ...............................
88.40
Other collections from non-Federal sources .........

Obligations by program activity:
00.01 Direct loans ....................................................................
3
25
00.02 Interest paid to Treasury ............................................... ...................
2
00.03 Claims & other .............................................................. ................... ...................
3

30
–27

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested ................................................................. ...................
73.10 New obligations .............................................................
3
73.20 Total financing disbursements (gross) .........................
–1
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
2
87.00 Total financing disbursements (gross) .........................
1

1150

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

4
–3

529

200

Program and Financing (in millions of dollars)
1998 est.

3
60

329

1999 est.

FHA—MUTUAL MORTGAGE INSURANCE DIRECT LOAN FINANCING
ACCOUNT

1997 actual

1
29

72.40

Identification code 86–4242–0–3–371

Identification code 86–4242–0–3–371

1
3

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and thereafter (including modifications of direct loans that
resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals. As required by the Federal Credit Reform
Act of 1990, no administrative expenses can be recorded in
the financing account.
The $50 million in 1999 direct loan limitation in the MMI
Fund would permit the Department to use Purchase Money
Mortgages (PMMs) to help finance the sale of acquired single
family properties. HUD would extend credit for these singlefamily homes to community nonprofit organizations or local
government entities who would be expected to sell the properties to low- and moderate-income buyers. The use of PMMs
provides a tool for State and local nonprofit organizations
to use in revitalizing communities, and creates enhanced
homeownership opportunities for low- and moderate-income
families.

Object Classification (in millions of dollars)
Identification code 86–0183–0–1–371

467

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

2

28

75

468

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

Credit accounts—Continued
FHA—MUTUAL MORTGAGE INSURANCE DIRECT LOAN FINANCING
ACCOUNT—Continued
Balance Sheet (in millions of dollars)
Identification code 86–4242–0–3–371

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

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

1999

1996 actual

1997 actual

1998 est.

1999 est.

2

2

28

75

2

2

28

75

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.25
Interest on uninvested funds ............................... ...................
Non-Federal sources:
88.40
Fees and premiums ..........................................
–2,253
88.40
Recoveries on defaults .....................................
–2,013
88.40
Gross proceeds from asset sales .....................
–1,218

–2,612
–3,057
–1,842
–1,951
–398 ...................

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–5,484
–91

–4,950
–5,019
91 ...................

89.00
90.00

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

364
1,159

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Treasury borrowing ....

2

2

28

2

28

75

2999

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

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

2

28

75

Identification code 86–4587–0–3–371

4999

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

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

2

28

75

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

400
203

–11

700
687

75

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

–98

FHA—MUTUAL MORTGAGE INSURANCE GUARANTEED LOAN
FINANCING ACCOUNT

2150

Program and Financing (in millions of dollars)
Identification code 86–4587–0–3–371

1997 actual

1998 est.

Obligations by program activity:
Default claims and other ..............................................
2,951
2,785
Payment of negative subsidy to receipt account ..........
351
338
Payment of negative subsidy to liquidating account
1,392
1,315
Subsidy reestimate paid to liquidating account ...........
340 ...................
Interest payments to Treasury .......................................
207
404
Payment to liquidating account of value of assets
sold ............................................................................
918
200
00.10 Negative subsidy from asset sales paid to liquidating
account ......................................................................
449
111
00.11 Indirect modification savings paid to liquidating account ..........................................................................
56 ...................
00.12 Negative subsidy to liquidating account for new legislation—FHA loan limit increase ............................... ................... ...................
00.14 Negative subsidy to liquidating account, new legislation ............................................................................ ................... ...................
00.01
00.05
00.06
00.07
00.08
00.09

10.00

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

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

6,664

5,153

Status of Guaranteed Loans (in millions of dollars)

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

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in receivables (Interest from Treasury) .......
67.15

68.90
70.00

72.99
73.10
73.20

98,031

235,291
61,175
–20,882

272,750
58,613
–10,014

318,818
67,222
–16,719

–354

–7

–12

–2,404

–2,436

–2,619

–76

–88

–126
366,564

2299

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

272,750

318,818

366,564

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2364
Other adjustments, net .............................................

866
354
–10
–925

285
7
–4
–234

54
12
–1
–3

285

54

62

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

2210
2231
2251

228
527
5,706

182

288

301

364

400

700

5,484
91

4,950
5,019
–91 ...................

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

5,575

4,859

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

5,939

5,259

5,719

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

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loans insured in 1992 and
thereafter. The amounts in this account are considered a
means of financing and are not included in the budget totals.
As required by the Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account.

5,019

68
6,643

82,260

318,818

6,007
–5,706

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

75,432

272,750

5,441
–5,153

74.99
87.00

110,000
–11,969

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

6,846
–6,664

74.40
74.95

110,000
–27,740

2290

288
5,719

47
6,664
–6,643

110,000
–34,568

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

182
5,259

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: Uninvested .................................
EOY Receivables from Treasury (interest) ................

1999 est.

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

2,927
529
1,066
...................
429

907
5,939

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Uninvested .................................
47
72.95
Receivables from Treasury (interest) ........................ ...................

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

1998 est.

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2262
Terminations for default that result in acquisition
of property .............................................................
2263
Terminations for default that result in claim payments ....................................................................

1999 est.

2390
23.90
23.95
24.40

1997 actual

Balance Sheet (in millions of dollars)
1996 actual1

1997 actual

954

159

355

353

866
521
–405

285
1,104
–443

53
1,114
–447

60
1,164
–467

1901

Net value of assets related to defaulted guaranteed loan ............
Other Federal assets: Other assets ........

982
..................

946
3

720
3

757
3

1999

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

1,936

1,108

1,078

1,113

Identification code 86–4587–0–3–371

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross ......................................
1504
Foreclosed property .............................
1505
Allowance for subsidy cost .................

1998 est.

1999 est.

1101

–23
68
91 ...................
68
5,153
–5,153

68
5,706
–5,706

–23
68
68
91 ................... ...................
68
5,153

68
5,706

1599

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
LIABILITIES:
Federal liabilities: Federal liabilities,
Debt .....................................................
Non-Federal liabilities:
2204
Liabilities for loan guarantees ...........
2207
Other ...................................................

87.00

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

469

2,346

1,941

1,338

–721

–1,260

–1,383

–90

–84

–78

2103

2,698

3,062

3,462

3,662

–762
..................

–1,978
24

–2,539
156

–2,823
274

2999

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

1,936

1,108

1,079

1,113

4999

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

1,936

1,108

1,079

1,113

1 As

reflected in the 1998 Budget. Subsidy reestimates for fiscal year 1997 disbursements will be performed
for the mid-session review of the Budget.

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

01.99
03.00
07.99

1997 actual

1998 est.

1999 est.

Balance, start of year:
Balance, start of year .................................................... ................... ................... ...................
Offsetting collections ..................................................... ................... ...................
Total balance, end of year ............................................ ................... ...................

1997 actual

220
–1,427
–926

88.90

–5,348

89.00
90.00

527
527

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

24
8
–1,366
–969
–200 ...................

–1
–1
–1
–7
–2
–1
–27
–9
–2
–2,237
–1,315
–1,266
–47 ................... ...................
–85
–23
–24
–4,236

1998 est.

1999 est.

Obligations by program activity:
Operating expenses:
00.03
Other operating costs ................................................
00.05
Participation payments .............................................

93
1

189
1

49
1

00.91

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–3,002
–2,295
–2,378

Summary of Budget Authority and Outlays
Enacted/requested:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, not subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................

1997 actual

1998 est.

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

190

50

01.02
01.03
01.05
01.07
01.08
01.09

82
1,552
13
229
1
19

4
1,513
13
161
16
43

6
1,072
13
136
13
47

01.91

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

1,896

1,750

1,288

10.00

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

1,990

1,940

1,337

1210
1251
1264

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

7
–1
–1

1290

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

5

2,219

–8

233

7,730
–86

13,467
–238

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

9,863
5,348

13,221
4,236

15,516
3,716

23.90
23.95

15,211
–1,990

17,457
–1,940

19,232
–1,337

–8

233

75

24.41
24.42

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

13,467
–238

15,567
–284

18,131
–312

24.99

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

13,221

15,516

17,894

68.00

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

Total:
Budget Authority ..................................................................... .................... ....................
Outlays ....................................................................................
–3,002
–2,295

–527
–3,133

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

15,567
–284

21.99
22.00

–527
–527

.................... .................... ....................
.................... ....................
–228

94

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested .................................................................
U.S. Securities:
21.41
Par value ...............................................................
21.42
Unrealized discounts .............................................

1999 est.

.................... .................... ....................
–3,002
–2,295
–2,378

Total operating expenses ......................................
Capital investment:
Assignment of defaulted mortgages .........................
Acquisition of real properties ....................................
Acquisition of other assets .......................................
Capitalized property expenses ...................................
Loss on defaulted guaranteed loans ........................
Preforeclosure sale claims ........................................

24.40

–3,716

(in millions of dollars)

Program and Financing (in millions of dollars)
Identification code 86–4070–0–3–371

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.20
Interest on U.S. securities ....................................
Non-Federal sources:
88.40
Fees and premiums ..........................................
88.40
Rebate of unearned prepaid premiums collected ...........................................................
88.40
Proceeds from sale of real property ................
88.40
Proceeds from sale of mortgage notes ............
88.40
Repayment of mortgage notes and sales contracts ............................................................
88.40
Interest and operating income .........................
88.40
Recoveries on defaulted mortgages .................
88.40
Payment from financing account .....................
88.40
Miscellaneous collections .................................
88.40
Other income ....................................................

1997 actual

1998 est.

1999 est.

5
3
–1
–1
–1 ...................
3

2

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

1997 actual

1998 est.

1999 est.

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
102,159
87,755
81,393
2251 Repayments and prepayments ......................................
–12,750
–4,785
–4,517
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
–82
–5
–6
2262
Terminations for default that result in acquisition
of property .............................................................
–1,552
–1,513
–1,072
2263
Terminations for default that result in claim payments ....................................................................
–20
–59
–60
2264
Other adjustments, net ............................................. ................... ................... ...................

5,348

4,236

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

87,755

81,393

75,738

2299
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.31 Obligated balance transferred to other accounts .........
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

2290

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

87,755

81,393

75,738

3,716

72.40

86.97
86.98

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

685
325
325
1,990
1,940
1,337
–2,346
–1,941
–1,338
–4 ................... ...................
325

325

325

1,661
685

1,467
474

864
474

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................
2364
Other adjustments, net .............................................
2390

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

1,862
287
57
82
5
6
–953
–209
–2
–550
–26
–1
–154 ................... ...................
287

57

60

HOUSING PROGRAMS—Continued
Federal Funds—Continued

470

THE BUDGET FOR FISCAL YEAR 1999

Credit accounts—Continued
FHA—MUTUAL MORTGAGE AND COOPERATIVE HOUSING INSURANCE
FUNDS LIQUIDATING ACCOUNT—Continued

1102
1102

The Federal Housing Administration Fund currently consists of four separate insurance funds.
In order to present more clearly the operations of the various funds, FHA’s budget transactions are separated into two
major business segments. The basic single-family insurance
programs in the Mutual Mortgage Insurance (MMI) fund and
the multifamily Cooperative Management Housing Insurance
(CMHI) funds form one segment. All other multifamily and
other specialized insurance programs in the General Insurance and Special Risk Insurance funds (GI/SRI) form the
other segment.
The Federal Credit Reform Act of 1990 creates a structure
of three accounts for existing credit program. For each of
the FHA business segments (MMI/CMHI and GI/SRI) there
is a liquidating account, which records the revenues and costs
associated with loan insurance committed prior to October
1, 1991, a financing account which records the revenues and
costs associated with commitments to insure loans made after
September 30, 1991, and, a program account which records
the transactions associated with the program subsidy costs,
if any, and the costs of administering the program.
This liquidating account records, for this program, all cash
flows to and from the Government resulting from MMI/CMHI
loans insured prior to fiscal year 1992, and is shown on a
cash basis. All new activity in this program in 1992 and
thereafter (including modifications of loans insured in any
year) is recorded in the corresponding program (86–0183) and
financing (86–4587 and 86–4242) accounts.
The program activity in the ‘‘Program Highlights’’ table
shown below reflects only the activity in the MMI/CMHI liquidating and financing accounts. The GI/SRI program activity
can be found with the GI/SRI liquidating account (86–4072).

1106
1107
1206
1207

1601
1603
1699
1701
1703
1704
1705
1706
1799
1901

Investments in US securities:
Treasury securities, par:
Treasury securities, par .............
Unamortized net premium/discount ......................................
Receivables, net .............................
Advances and prepayments ...........
Non-Federal assets:
Receivables, net ..................................
Advances and prepayments ................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Direct loans, gross ..............................
Allowance for estimated uncollectible
loans and interest (–) ....................
Value of assets related to direct
loans ..........................................
Defaulted guaranteed loans, gross ....
Allowance for estimated uncollectible
loans and interest (–) ....................
Defaulted guaranteed loans and interest receivable, net .....................
Allowance for uncollectables from
foreclosed property .........................
Foreclosed property .............................
Value of assets related to loan
guarantees .................................
Other Federal assets: Other assets ........

1999

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......
Non-Federal liabilities:
2201
Accounts payable ................................
2206
Pension and other actuarial liabilities
2207
Unearned revenue and advances .......
2999

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

7,729

13,467

15,567

16,867

–87
106
..................

–246
1
..................

–284
1
..................

–308
1
..................

207
–62

61
32

61
32

61
32

7

5

3

2

–1

–2

–1

–1

6
1,862

3
287

2
58

1
62

–495

–39

–8

–8

1,367

248

50

54

–354
872

–370
946

–263
672

–186
473

1,885
18

824
20

459
9

341
1

12,707

14,480

16,359

17,321

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

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

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

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

676
2,175
1,061

1,600
549
7

2,688
549
17

2,623
549
25

3,912

2,156

3,254

3,197

19
8,776

18
12,306

18
13,087

18
14,106

3999

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

8,795

12,324

13,105

14,124

4999

PROGRAM HIGHLIGHTS

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

12,707

14,480

16,359

17,321

[In millions of dollars]

Insurance initiation:
Mortgage insurance commitments (units) ................

1997 actual 1

1998 est.

1999 est.

852,546

960,240

Mortgage insurance written (in fiscal year):
Units ..........................................................................
Amount ......................................................................

740,320
61,175

697,094
58,613

744,445
67,222

Insurance maintenance: Outstanding balance of insurance in force, end of year:
Mortgage insurance ...................................................

360,505

400,211

442,301

1 As

1,037,380

1 Unaudited

Object Classification (in millions of dollars)
Identification code 86–4070–0–3–371

Financial condition.—The following tables reflect the revenues, expenses and financial condition of the MMI/CMHI liquidating funds based on Generally Accepted Accounting Principles.

1998 est.

1999 est.

25.2
32.0
33.0
42.0
44.0

Other services ................................................................
Land and structures ......................................................
Investments and loans ..................................................
Insurance claims and indemnities ................................
Refunds ..........................................................................

93
1,782
94
20
1

189
1,673
18
59
1

49
1,208
19
60
1

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

1,990

1,940

1,337

FHA—MUTUAL MORTGAGE INSURANCE AND COOPERATIVE HOUSING
LIQUIDATING ACCOUNT
(Legislative proposal, not subject to PAYGO)

Statement of Operations (in millions of dollars)
1996 actual1

1997 actual2

Program and Financing (in millions of dollars)

1998 est.

1999 est.

0101
0102

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

2,103
–1,097

1,854
–577

2,636
–688

1,455
–437

0109

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

1,006

1,277

1,948

1,018

1 As

1997 actual

99.9

preliminary results.

Identification code 86–4070–0–3–371

reflected in the 1998 Budget.

reflected in the 1998 Budget.
result on GAAP basis pending final audit.

Identification code 86–4070–2–3–371

1997 actual

1998 est.

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ..................................... ................... ...................
68.45
Portion applied to capital reserve (limitation on
obligations) ........................................................... ................... ...................

1999 est.

527
–527

2 Estimated

68.90

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

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............

1996 actual1

1997 actual

2,905

318

1998 est.

512

1999 est.

325

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

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Payment from
financing account ................................................. ................... ...................

–527

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

89.00
90.00

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

–527
–527

Single Family Claims Reform and Sale of
Property
This proposal would provide HUD with additional flexibility
to choose the most cost-effective methods of paying insurance
claims and disposing of acquired notes or homes.
Currently, section 204(a) of the National Housing Act sets
forth the conditions under which HUD pays insurance benefits for defaulted single family mortgages and details the manner of calculating the amount of insurance benefits. This provision updates the current section 204(a) and adds authority
for HUD to take assignment of mortgages.
Under this proposal the Department would be able to take
assignment of mortgage notes (instead of taking properties
into inventory) and then sell or transfer them to a third
party for servicing, loss mitigation, foreclosure, and disposition of the property, depending upon the circumstances. It
is expected that savings will result from a higher return
on sales and expected property disposition.
The proposal would also provide flexible authority for HUD
to participate in joint venture arrangements in the sale of
single family properties.
FHA—MUTUAL MORTGAGE INSURANCE AND COOPERATIVE HOUSING
LIQUIDATING ACCOUNT
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 86–4070–4–3–371

22.00
24.40

68.00

1997 actual

1998 est.

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

1999 est.

228
228

228

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.20
Interest on U.S. securities .................................... ................... ................... ...................
88.40
Payment from financing account ......................... ................... ...................
–228
88.90

89.00
90.00

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

sured financing carries favorable terms which may not be
available to many working families in high cost areas, who
may be constrained from entering the homeownership market
because of a lack of downpayment. The proposal reflects the
Administration’s National Homeownership Strategy, which
continue to be successful in raising the national homeownership rate.
FHA—GENERAL

This proposal will permit the Federal Housing Administration (FHA) to insure a single family mortgage with a principal
amount not exceeding the average of the conforming mortgage
loan limits established by Freddie Mac and Fannie Mae
($227,150 for a one-family residence in 1998). Under current
law, FHA cannot insure a mortgage with a principal amount
that exceeds 75% of the conforming mortgage limit established by Freddie Mac.
The proposal also would eliminate other dollar limitations
on mortgage amounts that are in the current law. These
include ‘‘floor’’ limits for certain areas and limits based upon
95% of median home price for others. Currently, the maximum amount for an FHA-insured mortgage varies from the
‘‘floor’’ of $86,317 to higher amounts up to $170,363 which
are determined on a county or metropolitan statistical area
(MSA) basis.
The proposal would increase and standardize the maximum
insurable mortgage amount throughout the country. FHA-in-

AND

SPECIAL RISK PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

For the cost of guaranteed loans, as authorized by sections 238
and 519 of the National Housing Act (12 U.S.C. 1715z–3 and 1735c),
including the cost of loan guarantee modifications (as that term is
defined in section 502 of the Congressional Budget Act of 1974, as
amended), $81,000,000, to remain available until expended: Provided,
That these funds are available to subsidize total loan principal, any
part of which is to be guaranteed, of up to ø$17,400,000,000: Provided
further, That any amounts made available in any prior appropriations
Act for the cost (as such term is defined in section 502 of the Congressional Budget Act of 1974) of guaranteed loans that are obligations
of the funds established under section 238 or 519 of the National
Housing Act that have not been obligated or that are deobligated
shall be available to the Secretary of Housing and Urban Development in connection with the making of such guarantees and shall
remain available until expended, notwithstanding the expiration of
any period of availability otherwise applicable to such amounts¿
$18,100,000,000.
Gross obligations for the principal amount of direct loans, as authorized by sections 204(g), 207(l), 238(a), and 519(a) of the National
Housing Act, shall not exceed ø$120,000,000¿ $50,000,000; of which
not to exceed ø$100,000,000¿ $30,000,000 shall be for bridge financing in connection with the sale of multifamily real properties owned
by the Secretary and formerly insured under such Act; and of which
not to exceed $20,000,000 shall be for loans to nonprofit and governmental entities in connection with the sale of single-family real properties owned by the Secretary and formerly insured under such Act.
In addition, for administrative expenses necessary to carry out
the guaranteed and direct loan programs, ø$222,305,000¿
$211,455,000, of which ø$218,134,000, including $25,000,000 for the
enforcement of housing standards on FHA-insured multifamily
projects,¿ $193,134,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which ø$4,171,000¿
$18,321,000 shall be transferred to the appropriation for the Office
of Inspector General.
In addition, for non-overhead administrative expenses necessary to
carry out the guaranteed and direct loan programs, $104,000,000.
(Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Unavailable Collections (in millions of dollars)

–228

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ........................................................................... ................... ...................
–228

471

Identification code 86–0200–0–1–371

1997 actual

1998 est.

1999 est.

Balance, start of year:
Balance, subsidy downward reestimate, start of year
1,506
2,138
2,840
Receipts:
02.01 Negative Subsidies ........................................................
607
702
243
02.02 Negative Subsidies, legislative proposal not subject
to PAYGO ................................................................... ................... ...................
50
02.03 Downward reestimates of subsidies ..............................
25 ................... ...................
01.99

02.99

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

632

702

293

04.00
07.99

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

2,138
2,138

2,840
2,840

3,133
3,133

Program and Financing (in millions of dollars)
Identification code 86–0200–0–1–371

00.01
00.02
00.04
00.09
00.10
10.00

1997 actual

1998 est.

1999 est.

Obligations by program activity:
Guaranteed loan subsidy ...............................................
138
151
134
Prior year adjustment ....................................................
22
–22 ...................
FHA multi-family demonstration ....................................
22 ................... ...................
Administrative expenses, salaries & expenses transfer
207
222
211
Administrative expenses, FHA ........................................ ...................
104
104
Total obligations ........................................................

389

455

449

472

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

(INCLUDING TRANSFERS OF FUNDS)—Continued

2150
2150
2150
2150

Program and Financing (in millions of dollars)—Continued

2159

Credit accounts—Continued
FHA—GENERAL

AND

SPECIAL RISK PROGRAM ACCOUNT—Continued

Identification code 86–0200–0–1–371

1997 actual

1998 est.

1999 est.

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

534
56

449
49

21.99
22.00
22.30

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

590
305
–8

498
352
319
396
–10 ...................

23.90
23.95

887
–389

807
–455

748
–449

24.40
24.40

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

449
49

314
38

266
33

24.99

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

498

352

299

314
38

New budget authority (gross), detail:
Appropriation:
40.00
Appropriation .............................................................
40.00
FHA multi-family demonstration ...............................

292
303
396
10 ................... ...................

43.00
50.05

Appropriation (total) ..................................................
Reappropriation (indefinite) ...........................................

302
3

303
396
16 ...................

70.00

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

305

319

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

46
389
–378
–2

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Multifamily development ................................................
2320 Refinance of multifamily mortgages .............................
2320 Multifamily risk sharing programs ................................
2320 Section 221(d)(3) ...........................................................
2320 Section 223(d) ...............................................................
2320 Mixed income .................................................................
2320 Nursing Homes ...............................................................
2320 Hospitals ........................................................................
2320 Section 241 supplemental .............................................
2320 Mobile home parks ........................................................
2320 Very small projects ........................................................
2320 Tax credit new construction ..........................................
2320 Neighborhood improvements ..........................................
2320 Single family programs .................................................
2320 Title I ..............................................................................
2329

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................
2339

396

55
28
455
449
–466
–451
–16 ...................

55

28

26

86.90
86.93

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

207
171

295
171

350
101

87.00

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

378

466

451

89.00
90.00

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

305
378

319
466

396
451

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 86–0200–0–1–371

Mobile home parks ........................................................ ................... ...................
Single family ..................................................................
7,690
8,500
Title I guarantees ..........................................................
1,476
2,400
Standby authority ........................................................... ...................
752

1997 actual

1998 est.

1999 est.

Direct loan levels supportable by subsidy budget authority:
1150 Single-family PMMs ....................................................... ...................
1150 Multifamily bridge loans ................................................ ...................

20
100

20
30

1159

120

50

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Multifamily development ................................................
1,609
1,585
2150 Refinance of FHA-insured mortgages ............................
1,485
1,973
2150 Risk sharing programs ..................................................
222
913
2150 Section 221(d)(3) ...........................................................
25
19
2150 Section 223(d) ...............................................................
9
8
2150 Mixed Income .................................................................
9
4
2150 Hospitals ........................................................................
137
450
2150 Nursing homes ...............................................................
564
649
2150 Very small projects ........................................................ ...................
113
2150 Tax credit new construction .......................................... ................... ...................
2150 Section 241 supplemental loans ...................................
92
24
2150 Neighborhood improvements .......................................... ...................
10

1,344
2,100
708
27
10
5
600
600
204
75
100
10

Total direct loan levels ............................................. ...................

10
9,120
2,187
1,000

13,318

17,400

18,100

8.78
–0.79
–0.34
30.47
30.47
12.26
0.00
0.00
0.00
0.00
0.00
0.00
0.00
–1.55
–1.59

8.51
–0.75
–0.52
29.21
29.21
12.13
–0.70
1.49
0.00
0.00
–0.48
0.00
17.04
–1.32
–1.50

6.95
–0.78
–0.57
17.27
24.18
12.13
–0.70
1.53
17.06
6.95
–0.63
–0.88
17.06
–1.32
–1.35

–0.02

–0.13

–0.27

98

97

81

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

98

97

81

171

166

136

2349

171

166

136

Administrative expense data:
Budget authority, S&E Transfer .....................................
207
222
Budget authority, FHA .................................................... ................... ...................
Outlays from balances ................................................... ................... ...................
Outlays from new authority ...........................................
207
222

211
104
26
289

3510
3510
3580
3590

Total subsidy outlays ................................................

Multifamily Products.—This account includes budget authority for multifamily insurance programs requiring positive
credit subsidies, as well as for salaries and expenses for all
General and Special Risk Insurance Fund programs.
The credit subsidy appropriation of $81 million requested
for 1999 will be used in conjunction with $49 million of carryover budget authority to provide a total program level of
$130 million.
As required by the Federal Credit Reform Act of 1990,
this account records, for the single family, multifamily, hospital, and Title I insurance programs of FHA’s General Insurance and Special Risk Insurance Funds, the subsidy costs
associated with the loan guarantees committed or direct loans
obligated in 1992 and thereafter (including modifications of
loan guarantees or direct loans that resulted from obligations
or commitments in any year), as well as administrative expenses of these programs. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
accounted for on a cash basis.
FHA has corrected the allocation of administrative expenses
among its budgetary accounts. Beginning in 1998, all administrative expenses are recorded in the program account. In
1999, $104 million in appropriations has been requested to
provide consistency with this approach.
Object Classification (in millions of dollars)
Identification code 86–0200–0–1–371

25.1
25.3
41.0
99.9

1997 actual

Advisory and assistance services .................................. ...................
Purchases of goods and services from Government
accounts ....................................................................
207
Grants, subsidies, and contributions ............................
182
Total obligations ........................................................

389

1998 est.

1999 est.

104

104

222
129

211
134

455

449

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FHA—GENERAL

AND

SPECIAL RISK GUARANTEED LOAN FINANCING
ACCOUNT

Status of Guaranteed Loans (in millions of dollars)
1997 actual

Identification code 86–4077–0–3–371

Program and Financing (in millions of dollars)
Identification code 86–4077–0–3–371

1997 actual

1998 est.

1999 est.

Obligations by program activity:
Capital investment, claims and other:
00.01
Default claims and other ..........................................
702
986
1,221
00.02
Loan asset sale contracts ......................................... ................... ...................
8
00.03
PD related contracts ................................................. ...................
4
8
00.04
Payment of negative subsidy to receipt account
142
140
143
00.05
Interest paid to Treasury ...........................................
42
82
118
00.06
Downward subsidy rate reestimate ...........................
25 ................... ...................
00.08
Asset sale negative subsidy payment to receipt
account .................................................................
384 ...................
100
00.09
Asset sale payment to liquidating account ..............
536 ...................
285
00.10
Value paid to liquidating account for guarantees
refinanced under 223(a)(7) ..................................
2 ................... ...................
00.11
Mark-to-market portfolio reengineering legislative
savings .................................................................. ...................
562
50
00.12
Waiver of PD/mortgage sale law, savings ................
80 ................... ...................
00.13
Modification of pre–1992 guarantees, costs ............
7 ................... ...................
10.00

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

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
22.00 New financing authority (gross) ....................................
22.60 Redemption of debt .......................................................
Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested .................................................................

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in receivables ...............................................
67.15

1,774

1,933

275
2,135
–77

414
2,137
–135

642
2,323
–135

2,333
–1,920

2,416
–1,774

2,830
–1,933

414

642

897

227

1,260

750

1,777
131

1,008
1,573
–131 ...................

68.90

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

1,908

877

1,573

70.00

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

2,135

2,137

2,323

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Uninvested .................................
42
72.95
Receivables from program account .......................... ...................
72.99
73.10
73.20

1998 est.

1999 est.

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

17,400
–4,082

17,400
–752

18,100
–1,000

2150

13,318

16,648

17,100

40,319
12,677
–6,144

45,663
14,323
–3,594

55,662
14,416
–2,973

–167

–333

–512

–227

–285

–310

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

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2262
Terminations for default that result in acquisition
of property .............................................................
2263
Terminations for default that result in claim payments ....................................................................
2264
Other adjustments, net .............................................
2210
2231
2251

–100
–112
–126
–695 ................... ...................

42
1,920
–1,913

74.40
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: Uninvested .................................
Receivables from federal accounts ...........................

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

49
1,913

–82
49
131 ...................
49
1,774
–1,774

49
1,933
–1,933

–82
49
49
131 ................... ...................
49
1,774

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from program account .....................
–157
–166
88.00
Repayment of principal and interest from liquidating account ..........................................
–97
–117
88.25
Interest on uninvested funds ............................... ...................
–23
Non-Federal sources:
88.40
Fees and premiums ..........................................
–277
–486
88.40
Recoveries on defaulted mortgages .................
–60
–55
88.40
Single family property recoveries .....................
–246
–153
88.40
Title I recoveries ...............................................
–6
–8
88.40
Proceeds from sale of mortgage notes ............
–934 ...................
88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–1,777
–131

89.00
90.00

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

227
136

49
1,933

–136
–217
–23
–574
–49
–168
–13
–393

–1,008
–1,573
131 ...................

2290

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

45,663

55,662

66,157

2299

1,920

21.40

23.90
23.95
24.40

473

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

45,663

55,662

66,157

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................

159
210
518
167
333
512
–67
–25
–39
–49 ................... ...................

2390

210

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

518

991

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and thereafter (including modifications of loan guarantees that resulted from commitments in any year) for FHA’s
General and Special Risk Insurance Fund programs. The
amounts in this account are a means of financing and are
not included in the budget totals. As required by the Federal
Credit Reform Act of 1990, no administrative expenses can
be recorded in the financing account.
Balance Sheet1 (in millions of dollars)
Identification code 86–4077–0–3–371

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1107
Borrowings receivable from liquidating account ........................
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross ......................................
1504
Foreclosed property .............................
1505
Allowance for subsidy cost .................
1599
1901

Net value of assets related to defaulted guaranteed loan ............
Other Federal assets: Other assets ........

1999

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................
Non-Federal liabilities:
2204
Liabilities for loan guarantees ...........
2207
Other ...................................................

1996 actual

1997 actual

1998 est.

1999 est.

589

333

152

152

336

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

622

405

159
118
–164

210
195
–235

518
271
–457

991
311
–732

113
..................

170
1

332
..................

570
97

1,038

504

1,106

1,224

421

572

1,195

1,336

617
..................

–72
4

–89
..................

–112
..................

2999
1,260
766

750
360

Total liabilities ....................................
NET POSITION:

1,038

504

1,106

1,224

3999

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

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

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

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

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

474

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

Credit accounts—Continued
FHA—GENERAL

AND

SPECIAL RISK GUARANTEED LOAN FINANCING
ACCOUNT—Continued

Balance Sheet1 (in millions of dollars)—Continued
1996 actual

Identification code 86–4077–0–3–371

4999

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

1997 actual

1,038

504

1998 est.

1999 est.

1,106

1,224

1 Preliminary results pending final audit. Subsidy reestimates for fiscal year 1997 disbursements will be performed
for the Mid-Session review of the Budget.

The amounts in this account are a means of financing and
are not included in the budget totals. As required by the
Federal Reform Act of 1990, no administrative expenses can
be recorded in the financing account.
This schedule includes two direct loan programs. One provides bridge loan financing to facilitate the disposition of multifamily housing owned by the Department to non-profit organizations who agree to preserve it as affordable rental or
cooperative housing. The second is a single-family direct loan
program for purchase money mortgages, as discussed in the
preceding section for the Mutual Mortgage Insurance Fund.
Balance Sheet (in millions of dollars)

FHA—GENERAL

AND

SPECIAL RISK DIRECT LOAN FINANCING
ACCOUNT

Program and Financing (in millions of dollars)
Identification code 86–4105–0–3–371

00.01
00.02
10.00

1997 actual

Obligations by program activity:
Direct loans ....................................................................
1
Interest paid to Treasury ............................................... ...................
Total obligations ........................................................

1

1996 actual

1997 actual

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

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

1

4

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

1

21

66

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

1

21

66

Total assets ........................................
LIABILITIES:
Federal liabilities:
2103
Treasury borrowing ..............................
2104
Resources payable to Treasury ...........

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

1

22

70

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

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

21
1

66
4

2999

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

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

1

22

70

4999

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

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

1

22

70

Identification code 86–4105–0–3–371

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............

1998 est.

1999 est.

20
2

50
7

22

57

1499

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

1999

67.15
68.00

Total budgetary resources available for obligation
1
New obligations .............................................................
–1
Unobligated balance available, end of year:
Uninvested ................................................................. ...................
New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ...................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................
1

1
60

23
–22

61
–57

1

4

20

50

FHA—LOAN GUARANTEE RECOVERY FUND—FINANCING ACCOUNT

3

10

Program and Financing (in millions of dollars)

70.00

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

1

23

60

73.10
73.20
87.00

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

1
–1
1

22
–22
22

57
–57
57

Offsets:
Against gross financing authority and financing disbursements:
88.40
Offsetting collections (cash) from: Interest received
on loans ................................................................

Identification code 86–4106–0–3–371

–3

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

20
19

Status of Direct Loans (in millions of dollars)
Identification code 86–4105–0–3–371

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

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

1997 actual

1998 est.

3

5

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

3

2

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

–3

–2

89.00
90.00
120
–100

120
–70

1

20

50

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year ............................................. ...................
1
1231 Disbursements: Direct loan disbursements ...................
1
20
1251 Repayments: Repayments and prepayments ................. ................... ...................

21
50
–5

1290

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

3
2
5

1999 est.

120
–119

1999 est.

3

–10

50
47

1998 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ................... ...................
22.00 New financing authority (gross) .................................... ...................
3

68.00
89.00
90.00

1997 actual

21.40

23.90
24.40

–1

1999 est.

1101

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested ................................................................. ................... ...................
22.00 New financing authority (gross) ....................................
1
23
23.90
23.95
24.40

1998 est.

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

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4106–0–3–371

1997 actual

1998 est.

1999 est.

66

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

1

21

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders ..............................................................................
2113 Uncommitted limitation carried forward .......................
2150

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and thereafter (including loan modifications) for FHA’s General Insurance and Special Risk Insurance Fund programs.

2210
2231
2290

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

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

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

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year ............................................. ................... ...................
Disbursements of new guaranteed loans ...................... ...................
3
Outstanding, end of year .......................................... ...................

3

3
3
6

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

2299

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

87.00
3

6

Section 4 of the Church Arson Prevention Act of 1996 (P.L.
104–155), entitled ‘‘Loan Guarantee Recovery Fund,’’ authorizes the Secretary of Housing and Urban Development to
guarantee loans made by financial institutions to assist certain nonprofit organizations that were damaged as a result
of acts of arson or terrorism.
FHA—GENERAL

AND

SPECIAL RISK INSURANCE FUNDS LIQUIDATING
ACCOUNT

Program and Financing (in millions of dollars)
Identification code 86–4072–0–3–371

1997 actual

Obligations by program activity:
Operating expenses:
00.02
Interest on debentures ..............................................
5
00.03
Other operating costs ................................................
50
00.04
Property disposition related contracts ...................... ...................
00.05
Legislative savings repayments ................................
109
00.06
PAE & 3rd party restructuring fees .......................... ...................
00.91
01.01
01.02
01.03
01.04
01.05
01.07
01.08
01.10
01.11

1998 est.

5
8
4
117
6

1999 est.

5
8
8
217
69

Total operating expenses ......................................
164
140
307
Capital investment: Claims and other:
Acquisition of defaulted Title I notes .......................
37
33
30
Assignment of mortgages .........................................
333
428
544
Acquisition of real properties ....................................
215
199
152
Rehabilitation of real properties ...............................
54
34
44
Mark-to-Market Restructures .................................... ...................
102
1,603
Capitalized property expenses ...................................
112
147
147
Loss on defaulted guaranteed loans ........................
14 ................... ...................
Tax advances on held mortgages .............................
65
33
33
SF partial claims ....................................................... ...................
4
3

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

853

475

1,120

2,863

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Fees and premiums ..........................................
–232
–201
–194
88.40
Rebates of insurance premiums ......................
7
7
7
88.40
Multifamily foreclosure sales ...........................
–3
–108
–147
88.40
Proceeds from sale of real property ................
–186
–158
–184
88.40
Proceeds from sale of mortgage notes ............
–560 ...................
–285
88.40
MTM second mortgage repayments ................. ...................
–1
–7
88.40
Prior year adjustment .......................................
3 ................... ...................
88.40
Recoveries on defaulted mortgages .................
–131
–53
–52
88.40
Interest and operating income .........................
–206
–105
–110
88.40
Recoveries on defaulted Title I mortgages ......
–15
–12
–10
88.40
Other interest, dividends and revenue ............
–8
–9
–8
88.40
Modification subsidy & transfers from financing acct. .......................................................
–8
–7 ...................
88.90

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

–1,339

–647

–990

89.00
90.00

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

47
–486

66
473

1,939
1,873

Summary of Budget Authority and Outlays
(in millions of dollars)

1997 actual
1998 est.
Enacted/requested:
Budget Authority .....................................................................
47
66
Outlays ....................................................................................
–486
473
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

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

47
–486

66
473

1999 est.

1,939
1,873
23
–2
1,962
1,871

Status of Direct Loans (in millions of dollars)
01.91

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

829

980

2,556

10.00

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

994

1,120

2,863

Identification code 86–4072–0–3–371

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested .................................................................
21.41
U.S. Securities: Par value .........................................
21.99
22.00
22.10
22.40
22.60
23.90
23.95

2,089
7

2,420 ...................
8 ...................

Total unobligated balance, start of year .............
2,096
2,428 ...................
New budget authority (gross) ........................................
1,386
713
2,929
Resources available from recoveries of prior year obligations .......................................................................
1 ................... ...................
Capital transfer to general fund ................................... ...................
–1,955 ...................
Redemption of debt .......................................................
–61
–66
–66

24.40
24.41

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

24.99

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

3,422
–994

1,120
–1,120

2,420 ................... ...................
8 ................... ...................
2,428 ................... ...................

New budget authority (gross), detail:
60.05 Appropriation (indefinite) ............................................... ................... ...................
67.15 Authority to borrow (indefinite) .....................................
47
66
68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..............................................
1,339
647
70.00

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

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

2,863
–2,863

1,386

713

1,873
66
990

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

1290

279
423
423
994
1,120
2,863
–853
–1,120
–2,863
4 ................... ...................
–1 ................... ...................
423

423

423

47
806

713
2,863
407 ...................

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

1997 actual

1998 est.

1999 est.

97
–13
–6

78
–10
–3

65
–8
–2

78

65

55

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4072–0–3–371

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2262
Terminations for default that result in acquisition
of property .............................................................
2263
Terminations for default that result in claim payments ....................................................................
2264
Other adjustments, net .............................................
2210
2251

1997 actual

1998 est.

1999 est.

48,423
–3,422

42,405
–1,949

39,690
–1,756

–369

–465

–577

–215

–199

–152

–14
–102
–1,603
–1,998 ................... ...................

2290

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

42,405

39,690

35,602

2299

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

42,405

39,690

35,602

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................
2364
Other adjustments, net .............................................

2,941
369
–1,050
–93
43

2,929

72.40

86.97
86.98

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................
1264 Write-offs for default: Other adjustments, net .............

2390

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

2,210

2,210
2,388
465
577
–121
–445
–232
–545
66 ...................
2,388

1,975

The General Insurance fund provides for a large number
of specialized mortgage insurance programs, including the in-

476

HOUSING PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999
1901

Credit accounts—Continued
FHA—GENERAL

AND

SPECIAL RISK INSURANCE FUNDS LIQUIDATING
ACCOUNT—Continued

surance of loans for property improvements as well as for
cooperatives, condominiums, housing for the elderly, rental
housing and nonprofit hospitals.
The Special Risk Insurance fund provides insurance on behalf of mortgagors who otherwise would not be eligible for
mortgage insurance. In addition, the fund provides insurance
on mortgages covering experimental housing where strict adherence to State or local building regulations was not observed.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from loan guarantees committed and direct loans obligated prior to 1992. This account
is shown on a cash basis. New insurance and direct loan
activity in 1992 and thereafter in the GI/SRI programs is
recorded in corresponding program (86–0200) and financing
(86–4077 and 86–4105) accounts.
Section 571 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1998 established the Office of Multifamily
Housing Assistance Restructuring within HUD to administer
the program of mortgage and rental assistance restructuring.
Included in the budget estimates for this account are projections for the financial operations of the office. More detailed
information will be provided to Congress at a later date.
Financial Condition.—The following tables reflect the revenues, expenses, and financial condition of the GI/SRI Liquidating Account based on Generally Accepted Accounting
Principles.
Statement of Operations (in millions of dollars)
Identification code 86–4072–0–3–371

1996 actual1

1997 actual2

Other Federal assets: Other assets ........

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

330

330

330

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2102
Interest payable ..................................
2104
Resources payable to Treasury ...........
Non-Federal liabilities:
2201
Accounts payable ................................
2202
Interest payable ..................................
2203
Debt .....................................................
2206
Pension and other actuarial liabilities
Other:
2207
Unearned revenue and advances ...
2207
Other ...............................................

3,502

3,809

1,400

1,316

373
..................
..................

363
..................
..................

363
..................
..................

363
..................
..................

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

443
..................
..................
6,685

443
..................
..................
6,300

443
..................
..................
6,000

111
209

124
..................

124
..................

124
..................

2999

9,796

7,615

7,230

6,930

3100
3300

5,350
–19,115

5,290
–16,567

5,290
–16,636

7,290
–18,420

7,471
..................

7,471
..................

7,471
–1,955

7,471
–1,955

1999

Total liabilities ....................................
NET POSITION:
Appropriated capital ................................
Cumulative results of operations ............
Other:
3600
Debt Forgiveness .................................
3600
Balances transfered ............................
3999

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

–6,294

–3,806

–5,830

–5,614

4999

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

3,502

3,809

1,400

1,316

1 As

Object Classification (in millions of dollars)
Identification code 86–4072–0–3–371

25.1
25.2
32.0
33.0
42.0
43.0
44.0
99.9

1998 est.

reflected in 1998 Budget.
pending final audit.

2 Preliminary

1997 actual

1998 est.

Advisory and assistance services .................................. ...................
Other services ................................................................
50
Land and structures ......................................................
269
Investments and loans ..................................................
370
Insurance claims and indemnities ................................
191
Interest and dividends ...................................................
5
Repayments to financing account .................................
109
Total obligations ........................................................

994

4
14
233
567
180
5
117

8
77
196
2,180
180
5
217

1,120

2,863

1999 est.

0101
0102

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

370
–167

520
–55

299
–368

299
–2,083

0109

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

203

465

–69

FHA—GENERAL

–1,784

1 As

reflected in the 1998 Budget.
2 Preliminary results pending final audit.

AND

SPECIAL RISK INSURANCE FUNDS LIQUIDATING

(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 86–4072–2–3–371

Balance Sheet (in millions of dollars)

1997 actual

1998 est.

Obligations by program activity:
Increase in 3rd party fees ............................................. ................... ...................
Capital investment: Claims and other:
01.01
Change to baseline project restructuring costs ....... ................... ...................
01.03
Legislative savings repayment to financing account ................... ...................
00.01

Identification code 86–4072–0–3–371

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury securities, par ..................
1106
Receivables, net .............................
1107
Advances and prepayments ...........
Non-Federal assets:
1206
Receivables, net ..................................
1207
Advances and prepayments ................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1699
1701
1703
1704
1705
1706
1799

Value of assets related to direct
loans ..........................................
Defaulted guaranteed loans, gross ....
Allowance for estimated uncollectible
loans and interest (–) ....................
Defaulted guaranteed loans and interest receivable, net .....................
Allowance for uncollectables from
foreclosed property .........................
Foreclosed property .............................
Value of assets related to loan
guarantees .................................

1996 actual1

1997 actual2

1998 est.

1999 est.

1999 est.

1999 est.

5
–25
18

2,092

2,842

423

423

01.91

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

–7

7
16
..................

7
3
..................

..................
3
..................

..................
3
..................

10.00

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

–2

22.00
22.40

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
Capital transfer to general fund ................................... ................... ...................

23
–25

23.90
23.95

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

–2
2

60.05

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

23

73.10
73.20

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

–2
2

86.97
86.98

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

23
–25

87.00

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

–2

89.00
90.00

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

23
–2

175
..................

86
..................

86
..................

86
..................

97

78

65

55

–21

–59

–49

–41

76
2,940

19
2,210

16
2,388

14
1,975

–1,957

–1,801

–1,946

–1,609

983

409

442

366

–479
632

–182
295

–160
260

–150
244

1,136

522

542

460

HOUSING PROGRAMS—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

This adjustment reflects the effect of repealing sections
513(b)(7)(g) and 517(d) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997. Section 513(b)(7)(g) of
the Act prohibits any private entity from sharing, participating in, or otherwise benefiting from any equity created, received, or restructured as a result of a portfolio restructuring
agreement. Section 517(d) of the Act prohibits the Secretary
of HUD from participating in any equity sharing or profit
sharing arrangement.
The Department will be reporting in February, 1998, on
possible ways that equity sharing might be developed in connection with portfolio restructuring. Currently, HUD is using
joint venture arrangements with non-profit partners under
the multifamily demonstration as a mechanism to achieve
savings.
Object Classification (in millions of dollars)
1997 actual

Identification code 86–4072–2–3–371

1998 est.

1999 est.

25.1
33.0
44.0

Advisory and assistance services .................................. ................... ...................
Investments and loans .................................................. ................... ...................
Repayments to financing account ................................. ................... ...................

5
–25
18

99.9

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

–2

HOUSING

FOR THE

ELDERLY

OR HANDICAPPED FUND LIQUIDATING
ACCOUNT

Program and Financing (in millions of dollars)
Identification code 86–4115–0–3–371

Obligations by program activity:
Capital investment:
00.01
Housing for the elderly or handicapped loans .........
00.02
Maintenance security and collateral .........................

1997 actual

2
2

1998 est.

1999 est.

13 ...................
4
4

00.91
01.01

Subtotal, capital investment ................................
Operating expenses: Interest on borrowings .................

4
436

17
361

4
309

10.00

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

440

378

313

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
462
920 ...................
22.00 New budget authority (gross) ........................................
786
751
751
22.10 Resources available from recoveries of prior year obligations .......................................................................
112 ................... ...................
22.60 Redemption of debt ....................................................... ...................
–1,293
–438
21.40

23.90
23.95
24.40

60.05
60.47
63.00
68.00
70.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested .................................................................
New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
Portion applied to debt reduction .................................

1,360
–440

378
–378

313
–313

920 ................... ...................

735
–735

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

786

89.00
90.00

751

751

86.97
86.98
87.00

–751

1997 actual

1998 est.

1999 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
8,306
8,228
8,342
1231 Disbursements: Direct loan disbursements ...................
6
184 ...................
1251 Repayments: Repayments and prepayments .................
–84
–70
–71
Write-offs for default:
1263
Direct loans ............................................................... ................... ................... ...................
1264
Other adjustments, net ............................................. ................... ................... ...................
1290

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

8,228

8,342

8,271

Note.—Amounts for direct loan obligations reflect reservations of section 202 funds. Loan obligations shown
under the program and financing schedule reflect loans that have reached the initial closing stage of processing.

The Housing for the Elderly or Handicapped Fund was
established pursuant to section 202 of the Housing Act of
1959, as amended. The fund provided direct loans to nonprofit
organizations building and managing housing projects for
lower income persons who are elderly or disabled.
Projects included an assured range of necessary services
for the occupants of such projects. In addition, the section
8 lower income housing assistance payments program has
been used in conjunction with the section 202 program. Applications under the two programs have been processed simultaneously.
The data included in these schedules represent direct loan
activities funded under the Housing for the Elderly or Handicapped Loan Fund. Further, activities in support of the needs
of the elderly and disabled have been carried out under a
grant program funded in the 1991 Appropriations Act (P.L.
101–507) and authorized in the National Affordable Housing
Act (P.L. 101–625).
After April 1, 1992, all projects for which there were administrative reservations converted to the capital advance assistance program.
For 1999, funding is being requested for assistance on behalf of the elderly and disabled under the HOME Investment
Partnerships Program.
The program and financing schedule for this account summarizes the Federal government’s obligations for this loan
program.
Financing.—Repayments and interest income from loans
continue to be available to pay for commitments of the fund.
Statement of Operations (in millions of dollars)
Identification code 86–4115–0–3–371

1996 actual

1997 actual

1998 est.

1999 est.

0101
0102

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

700
–573

699
–440

681
–364

680
–313

0109

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

127

259

317

367

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

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1602
Interest receivable ..............................

1996 actual

1997 actual

1998 est.

1999 est.

887
83

1,027
81

1,417
81

1,177
81

8,306
..................

8,228
..................

8,343
..................

8,272
..................

1101

123

110

Outlays (gross), detail:
Outlays from new permanent authority .........................
646
362
Outlays from permanent balances ................................ ................... ...................

202
123

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

–751

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–141
–389
–426

Identification code 86–4115–0–3–371

72.40

425
107
123
440
378
313
–646
–362
–325
–112 ................... ...................

–786

Status of Direct Loans (in millions of dollars)

881 ...................
–881 ...................

Appropriation (total) .................................................. ................... ................... ...................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................
786
751
751
Total new budget authority (gross) ..........................

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

477

107

646

362

325

HOUSING PROGRAMS—Continued
Federal Funds—Continued

478

THE BUDGET FOR FISCAL YEAR 1999

Credit accounts—Continued
HOUSING

FOR THE

Balance Sheet (in millions of dollars)

ELDERLY OR HANDICAPPED FUND LIQUIDATING
ACCOUNT—Continued

1603
1604
1606
1699
1901

Allowance for estimated uncollectible
loans and interest (–) ....................
Direct loans and interest receivable,
net ..................................................
Acquired Real Property .......................
Value of assets related to direct
loans ..........................................
Other Federal assets: Other assets ........

1999

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................

1997 actual

1998 est.

1999 est.

6

6

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

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

1

1

1

1

–1

–1

–1

–1

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

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

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

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

6

6

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

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

1101

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

1996 actual

Identification code 86–4042–0–3–604

1996 actual

1997 actual

1998 est.

1999 est.

–20

–21

–21

–21

8,286
..................

8,207
1

8,322
1

8,251
1

1699
8,286
1

8,208
..................

8,323
..................

8,252
..................

9,257

9,316

9,821

9,510

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

291
8
6,909

90
9
6,174

184
9
5,293

157
9
4,628

2999

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

7,208

6,273

5,486

2,784
259

2,784
1,551

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

2,049

3,043

4,335

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

9,257

9,316

9,821

9,510

6

6

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

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

3999

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

6

6

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

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

4999

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

6

6

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

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

4,716

4999

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

2,784
1,932

3999

1999

4,794

2,021
28

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

Object Classification (in millions of dollars)
Identification code 86–4115–0–3–371

1997 actual

1998 est.

1999 est.

32.0
33.0
43.0

Land and structures ......................................................
Investments and loans ..................................................
Interest and dividends ...................................................

2
2
436

4
4
13 ...................
361
309

99.9

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

440

378

313

NONPROFIT SPONSOR ASSISTANCE LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 86–4042–0–3–604

1997 actual

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
6
22.40 Capital transfer to general fund ................................... ...................

1998 est.

1999 est.

89.00
90.00

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

6 ...................
–6 ...................

GUARANTEES

OF

MORTGAGE-BACKED SECURITIES LOAN GUARANTEE
PROGRAM ACCOUNT

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

(INCLUDING TRANSFER OF FUNDS)

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

During fiscal year ø1998¿ 1999, new commitments to issue guarantees to carry out the purposes of section 306 of the National Housing
Act, as amended (12 U.S.C. 1721(g)), shall not exceed
ø$130,000,000,000¿ $150,000,000,000.
For administrative expenses necessary to carry out the guaranteed
mortgage-backed securities program, $9,383,000, to be derived from
the GNMA-guarantees of mortgage-backed securities guaranteed loan
receipt account, of which not to exceed $9,383,000 shall be transferred
to the appropriation for departmental salaries and expenses. (Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1998.)

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

Status of Direct Loans (in millions of dollars)
Identification code 86–4042–0–3–604

Federal Funds

The Housing and Urban Development Act of 1968 authorized the Government National Mortgage Association (Ginnie
Mae) to guarantee the timely payment of principal and interest on privately issued securities that are backed by pools
of FHA, Veterans Affairs (VA) and Rural Housing Service
mortgages. The Ginnie Mae guarantee gives lenders access
to the capital markets for funds to originate new loans. New
FHA and VA loans are currently pooled into Ginnie Mae
securities.
Financing.—Ginnie Mae issuers are assessed commitment,
guarantee and other fees to cover costs incurred by Ginnie
Mae and to fund a reserve against possible future payments
under the guarantee.
Operating results.—Fee collections, interest, and other income are expected to exceed expenses by $329 million and
$402 million in 1998 and 1999 respectively.
Credit accounts:

21.40

23.90
24.40

GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION

1997 actual

1998 est.

1999 est.

1210

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

1

1

1

1290

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

1

1

1

Unavailable Collections (in millions of dollars)
Identification code 86–0186–0–1–371

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
prior to 1992. This account is shown on a cash basis.
The Nonprofit Sponsor Assistance fund provided interestfree loans to nonprofit organizations to plan housing projects
to be financed under the section 202 housing for the elderly
or disabled program.

1997 actual

1998 est.

1999 est.

Balance, start of year:
Balance, start of year .................................................... ................... ...................
Receipts:
02.01 Guarantees of mortgage backed securities guarantee
loans, negative subsidies .........................................
9
391

5,715

04.00

01.99

Total: Balances and collections ....................................
Appropriation:
05.01 Guarantees of mortgage-backed securities loan guarantee program account .............................................

382

9

391

6,097

–9

–9

–9

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
07.99

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

382

6,088

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

479

21.40

Program and Financing (in millions of dollars)
Identification code 86–0186–0–1–371

1997 actual

1998 est.

1999 est.

23.90
23.95
24.40

00.01

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

9

9

9

10.00

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

9

9

9

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

68.00
9
–9

9
–9

9
–9

9

9

9

73.10
73.20

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

9
–9

9
–9

9
–9

86.90

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

9

9

9

89.00
90.00

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

9
9

9
9

9
9

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
1997 actual

1998 est.

1999 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

110,000

130,000

150,000

2159

110,000

130,000

407
505

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

164
–9

608
–201

912
–418

155

407

494

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

37

453

505

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested ................................................................. ................... ...................
73.10 New obligations .............................................................
9
201
73.20 Total financing disbursements (gross) .........................
–9
–211
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested ................................................................. ...................
–9
87.00 Total financing disbursements (gross) .........................
9
211
Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.25
Interest on uninvested funds ...............................
–10
Non-Federal sources:
88.40
Non-Federal sources: Commitment and other
fees .............................................................. ...................
88.40
Non-Federal sources ......................................... ...................
88.40
Non-Federal sources .........................................
–27
88.40
Non-Federal sources ......................................... ...................

150,000

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

155
453

72.40

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

Identification code 86–0186–0–1–371

127
37

0.00

–0.32

–0.42

0.00

–0.32
–9

–9

–9

–9

–9

–9

–9

2349

–9

–9

–9

–12

–24

–286
–81
–63
–11

–351
–55
–64
–11

88.90
88.95

Total, offsetting collections (cash) ..................
–37
–453
–505
Change in receivables from program accounts ............ ................... ................... ...................

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ...............................................
–28
–242
–92

–9

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

–4
413

–0.42

–9

–9
418
–413

2329

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................
2339

Total subsidy outlays ................................................

The schedule above reflects new methodology under credit
reform for Ginnie Mae. During transition to the new methodology, negative subsidy will not match disbursement from
the Ginnie Mae financing account to the Ginnie Mae receipt
account.
As required by the Federal Credit Reform Act of 1990,
this account records the administrative expenses of this program. The administrative expenses are estimated on a cash
basis.

GUARANTEES

OF

MORTGAGE-BACKED SECURITIES FINANCING
ACCOUNT

Obligations by program activity:
00.01 Payment to receipt account for administration ............
00.02 Payment to receipt account for negative subsidy ........
00.03 Payment to receipt account for multi-class savings
proposals ...................................................................
00.04 Operating expenses ........................................................
00.05 Capital investment ........................................................

1997 actual

Identification code 86–4240–0–3–371

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
Disbursements:
1232
Purchase of loans assets from the public ...............
1233
Purchase of loans assets from a liquidating account .....................................................................
1252 Repayments: Proceeds from loan asset sales to the
public or discounted .................................................
1290

1998 est.

9
45

9
286

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

27 ...................
38
43
82
80

1998 est.

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

74

1999 est.

255
71

265 ...................

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

–84

–58

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

255

268

Status of Guaranteed Loans (in millions of dollars)
Identification code 86–4240–0–3–371

1997 actual

1998 est.

1999 est.

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders ..............................................................................
110,000
130,000
150,000
2112 Uncommitted loan guarantee limitation ....................... ................... ................... ...................
Total guaranteed loan commitments ........................

2210
2231
2251
2264

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments: Other adjustments, net ...........................

1999 est.

9
...................

1997 actual

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

2150

Program and Financing (in millions of dollars)
Identification code 86–4240–0–3–371

Status of Direct Loans (in millions of dollars)

110,000

130,000

150,000

................... ...................
468,737
...................
107,472
108,658
...................
–200
–289
...................
361,465 ...................

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

9

201

418

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

468,737

577,106

2299
10.00

2290

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

468,737

577,106

480

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999
New budget authority (gross), detail:
Spending authority from offsetting collections:
Offsetting collections (cash):
68.00
Offsetting collections (cash) ................................
68.00
Spending authority from offsetting collections
(REMICs) ...........................................................

Credit accounts—Continued
GUARANTEES

OF

MORTGAGE-BACKED SECURITIES FINANCING
ACCOUNT—Continued

Balance Sheet (in millions of dollars)
Identification code 86–4240–0–3–371

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1699
1801

Value of assets related to direct
loans ..........................................
Other Federal assets: Cash and other
monetary assets ..................................

1996 actual

127
..................

1997 actual

155
..................

1998 est.

1999 est.

397
23

495
30

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

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

274

380

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

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

–159

–217

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

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

115

163

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

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

8

10

155

543

698

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

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

19
402

40
453

2999

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

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

421

493

127

155

120

206

3999

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

127

155

120

206

4999

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

127

155

541

699

Note.—Ginnie Mae guarantees the timely payment of principal and interest installments on securities which
are backed by FHA-insured, Rural Housing Service-insured, and VA-guaranteed mortgages. Such guarantees are
excluded from the Government total of guaranteed obligations duplicating FHA, Rural Housing Service, and VA
guarantees.

GUARANTEES

5

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

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

766

317

5

70.00

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

766

317

5

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested1 ...............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

–78
158
–164

–85
340
–627

–62
5,434
–5,372

72.40

127

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

317

68.90

Total assets ........................................
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2207
Other ...................................................

1999

754

86.98

MORTGAGE-BACKED SECURITIES LIQUIDATING
ACCOUNT
Program and Financing (in millions of dollars)

164

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

–62 ...................

627

5,372

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.20
Interest on U.S. securities ....................................
–306
–259 ...................
88.25
Interest on uninvested funds ............................... ...................
–3 ...................
Non-Federal sources:
88.40
Guarantee fees .................................................
–326
–55
–5
88.40
Repayments of guaranteed payments .............
–84 ................... ...................
88.40
Commitment and other fees ............................
–22 ................... ...................
88.40
Servicing income ..............................................
–11 ................... ...................
88.40
Receipts from sale of REO properties and
mobile home units .......................................
–16 ................... ...................
88.40
Repayments on mortgages ...............................
–1 ................... ...................
88.40
Sale of servicing rights .................................... ................... ................... ...................
88.90

89.00
90.00

OF

–85

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

–766

–317

–5

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–602
310
5,367

1 This

line nets unpaid obligations and offsetting collections from new Federal sources.

Status of Direct Loans (in millions of dollars)
Identification code 86–4238–0–3–371

1997 actual

1998 est.

1999 est.
1997 actual

Identification code 86–4238–0–3–371

1998 est.

1999 est.

Obligations by program activity:
00.01 Functional services ........................................................
Operating expenses:
00.02
Default expenses .......................................................
00.03
Servicing expenses ....................................................
00.04
Other expenses ..........................................................
00.05
REMIC expenses ........................................................

10
2
1
6
1
1
16
3
2
4 ................... ...................

00.91

49

9

5

94
15

18
3

8
1

Total capital investment .......................................
109
Other:
Transfer to Receipt Account ...................................... ...................

21

9

310

5,420

158

340

5,434

2210
2231
2251
2264

82

85

61

2290

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

530,042

90,317

7,710

2299

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

530,041

90,316

7,709

01.01
01.02
01.91
02.01
10.00

Total operating expenses ......................................
Capital investment:
Advances of guaranty payments ...............................
Real estate owned properties ...................................

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

13

3

1

1290

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

4,772
–10

5,382
5,368
–15 ...................

21.99
22.00

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

4,844
766

5,452
317

5,429
5

23.90
23.95

5,610
–158

5,769
–340

5,434
–5,434

24.41
24.42

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

24.99

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

5,452

332

85

19

8

–1 ...................
–265 ...................

332

85

93

Status of Guaranteed Loans (in millions of dollars)
1997 actual

Identification code 86–4238–0–3–371

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested .................................................................
U.S. Securities:
21.41
Par value ...............................................................
21.42
Unrealized discounts .............................................

24.40

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
321
1232 Disbursements: Purchase of loans assets from the
public .........................................................................
98
1252 Repayments: Proceeds from loan asset sales to the
public or discounted .................................................
–87
1264 Write-offs for default: Other adjustments, net ............. ...................

1998 est.

1999 est.

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
497,433
530,042
90,317
Disbursements of new guaranteed loans ......................
97,569 ................... ...................
Repayments and prepayments ......................................
–64,960
–78,260
–82,607
Adjustments: Other adjustments, net ........................... ...................
–361,465 ...................

Budget Program.—Program activity is summarized below:
Mortgage-backed Securities*
[In millions of dollars]

85

61 ...................

5,382
5,368 ...................
–15 ................... ...................
5,429 ...................

1997 actual

Commitment limitation ..................................................
Commitments issued .....................................................
Guarantees issued .........................................................
Securities outstanding ...................................................
* Includes both financing and liquidating account activity.

110,000
98,869
97,569
530,041

1998 est.

130,000
130,000
107,472
649,369

1999 est.

150,000
150,000
108,000
592,525

POLICY DEVELOPMENT AND RESEARCH
Federal Funds

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Operating results.—Fee collections, interest, and other income are expected to exceed expenses by $573 million in
1997, $309 million in 1998, and $1 million in 1999. These
amounts will be retained to cover future year expenses and
as a reserve against losses that may be incurred on guarantees.
Statement of Operations (in millions of dollars)
Identification code 86–4238–0–3–371

Revenue:
Revenue ...................................................
Revenue (REMICs) ...................................
Expense:
0102 Expense ....................................................
0102 Expense (REMICs) ....................................
Net income or loss (–):
0101
0101

1996 actual

1997 actual

1998 est.

1999 est.

576
11

641
12

317
..................

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

–96
–4

–76
–4

–8
..................

–4
..................

0109

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

480

565

309

1

0109

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

7

8

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

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

0199

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

487

573

309

POLICY DEVELOPMENT AND RESEARCH
Federal Funds
General and special funds:
RESEARCH

AND

TECHNOLOGY

For contracts, grants, and necessary expenses of programs of research and studies relating to housing and urban problems, not otherwise provided for, as authorized by title V of the Housing and Urban
Development Act of 1970, as amended (12 U.S.C. 1701z–1 et seq.),
including carrying out the functions of the Secretary under section
1(a)(1)(i) of Reorganization Plan No. 2 of 1968, ø$36,500,000¿
$50,000,000, to remain available until September 30, ø1999¿ 2000,
of which $10,000,000 shall be for activities to support the Partnership
for Advanced Technologies in Housing.
øOf the amount made available under this heading, $500,000 shall
be made available for a contract with the National Academy of Public
Administration to evaluate the Secretary’s efforts to implement needed management systems and processes.¿ (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

1

Program and Financing (in millions of dollars)
Identification code 86–0108–0–1–451

Balance Sheet (in millions of dollars)
Identification code 86–4238–0–3–371

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury securities, par ..................
1104
Agency securities, par ....................
1106
Receivables, net .............................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1699
1801

Value of assets related to direct
loans ..........................................
Other Federal assets: Cash and other
monetary assets ..................................

1998 est.

00.01
00.02

1996 actual

1997 actual

1999 est.

4

1

1

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

4,785
..................
60
28

5,382
..................
73
33

5,368
..................
61
8

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

10.00

321

332

85

93

–288

–303

–52

–86

Total assets ........................................
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2207
Other ...................................................
2999

1997 actual

1998 est.

Obligations by program activity:
Housing Research ..........................................................
35
40
Research Fund for America ........................................... ................... ...................

1999 est.

40
10

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

35

40

50

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

2
36

3 ...................
37
50

21.40

23.90
23.95
24.40

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

38
–35

40
–40

50
–50

3 ................... ...................

29

33

10

2

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

4,915

5,528

5,473

11

36
473

39
509

7
101

4
50

50

7

5

40
10

43.00

33

New budget authority (gross), detail:
Current:
Appropriation:
40.00
Appropriation .........................................................
34
37
40.00
Appropriation ......................................................... ................... ...................

68.00
1999

481

70.00

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

509

548

108

54

4,406

4,979

5,365

–43

3999

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

4,406

4,979

5,365

–43

4999

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

4,915

5,527

5,473

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

34

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

36

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

37

2 ................... ...................
37

50

72.40

25
26
26
35
40
50
–33
–40
–41
–1 ................... ...................

11

26

26

35

Object Classification (in millions of dollars)
Identification code 86–4238–0–3–371

25.2
33.0
92.0
99.9

1997 actual

Other services ................................................................
45
Investments and loans ..................................................
113
Undistributed ................................................................. ...................
Total obligations ........................................................

158

1998 est.

1999 est.

9
21
310

5
9
5,420

340

86.90
86.93

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

14
19

15
25

20
21

87.00

Note.—Ginnie Mae guarantees the timely payment of principal and interest installments on securities which
are backed by FHA-insured, Rural Housing Service, and VA-guaranteed mortgages. Such guarantees are excluded
from the Government total of guaranteed obligations duplicating FHA, Rural Housing Service, and VA guarantees.

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

33

40

41

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

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

5,434

89.00
90.00

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

34
31

37
40

50
41

The Housing and Urban Development Act of 1970 directs
the Secretary to undertake programs of research, studies,
testing, and demonstrations related to the HUD mission.
These functions are carried out internally and through con-

482

POLICY DEVELOPMENT AND RESEARCH—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999
22.30

General and special funds—Continued
RESEARCH

AND

TECHNOLOGY—Continued

tracts with industry, nonprofit research organizations, and
educational institutions, and through agreements with State
and local governments and other Federal agencies.
In 1999, the research program will focus on activities to
support research examining the implications of significant
changes in public and assisted housing policy, the impacts
of welfare reform on HUD-assisted households and HUD-subsidized developments, the success of instituting a continuum
of care approach to help the homeless and other areas. National Housing Surveys will continue in 1999.
The 1999 request includes $10 million to support an initiative known as the Partnership for Advancing Technologies
in Housing (PATH). PATH is a key component of the President’s Climate Change Technology Initiative (CCTI). Energy
use in buildings accounts for more than one-third of air emissions, producing more than 350 million metric tons of carbon
emissions. PATH will help to significantly reduce: housing
utility costs; carbon emissions; construction injuries; losses
due to fire and disasters. The funds will be used for PATHrelated housing technology research, field demonstrations of
promising new technologies, information dissemination, and
the development of product evaluation systems.
Funding for PATH is proposed as part of the Research
Fund for America. This proposal highlights the Administration’s priority to providing needed and sustained investments
in important Federal research programs on a deficit neutral
basis. A discussion of the Research Fund for America, and
two other funds for the environment and transportation, can
be found in Section II of the Budget volume.
Object Classification (in millions of dollars)
1997 actual

Identification code 86–0108–0–1–451

1998 est.

1999 est.

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

31
4

35
5

45
5

99.9

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

35

40

50

FAIR HOUSING AND EQUAL OPPORTUNITY
Federal Funds
General and special funds:
FAIR HOUSING ACTIVITIES
For contracts, grants, and other assistance, not otherwise provided
for, as authorized by title VIII of the Civil Rights Act of 1968, as
amended by the Fair Housing Amendments Act of 1988, and section
561 of the Housing and Community Development Act of 1987, as
amended, ø$30,000,000¿ $52,000,000, to remain available until September 30, ø1999¿ 2000, of which ø$15,000,000¿ $29,000,000 shall
be to carry out activities pursuant to such section 561. No funds
made available under this heading shall be used to lobby the executive or legislative branches of the Federal Government in connection
with a specific contract, grant or loan. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1998.)

Unobligated balance expiring ........................................

23.90
23.95
24.40

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

40.00

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

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

–1 ................... ...................
42
–35

38
–38

52
–52

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

30

30

52

32
35
–28

39
38
–22

55
52
–29

39

55

78

72.40

86.93

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

28

22

29

89.00
90.00

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

30
28

30
22

52
29

The Budget proposes an appropriation of $52 million in
1999 for fair housing activities to fund programs, consistent
with the President’s ‘‘One America’’ policy, which will support
new efforts to end housing discrimination, including a commitment to double the number of housing discrimination enforcement actions over the next 4 years. Of the amount requested, $23 million is for the Fair Housing Assistance Program and $29 million is for the Fair Housing Initiatives Program.
The Fair Housing Assistance Program (FHAP), authorized
by title VIII of the Civil Rights Act of 1968 as amended,
provides funding to State and local agencies to assure prompt
and effective processing of Title VIII (Civil Rights Act of 1968)
complaints.
The additional $8 million in funding requested for FHAP
will support the President’s fair housing enforcement initiative by increasing funding to support additional State and
local fair housing organizations to meet the needs of currently
underserved populations. These funds will be used for joint
investigations and enforcement activities with State and local
fair housing agencies to address housing discrimination. It
is estimated that the number of new State and local agencies
with laws equivalent to the Fair Housing Act will increase
to 85 in 1999 from 78 in 1997.
The Fair Housing Initiatives Program (FHIP), authorized
by the Housing and Community Development Act of 1987,
as amended by the Housing and Community Development
Act of 1992, provides support to public and private organizations for the purpose of eliminating or preventing discrimination in housing and for enhancing fair housing opportunities.
Of the $29 million requested, $10 million will be used to
fund an audit-based enforcement initiative which will address
the continued existence of a high level of both blatant and
subtle forms of housing discrimination confirmed through
testing experience. Additional FHIP funding will support extended testing and other anti-discrimination activities by private fair housing groups.

Program and Financing (in millions of dollars)
Identification code 86–0144–0–1–751

1997 actual

1998 est.

1999 est.

OFFICE OF LEAD HAZARD CONTROL
Federal Funds

00.01
00.02

Obligations by program activity:
Fair housing assistance ................................................
Fair housing initiatives ..................................................

11
24

23
15

23
29

10.00

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

35

38

52

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

13
30

8 ...................
30
52

General and Special Funds:
LEAD HAZARD REDUCTION
For the Lead Hazard Reduction Program, as authorized by sections
1011 and 1053 of the Residential Lead-Based Hazard Reduction Act
of 1992, $85,000,000 to remain available until expended, of which
$25,000,000 shall be for a Healthy Homes Initiative, which shall
be a program pursuant to sections 501 and 502 of the Housing and

MANAGEMENT AND ADMINISTRATION
Federal Funds

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Urban Development Act of 1970 that shall include research, studies,
testing, and demonstration efforts, including education and outreach
concerning lead-based paint poisoning and other housing-related environmental diseases and hazards.

MANAGEMENT AND ADMINISTRATION
Federal Funds
General and special funds:
SALARIES

Program and Financing (in millions of dollars)
Identification code 86–0174–0–1–451

1997 actual

1998 est.

1999 est.

85

10.00

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

85

22.00
23.95

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

85
–85

40.00

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

85

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

AND

EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Obligations by program activity:
00.01 Lead abatement ............................................................. ................... ...................

73.10
73.20
74.40

483

For necessary administrative and nonadministrative expenses of
the Department of Housing and Urban Development not otherwise
provided for, including not to exceed $7,000 for official reception
and representation expenses, $1,000,826,000, of which ø$544,443,000¿
$518,000,000 shall be provided from the various funds of the Federal
Housing Administration, $9,383,000 shall be provided from funds of
the Government National Mortgage Association, øand¿ $1,000,000
shall be provided from the ‘‘Community Development Grants Program’’ account, $200,000 shall be provided from the ‘‘Title VI Indian
Federal Guarantees Program Account,’’ and $400,000 shall be provided from the ‘‘Indian Housing Loan Guarantee Fund Program Account’’. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)

85
–1

Identification code 86–0143–0–1–999

1997 actual

1998 est.

1999 est.

86.90

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

1

89.00
90.00

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

85
1

Title X of the Housing and Community Development Act
of 1992 (Public Law 102–550), known as the Residential LeadBased Paint Hazard Reduction Act, authorized the Secretary
to establish the Lead-Based Paint Hazard Control Grant Program. The primary purpose of the program is to reduce the
exposure of young children to lead-based paint hazards in
their homes.
To accomplish this, two major activities are being conducted
within the Department’s Office of Lead Hazard Control. The
first is the Healthy Homes Initiative, which will include a
program to conduct lead-based paint compliance checks. The
Healthy Homes Initiative will also enable the Department
to control additional childhood diseases and injuries that are
caused by housing related factors. The initiative will allow
for a demonstration that evaluates methods of controlling two
or more housing related diseases through a single intervention. A public education/outreach effort, to enable the public
to act effectively to protect their children, will also be conducted.
The second activity is the continuation of the Lead Hazard
Control Grant Program, which provides grants of $1 to $4
million to State and local governments for control of leadbased paint hazards in privately owned, low-income owneroccupied and rental housing. The grants are also designed
to stimulate the development of a trained and certified hazard
evaluation and control industry by requiring all contractors
to be certified and all workers to be trained through a Stateaccredited program. In awarding grants, HUD promotes the
use of cost-effective approaches to hazard control that can
be replicated across the nation.
Prior to 1997, funding for the lead hazard control grant
program was provided under the Annual Contributions for
Assisted Housing Account. In 1997 and 1998, the program
was funded as a set-aside under the Community Development
Block Grant (CDBG) account. In 1999 the program is being
proposed as a separate, stand-alone program.

Obligations by program activity:
Direct program:
00.01
Housing, mortgage credit, regulatory and energy
conservation ..........................................................
00.02
Community planning and development programs
00.03
Equal opportunity and research programs ...............
00.04
Departmental management, legal and audit services ........................................................................
00.05
Field direction and administration ...........................

146
60
62

134
61
61

129
60
60

52
97

52
138

55
168

00.91
09.01

84

Total direct program .............................................
Reimbursable program ..................................................

417
561

446
555

472
529

09.99

Total reimbursable program ......................................

561

555

529

10.00

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

978

1,001

1,001

22.00
22.30

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

23.90
23.95

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

981
1,001
1,001
–3 ................... ...................
978
–978

1,001
–1,001

1,001
–1,001

420

446

472

561

555

529

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

981

1,001

1,001

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

136
978
–981
–7

126
1,001
–995
–6

126
1,001
–995
–6

126

126

126

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

72.40

86.90
86.93
86.97

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

324
96
561

343
97
555

363
103
529

87.00

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

981

995

995

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

–561

–555

–529

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

420
419

446
440

472
466

89.00
90.00

484

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

(INCLUDING TRANSFER OF FUNDS)—Continued

This appropriation finances all salaries and related costs
associated with administering the programs of the Department of Housing and Urban Development, including: housing
and mortgage credit programs; community planning and development programs; equal opportunity, research, regulatory
and insurance programs; departmental management, and
legal services; and, field direction and administration.
Object Classification (in millions of dollars)
1997 actual

Identification code 86–0143–0–1–999

11.1
11.3
11.5
11.8
11.9
12.1
13.0
21.0
22.0
23.1
23.3
24.0
25.1
25.2
25.3
25.4
26.0
31.0

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................
Special personal services payments ....................

1998 est.

1999 est.

221
7
5
3

228
228
7
7
5
5
1 ...................

Total personnel compensation .........................
236
Civilian personnel benefits .......................................
48
Benefits for former personnel ...................................
9
Travel and transportation of persons .......................
6
Transportation of things ........................................... ...................
Rental payments to GSA ...........................................
32
Communications, utilities, and miscellaneous
charges .................................................................
11
Printing and reproduction .........................................
3
Advisory and assistance services .............................
13
Other services ............................................................
1
Purchases of goods and services from Government
accounts ................................................................
46
Operation and maintenance of facilities ..................
6
Supplies and materials .............................................
3
Equipment .................................................................
3

241
240
48
47
3 ...................
11
13
1
1
35
38
12
3
12
1

9
3
35
3

65
6
3
5

69
6
3
5

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

417
561

446
555

472
529

99.9

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

978

1,001

1,001

Personnel Summary
1997 actual

Identification code 86–0143–0–1–999

Direct:
1001 Total compensable workyears: Full-time equivalent
employment ...............................................................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

1998 est.

1999 est.

4,332

4,207

5,235

70.00

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

OF

Program and Financing (in millions of dollars)

10.00

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

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

26

32

53

67

67

18
11
11
53
67
67
–58
–67
–67
–2 ................... ...................
11

11

11

32
9
26

27
9
32

87.00

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

58

67

67

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

–17

–26

–32

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

36
41

41
41

35
35

89.00
90.00

This appropriation provides agencywide audit and investigative functions to identify and correct management and
administrative deficiencies that create conditions for existing
or potential instances of fraud, waste and mismanagement.
The audit function provides internal audit, contract audit,
and inspection services. Contract audits provide professional
advice to agency contracting officials on accounting and financial matters relative to negotiation, award, administration,
repricing, and settlement of contracts. Internal audits review
and evaluate all facets of agency operations. Inspection services provide detailed technical evaluations of agency operations. The investigative function provides for the detection
and investigation of improper and illegal activities involving
programs, personnel, and operations.
Object Classification (in millions of dollars)
1997 actual

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other personnel compensation .............................

1998 est.

1999 est.

1998 est.

19
1

22
2

19
2

20
5
3
3
1
1

24
6
3
3
3
1

21
5
3
3
1
1

31.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Rental payments to GSA ...........................................
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Equipment .................................................................

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

36
17

41
26

35
32

99.9

INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, $66,850,000,
of which ø$16,283,000¿ $22,343,000 shall be provided from the various funds of the Federal Housing Administration and $10,000,000
shall be transferred from the amount earmarked for Operation Safe
Home in the ‘‘Drug Elimination Grants for Low-Income Housing’’
account. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998.)

00.01
09.01

17

36
5
17

Identification code 86–0189–0–1–451

1997 actual

35

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

4,724

(INCLUDING TRANSFER OF FUNDS)

Identification code 86–0189–0–1–451

41

86.90
86.93
86.97

11.1
11.5

OFFICE

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

36

72.40

4,231

5,787

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

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

53

67

67

11.9
12.1
21.0
23.1
25.1
25.2
25.3

2
1
1
1 ................... ...................

1999 est.

Personnel Summary
36
17
53

53
–53

41
26
67

67
–67

35
32
67

67
–67

Identification code 86–0189–0–1–451

Direct:
1001 Total compensable workyears: Full-time equivalent
employment ...............................................................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 actual

1998 est.

1999 est.

339

363

319

160

230

292

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE

OF

FEDERAL HOUSING ENTERPRISE OVERSIGHT

Object Classification (in millions of dollars)

SALARIES AND EXPENSES

For carrying out the Federal Housing Enterprise Financial Safety
and Soundness Act of 1992, ø$16,000,000¿ $16,551,000, to remain
available until expended, to be derived from the Federal Housing
Enterprise Oversight Fund: Provided, That not to exceed such amount
shall be available from the General Fund of the Treasury to the
extent necessary to incur obligations and make expenditures pending
the receipt of collections to the Fund: Provided further, That the
General Fund amount shall be reduced as collections are received
during the fiscal year so as to result in a final appropriation from
the General Fund estimated at not more than $0. (Departments of
Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

Balance, start of year:
Balance, start of year ....................................................
Receipts:
02.01 Office of federal housing enterprise oversight .............

1997 actual

1998 est.

1998 est.

1999 est.

11.1
12.1
23.1
25.2

Personnel compensation: Personnel Compensation ......
Civilian personnel benefits ............................................
Rental payments to GSA ................................................
Other services ................................................................

7
1
2
5

8
1
2
4

8
2
2
4

99.0
99.5

Subtotal, direct obligations ..................................
15
Below reporting threshold .............................................. ...................

15
1

16
1

16

17

99.9

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

15

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

1001

Unavailable Collections (in millions of dollars)

01.99

1997 actual

Identification code 86–5272–0–2–371

(INCLUDING TRANSFER OF FUNDS)

Identification code 86–5272–0–2–371

485

1997 actual

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

69

1998 est.

1999 est.

78

78

1999 est.

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

Intragovernmental funds:
WORKING CAPITAL FUND

15

16

17

Program and Financing (in millions of dollars)
04.00

Total: Balances and collections ....................................
16
16
17
Appropriation:
05.01 Office of federal housing enterprise oversight .............
–16
–16
–17
07.99 Total balance, end of year ............................................ ................... ................... ...................

Identification code 86–4586–0–4–451

1997 actual

1998 est.

1999 est.

09.01

Identification code 86–5272–0–2–371

1997 actual

1998 est.

1999 est.

15

16

17

10.00

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

15

16

17

22.00
23.95

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

16
–15

16
–16

17
–17

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

16

16

17

72.40

7
15
–17

5
16
–16

5
17
–17

5

5

5

86.90
86.93

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

12
5

12
4

13
4

87.00

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

17

16

17

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

259

262

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

220

259

262

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

30
195

6
259

6
262

21.40

Obligations by program activity:
00.01 Direct program ...............................................................

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

220

10.00

Program and Financing (in millions of dollars)

Obligations by program activity:
Reimbursable program ..................................................

16
17

16
16

17
17

This appropriation funds the Office of Federal Housing Enterprise Oversight (the Office), which was established in 1992
to regulate the financial safety and soundness of the two
housing Government Sponsored Enterprises (GSEs)—the Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation. The Office was authorized in
the Federal Housing Enterprise Safety and Soundness Act
of 1992, which also instituted a risk-based capital standard
for the GSEs, and gave the regulator enhanced authority
to enforce those standards. The office is also required by
statute to conduct on-site annual examinations at the GSEs
to determine the condition of each enterprise for the purpose
of ensuring their financial safety and soundness.

23.90
23.95
24.40

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

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in orders on hand from Federal sources
68.15
Adjustment to orders on hand from Federal sources
68.90

1 ................... ...................
226
–220

265
–259

268
–262

6

6

6

228
259
262
–32 ................... ...................
–1 ................... ...................

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

195

259

262

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

195

259

262

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Uninvested .................................
72.95
Orders on hand from Federal sources ......................

–3
55

25
23

25
23

70.00

72.99
73.10
73.20
73.45
74.40
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
Obligated balance: Uninvested .................................
Orders on hand from Federal sources ......................

74.99

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

86.97
86.98

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

87.00

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

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
88.95 Change in orders on hand from Federal sources .........
88.96 Adjustment to orders on hand from Federal sources

52
48
48
220
259
262
–224
–259
–262
–1 ................... ...................
25
23

25
23

25
23

48

48

48

195
259
262
29 ................... ...................
224

259

262

–228
–259
–262
32 ................... ...................
1 ................... ...................

486

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

Intragovernmental funds—Continued
WORKING CAPITAL FUND—Continued
Program and Financing (in millions of dollars)—Continued
1997 actual

Identification code 86–4586–0–4–451

89.00
90.00

1998 est.

1999 est.

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–4 ................... ...................

The Working Capital Fund, authorized by the Department
of Housing and Urban Development Act of 1965, finances
information technology and office automation initiatives which
can be performed more efficiently on a centralized basis. The
fund is financed from fees charged for services performed.
Object Classification (in millions of dollars)
1997 actual

Identification code 86–4586–0–4–451

1998 est.

1999 est.

11.1
12.1
21.0
23.3
25.1
26.0
31.0

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Communications, utilities, and miscellaneous charges
Advisory and assistance services ..................................
Supplies and materials .................................................
Equipment ......................................................................

17
3
1
50
122
1
26

19
4
1
50
169
1
15

19
4
1
51
170
1
16

99.9

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

220

259

262

Personnel Summary
Identification code 86–4586–0–4–451

2001

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

1997 actual

279

1998 est.

330

1999 est.

330

ADMINISTRATIVE PROVISIONS
SEC. 201. EXTENDERS. (a) ONE-FOR-ONE REPLACEMENT OF PUBLIC
HOUSING.—Section 1002(d) of Public Law 104–19 is amended by striking ø‘‘1997’’¿ ‘‘1998’’ and inserting ø‘‘1998’’¿ ‘‘1999’’.
(b) STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE.—Section
203(d) of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act,
1996, is amended by striking ‘‘fiscal years 1996, øand¿ 1997, and
1998’’ and inserting ‘‘fiscal years 1996, 1997, øand¿ 1998, and 1999’’.
ø(c) SECTION 8 RENT ADJUSTMENTS.—Section 8(c)(2)(A) of the United States Housing Act of 1937 is amended—
(1) in the third sentence, by striking ‘‘fiscal year 1997’’ and inserting ‘‘fiscal years 1997 and 1998’’; and
(2) in the last sentence, by striking ‘‘fiscal year 1997’’ and inserting ‘‘fiscal years 1997 and 1998’’.¿
ø(d)¿ (c) PUBLIC AND ASSISTED HOUSING RENTS, INCOME ADJUSTMENTS AND PREFERENCES.—
(1) Section 402(a) of The Balanced Budget Downpayment Act,
I is amended by striking ‘‘fiscal øyear¿ years 1997 and 1998’’ and
inserting ‘‘fiscal years 1997, øand¿ 1998, and 1999’’.
(2) Section 402(f) of The Balanced Budget Downpayment Act,
I is amended by striking ‘‘fiscal years 1996, øand¿ 1997, and 1998’’
and inserting ‘‘fiscal years 1996, 1997, øand¿ 1998, and 1999’’.
(3) Section 16 of the United States Housing Act of 1937 is amended by revising the heading and subsections (a) through (c) to read
as follows:
‘‘SEC. 16. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.
‘‘(a) PUBLIC HOUSING.
‘‘(1) PROGRAM REQUIREMENT.—Of the public housing units of a
public housing agency that are made available for occupancy by
eligible families in any fiscal year of the agency—
‘‘(A) at least 40 percent shall be occupied by families whose
incomes do not exceed 30 percent of the median income for the
area; and
‘‘(B) at least 90 percent shall be occupied by families whose
incomes do not exceed 60 percent of the median income for the
area.
‘‘(2) DEVELOPMENT REQUIREMENT.—At least 40 percent of the units
in each public housing development shall be occupied by families

with incomes which are less than 30 percent of the median income
for the area, except that no family may be required to move to
achieve compliance with this requirement.
‘‘(b) SECTION 8 ASSISTANCE.
‘‘(1) TENANT-BASED, MODERATE REHABILITATION, AND PROJECTBASED CERTIFICATE ASSISTANCE.—In any fiscal year of a public
housing agency, at least 75 percent of all families who initially
receive tenant-based assistance from the agency, assistance under
the moderate rehabilitation program of the agency, or assistance
under the project-based certificate program of the agency shall be
families whose incomes do not exceed 30 percent of the median
income for the area.
‘‘(2) PROJECT-BASED ASSISTANCE.—Of the dwelling units in a
project receiving section 8 assistance, other than assistance described
in paragraph (1), that are made available for occupancy by eligible
families in any year (as determined by the Secretary)—
‘‘(A) At least 40 percent shall be occupied by families whose
incomes do not exceed 30 percent of the median income for the
area; and
‘‘(B) at least 90 percent shall be occupied by families whose
incomes do not exceed 60 percent of the median income for the
area.
‘‘(c) DEFINITION OF AREA MEDIAN INCOME.—The term ‘‘area median
income’’, as used in subsections (a) and (b), refers to the median
income of an area, as determined by the Secretary, with adjustments
for smaller and larger families, except that the Secretary may establish
income ceilings higher or lower than the percentages specified in subsections (a) and (b) if the Secretary determines that such variations
are necessary because of unusually high or low family incomes.’’.
‘‘(ii) Section 16 of the United States Housing Act of 1937, as amended by this section, is further amended by inserting the following new
heading after subsection designation (d): ‘‘APPLICABILITY.—’’.
‘‘(iii) This paragraph shall be effective initially for fiscal year 1999.
For future fiscal years, this paragraph shall be effective only to the
extent provided by section 402(f) of The Balanced Budget Downpayment Act, I.’’.
øSEC. 202. DELAY REISSUANCE OF VOUCHERS AND CERTIFICATES.—
Section 403(c) of The Balanced Budget Downpayment Act, I is amended—
(1) by striking ‘‘fiscal years 1996 and 1997’’ and inserting ‘‘fiscal
years 1996, 1997, and 1998’’;
(2) by striking ‘‘1996 and October’’ and inserting ‘‘1996, October’’;
and
(3) by inserting before the semicolon the following: ‘‘and October
1, 1998 for assistance made available during fiscal year 1998’’.¿
øSEC. 203. WAIVER.—The part of the HUD 1996 Community Development Block Grant to the State of Illinois which is administered
by the State of Illinois Department of Commerce and Community
Affairs (grant number B–96–DC–170001) and which, in turn, was
granted by the Illinois Department of Commerce and Community
Affairs to the city of Oglesby, Illinois, located in LaSalle County,
Illinois (State of Illinois Department of Commerce and Community
Affairs grant number 96–24104), for the purpose of providing infrastructure for a warehouse in Oglesby, Illinois, is exempt from the
provisions of section 104(g)(2), (g)(3), and (g)(4) of title I of the Housing and Community Development Act of 1974, as amended.¿
SEC. ø204¿ 202. FINANCING ADJUSTMENT FACTORS.—Fifty percent
of the amounts of budget authority, or in lieu thereof 50 percent
of the cash amounts associated with such budget authority, that
are recaptured from projects described in section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100–628; 102 Stat. 3224, 3268) shall be rescinded, or in
the case of cash, shall be remitted to the Treasury, and such amounts
of budget authority or cash recaptured and not rescinded or remitted
to the Treasury shall be used by State housing finance agencies
or local governments or local housing agencies with projects approved
by the Secretary of Housing and Urban Development for which settlement occurred after January 1, 1992, in accordance with such section.
Notwithstanding the previous sentence, the Secretary may award
up to 15 percent of the budget authority or cash recaptured and
not rescinded or remitted to the Treasury to provide project owners
with incentives to refinance their project at a lower interest rate.
SEC. ø205¿ 203. øANNUAL ADJUSTMENT FACTORS.—Section
8(c)(2)(A) of the United States Housing Act of 1937, as amended
by section 201 of this title, is further amended by inserting the
following new sentences at the end: ‘‘In establishing annual adjustment factors for units in new construction and substantial rehabilitation projects, the Secretary shall take into account the fact that

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
debt service is a fixed expense. The immediately foregoing sentence
shall be effective only during fiscal year 1998.’’.¿ STATE CDBG IDIS
FUNDING.—During fiscal year 1999, from amounts received by a State
under section 106(d)(1) of the Housing and Community Development
Act of 1974 for distribution in nonentitlement areas, the State may
deduct an amount, not to exceed the greater of 0.25 percent of the
amount so received or $50,000, to administer the integrated disbursement and information system established by the Secretary, in addition
to any amounts used for this purpose from amounts retained by the
State for administrative expenses under section 106(d)(3)(A).
øSEC. 206. COMMUNITY DEVELOPMENT BLOCK GRANT.—Notwithstanding any other provision of law, the $7,100,000 appropriated for
an industrial park at 18th Street and Indiana Avenue shall be made
available by the Secretary instead to 18th and Vine for rehabilitation
and infrastructure development associated with the ‘‘Negro Leagues
Baseball Museum’’ and the jazz museum.¿
øSEC. 207. FAIR HOUSING AND FREE SPEECH.—None of the amounts
made available under this Act may be used during fiscal year 1998
to investigate or prosecute under the Fair Housing Act any otherwise
lawful activity engaged in by one or more persons, including the
filing or maintaining of a nonfrivolous legal action, that is engaged
in solely for the purpose of achieving or preventing action by a government official or entity, or a court of competent jurisdiction.¿
øSEC. 208. REQUIREMENT FOR HUD TO MAINTAIN PUBLIC NOTICE
AND COMMENT RULEMAKING.—Notwithstanding any other provision
of law, for fiscal year 1998 and for all fiscal years thereafter, the
Secretary of Housing and Urban Development shall maintain all current requirements under part 10 of the Department of Housing and
Urban Development regulations (24 CFR part 10) with respect to
the Department’s policies and procedures for the promulgation and
issuance of rules, including the use of public participation in the
rulemaking process.¿
SEC. ø209¿ 204. BROWNFIELDS AS ELIGIBLE CDBG ACTIVITY.—During fiscal øyear¿ years 1998 and 1999, States and entitlement communities may use funds allocated under the community development
block grants program under title I of the Housing and Community
Development Act of 1974 for environmental cleanup and economic
development activities related to Brownfields projects in conjunction
with the appropriate environmental regulatory agencies, as if such
activities were eligible under section 105(a) of such Act.
øSEC. 210. PARTIAL PAYMENT OF CLAIMS ON HEALTH CARE FACILITIES.—Section 541(a) of the National Housing Act is amended—
(1) in the section heading, by adding ‘‘and health care facilities’’
at the end; and
(2) in subsection (a)—
(A) by inserting ‘‘or a health care facility (including a nursing
home, intermediate care facility, or board and care home (as
those terms are defined in section 232 of this Act), a hospital
(as that term is defined in section 242 of this Act), or a group
practice facility (as that term is defined in section 1106 of this
Act))’’ after ‘‘1978’’; and
(B) by inserting ‘‘or for keeping the health care facility operational to serve community needs,’’ after ‘‘character of the
project,’’.¿
øSEC. 211. CALCULATION OF DOWNPAYMENT.—Section 203(b) of the
National Housing Act is amended by striking ‘‘fiscal year 1997’’ in
paragraph (10)(A) and inserting ‘‘fiscal years 1997 and 1998’’.¿
SEC. 205. INCENTIVE TO REDUCE POVERTY CONCENTRATIONS OF
CERTIFICATE AND VOUCHER FAMILIES.—(a) Section 202(b) of the Departments of Veterans Affairs and Housing Development, and Independent Agencies Appropriations Act, 1997 is amended—
(1) by striking ‘‘and’’ at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and inserting ‘‘; and’’; and
(3) by inserting the following new paragraph at the end:
‘‘(4) agencies that demonstrate to the satisfaction of the Secretary
that the poverty concentration of families assisted under the certificate and voucher programs has been reduced.’’.
(b) Section 8(q) of the United States Housing Act of 1937 is hereby
repealed.
øSEC. 212. HOPE VI NOFA.—Notwithstanding any other provision
of law, including the July 22, 1996 Notice of Funding Availability
(61 Fed. Reg. 38024), the demolition of units at developments funded
under the Notice of Funding Availability shall be at the option of
the New York City Housing Authority and the assistance awarded
shall be allocated by the public housing agency among other eligible
activities under the HOPE VI program and without the development
costs limitations of the Notice, provided that the public housing agen-

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

487

cy shall not exceed the total cost limitations for the public housing
agency, as provided by the Department of Housing and Urban Development.¿
SEC. 206. TRANSFER FOR EVALUATION OF HUD PROGRAMS.—(a) The
Secretary may transfer to the departmental Salaries and Expenses
account up to 1 percent of the amount appropriated in any account
listed to which subsection (b) refers, for evaluation and monitoring
of programs and collecting and maintaining data under section 7(r)
of the Department of Housing and Urban Development Act as determined by the Secretary, including such activities as may be required
under the Government Performance and Results Act of 1993 and 31
U.S.C. 1115, 1116 and 9703.
(b) The accounts referred to in subsection (a) are those for the
Housing Opportunities for Persons with AIDS program under subtitle
D of title VIII of the Cranston-Gonzalez National Affordable Housing
Act, and for programs the authorities for which are listed in section
7(r)(2) of the Department of Housing and Urban Development Act.
(c) Any amounts transferred under this section shall be in addition
to amounts appropriated for and otherwise transferred to the departmental Salaries and Expenses account. Any amounts transferred may
be used for purposes that are also authorized under such account,
and amounts otherwise in such account may continue to be used
for the purposes for which the transfers authorized under this section
may be used.
SEC. ø213¿ 207. ENHANCED DISPOSITION AUTHORITY.—Section 204
of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, is
amended by striking øinserting after ‘‘owned by the Secretary’’ the
following: ‘‘, including,¿ for ‘‘fiscal years 1997 and 1998’’ø, the provision of grants and loans from the General Insurance Fund (12 U.S.C.
1735c) for the necessary costs of rehabilitation or demolition,’’¿.
SEC. 208. TRANSFER LIMITATION.—Not to exceed 2 percent of any
appropriation or earmarked amount made available for the current
fiscal year in this Act may be transferred between appropriations
or earmarked amounts, respectively, but no appropriations or earmarked amounts shall be increased or decreased by more than 2
percent by any such transfer.
øSEC. 214. HOME PROGRAM FORMULA.—The first sentence of section
217(b)(3) of the Cranston-Gonzalez National Affordable Housing Act
is amended by striking ‘‘only those jurisdictions that are allocated
an amount of $500,000 or greater shall receive an allocation’’ and
inserting the following: ‘‘jurisdictions that are allocated an amount
of $500,000 or more, and participating jurisdictions (other than consortia that fail to renew the membership of all of their member
jurisdictions) that are allocated an amount less than $500,000, shall
receive an allocation’’.¿
øSEC. 215. HUD RENT REFORM.—Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may
provide tenant-based assistance to eligible tenants of a project insured under either section 221(d)(3) or 236 of the National Housing
Act in the same manner as if the owner had prepaid the insured
mortgage to the extent necessary to minimize any rent increases
or to prevent displacement of low-income tenants in accordance with
a transaction approved by the Secretary provided that the rents are
no higher than the published section 8 fair market rents, as of the
date of enactment, during the tenants’ occupancy of the property.¿
øSEC. 216. NURSING HOME LEASE TERMS.—Section 232(b)(4)(B) of
the National Housing Act is amended by striking ‘‘fifty years from
the date the mortgage was executed’’ and inserting ‘‘ten years to
run beyond the maturity date of the mortgage’’.¿
SEC. ø217¿ 209. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
GRANTS. (a) ELIGIBILITY.—Notwithstanding section 854(c)(1)(A) of the
AIDS Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any
amounts made available under this title for fiscal øyear¿ years 1998
and 1999 that are allocated under such section, the Secretary of
Housing and Urban Development shall allocate and make a grant,
in the amount determined under subsection (b), for any State that—
(1) received an allocation øfor¿ in a prior fiscal year ø1997¿
under clause (ii) of such section; and
(2) øis not otherwise eligible for an allocation for fiscal year
1998 under such clause (ii) because the State does not have the
number of cases of acquired immunodeficiency syndrome required
under such clause; and¿ is not otherwise eligible for an allocation
for fiscal years 1998 or 1999 under such clause (ii) because the
areas in the State outside of the metropolitan statistical areas that
qualify under clause (i) in fiscal year 1999 do not have the number
of cases of acquired immunodeficiency syndrome required under
such clause.

488

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

Intragovernmental funds—Continued
ADMINISTRATIVE PROVISIONS—Continued
ø(3) would meet such requirement if the cases in the metropolitan
statistical area for any city within the State, which city was not
eligible for an allocation for fiscal year 1997 under clause (i) of
such section but is eligible for an allocation for fiscal year 1998
under such clause, were considered to be cases outside of metropolitan statistical areas described in clause (i) of such section.¿
ø(b) AMOUNT.—The amount of the allocation and grant for any
State described in subsection (a) shall be the amount that is equal
to the lesser of—
(1) the difference between—
(A) the total amount allocated for such State under section
854(c)(1)(A)(ii) of the AIDS Housing Opportunity Act for fiscal
year 1997; and
(B) the total amount allocated for the city described in subsection (a)(3) of this section under section 854(c)(1)(A)(i) of such
Act for fiscal year 1998 (from amounts made available under
this title); and
(2) $300,000.¿
(b) AMOUNT.—The amount of the allocation and grant for any State
described in subsection (a) shall be an amount based on the cumulative number of AIDS cases in the areas of that State that are
outside of metropolitan statistical areas that qualify under clause
(i) in fiscal year 1999 in proportion to AIDS cases among cities and
States that qualify under clauses (i) and (ii) and States deemed eligible under subsection (a).
(c) ENVIRONMENTAL REVIEW.—For purposes of environmental review, pursuant to the National Environmental Policy Act of 1969,
a grant under the AIDS Housing Opportunity Act (42 U.S.C. 12901
et seq.) from amounts provided under this or prior Acts shall be
treated as assistance for a special project that is subject to section
305(c) of the Multifamily Housing Property Disposition Reform Act
of 1994 (42 U.S.C. 3547), and shall be subject to the regulations
issued by the Secretary to implement such section. Where the grantee
under the AIDS Housing Opportunity Act is a nonprofit organization
and the activity is proposed to be carried out within the jurisdiction
of an Indian tribe or the community of an Alaska native village,
the role of the State or unit of general local government under sections
305(c)(1)–(3) of such Act may be carried out by the Indian tribe or
Alaska native village instead.
øSEC. 218. DEBT FORGIVENESS.—The Secretary of Housing and
Urban Development shall cancel the indebtedness of the Village of
Robbins, Illinois, relating to loans under the Reconstruction Finance
Corporation and refinanced under the Public Facility Loan program
(loan numbers ILL–11–RFC–0029 and ILL–11–PFL0111). The Village
is hereby relieved of all liability to the Federal Government for the
outstanding principal balance on such loans, for the amount of accrued interest on such loans, and for any fees and charges payable
in connection with such loans.¿
SEC. 210. DRAWDOWN OF FUNDS.—Section 14(q)(1) of the United
States Housing Act of 1937 (42 U.S.C. 1437(q)(1)) is amended by
inserting after the first sentence the following sentence: ‘‘Such assistance may involve the drawdown of funds on a schedule commensurate
with construction draws for deposit into an interest earning escrow
account to serve as collateral or credit enhancement for bonds issued
by a public agency for the construction or rehabilitation of the development.’’.
SEC. 211. MULTIFAMILY RESTRUCTURING.—Sections 513(b)(7)(B) and
517(d) of the Multifamily Assisted Housing Reform and Affordability
Act of 1997 are hereby repealed.
SEC. 212. SINGLE FAMILY CLAIMS REFORM AND SALE OF PROPERTY.
(a) REVISION OF CLAIMS PROCEDURES.—Section 204(a) of the National Housing Act is amended to read as follows:
‘‘(a)(1) AUTHORIZED CLAIMS PROCEDURES.—The Secretary is authorized, in accordance with this subsection and terms and conditions
prescribed by the Secretary, to pay insurance benefits to the mortgagee
for any mortgage insured under section 203 of this Act through any
of the methods described in this paragraph.
‘‘(A) ASSIGNMENT OF MORTGAGE.—The Secretary may pay insurance
benefits whenever a mortgage has been in a monetary default for
at least three full monthly installments or whenever the mortgagee
is entitled to foreclosure for a non-monetary default. Insurance benefits
shall be paid only upon the assignment, transfer and delivery to
the Secretary of—
‘‘(i) all rights and interests arising under the mortgage;

THE BUDGET FOR FISCAL YEAR 1999
‘‘(ii) all claims of the mortgagee against the mortgagor or others
arising out of the mortgage transaction;
‘‘(iii) title evidence satisfactory to the Secretary; and
‘‘(iv) such records relating to the mortgage transaction as the
Secretary may require.
‘‘(B) CONVEYANCE OF TITLE TO PROPERTY.—The Secretary may pay
insurance benefits if the mortgagee has acquired title to the mortgaged
property through foreclosure or has otherwise acquired such property
from the mortgagor after a default upon—
‘‘(i) the prompt conveyance to the Secretary of title to the property
which meets the standards of the Secretary in force at the time
the mortgage was insured, and which is evidenced in the manner
provided by such standards; and
‘‘(ii) the assignment to the Secretary of all claims of the mortgagee
against the mortgagor or others, arising out of the mortgage transaction or foreclosure proceedings, except such claims as may have
been released with the consent of the Secretary.
The Secretary is authorized to permit the mortgagee to tender to the
Secretary a satisfactory conveyance of title and transfer of possession
directly from the mortgagor or other appropriate grantor, and to pay
to the mortgagee the insurance benefits to which it would otherwise
be entitled if such conveyance had been made to the mortgagee and
from the mortgagee to the Secretary.
‘‘(C) CLAIM WITHOUT CONVEYANCE OF TITLE.—The Secretary may
pay insurance benefits upon sale of the mortgaged property at foreclosure where such sale is for at least the fair market value of the
property (with appropriate adjustments), as determined by the Secretary, and upon assignment to the Secretary of all claims referred
to in clause (ii) of subparagraph (B).
‘‘(D) PRE-FORECLOSURE SALE.—The Secretary may pay insurance
benefits upon the sale of the mortgaged property by the mortgagor
after default and the assignment to the Secretary of all claims referred
to in clause (ii) of subparagraph (B), if—
‘‘(i) the sale of the mortgaged property has been approved by
the Secretary;
‘‘(ii) the mortgagee receives an amount at least equal to the fair
market value of the property (with appropriate adjustments), as
determined by the Secretary; and
‘‘(iii) the mortgagor has received an appropriate disclosure, as
determined by the Secretary.
‘‘(2) PAYMENT FOR LOSS MITIGATION.—The Secretary may pay insurance benefits to the mortgagee to recompense the mortgagee for its
actions to provide an alternative to foreclosure of a mortgage that
is in default, which actions may include such actions as special forbearance, loan modification, and deeds in lieu of foreclosure, all upon
such terms and conditions as the mortgagee shall determine in the
mortgagee’s sole discretion within guidelines provided by the Secretary, but which may not include assignment of a mortgage to the
Secretary. For purposes of the preceding sentence, no action authorized
by the Secretary and no action taken, nor any failure to act, by
the Secretary or the mortgagee shall be subject to judicial review.
‘‘(3) DETERMINING CLAIMS PROCEDURE.—The Secretary shall publish guidelines for determining which of the procedures for payment
of insurance specified in paragraph (1) are available to a mortgagee
when it claims insurance benefits. At least one of the procedures
for payment of insurance benefits specified in paragraph (1)(A) or
(1)(B) shall be available to a mortgagee with respect to a mortgage,
but the same procedure is not required to be available for all of
the mortgages held by a mortgagee.
‘‘(4) SERVICING ASSIGNED MORTGAGE.—If a mortgage is assigned
to the Secretary under paragraph (1)(A), the Secretary may permit
the assigning mortgagee or its servicer to continue to service the mortgage for reasonable compensation and on terms and conditions determined by the Secretary. Neither the Secretary nor any servicer of
the mortgage shall be required to forbear from collection of amounts
due under the mortgage or otherwise pursue loss mitigation measures.
‘‘(5) CALCULATING INSURANCE BENEFITS.—Insurance benefits shall
be paid as provided in section 520 of this Act, and shall be equal
to the original principal obligation of the mortgage which was unpaid
on the date the mortgage was assigned to the Secretary, or on the
date of the institution of foreclosure proceedings, or on the date of
the acquisition of the property after default other than by foreclosure,
or on the date of sale of the mortgaged property by the mortgagor,
with such additions and deductions as the Secretary deems appropriate.
‘‘(6) FORBEARANCE AND RECASTING AFTER DEFAULT.—The mortgagee may, upon such terms and conditions as the Secretary may prescribe—

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
‘‘(A) extend the time for the curing of the default, and the time
for commencing foreclosure proceedings or for otherwise acquiring
title to the mortgaged property, to such time as the mortgagee determines is necessary and desirable to enable the mortgagor to complete
the mortgage payments, including an extension of time beyond the
stated maturity of the mortgage, and in the event of a subsequent
foreclosure or acquisition of the property by other means the Secretary is authorized to include in the amount of insurance benefits
an amount equal to any unpaid mortgage interest; or
‘‘(B) provide for a modification of the terms of the mortgage for
the purpose of recasting, over the remaining term of the mortgage
or over such longer period pursuant to guidelines as may be prescribed by the Secretary, the total unpaid amount then due, with
the modification to become effective currently or to become effective
upon the termination of an agreed-upon extension of the period
for curing the default; and the principal amount of the mortgage,
as modified, shall be considered the ‘original principal obligation
of the mortgage’ as that term is used in this section for the purpose
of paragraph (5).
‘‘(7) TERMINATION OF PREMIUM OBLIGATION.—The obligation of the
mortgagee to pay the premium charges for insurance shall cease upon
fulfillment of the appropriate requirements under which the Secretary
may pay insurance benefits, as described in paragraph (1). The Secretary may also terminate the mortgagee’s obligation to pay mortgage
insurance premiums upon receipt of an application filed by the mortgagee for insurance benefits under paragraph (1), or in the event
the contract of insurance is terminated pursuant to section 229 of
this Act.
‘‘(8) RELATIONSHIP TO SECTION 230.—Nothing in this section shall
limit the authority of the Secretary to pay insurance benefits under
section 230 of this Act.’’.
(b) EFFECTIVE DATE.—The Secretary shall publish a notice in the
Federal Register stating the effective date of the terms and conditions
prescribed by the Secretary under section 204(a)(1) of the National
Housing Act, as amended by this section. Sections 204 (a) and (k)
of the National Housing Act as they existed immediately prior to
the effective date of the terms and conditions implementing the amendment to section 204(a) made by this Act shall continue to apply to
any mortgage insured under section 203 of the National Housing
Act prior to such date, except that the Secretary is authorized, at
the request of the mortgagee, to pay insurance benefits as provided
in sections 204(a)(1) (A) and (D) of such Act to calculate insurance
benefits in accordance with section 204(a)(5) of such Act.
(c) REDUNDANT PROVISION REPEALED.—Section 204(k) of the National Housing Act is hereby repealed.
(d) AUTHORITY TO SELL.—Section 204(g) of the National Housing
Act is amended by adding at the end the following: ‘‘The Secretary
may sell real and personal property on such terms and conditions
as the Secretary may prescribe.’’.
(e) AUTHORITY TO INSURE MORTGAGE.—Section 223(c) of the National Housing Act is amended by—
(1) striking ‘‘him’’ each place it appears and inserting ‘‘the Secretary’’; and
(2) inserting after ‘‘sale by the Secretary’’, the following: ‘‘, including a sale through another entity under authority of the fourth
sentence of section 204(g),’’.
SEC. 213. ISSUANCE OF CERTIFICATES AND VOUCHERS TO SINGLE
PERSONS.

MANAGEMENT AND ADMINISTRATION—Continued
Federal Funds—Continued

489

(a) CERTIFICATE PROGRAM.—Section 8(c)(1) of the United States
Housing Act of 1937 is amended by inserting after the third sentence
the following new sentence:
‘‘The maximum monthly rent for a single person (other than an elderly
person or person with disabilities, if such elderly person or person
with disabilities is living with one or more persons determined under
the regulations of the Secretary to be essential to such person’s care
or well-being) receiving tenant-based rental assistance in the certificate
program under subsection (b)(1) shall not exceed by more than the
amount permitted under the second sentence of this paragraph the
fair market rental for an efficiency unit, except that the Secretary,
or the public housing agency in accordance with guidelines established
by the Secretary, may determine not to apply the limitation in this
sentence if there is an insufficient supply of efficiency units in the
market area or if necessary to meet the needs of persons with disabilities.’’.
(b) VOUCHER PROGRAM.—Section 8(o) of such Act is amended by
inserting the following at the end of paragraph (1):
‘‘The payment standard for a single person (other than an elderly
person or person with disabilities, if such elderly person or person
with disabilities is living with one or more persons determined under
the regulations of the Secretary to be essential to such person’s care
or well-being) shall be based on the fair market rental for an efficiency
unit, except that the Secretary, or the public housing agency in accordance with guidelines established by the Secretary, may determine not
to apply the limitation in this sentence if there is an insufficient
supply of efficiency units in the market area or if necessary to meet
the needs of persons with disabilities.’’.
(c) APPLICABILITY.—This section shall become effective 60 days after
the later of October 1, 1998 or the date of enactment of this Act.
SEC. 214. ELIMINATION OF SHOPPING INCENTIVE FOR VOUCHER FAMILIES WHO REMAIN IN SAME UNIT UPON INITIAL RECEIPT OF ASSISTANCE.
(a) Section 8(o)(2) of the United States Housing Act of 1937 is
amended by inserting the following new sentence at the end: ‘‘Notwithstanding the preceding sentence, for families being admitted to the
voucher program who remain in the same unit or complex, where
the rent (including the amount allowed for utilities) does not exceed
the payment standard, the monthly assistance payment for any family
shall be the amount by which such rent exceeds the greater of 30
percent of the family’s monthly adjusted income or 10 percent of the
family’s monthly income.’’.
(b) This section shall become effective 60 days after the later of
October 1, 1998 or the date of enactment of this Act.
SEC. 215. ENFORCEMENT OF RENT REASONABLENESS REQUIREMENTS.—The Secretary of Housing and Urban Development shall take
steps to assure that public housing agencies administering tenantbased assistance under section 8 of the United States Housing Act
of 1937 comply with applicable rent reasonableness requirements, to
assure that assistance provided on behalf of eligible families is not
excessive.
SEC. 216. TECHNICAL CORRECTION TO NURSING HOME LEASE TERMS
PROVISION.
(a) TECHNICAL CORRECTION.—Section 216 of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998, is amended by striking ‘‘fifty
years from the date’’ and inserting ‘‘fifty years to run from the date’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall
be construed to have taken effect on October 27, 1997.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102