    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Department of Housing and Urban Development]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 505]]

                   DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

        This chapter presents the budget and program estimates of the
    Department of Housing and Urban Development (HUD).

        For the past 3 years, the Department has been engaged in a
    reinvention process which has emphasized: addressing homelessness
    through a comprehensive continuum of care strategies; transforming
    public and assisted housing; enhancing homeownership opportunities
    through new national and local partnerships; and, encouraging locally-
    driven solutions and leveraging private sector investment through
    initiatives like consolidated planning, Empowerment Zones and Enterprise
    Communities.

        This budget proposes to continue this reinvention process as
    follows:

        1. HUD's new programs would give communities more power over Federal
    programs by consolidating over 20 programs into three core funds. These
    funds would provide enhanced flexibility in return for results by
    rewarding high performers through the use of incentives, or ``bonus
    funding.''

        2. HUD proposes to transform the dynamic of public and assisted
    housing through a policy of no tolerance of crime and mismanagement. The
    worst housing projects will be torn down and replaced with portable
    rental assistance and/or lower-density townhome-style developments which
    can serve as an anchor for neighborhood renewal. Rules will be changed
    to promote self-sufficiency and responsibility, and to reward people who
    work.

        3. This proposal will ensure that homeownership is accessible to
    record numbers of people by revamping the Federal Housing Administration
    (FHA) and helping those in assisted housing buy their own homes.

        4. HUD's FY 1997 reinvention blueprint will transform the Department
    into a ``right side up, community first'' organization. This will be
    accomplished through the creation of single points of contact for all
    major localities to cut red tape, the relocation of Federal personnel to
    communities, and aggressive training of HUD staff and its partners.

        HUD is proposing three performance-based funds which will
    consolidate a myriad of programs and give localities and States the
    resources and flexibility needed to address community development,
    affordable housing, and homelessness. These ``consolidated'' funds will
    be: the Community Development Block Grants (CDBG) Fund, the HOME Fund
    and the Homeless Assistance Fund.

         The Community Development Block Grants Fund will continue
    to use a formula approach for allocating funds for a wide range of
    activities. However, Consolidated Plans developed by States and
    communities will be based on performance measures and benchmarks linked
    to their needs and priorities. Included within the total amount
    requested for 1997 is a performance bonus pool and a set-aside for
    Empowerment Zones.

         The HOME Fund will also utilize performance measures and
    benchmarks based on local needs and priorities. A 10-percent bonus pool
    will be made available to create large tracts of homeownership in
    communities.

         The Homeless Assistance Fund proposes to consolidate the
    six Stewart B. McKinney Homeless Assistance Act programs into a
    comprehensive, flexible, coordinated ``continuum of care'' approach to
    solving the needs of the homeless. A competitive 10-percent bonus pool
    will be set aside under this fund to address the needs of homeless
    persons with multiple diagnoses and fund innovative homeless solutions.

        The Department is reproposing to consolidate several categorical
    housing programs within three performance funds.

         The Public Housing Operating Fund would fund the operating
    costs of Public and Indian Housing. Through this fund Public Housing
    Agencies will have greater flexibility in attracting and retaining a
    broader range of families.

         The Public Housing Capital Fund would address the capital
    cost needs of Public and Indian Housing. Based on the Modernization
    program, this Fund will permit the upgrading of inventory, demolition
    and replacement of obsolete buildings. Funds also will be available to
    expand linkages between public housing, local schools and other
    educational institutions. In addition, $500 million of these funds will
    be set aside for a competitive bonus pool.

         The Housing Certificate Fund would address the problems
    arising from lagging household income and high housing costs. The Fund
    would be based on the existing voucher and certificate programs with
    changes to make the system simpler and more effective.

         Other Housing Programs. Funding for Section 8 contract
    renewals and amendments is included within the Annual Contributions for
    Assisted Housing account. Lead-paint hazard reduction activities will
    continue to be funded within the Annual Contributions account but will
    remain a free-standing program through 1997. Several other programs
    assisting communities will remain as free-standing activities: housing
    opportunities for persons with AIDS, housing assistance for the elderly
    and disabled, drug elimination activities, and assistance for severely
    distressed public housing. Further program consolidation will be
    proposed for 1998.

        A major initiative reflected in the budget estimates is ``Portfolio
    Reengineering,'' formerly known as ``Mark-to-Market.'' This plan would
    reduce over-subsidized Section 8 contracts and FHA-insured debt on
    properties. The goal of the initiative is to leave all responsible
    owners with the ability to sustain the remaining mortgage through the
    payment of market-derived rents by tenants.

                            PUBLIC AND INDIAN HOUSING

                                  Federal Funds

    General and special funds:

                            Housing Certificate Fund

        For assistance under the section 8 existing housing certificate
    program (42 U.S.C. 1437f) and the housing voucher program under section
    8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), as
    amended, $290,000,000, to remain available until expended: Provided,
    That the Secretary may transfer and merge with the foregoing amount, up
    to $100,000,000 of amounts earmarked for the renewal of expiring section
    8 contracts in the Annual Contributions for Assisted Housing account,
    upon determining that the amount to be transferred is excess to the
    purposes for which it is earmarked.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0302-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                                 150
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 290
    23.95 New obligations...................                                -150
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....                                 140
    ----------------------------------------------------------------------------

    [[Page 506]]

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 290
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 150
    73.20 Total outlays (gross).............                                 -29
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                 121
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                  29
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                                  29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 290
    90.00 Outlays...........................                                  29
    ---------------------------------------------------------------------------

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

                           Public Housing Capital Fund

                         (including transfers of funds)

        For the Public Housing Capital Fund program under the United States
    Housing Act of 1937, as amended (42 U.S.C. 1437), $2,700,000,000, to
    remain available until expended, of which $2,447,000,000 shall be for
    modernization of existing public housing projects; $200,000,000 for
    Indian Housing Development; up to $53,000,000 for grants to public
    housing agencies (including Indian housing authorities), nonprofit
    corporations, and other appropriate entities for a supportive services
    program to assist residents of public and assisted housing, former
    residents of such housing receiving tenant-based assistance under
    section 8 of such Act, and other low-income families and individuals,
    principally for the benefit of public housing residents, to become self-
    sufficient; up to $20,000,000 for technical assistance for the
    inspection of public housing units, contract expertise, and training and
    technical assistance directly or indirectly, under grants, contracts, or
    cooperative agreements, to assist in the oversight and management of
    public and Indian housing (whether or not the housing is being
    modernized with assistance under this proviso) or tenant-based
    assistance, including, but not limited to, an annual resident survey,
    data collection and analysis, training and technical assistance by or to
    officials and employees of the department and of public housing agencies
    and to residents in connection with the public and Indian housing
    program; $15,000,000 for the Tenant Opportunity Program; and $5,000,000
    for the Jobs-Plus Demonstration for Public Housing families: Provided,
    That all obligated and unobligated balances as of the end of fiscal year
    1996 heretofore provided for the development or acquisition costs of
    public housing (including public housing for Indian families), for
    modernization of existing public housing projects (including such
    projects for Indian families), for public and Indian housing amendments,
    for modernization and development technical assistance, for lease
    adjustments for the section 23 program, and for the Family Investment
    Centers program shall be transferred to amounts made available under
    this heading.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                                 495
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                               2,700
    22.20 Unobligated balance transferred...                               1,750
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......                               4,450
    23.95 New obligations...................                                -495
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....                               3,955
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                               2,700
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 495
    73.20 Total outlays (gross).............                              -4,276
    73.30 Obligated balance transferred, net                              18,774
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                              14,993
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                  13
    86.93 Outlays from current balances.....                               4,263
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                               4,276
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               2,700
    90.00 Outlays...........................                               4,276
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................                               2,700
      Outlays...........................                               4,276
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 500
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................                               3,200
      Outlays...........................                               4,276
                                        ====================================

        The Administration proposes to consolidate all current public
    housing capital programs into a single Public Housing Capital Fund
    program. Activities consolidated into this account include: technical
    assistance, Public Housing Modernization, Public and Indian Housing
    Development, public and Indian housing amendments, lease adjustments,
    and Family Investment Centers. This program would provide Federal
    resources to rehabilitate and restore viable public housing in need of
    modernization, demolish uninhabitable and non-viable public housing
    projects, and construct replacement housing where feasible. In addition,
    funding would be provided for technical assistance and evaluation of the
    Jobs-Plus Demonstration for Public Housing families.

                    Public Housing Capital Fund Bonus Program

                  (Legislative proposal, not subject to PAYGO)

        For grants and related expenses, not otherwise provided for,
    necessary for carrying out a Public Housing Capital Fund bonus program,
    $500,000,000 to remain available until expended. (Additional authorizing
    language required).

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-2-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 500
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....                                 500
    ----------------------------------------------------------------------------

    [[Page 507]]

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 500
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                 500
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

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

     [Payments for Operation of Low-Income Housing Projects] Public Housing
                                 Operating Fund

        For payments to public housing agencies and Indian housing
    authorities for operating subsidies for low-income housing projects as
    authorized by section 9 of the United States Housing Act of 1937, as
    amended (42 U.S.C. 1437g), $2,900,000,000.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0163-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating subsidies...............       2,900       2,800       2,900
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................       2,900       2,800       2,900
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       2,900       2,800       2,900
    23.95 New obligations...................      -2,900      -2,800      -2,900
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       2,900       2,800       2,900
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       1,373       1,506       1,480
    73.10 New obligations...................       2,900       2,800       2,900
    73.20 Total outlays (gross).............      -2,762      -2,826      -2,842
    73.40 Adjustments in expired accounts...          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       1,506       1,480       1,538
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       1,393       1,344       1,392
    86.93 Outlays from current balances.....       1,369       1,482       1,451
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       2,762       2,826       2,842
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,900       2,800       2,900
    90.00 Outlays...........................       2,762       2,826       2,842
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       2,900       2,800       2,900
      Outlays...........................       2,762       2,826       2,843
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                     100
      Outlays...........................                      48          51
                                        ------------------------------------
    Total:
      Budget Authority..................       2,900       2,900       2,900
      Outlays...........................       2,762       2,874       2,894
                                        ====================================

        Operating subsidy payments are provided to assist local PHAs and
    Indian Housing Authorities (IHAs) to meet certain deficits in the
    operation of PHA-owned and IHA-owned low-income housing. These payments
    are in addition to the debt service and capital funding provided by HUD
    for development and modernization of low-income housing.

        Beginning in fiscal year 1997, funding for these activities would be
    provided under the Public and Indian Housing Operating Fund.

                 Drug Elimination Grants for Low-Income Housing

        For grants to public housing agencies for use in eliminating drug-
    related crime in public housing projects authorized by 42 U.S.C. 11901-
    11908, and for drug information clearinghouse services authorized by 42
    U.S.C. 11921-11925, $290,000,000, to remain available until expended, of
    which $10,000,000 shall be for grants, technical assistance, contracts
    and other assistance training, program assessment, and execution for or
    on behalf of public housing agencies and resident organizations
    (including the cost of necessary travel for participants in such
    training), and $10,000,000 shall be used in connection with efforts to
    combat violent crime in public and assisted housing under the Operation
    Safe Home program administered by the Inspector General of the
    Department of Housing and Urban Development: Provided, That the term
    ``drug-related crime'', as defined in 42 U.S.C. 11905(2), shall also
    include other types of crime as determined by the Secretary.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0197-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         525         310         290
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         255          20
    22.00 New budget authority (gross)......         290         290         290
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         546         310         290
    23.95 New obligations...................        -525        -310        -290
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         290         290         290
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         186         532         662
    73.10 New obligations...................         525         310         290
    73.20 Total outlays (gross).............        -179        -180        -308
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         532         662         644
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         178         180         308
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         179         180         308
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         290         290         290
    90.00 Outlays...........................         178         180         308
    ---------------------------------------------------------------------------

        The table below shows the funding requested for drug-related and
    crime prevention activities for the period 1995-1997.

        The $290 million requested for this program in 1997 includes funding
    for technical assistance for drug elimination and operation safe home
    activities.

    [[Page 508]]

                Summary of Program Activity (in millions of dollars)

    ----------------------------------------------------------------------------
                                             1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    Budget Authority:
      Drug elimination grants...............         290         290         290
                                               ---------   ---------  ----------

    Outlays:
        Drug Elimination Grants.............         178         262         308
    ---------------------------------------------------------------------------

                        Violent Crime Reduction Programs

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-8192-0-1-754      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Local Partnership Act.............                                   3
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              25.1).........................                                   3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   3
    23.95 New obligations...................                                  -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    42.00 Transferred from other accounts...                                   3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                   3
    73.20 Total outlays (gross).............                                  -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                   3
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                                   3
    ----------------------------------------------------------------------------

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

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

         Revitalization of Severely Distressed Public Housing (Hope VII)

        For grants to public housing agencies for assisting in the
    demolition of obsolete public housing projects or portions thereof, the
    revitalization (where appropriate) of sites (including remaining public
    housing units) on which such projects are located, replacement housing
    which will avoid or lessen concentrations of very low-income families,
    and tenant-based assistance in accordance with section 8 of the United
    States Housing Act of 1937; and for providing replacement housing and
    assisting tenants to be displaced by the demolition, $650,000,000, to
    remain available until expended, which the Secretary may use up to .67
    percent for technical assistance, to be provided directly or indirectly
    by grants, contracts or cooperative agreements, including training and
    cost of necessary travel for participants in such training, by or to
    officials and employees of the Department and of public housing agencies
    and to residents. (Authorizing legislation to be proposed.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0218-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         883         218         456
    ----------------------------------------------------------------------------

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

    21.40   Uninvested balance..............          23           9
    21.49   Contract authority..............         476         107         178
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............         499         116         178
    22.00 New budget authority (gross)......         500         280         650
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         999         396         828
    23.95 New obligations...................        -883        -218        -456
          Unobligated balance available, end of year:

    24.40   Uninvested balance..............           9
    24.49   Contract authority..............         107         178         373
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................         116         178         373
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         500         280         650
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         578       1,430       1,520
    73.10 New obligations...................         883         218         456
    73.20 Total outlays (gross).............         -31        -128        -283
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       1,430       1,520       1,692
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          31         128         283
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          31         128         283
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         500         280         650
    90.00 Outlays...........................          31         128         283
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

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

        This program provides Federal resources to rehabilitate and restore
    severely distressed public housing projects, thereby expanding the
    supply of decent, safe, and affordable housing for low-income renters.
    Funds provided to this program are in addition to the substantial
    resources provided for the public housing modernization program and are
    specifically targeted to the units in most need of attention.

    Public enterprise funds:

                Low-Rent Public Housing--Loans and Other Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital investment: Loans to
            public housing agencies and
            Indian housing authorities......          54          50          50
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              33.0).........................          54          50          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          20           6           6

    [[Page 509]]

    22.00 New budget authority (gross)......          98         112         115
    22.60 Redemption of debt................         -58         -62         -65
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          60          56          56
    23.95 New obligations...................         -54         -50         -50
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           6           6           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          20          50          50
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          78          62          65
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................          98         112         115
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.40     Appropriation.................       1,403       1,287       1,175
    72.90     Fund balance..................           1           1           1
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............       1,404       1,288       1,176
    73.10 New obligations...................          54          50          50
    73.20 Total outlays (gross).............        -169        -162        -165
          Unpaid obligations, end of year:

            Obligated balance:
    74.40     Appropriation.................       1,287       1,175       1,060
    74.90     Fund balance..................           1           1           1
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................       1,288       1,176       1,061
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          54          62          65
    86.98 Outlays from permanent balances...         115         100         100
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         169         162         165
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -58         -62         -65
    88.40     Non-Federal sources...........         -20
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........         -78         -62         -65
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          20          50          50
    90.00 Outlays...........................          92         100         100
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,747       1,689       1,627
    1251  Repayments: Repayments and
            prepayments.....................         -58         -62         -65
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........       1,689       1,627       1,562
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       4,413       4,132       3,832
    2251  Repayments and prepayments........        -281        -300        -325
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........       4,132       3,832       3,507
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       4,132       3,832       3,507
    ---------------------------------------------------------------------------

        The Low-Rent Public Housing Loan Fund is used to provide direct
    Federal loans to fund remaining Public Housing Agency and Indian Housing
    Authority construction, acquisition, and modernization activities
    reserved under the Annual Contributions appropriation through 1986.
    These loans are made from available resources of this fund and from
    borrowings from the Treasury. Under legislation enacted during 1986
    (Public Law 99-272), the borrowings from the Treasury are forgiven at
    the end of each fiscal year and the loans to PHAs/IHAs are forgiven as
    construction, acquisition, and modernization activities are completed.
    Under the provisions of this legislation, $54 million of borrowings from
    the Treasury were forgiven in 1995, an estimated $50 million will be
    borrowed from the Treasury and forgiven in 1996, and an estimated $50
    million will be borrowed from the Treasury and forgiven in 1997. The
    table below shows the status of outstanding loans for the period 1995-
    1997. The $64 million balance at the end of each year represents
    administrative loans, off-site facility loans, and preliminary loans on
    projects never undertaken and excess financing.

               PUBLIC HOUSING AGENCIES/INDIAN HOUSING AUTHORITIES

                                Loans Outstanding

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Outstanding, start of year..........          68          64          64
    Direct loan disbursements...........          54          50          50
    Repayments..........................         -26
    Adjustments.........................          25
    Total loans forgiven................         -57         -50         -50
                                        ------------------------------------
    Outstanding, end of year............          64          64          64
                                        ====================================

        Since 1987, new reservations of capital funds for construction,
    acquisition, and modernization activities have been provided directly
    from the Annual Contributions appropriation.

        Operating results.--The actual and estimated net operating income
    for 1994, 1995, 1996, and 1997 follows:

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         119            116           113            110
    0102  Expense...........................        -139           -131          -123           -115
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............         -19            -15           -10             -5
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,424          1,294         1,164          1,034
            Investments in US securities:
    1106      Receivables, net..............       1,852          1,791         1,730          1,669
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          68             64            64             64
    1602    Interest receivable.............           3              6             6              6
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -12            -12           -12            -12
    1604    Direct loans and interest
              receivable, net...............          59             58            58             58
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          59             58            58             58
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,335          3,143         2,952          2,761
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         212            205           205            205
    2104    Resources payable to Treasury...       1,746          1,688         1,627          1,567
    2207  Non-Federal liabilities: Other....           1              1             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,959          1,894         1,833          1,773
        NET POSITION:
    3100  Appropriated capital..............       1,297          1,184         1,054            923
    3300  Cumulative results of operations..          79             65            65             65
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       1,376          1,249         1,119            988
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,335          3,143         2,952          2,761
    -----------------------------------------------------------------------------------------------

    [[Page 510]]

    Credit accounts:

               Indian Housing Loan Guarantee Fund Program Account

        For the cost of guaranteed loans, as authorized by section 184 of
    the Housing and Community Development Act of 1992 (106 Stat. 3739)
    $3,000,000: Provided, That such costs, including the costs of modifying
    such loans, shall be as defined in section 502 of the Congressional
    Budget Act of 1974, as amended: Provided further, That these funds are
    available to subsidize total loan principal, any part of which is to be
    guaranteed, not to exceed $36,900,000.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           3           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           3           3           3
    23.95 New obligations...................          -3          -3          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           3           3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                       3           4
    73.10 New obligations...................           3           3           3
    73.20 Total outlays (gross).............                      -2          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           3           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                       2           2
    86.93 Outlays from current balances.....                                   1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                       2           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           3           3
    90.00 Outlays...........................                       2           3
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2159  Total loan guarantee levels.......          22          37          37
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       13.40        8.13        8.13
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........           3           3           3
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................                       1           2
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the loan
    guarantees committed in 1994 and beyond (including modifications of
    guarantees that resulted from obligations in any year). The subsidy
    amounts are estimated on a present value basis. This program provides
    access to sources of private financing for Indian families and Indian
    housing authorities which otherwise could not acquire housing financing
    because of the unique legal status of Indian trust land.

              Indian Housing Loan Guarantee Fund Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................                                   1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....                                   2
    22.00 New financing authority (gross)...                       2           3
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......                       2           5
    23.95 New obligations...................                                  -1
    24.90 Unobligated balance available, end
            of year: Fund balance...........                       2           5
    ----------------------------------------------------------------------------

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

    68.00   Spending authority from
              offsetting collections,
              Federal sources...............                       2           3
    68.10   Change in receivables from
              program account...............
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................                       2           3
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................                       2           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Fund Balance.                       3           3
    72.95   Receivables from program account           3           3           3
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............           3           6           6
    73.10 New obligations...................                                   1
    73.20 Total financing disbursements
            (gross).........................           3
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance.           3           3           3
    74.95   Receivables from program account           3           3           3
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................           6           6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          -3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources:
              Payments from program account.           3          -2          -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           3
    90.00 Financing disbursements...........                      -2          -3
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          22          37          37
                                               ---------   ---------  ----------

    2199  Guaranteed amount of guaranteed
            loan commitments................          22          37          37
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  28
    2231  Disbursements of new guaranteed
            loans...........................                      28          33
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........                      28          61
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      28          61
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this
    nonbudgetary account records all cash flows to and from the Government
    resulting from the loan guarantees committed in 1994 and beyond
    (including modifications of loan guar

    [[Page 511]]
    antees that resulted from obligations in any year). The amounts in this
    account are a means of financing and not included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4104-0-3-604    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                                        2              5
            Investments in US securities:
    1106      Receivables, net..............                                        1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                        3              6
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                                        1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                        1              1
        NET POSITION:
    3100  Appropriated capital..............                                        2              5
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                        2              5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                        3              6
    -----------------------------------------------------------------------------------------------

                       COMMUNITY PLANNING AND DEVELOPMENT

                                  Federal Funds

    General and special funds:

                   Housing Opportunities for Persons with AIDS

        For carrying out the Housing Opportunities for Persons with AIDS
    program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C.
    12901), $171,000,000, to remain available until expended: Provided, That
    any amounts previously appropriated for such program, and any related
    assets and liabilities, in the ``Annual Contributions for Assisted
    Housing'' account, shall be transferred to and merged with amounts in
    this account.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0308-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                                 171
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 171
    23.95 New obligations...................                                -171
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 171
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 171
    73.20 Total outlays (gross).............                                -138
    73.30 Obligated balance transferred, net                                 417
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                 449
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                   3
    86.93 Outlays from current balances.....                                 135
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                                 138
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 171
    90.00 Outlays...........................                                 138
    ---------------------------------------------------------------------------

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

        States and metropolitan areas receive 90 percent of the funds by
    formula based on the incidence of AIDS in their jurisdictions. The
    remaining 10 percent is awarded competitively to States, local
    governments, and private nonprofit entities for projects of national
    significance. Awards are also made to States and local governments for
    projects in jurisdictions which do not qualify for a formula allocation.

                     Community Development Block Grants Fund

        For grants to States and units of general local government and for
    related expenses, not otherwise provided for, to carry out a community
    development grants program as authorized by title I of the Housing and
    Community Development Act of 1974, as amended (the HCD Act) (42 U.S.C.
    5301), $4,600,000,000, to remain available until September 30, 1999, of
    which $69,000,000 shall be for grants to Indian tribes notwithstanding
    section 106(a)(1) of the HCD Act; $45,000,000 shall be for ``special
    purpose grants'' pursuant to section 107 of the HCD Act, including up to
    0.4 percent, but not less than $18,000,000, for the development and
    operation of a management information system; $20,000,000 shall be for
    youthbuild program activities authorized by subtitle D of title IV of
    the Cranston-Gonzalez National Affordable Housing Act, as amended, and
    such activities shall be an eligible activity with respect to any funds
    made available under this heading, in addition to the foregoing
    earmarked amount; and $50,000,000 shall be for grants to nonprofit
    entities and units of local government to assist underserved areas and
    populations through housing development, infrastructure improvements,
    economic development, and supportive services targeted to farmworkers,
    colonias, and Native Americans: Provided, That not to exceed 20 percent
    of any grant made with funds appropriated herein and earmarked under
    this paragraph (other than grants using funds under section 107(b)(3) of
    the HCD Act, youthbuild, and assistance to underserved areas and
    populations) shall be expended for ``Planning and Management
    Development'' and ``Administration'' as defined in regulations
    promulgated by the Department: Provided further, That for fiscal year
    1997 and thereafter, section 105(a)(25) of the HCD Act shall continue to
    be effective, and the termination and conforming provisions of section
    907(b)(2) of the Cranston-Gonzalez National Affordable Housing Act shall
    not be effective: Provided further, That section 916(f) of the Cranston-
    Gonzalez National Affordable Housing Act is repealed.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants............................       5,030       5,088       4,601
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................       5,030       5,088       4,601
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         697         487
    22.00 New budget authority (gross)......       4,819       4,600       4,600
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1           1           1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       5,517       5,088       4,601
    23.95 New obligations...................      -5,030      -5,088      -4,601
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         487
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       4,819       4,600       4,600
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       7,949       8,645       8,639
    73.10 New obligations...................       5,030       5,088       4,601
    73.20 Total outlays (gross).............      -4,333      -5,093      -4,931

    [[Page 512]]

    73.45 Adjustments in unexpired accounts.          -1          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       8,645       8,639       8,308
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         193         184         184
    86.93 Outlays from current balances.....       4,140       4,909       4,747
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       4,333       5,093       4,931
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,819       4,600       4,600
    90.00 Outlays...........................       4,333       5,093       4,931
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       4,819       4,600       4,600
      Outlays...........................       4,333       5,093       4,931
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 300
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................       4,819       4,600       4,900
      Outlays...........................       4,333       5,093       4,931
                                        ====================================

        Title I of the Housing and Community Development Act of 1974, as
    amended, authorizes the Secretary to make grants to units of general
    local government and States to fund local community development
    programs.

        Funds are allocated to Indian tribes, and on an entitlement basis,
    to metropolitan cities and urban counties which receive their grants
    using the higher of two objective formulas. States and small cities are
    also allocated a portion of the available funds.

        HUD proposes to operate CDBG as a performance fund starting in 1997.
    Grantees will continue to use their formula funds for the present wide
    range of activities. States and localities will use performance measures
    and benchmarks that are consistent with the national goals of the
    program, but can base these measures on the needs and priorities they
    establish in their own Consolidated Plans. The funding requested in 1997
    for developing, implementing and refining of management information
    systems is critical to establishing a national database on local needs
    and program performance, as well as providing localities, States and
    other community members with software to plan and track performance. As
    the necessary systems are implemented and refined, funds needed for this
    purpose are anticipated to decrease over time.

        In certain geographic areas of the United States--specifically
    Native American reservations, the ``colonias'' in the States along the
    U.S.-Mexico border, and farmworker camps in certain crop-growing
    States--special populations live in shocking conditions of extreme
    poverty and substandard housing. The unique character of their poverty
    and their remote locations defy solutions through HUD's traditional
    programs and, therefore, require special action if the nation is to
    eliminate these most unhealthy and degrading living conditions. To this
    end, $50 million is requested to assist under-served/developing areas
    and populations by providing grants for housing development,
    infrastructure improvements, economic development, and supportive
    services targeted to farmworkers, colonias, and Native Americans.
    Funding eligibility would be made contingent upon applicants'
    demonstrated abilities to leverage funds from other public and private
    sources, including national housing intermediaries.

                      CDBG/Economic Development Bonus Pool

                  (Legislative proposal, not subject to PAYGO)

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-2-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants............................                                 300
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................                                 300
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 300
    23.95 New obligations...................                                -300
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 300
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 300
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                 300
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                 300
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

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

                                    HOME Fund

        For the HOME investment partnerships program, as authorized under
    title II of the Cranston-Gonzalez National Affordable Housing Act
    (Public Law 101-625), as amended, $1,400,000,000 to remain available
    until expended: Provided, $21,000,000 shall be available for grants to
    Indian tribes: Provided further, That up to 0.5 percent, but not less
    than $7,000,000 shall be available for the development and operation of
    a management information system; Provided further, That $15,000,000
    shall be available for Housing Counseling under section 106 of the
    Housing and Urban Development Act of 1968.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0205-0-1-999      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................       1,337       1,550       1,402
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          83         148
    22.00 New budget authority (gross)......       1,400       1,400       1,400

    [[Page 513]]

    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2           2           2
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,485       1,550       1,402
    23.95 New obligations...................      -1,337      -1,550      -1,402
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         148
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       1,400       1,400       1,400
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       3,033       3,189       3,497
    73.10 New obligations...................       1,337       1,550       1,402
    73.20 Total outlays (gross).............      -1,179      -1,240      -1,401
    73.45 Adjustments in unexpired accounts.          -2          -2          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       3,189       3,497       3,496
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          28          28          28
    86.93 Outlays from current balances.....       1,151       1,212       1,373
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       1,179       1,240       1,401
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,400       1,400       1,400
    90.00 Outlays...........................       1,179       1,240       1,401
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       1,400       1,400       1,400
      Outlays...........................       1,179       1,240       1,401
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 150
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................       1,400       1,400       1,550
      Outlays...........................       1,179       1,240       1,401
                                        ====================================

        The HOME Investment Partnerships program is authorized by the
    National Affordable Housing Act (P.L. 101-625). This program provides
    assistance to States and units of local government, through formula
    allocation, for the purpose of expanding the supply and affordability of
    housing. Eligible activities include acquisition, rehabilitation, and
    new construction of housing and tenant-based rental assistance. The $1.4
    billion requested for 1997 includes $15 million for the Housing
    Counseling program as part of an overall effort to increase
    homeownership rates.

        Funding for developing, implementing, and refining management
    information systems is critical to establishing a national database on
    local needs and program performance, as well as for providing
    localities, States, and other community members with software to plan
    and track performance. As the necessary systems are implemented and
    refined, funds needed for this purpose are anticipated to decrease over
    time.

                            HOME Fund Challenge Grant

                  (Legislative proposal, not subject to PAYGO)

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0205-2-1-999      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                                 150
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 150
    23.95 New obligations...................                                -150
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 150
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 150
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                 150
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                 150
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

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

                         Urban Development Action Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0170-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          10
    22.00 New budget authority (gross)......         -18
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8           6           2
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......                       6           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    41.00 Transferred to other accounts.....         -18
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          20          37          30
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          20          37          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -18
    90.00 Outlays...........................          20          37          30
    ---------------------------------------------------------------------------

        Title I of the Housing and Community Development Act of 1974, as
    amended, authorizes grants to distressed cities and distressed urban
    counties to fund economic development projects.

        The program has terminated and there are no funds remaining
    available for obligation.

    [[Page 514]]

       Capacity Building for Community Development and Affordable Housing

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0222-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
    70.00 Total new budget authority (gross)
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           1          14           5
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           1          14           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1          14           5
    ---------------------------------------------------------------------------

        As authorized by section 4 of the HUD Demonstration Act of 1993,
    this program provided funding to the National Community Development
    Initiative to build the capacity of community-based development
    corporations and housing development organizations, and to assist such
    corporations and organizations to carry out community development and
    affordable housing activities.

                        Emergency Shelter Grants Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0181-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           4
    ----------------------------------------------------------------------------

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

    23.90   Total budgetary resources
              available for obligation......           4
    23.95 New obligations...................          -4
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         116          36           1
    73.10 New obligations...................           4
    73.20 Total outlays (gross).............         -84         -35          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          36           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          84          35           1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          84          35           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          84          35           1
    ---------------------------------------------------------------------------

        Title IV, subtitle B, of the Stewart B. McKinney Homeless Assistance
    Act (Public Law 100-77), authorizes the Secretary to make Emergency
    Shelter Grants to States, units of local government, and nonprofit
    organizations to provide emergency shelter and other support for the
    homeless. In fiscal years 1995 and 1996, this assistance was funded by
    appropriations to the Homeless Assistance Grants account. Beginning in
    fiscal year 1997, funding for this type of activity will be provided
    under the Homeless Assistance Fund.

                           Supportive Housing Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0188-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         273          68           2
    ----------------------------------------------------------------------------

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

    23.90   Total budgetary resources
              available for obligation......         339          68           2
    23.95 New obligations...................        -273         -68          -2
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          66
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         419         575         483
    73.10 New obligations...................         273          68           2
    73.20 Total outlays (gross).............        -115        -158        -157
    73.45 Adjustments in unexpired accounts.          -2          -2          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         575         483         326
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         115         158         157
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         115         158         157
    ----------------------------------------------------------------------------

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

        Title IV, subtitle C, of the Stewart B. McKinney Homeless Assistance
    Act authorizes assistance to promote the development of supportive
    housing and services for deinstitutionalized homeless individuals,
    homeless families with children, homeless individuals with mental
    disabilities, and other homeless persons. Such assistance is available
    for the acquisition, rehabilitation, construction, or leasing of
    structures to be used for homeless persons as well as to pay for
    operating costs and supportive services.

        For fiscal years 1995 and 1996, this type of assistance was funded
    by appropriations to the Homeless Assistance Grants account. Beginning
    in fiscal year 1997, funding for this type of activity will be provided
    under the Homeless Assistance Fund.

          Supplemental Assistance for Facilities To Assist the Homeless

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0187-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
    70.00 Total new budget authority (gross)
    ----------------------------------------------------------------------------

    [[Page 515]]

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          17           9           3
    73.10 New obligations...................
    73.20 Total outlays (gross).............          -8          -6          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           9           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           8           6           3
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           8           6           3
    ----------------------------------------------------------------------------

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

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

                                Shelter Plus Care

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0204-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         180          29           5
    ----------------------------------------------------------------------------

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

    23.90   Total budgetary resources
              available for obligation......         204          29           5
    23.95 New obligations...................        -180         -29          -5
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    70.00 Total new budget authority (gross)
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         296         454         428
    73.10 New obligations...................         180          29           5
    73.20 Total outlays (gross).............         -17         -50         -50
    73.45 Adjustments in unexpired accounts.          -5          -5          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         454         428         378
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          17          50          50
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          17          50          50
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          17          50          50
    ---------------------------------------------------------------------------

        Title IV, subtitle F, of the Stewart B. McKinney Homeless Assistance
    Act, authorizes the Secretary to provide rental assistance to persons
    with disabilities. Supportive services at least equal in value to the
    aggregate rental assistance must also be provided by grant recipients,
    using other Federal, State, local and private resources. Eligible
    recipients include States, units of general local government and Indian
    tribes. Grants are awarded on a competitive basis.

        For fiscal years 1995 and 1996, this type of assistance was provided
    within the Homeless Assistance Grants account. Beginning in fiscal year
    1997, funding for this type of activity will be provided under the
    Homeless Assistance Fund.

              Innovative Homeless Initiatives Demonstration Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0221-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                      19          19
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......
    23.95 New obligations...................                     -19         -19
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          96          79          79
    73.10 New obligations...................                      19          19
    73.20 Total outlays (gross).............         -17         -19         -19
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          79          79          79
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          17          19          19
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          17          19          19
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          17          19          19
    ---------------------------------------------------------------------------

        Section 2 of the HUD Demonstration Act of 1993 authorizes assistance
    for projects intended to provide a continuum of care for homeless
    persons and for innovative programs to assist homeless persons. Eligible
    recipients include States, units of local government, Indian tribes, and
    nonprofit organizations.

        Previously, activities were funded by appropriations to the Homeless
    Assistance Grants account. Beginning in fiscal year 1997, funding will
    be provided under the Homeless Assistance Fund.

                        Homeless Assistance [Grants] Fund

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0192-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         271       1,672       1,010
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                     849
    22.00 New budget authority (gross)......       1,120         823       1,010
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,120       1,672       1,010
    23.95 New obligations...................        -271      -1,672      -1,010
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         849
    ----------------------------------------------------------------------------

    [[Page 516]]

        New budget authority (gross), detail:
    40.00 Appropriation.....................       1,120         823       1,010
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                     259       1,733
    73.10 New obligations...................         271       1,672       1,010
    73.20 Total outlays (gross).............         -12        -198        -412
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         259       1,733       2,331
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          12          41          51
    86.93 Outlays from current balances.....                     157         361
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          12         198         412
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,120         823       1,010
    90.00 Outlays...........................          12         198         412
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

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

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

                         Homeless/Innovations Bonus Pool

                  (Legislative proposal, not subject to PAYGO)

        For grants and related expenses, not otherwise provided for,
    necessary for carrying out the Homeless/Innovations program,
    $110,000,000, to be available until expended. (Additional authorizing
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0192-2-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                                 110
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 110
    23.95 New obligations...................                                -110
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 110
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation
    73.10 New obligations...................                                 110
    73.20 Total outlays (gross).............
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                 110
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                 110
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

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

                               Youthbuild Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0219-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          68           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           4           2
    22.00 New budget authority (gross)......          40
    22.20 Unobligated balance transferred...          26
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          70           2
    23.95 New obligations...................         -68          -2
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          50
    40.35 Appropriation rescinded...........         -10
                                               ---------   ---------  ----------

    43.00   Appropriation (total)...........          40
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................          40
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          35          85          66
    73.10 New obligations...................          68           2
    73.20 Total outlays (gross).............         -20         -21         -18
    73.30 Obligated balance transferred, net           2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          85          66          48
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          20          21          18
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          20          21          18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          40
    90.00 Outlays...........................          20          21          18
    ---------------------------------------------------------------------------

        This program provides resources to educate, train, and provide
    stipends for economically disadvantaged young adults to construct and
    rehabilitate housing for low-income and homeless persons. The program
    has expanded the supply of affordable housing, and at the same time, has
    enabled high school dropouts to obtain the education and employment
    skills necessary to achieve self-sufficiency.

        Beginning in fiscal year 1996, funding for the Youthbuild program
    was included in the Community Development Block Grants Fund Account.

    [[Page 517]]

            National Cities in Schools Community Development Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0220-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           9           2
    73.10 New obligations...................
    73.20 Total outlays (gross).............          -7          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           7           2
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           7           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           6           2
    ---------------------------------------------------------------------------

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

    Public enterprise funds:

                      Revolving Fund (Liquidating Programs)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Loan servicing and other expenses.           7           7           7
    00.04 Maintenance of acquired security
            and collateral..................           4           7           7
    00.05 Administrative expenses...........           1           1           1
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              25.2).........................          12          15          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          92         102          92
    22.00 New budget authority (gross)......          74          73          65
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3           2
    22.40 Capital transfer to general fund..         -55         -70         -60
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         114         107          97
    23.95 New obligations...................         -12         -15         -15
    24.90 Unobligated balance available, end
            of year: Fund balance...........         102          92          82
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          74          73          65
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          71          46          19
    73.10 New obligations...................          12          15          15
    73.20 Total outlays (gross).............         -34         -40         -34
    73.45 Adjustments in unexpired accounts.          -3          -2
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.          46          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...          34          40          34
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          34          40          34
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -74         -73         -65
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -40         -33         -31
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         446         388         336
    1251  Repayments: Repayments and
            prepayments.....................         -51         -50         -45
    1263  Write-offs for default: Direct
            loans...........................          -7          -2          -1
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         388         336         290
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           8           4           3
    2251  Repayments and prepayments........          -4          -1          -1
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........           4           3           2
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           4           3           2
    ---------------------------------------------------------------------------

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

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4015-0-3-451    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          21             19            19             20
    0102  Expense...........................         -26            -12           -15            -15
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          -5              7             4              5
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4015-0-3-451    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         163            149           143            135
    1206  Non-Federal assets: Receivables,
            net.............................           3              3             3              3
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         450            391           350            325
    1602    Interest receivable.............          20             21            20             20
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -122            -36           -38            -39
    1604    Direct loans and interest
              receivable, net...............         348            376           332            306
    1606    Foreclosed property.............           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         349            377           333            307
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         515            529           479            445
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................           1              1             1              1
    2207    Other...........................          13             13            13             12
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          14             14            14             13
        NET POSITION:
    3300  Cumulative results of operations..         501            514           465            432
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         501            514           465            432
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         515            528           479            445
    -----------------------------------------------------------------------------------------------

    Credit accounts:

     Community [Opportunity Performance Funds] Development Loan Guarantees
                                 Program Account

        For the cost of guaranteed loans, $46,000,000, as authorized by
    section 108 of the Housing and Community Development Act of 1974:

    [[Page 518]]
    Provided, That such costs, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974: Provided further, That these funds are available to subsidize
    total loan principal, any part of which is to be guaranteed, not to
    exceed $2,000,000,000, notwithstanding any aggregate limitation on
    outstanding obligations guaranteed in section 108(k) of the Housing and
    Community Development Act of 1974. In addition, for administrative
    expenses to carry out the guaranteed loan program, $675,000, which shall
    be transferred to the appropriation for Salaries and Expenses.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........                      32          46
    00.09 Administrative expenses...........                       1           1
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              33.0).........................                      33          47
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      33          47
    23.95 New obligations...................                     -33         -47
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                      33          47
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                  16
    73.10 New obligations...................                      33          47
    73.20 Total outlays (gross).............                     -17         -40
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                      16          23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                      17          24
    86.93 Outlays from current balances.....                                  16
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                      17          40
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      33          47
    90.00 Outlays...........................                      17          40
    ---------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2159  Total loan guarantee levels.......       2,054       1,500       2,000
        Guaranteed loan subsidy (in percent):
    2329  Weighted average subsidy rate.....        0.00        2.14        2.30
        Guaranteed loan subsidy budget authority:
    2339  Total subsidy budget authority....                      32          46
        Guaranteed loan subsidy outlays:
    2349  Total subsidy outlays.............                      16          39
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................                       1           1
    3590  Outlays...........................                       1           1
    ---------------------------------------------------------------------------

     Community [Opportunity Performance Funds] Development Loan Guarantees
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....                                  16
    22.00 New financing authority (gross)...                      16          39
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......                      16          55
    23.95 New obligations...................
    24.90 Unobligated balance available, end
            of year: Fund balance...........                      16          55
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                      16          39
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                     -16         -39
    88.25     Interest on uninvested funds..                                  -2
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........                     -16         -41
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                  -2
    90.00 Financing disbursements...........                     -16         -41
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       2,054       1,500       2,000
    2112  Uncommitted loan guarantee
            limitation......................        -210
                                               ---------   ---------  ----------

    2150    Total guaranteed loan
              commitments...................       1,844       1,500       2,000
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         115         317       1,949
    2231  Disbursements of new guaranteed
            loans...........................         243       1,672       1,750
    2251  Repayments and prepayments........         -41         -40         -65
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........         317       1,949       3,634
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         317       1,949       3,634
    ---------------------------------------------------------------------------

        Guaranteed loans.--The Community Development Loan Guarantees Program
    provides a mechanism for Federal guarantees of private loans. There is
    an accompanying liquidating account which shows activity for Federal
    Financing Bank (FFB) direct loan activity, obligated prior to July 1,
    1986. Also following is a status of privately financed guaranteed loan
    commitments made prior to 1992.

     Community [Opportunity Performance Funds] Development Loan Guarantees
                               Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          21          20          15
    ----------------------------------------------------------------------------

    [[Page 519]]

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          21          20          15
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...           5
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           5
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -21         -20         -15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -16         -20         -15
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         110          89          69
    1251  Repayments: Repayments and
            prepayments.....................         -21         -20         -15
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........          89          69          54
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         297         246         196
    2231  Disbursements of new guaranteed
            loans...........................          27          20          15
    2251  Repayments and prepayments........         -78         -70         -60
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........         246         196         151
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         246         196         151
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records all cash flows to and from the Government resulting from Federal
    Financing Bank direct loans for which loan guarantees were committed
    prior to 1992. This account is shown on a cash basis.

        Guaranteed loans.--Guaranteed loan assistance under the Community
    Development Loan Guarantees program is provided to eligible communities
    to finance acquisition of real property, rehabilitation of publicly
    owned real property, and certain related expenses. In the past, the FFB
    financed these guaranteed loans. The Consolidated Omnibus Budget
    Reconciliation Act of 1985 requires private financing of all loan
    guarantees committed after July 1, 1986. FFB will continue disbursing
    loans for commitments approved prior to July 1, 1986. The activity shown
    in the above account reflects privately financed guaranteed loans for
    which commitments were made prior to 1992.

                                HOUSING PROGRAMS

                                  Federal Funds

    General and special funds:

                    Annual Contributions for Assisted Housing

        For assistance under the United States Housing Act of 1937, as
    amended (42 U.S.C. 1437), not otherwise provided for, $5,597,000,000, to
    remain available until expended, of which $60,000,000 shall be for the
    lead-based paint hazard reduction program authorized under sections 1011
    and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992;
    $800,000,000 shall be for amendments to section 8 contracts other than
    contracts for projects developed under section 202 of the Housing Act of
    1959, as amended; and $4,737,000,000 shall be for assistance under 42
    U.S.C. 1437 for use in connection with expiring or terminating section 8
    subsidy contracts: Provided, That any assets and liabilities remaining
    at the end of fiscal year 1996 in the ``Renewal of expiring section 8
    subsidy contracts'' account shall be transferred to and merged with the
    balances available under this heading, and any such asset shall be
    treated as earmarked for assistance for expiring or terminating section
    8 subsidy contracts, in addition to amounts earmarked for such use
    herein: Provided further, That to the extent that such transfers are
    insufficient to fund all expiring section 8 contracts, the Secretary may
    transfer to and merge with such earmark, additional unobligated balances
    from other earmarks within the Annual Contributions for Assisted Housing
    account sufficient to fund such expiring contracts: Provided further,
    That of the amounts recaptured from the termination or restructuring of
    new construction or substantial rehabilitation contracts under section
    8(a), as it existed prior to November 30, 1983, (except for new
    construction contracts for housing for the elderly or disabled, as
    authorized by section 202 of the Housing Act of 1959), up to
    $477,000,000 shall be rescinded.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0164-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Assistance contracts:

    00.01   Lower income housing (section 8)       8,581       8,820       4,452
    00.02   Public and Indian housing.......       5,666       2,818
    00.03   Elderly/Disabled Grants.........       1,346       1,386       1,039
    00.04   Program Activity................         566
    00.05   Lead Based Paint Abatement......         159
    00.06   Disaster Assistance.............          83
    00.07   Contract Renewals...............       2,016       4,200       4,000
                                               ---------   ---------  ----------

    10.00     Total obligations (object
                class 41.0).................      18,417      17,224       9,491
    ----------------------------------------------------------------------------

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

            Uninvested balance:
    21.40     Administrative commitments
                (reserved)..................      18,758         358         358
    21.40     Administrative commitments
                (reserved)..................       2,146       9,182       5,387
    21.40     Uninvested balance............                   1,200
    21.49   Administrative commitments
              (reserved)....................          73          73
    21.90   Fund balance....................                      29          29
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............      20,977      10,842       5,774
    22.00 New budget authority (gross)......       8,150      10,156       5,120
    22.10 Resources available from
            recoveries of prior year
            obligations.....................      11,468       2,000       2,477
    22.20 Unobligated balance transferred...          -2                  -1,750
    22.30 Unobligated balance expiring......          89
    22.75 Balance of contract authority
            withdrawn.......................     -11,423
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......      29,259      22,998      11,621
    23.95 New obligations...................     -18,417     -17,224      -9,491
          Unobligated balance available, end of year:

            Uninvested balance:
    24.40     Available.....................         358         358         525
    24.40     Reserved......................       9,182       5,387       1,576
    24.40     Uninvested balance............       1,200
    24.49   Contract authority..............          73
    24.90   Fund balance....................          29          29          29
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................      10,842       5,774       2,130
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       8,144      10,156       5,597
    40.35   Appropriation rescinded.........                                -477
    41.00   Transferred to other accounts...         -12
    42.00   Transferred from other accounts.          18
                                               ---------   ---------  ----------

    43.00     Appropriation (total).........       8,150      10,156       5,120
          Permanent:

    60.05   Appropriation (indefinite)......      22,326      10,013      16,000
    60.49   Portion applied to liquidate
              contract authority............     -22,326     -10,013     -16,000
                                               ---------   ---------  ----------

    [[Page 520]]

    63.00     Appropriation (total).........
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       8,150      10,156       5,120
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
              Appropriation:
    72.40       Appropriation...............      22,517      45,271      51,073
    72.40       Appropriation...............      19,831      16,326      15,918
    72.49     Contract authority............     103,022      69,331      59,331
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............     145,370     130,928     126,322
    73.10 New obligations...................      18,417      17,224       9,491
    73.20 Total outlays (gross).............     -21,391     -19,830     -16,756
    73.30 Obligated balance transferred, net                             -19,191
    73.45 Adjustments in unexpired accounts.     -11,468      -2,000      -2,477
          Unpaid obligations, end of year:

            Obligated balance:
              Appropriation:
    74.40       Appropriation...............      45,271      51,073      39,890
    74.40       Appropriation...............      16,326      15,918      15,918
    74.49     Contract authority............      69,331      59,331      41,581
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................     130,928     126,322      97,389
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         169       1,649       1,600
    86.93 Outlays from current balances.....      21,222      18,181      15,156
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      21,391      19,830      16,756
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       8,150      10,156       5,120
    90.00 Outlays...........................      21,391      19,830      16,756
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       8,150      10,156       5,120
      Outlays...........................      21,391      19,830      16,756
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                     -60        -236
      Outlays...........................                     -60        -236
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                     365
      Outlays...........................                       8          50
                                        ------------------------------------
    Total:
      Budget Authority..................       8,150      10,461       4,884
      Outlays...........................      21,391      19,778      16,570
                                        ====================================

                      ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
                                            1995 actual    1996 est.   1997 est.
    ----------------------------------------------------------------------------
          Total unfunded balance, start of
            year............................    103,095       69,404      59,331
                                            -----------  -----------------------
    Appropriation to liquidate contract
      authority.............................    -22,326      -10,013     -16,000
    Balance of contract authority withdrawn.    -11,365          -61          -2
    Unfunded balances transferred for
      liquidation...........................
                                            -----------  -----------  ----------
          Unfunded balance, end of year.....     69,404       59,331      41,581
    ----------------------------------------------------------------------------

                    ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING

                      Summary of Administrative Commitments

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Program by activities:
      Assistance contracts:
        Lower income housing (section 8)       3,857       5,004         860
        Public and Indian housing.......       3,721
      Sec. 202/811......................       1,033       1,188       4,260
      Contract renewals.................       2,197       4,351
                                        ------------------------------------
          Subtotal......................      10,808      10,543       5,120
      Administrative commitments, start
        of year.........................      18,758      10,381       5,387
      Administrative commitments
        transferred\1\..................
      Administrative commitments, end of
        year............................     -11,149      -3,701      -1,016
                                        ------------------------------------
          Total obligations.............      18,417      17,223       9,491
                                        ====================================
        \1\ Reflects transfer from Contract Renewals to Annual Contributions
    account.

        The Annual Contributions for Assisted Housing account provided
    assistance under three major categories.

        Low-income housing (section 8).--Included within the section 8
    category were incremental rental assistance in the form of housing
    certificates and housing vouchers; Public Housing and Housing
    Relocation/Replacement opt-out units; Housing Opportunities for Persons
    with AIDS; Section 23 Conversions; and Loan Management and Property
    Disposition activities.

        Housing for the elderly and disabled (section 202 and 811).--The
    Cranston-Gonzales National Affordable Housing Act authorized a grant
    program to make new construction assistance available to elderly and
    disabled persons. Both the Grant funding and the Rental Assistance--or
    operating subsidy--needed to aid these low-income tenants was provided
    under the annual contributions account.

        Public and Indian housing.--New development funding was provided for
    both Public Housing and for Indian Housing within this account. In
    addition, funding was provided for Public and Indian Housing
    Modernization activities and Public/Indian Housing amendments and lease
    adjustments. Funding was also provided for Public Housing Service
    Coordinators.

        The Annual Contributions for Assisted Housing account provided
    funding for a wide range of housing assistance through the Low-Income
    Housing (Section 8), Housing for the Elderly and Disabled, and the
    Public and Indian Housing programs. In addition, various housing-related
    programs were carried out through funding provided under this account.
    Consistent with HUD's Reinvention process, many of these activities will
    be funded under the new consolidated Funds being proposed for 1997.

        However, certain activities will continue to be included within this
    account in 1997. Appropriations are being requested for Lead-based paint
    hazard reduction, section 8 contract amendments and the renewal of
    expiring section 8 contracts. In addition, language is being proposed to
    permit the transfer into this account of all unobligated and obligated
    balances previously made available under the Renewal of expiring section
    8 subsidy contracts account.

                    Annual Contributions For Assisted Housing

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0164-4-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Assistance contracts:

    00.01   Lower income housing (section 8)                     -60        -236
                                               ---------   ---------  ----------

    10.00     Total obligations (object
                class 41.0).................                     -60        -236
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     -60        -236
    23.95 New obligations...................                      60         236
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                     -60        -236
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                     -60        -236
    73.20 Total outlays (gross).............                      60         236
    ----------------------------------------------------------------------------

    [[Page 521]]

        Outlays (gross), detail:
    86.90 Outlays from new current authority                     -60        -236
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                     -60        -236
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     -60        -236
    90.00 Outlays...........................                     -60        -236
    ---------------------------------------------------------------------------

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

              Housing for Special Populations: Elderly and Disabled

        For capital advances, including amendments to capital advance
    contracts, and for project rental assistance and amendments thereto, for
    Supportive Housing for the Elderly under section 202 of the Housing Act
    of 1959, as amended, $595,000,000, to remain available until expended.
        For capital advances, including amendments to capital advance
    contracts, and for project rental assistance and amendments thereto, for
    Supportive Housing for Persons with Disabilities under section 811 of
    the Cranston-Gonzalez National Affordable Housing Act, $174,000,000, to
    remain available until expended, of which 25 percent shall be used for
    tenant-based rental assistance under section 8(o) of the U.S. Housing
    Act of 1937 (42 U.S.C. 1437(o)), in addition to any other amounts
    available for section 8(o).
        The Secretary may waive any provision of section 202 of the Housing
    Act of 1959 and section 811 of the Cranston-Gonzalez National Affordable
    Housing Act (including the provisions governing the terms and conditions
    of project rental assistance) that the Secretary determines is not
    necessary to achieve the objectives of these programs, or that otherwise
    impedes the ability to develop, operate or administer projects assisted
    under these programs, and may make provision for alternative conditions
    or terms where appropriate.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0309-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                                 769
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 769
    23.95 New obligations...................                                -769
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 769
    ----------------------------------------------------------------------------

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                 769
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        Housing for the elderly and disabled (section 202 and 811).--The
    Cranston-Gonzalez National Affordable Housing Act authorized a grant
    program to make new construction assistance available to elderly and
    disabled persons. Both the Grant funding and the Rental Assistance
    operating subsidy are needed to aid these low-income tenants.

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

                         Other Assisted Housing Programs

                            Rental Housing Assistance

                                  (rescissions)

        The limitation otherwise applicable to the maximum payments that may
    be required in any fiscal year by all contracts entered into under
    section 236 of the National Housing Act (12 U.S.C. 1715z-1) is reduced
    in fiscal year 1997 by not more than $2,000,000 in uncommitted balances
    of authorizations provided for this purpose in appropriations Acts.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rent supplement...................                      42          39
    00.02 Homeownership and rental housing
            assistance (Sections 235 and
            236)............................                      72          68
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................                     114         107
    ----------------------------------------------------------------------------

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

    21.40   Uninvested balance..............                       7
    21.49   Contract authority (available)..       1,063       1,037         913
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............       1,063       1,044         913
    22.00 New budget authority (gross)......           7
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         208          69         375
    22.75 Balance of contract authority
            withdrawn.......................        -234         -86         -97
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,044       1,027       1,191
    23.95 New obligations...................                    -114        -107
          Unobligated balance available, end of year:

    24.40   Uninvested balance..............           7
    24.49   Contract authority (available)..       1,037         913       1,084
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................       1,044         913       1,084
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           7
          Permanent:

    60.00   Appropriation...................         743         772         747
    60.49   Portion applied to liquidate
              contract authority............        -743        -772        -747
                                               ---------   ---------  ----------

    63.00     Appropriation (total).........
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.40     Administrative commitment
                (reserved)..................         128         104         104
    72.49     Contract authority............      23,726      22,774      22,047
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............      23,854      22,878      22,151
    73.10 New obligations...................                     114         107
    73.20 Total outlays (gross).............        -768        -772        -741
    73.45 Adjustments in unexpired accounts.        -208         -69        -375
          Unpaid obligations, end of year:

            Obligated balance:
    74.40     Administrative commitment
                reserved....................         104         104         104
    74.49     Contract authority............      22,774      22,047      21,038
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................      22,878      22,151      21,142
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         768         772         741
                                               ---------   ---------  ----------

    [[Page 522]]

    87.00   Total outlays (gross)...........         768         772         741
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           7
    90.00 Outlays...........................         768         772         741
    ---------------------------------------------------------------------------

                             OTHER ASSISTED HOUSING

                      Summary of Administrative Commitments

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Program by activities...............
      Assistance contracts:
        Rent supplement.................           0          42          39
        Homeownership and rental housing
          assistance (sections 235 and
          236)..........................           0          72          68
      Administrative commitments, start
        of year.........................          16          16          16
      Administrative commitments, end of
        year............................         -16         -16         -16
                                        ------------------------------------
          Total obligations.............           0         114         107
                                        ====================================

        The Other Assisted Housing Account contains the programs listed
    below:

        Rent supplement.--Rent supplement assistance payments will continue
    to be made on behalf of qualified low-income tenants in approximately
    20,000 units which have not converted to section 8.

        Section 235.--The Housing and Urban-Rural Recovery Act of 1983
    (Public Law 98-181) authorized a restructured section 235 (Homeownership
    Assistance) program based on a 10-year interest reduction subsidy. A
    total of $150 million of budget authority was provided in the Second
    Supplemental Appropriations Act of 1984 (Public Law 98-396) to fund the
    program. Recaptures of budget authority from terminations must be
    transferred into the Homeownership Assistance Fund account established
    pursuant to Public Law 98-181. Amounts deposited will be available for
    use to assist program beneficiaries still in need of assistance at the
    expiration of their present ten-year assistance contracts.

        Section 236.--The Housing and Urban Development Act of 1968, as
    amended, authorizes the section 236 Rental Housing Assistance Program
    which subsidizes the monthly mortgage payment that an owner of a rental
    or cooperative project is required to make. This interest subsidy
    reduces rents for lower income tenants.

        The Rental Housing Assistance Rescission allows the rescission of
    not more than $2,000,000 in uncommitted balances of contract authority.

        The table below reflects the consolidated outlay total for both the
    Annual Contributions for Assisted Housing account and the Other Assisted
    Housing account, for fiscal years 1995, 1996, and 1997.

                               SUMMARY OF OUTLAYS

                            [In millions of dollars]

     (Annual contributions for Assisted Housing and Other Assisted Housing)
                                       \1\

                                         1995 actual  1996 est.   1997 est.
    Subsidized Housing Programs, total..      22,159      20,791      17,761
    Low income housing assistance (sec.
    8)..................................      16,948      15,778      16,858
    Public housing......................       4,443       4,241         \2\
    Rent supplement.....................          54          56          57
    Homeownership assistance (sec. 235).          41          40          34
    Rental housing assistance (sec. 236)         655         659         794
    College housing grants..............          18          18          18
        \1\ Includes outlays for contract renewals.
        \2\ Public Housing is proposed to be moved from Annual Contributions
    for Assisted Housing to the Public Housing Capital Fund in 1997.

              National Homeownership [Trust] Demonstration Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0301-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
    40.00 Appropriation.....................          50
    40.35 Appropriation rescinded...........         -50
                                               ---------   ---------  ----------

    43.00   Appropriation (total)...........
                                               ---------   ---------  ----------

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

        Change in unpaid obligations:
    73.10 New obligations...................
    ----------------------------------------------------------------------------

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

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

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

    Homeownership and Opportunity for People Everywhere Grants (HOPE Grants)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0196-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Hope I............................          64           2
    00.02 Hope II...........................          10          31
    00.03 Hope III..........................          18           6
    00.04 Elderly independence..............           2           2
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................          94          41
    ----------------------------------------------------------------------------

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

            Uninvested balance:
    21.40     Uncommitted...................          34          36
    21.40     Administratively committed....          63           5
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............          97          41
    22.00 New budget authority (gross)......          62
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.20 Unobligated balance transferred...         -26
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         134          41
    23.95 New obligations...................         -94         -41
          Unobligated balance available, end of year:

            Uninvested balance:
    24.40     Uncommitted...................          36
    24.40     Administratively committed....           5
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................          41
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          50
    42.00 Transferred from other accounts...          12
                                               ---------   ---------  ----------

    43.00   Appropriation (total)...........          62
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................          62
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         228         244         189

    [[Page 523]]

    73.10 New obligations...................          94          41
    73.20 Total outlays (gross).............         -75         -96         -87
    73.30 Obligated balance transferred, net          -2
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         244         189         102
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          75          96          87
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          75          96          87
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          62
    90.00 Outlays...........................          75          96          87
    ---------------------------------------------------------------------------

        The Homeownership and Opportunity for People Everywhere Program
    provided affordable homeownership opportunities for low-income families.
    Units were converted to homeownership from public and Indian housing
    properties in HOPE 1, from FHA-insured and Government-held multifamily
    properties in HOPE 2 and from Government-owned or -held single family
    properties in HOPE 3. HOPE Grants were used for property acquisition,
    rehabilitation, mortgage subsidies, security measures, and technical
    assistance. In addition, grants have been devoted to counseling and
    training of residents, and other activities intended to help them become
    economically self-sufficient homeowners. No funding is being requested
    for fiscal year 1997. This schedule reflects the liquidation of prior
    year balances.

                               Congregate Services

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0178-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           8
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          20
    22.00 New budget authority (gross)......         -12
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......           8
    23.95 New obligations...................          -8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          25
    40.35 Appropriation rescinded...........         -25
    40.36 Unobligated balance rescinded.....         -12
                                               ---------   ---------  ----------

    43.00   Appropriation (total)...........         -12
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         -12
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          38          38          29
    73.10 New obligations...................           8
    73.20 Total outlays (gross).............          -6          -9          -9
    73.40 Adjustments in expired accounts...          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          38          29          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           6           9           9
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           6           9           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -12
    90.00 Outlays...........................           6           9           9
    ---------------------------------------------------------------------------

        Under the Congregate Services program, HUD contracted directly with
    local public housing agencies and section 202 housing for the elderly or
    disabled sponsors to supply support services, including meals and other
    services. No funding is being requested for this program in fiscal year
    1997. This schedule reflects the liquidation of prior year balances.

                          Housing Counseling Assistance

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0156-0-1-506      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          12
    23.95 New obligations...................         -12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          12
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          13          17          12
    73.10 New obligations...................          12
    73.20 Total outlays (gross).............          -7          -6          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          17          12           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           7           6           5
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           7           6           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          12
    90.00 Outlays...........................           7           6           5
    ---------------------------------------------------------------------------

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

                        Section 8 Moderate Rehabilitation

                              single room occupancy

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0195-0-1-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          97         193           2
    ----------------------------------------------------------------------------

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

    23.90   Total budgetary resources
              available for obligation......         288         193           2
    23.95 New obligations...................         -97        -193          -2
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         191
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         240         319         469
    73.10 New obligations...................          97         193           2
    73.20 Total outlays (gross).............         -17         -41         -51
    73.45 Adjustments in unexpired accounts.          -2          -2          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         319         469         418
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          17          41          51
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          17          41          51
    ----------------------------------------------------------------------------

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

    [[Page 524]]

    90.00 Outlays...........................          17          41          51
    ---------------------------------------------------------------------------

        Section 8 assistance for single room occupancy dwellings is
    authorized by Title IV, subtitle E, of the Stewart B. McKinney Homeless
    Assistance Act, as amended by the Housing and Community Development Act
    of 1992. In fiscal years 1995 and 1996, these activities were funded
    under the Homeless Assistance Grants account. Beginning in fiscal year
    1997, funding for this type of activity will be provided under the
    Homeless Assistance Fund.

                   Manufactured Home Inspection and Monitoring

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Mobile Home Inspection and
            Monitoring......................          12          11          11
        Appropriation:
    05.01 Manufactured home inspection and
            monitoring......................         -12         -11         -11
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Transfer to salaries and expenses.           1           1           1
    00.02 Other program costs...............           9           9           9
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              25.2).........................          10          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           6           7           9
    22.00 New budget authority (gross)......          12          11          11
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          18          18          20
    23.95 New obligations...................         -10         -10         -10
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           7           9          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................          12          11          11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           2           2           2
    73.10 New obligations...................          10          10          10
    73.20 Total outlays (gross).............         -10         -10         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          10          10          10
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          10          10          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          12          11          11
    90.00 Outlays...........................          10          10          10
    ---------------------------------------------------------------------------

        Section 620 of the National Manufactured Housing Construction and
    Safety Standards Act of 1974, as amended, authorizes enforcement of
    appropriate construction standards for the construction, design and
    performance of manufactured homes to assure their quality, durability,
    and safety. All 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 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.

                              Interstate Land Sales

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5270-0-2-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Interstate land sales.............                       1           1
        Appropriation:
    05.01 Interstate land sales.............                      -1          -1
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5270-0-2-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            25.2)...........................                       1           1
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................                       1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                       1           1
    73.20 Total outlays (gross).............                      -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                       1           1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                       1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       1           1
    90.00 Outlays...........................                       1           1
    ---------------------------------------------------------------------------

        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.

    Public enterprise funds:

                             Title IV--Corporations

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

    [[Page 525]]
    tions as provided by section 104 of the Act as may be necessary in
    carrying out the programs set forth in the budget for 1997 for such
    corporation or agency except as hereinafter provided: Provided, That
    collections of these corporations and agencies may be used for new loan
    or mortgage purchase commitments only to the extent expressly provided
    for in this Act (unless such loans are in support of other forms of
    assistance provided for in this or prior appropriations Acts), except
    that this proviso shall not apply to the mortgage insurance or guaranty
    operations of these corporations, or where loans or mortgage purchases
    are necessary to protect the financial interest of the United States
    Government.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                         Rental Housing Assistance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4041-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            25.2)...........................          61          61          57
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....           1           1           1
    22.00 New budget authority (gross)......          61          61          57
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          62          62          58
    23.95 New obligations...................         -61         -61         -57
    24.90 Unobligated balance available, end
            of year: Fund balance...........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          61          61          57
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.           3           8
    73.10 New obligations...................          61          61          57
    73.20 Total outlays (gross).............         -56         -69         -57
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          53          61          57
    86.98 Outlays from permanent balances...           3           8
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          56          69          57
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -61         -61         -57
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -5           8
    ---------------------------------------------------------------------------

        The Housing and Urban Development Act of 1968 authorized the
    Secretary to establish a revolving fund into which rental collections in
    excess of the established basic rents for units in section 236
    subsidized projects would be deposited.

        The Housing and Community Development Amendment of 1978 authorized
    the Secretary, subject to approval in appropriation acts, to transfer
    excess rent collections received after 1978 to the Troubled Projects
    Operating Subsidy program, renamed the Flexible Subsidy Fund. Prior to
    that time, collections were used for paying tax and utility increases in
    section 236 projects. The Housing and Community Development Act of 1980
    amended the 1978 Act by authorizing the transfer of excess rent
    collections regardless of when collected. This Budget proposes that the
    resources from the Rental Housing Assistance Fund continue to be
    transferred to the Flexible Subsidy Fund.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4041-0-3-604    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          65             61            61             57
    0102  Expense...........................         -60            -61           -61            -57
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............           5
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4041-0-3-604    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           3              8             1              1
    1206  Non-Federal assets: Receivables,
            net.............................           7              7
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          10             15             1              1
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           2              8
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           3              8
        NET POSITION:
    3300  Cumulative results of operations..           7              7             1              1
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           7              7             1              1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           9             15             1              1
    -----------------------------------------------------------------------------------------------

                              Flexible Subsidy Fund

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         143          82          73
    ----------------------------------------------------------------------------

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

            Fund balance:
    21.90     Fund balance: Uncommitted.....          52          73          72
    21.90     Fund balance: administratively
                committed...................                      36
            U.S. Securities:
              Par value:
    21.91       Par Value: Administratively
                  Committed.................         124          46          73
    21.91       Par Value: Uncommitted......          26
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............         202         155         145
    22.00 New budget authority (gross)......         113          72          68
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.30 Unobligated balance expiring......         -17
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         299         227         213
    23.95 New obligations...................        -143         -82         -73
          Unobligated balance available, end of year:

            Fund balance:
    24.90     Fund balance, Uncommitted.....          73          72         140
    24.90     Fund balance: Administratively
                Committed...................          36
    24.91   U.S. Securities: Par Value
              Administratively Committed....          46          73
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................         155         145         140
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          42
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          71          72          68
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         113          72          68
    ----------------------------------------------------------------------------

    [[Page 526]]

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.41     U.S. Securities: Par value....                     114          38
    72.90     Fund balance..................          99
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............          99         114          38
    73.10 New obligations...................         143          82          73
    73.20 Total outlays (gross).............        -128        -159         -56
    73.45 Adjustments in unexpired accounts.          -1
    74.41 Unpaid obligations, end of year:
            Obligated balance: U.S.
            Securities: Par value...........         114          38          55
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         128          82          28
    86.98 Outlays from permanent balances...                      76          28
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         128         159          56
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -60         -61         -57
    88.20     Interest on U.S. securities...          -9          -9          -9
    88.40     Non-Federal sources...........          -2          -2          -2
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........         -71         -72         -68
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          42
    90.00 Outlays...........................          57          87         -12
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         459         584         741
    1231  Disbursements: Direct loan
            disbursements...................         126         159          56
    1251  Repayments: Repayments and
            prepayments.....................          -1          -2          -2
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         584         741         795
    ---------------------------------------------------------------------------

        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 moderate-income tenants. Priority was given to projects with
    Federal insurance-in-force and then to those with mortgages that had
    been assigned to the Department of Housing and Urban Development.

        A portion of Flexible Subsidy capital improvement loans were used,
    along with incentives available in the Emergency Low-Income Housing
    Preservation program, to extend affordability requirements for projects
    eligible to prepay mortgages.

        The budget assumes that the account will continue to serve as a
    repository of excess rental charges appropriated from the Rental Housing
    Assistance Fund. Although these resources will no longer be used for new
    reservations, they would continue to offset Flexible Subsidy outlays and
    other discretionary expenditures.

                      Summary of Administrative Commitments

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Program by activities:
      Capital investments:
        Flexible subsidy reservations...         103          73
        Administrative commitments,
          start of year.................         124          82          73
        Cancellation of prior year
          commitments...................          -1
        Administrative commitments, end
          of year.......................         -82         -73
                                        ------------------------------------
          Capital investment--
            obligations.................         143          82          73
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          70             71            70             66
    0102  Expense...........................         -67            -86          -137            -48
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............           3            -15           -67             18
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         151            126           109            194
            Investments in US securities:
    1102      Treasury securities, par......         150             82            73
    1106      Receivables, net..............           2              6
    1206  Non-Federal assets: Receivables,
            net.............................           2
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         459            584           741            795
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -413           -493          -667           -715
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          46             91            74             80
    1901  Other Federal assets: Other assets          29             26
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         380            331           256            274
        LIABILITIES:
    2201  Non-Federal liabilities: Accounts
            payable.........................                          2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                          2
        NET POSITION:
    3100  Appropriated capital..............         175            217           217            217
    3300  Cumulative results of operations..         205            112            40             57
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         380            329           257            274
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         380            331           257            274
    -----------------------------------------------------------------------------------------------

                          Homeownership Assistance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                   4
                                               ---------   ---------  ----------

    03.00 Offsetting Collections............                       4           4
    04.00 Total: Balances and collections...                       4           8
    07.99 Total balance, end of year........                       4           8
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

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

    21.49   Contract authority..............          56          56          56
    21.90   Fund balance....................           4           2           2
    21.91   U.S. Securities: Par value......          43          49          49
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............         103         107         107
    22.00 New budget authority (gross)......           4
    22.20 Unobligated balance transferred...           2
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         109         107         107
    23.95 New obligations...................
          Unobligated balance available, end of year:

    24.49   Contract authority..............          56          56          56
    24.90   Fund balance....................           2           2           2
    24.91   U.S. Securities: Par value......          49          49          49
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................         107         107         107
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...           4           4           4
    68.45   Portion not available for
              obligation (limitation on
              obligations)..................                      -4          -4
                                               ---------   ---------  ----------

    [[Page 527]]

    68.90     Spending authority from
                offsetting collections
                (total).....................           4
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Fund balance.           2           1
    72.95   Orders on hand from Federal
              sources.......................
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............           2           1
    73.10 New obligations...................
    73.20 Total outlays (gross).............
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           1
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Interest on
                U.S. securities.............          -3          -3          -3
    88.40     Non-Federal sources...........          -1          -1          -1
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........          -4          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      -4          -4
    90.00 Outlays...........................          -4          -4          -4
    ---------------------------------------------------------------------------

        The Homeownership Assistance Fund was established by the Housing and
    Urban-Rural Recovery Act of 1983. It provided for the receipt of
    recaptures of budget authority, cash, and interest earnings under the
    restructured section 235 program. The funds were authorized to be used,
    to the extent approved in Appropriation Acts, by the Secretary to
    provide additional section 235 assistance payments for mortgagors who
    are unable to assume the full payment due under the mortgage after the
    termination of the original 10-year assistance payments contract.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4043-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           4              4             4              4
    0102  Expense...........................
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............           4              4             4              4
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4043-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           3              2             3              3
            Investments in US securities:
    1102      Treasury securities, par......          43             49            51             55
    1106      Receivables, net..............           1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          47             51            54             58
        NET POSITION:
    3300  Cumulative results of operations..          47             51            55             58
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          47             51            55             58
    -----------------------------------------------------------------------------------------------

                        Nehemiah Housing Opportunity Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4071-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            33.0)...........................           8
    ----------------------------------------------------------------------------

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

    21.40   Uninvested balance..............
    21.90   Fund balance....................          19          18          18
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............          19          18          18
    22.00 New budget authority (gross)......         -10
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          18
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          27          18          18
    23.95 New obligations...................          -8
    24.90 Unobligated balance available, end
            of year: Fund balance...........          18          18          18
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.36 Unobligated balance rescinded.....         -10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Fund balance.          32          18
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............          32          18
    73.10 New obligations...................           8
    73.20 Total outlays (gross).............          -5         -18
    73.45 Adjustments in unexpired accounts.         -18
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance.          18
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................          18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           5          18
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           5          18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -10
    90.00 Outlays...........................           5          18
    ---------------------------------------------------------------------------

        The Nehemiah grants program was authorized by the Housing and
    Community Development Act of 1987 to provide loans to eligible families
    to assist in the purchase of new or substantially rehabilitated units.
    This schedule reflects the liquidation of remaining reserved obligated
    balances.

    Credit accounts:

                 FHA--Mutual Mortgage Insurance Program Account

                         (including transfers of funds)

        During fiscal year 1997, commitments to guarantee loans to carry out
    the purposes of section 203(b) of the National Housing Act, as amended,
    shall not exceed a loan principal of $110,000,000,000: Provided, That
    during fiscal year 1997, the Secretary shall sell assigned mortgage
    notes having an unpaid principal balance of up to $2,000,000,000, which
    notes were originally insured under section 203(b) of the National
    Housing Act: Provided further, That the Secretary may use the amount of
    any negative subsidy resulting from the sale of such assigned mortgage
    notes during fiscal year 1997 for purposes included under this heading.
        During fiscal year 1997, obligations to make direct loans to carry
    out the purposes of section 204(g) of the National Housing Act, as
    amended, shall not exceed $200,000,000: Provided, That the foregoing
    amount shall be for loans to nonprofit and governmental entities in
    connection with sales of single family real properties owned by the
    Secretary and formerly insured under section 203 of such Act.
        For administrative expenses necessary to carry out the guaranteed
    and direct loan program, $350,595,000 to be derived from the FHA-mutual
    mortgage insurance guaranteed loans receipt account, of which not to
    exceed $343,483,000 shall be transferred to the appropriation for
    departmental salaries and expenses; and of which not to exceed
    $7,112,000 shall be transferred to the appropriation for the Office of
    Inspector General.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                               2,385

    [[Page 528]]

        Receipts:
    02.01 FHA Mutual Mortgage Insurance
            Guaranteed Loan, negative
            subsidies.......................         309       1,500       1,255
    02.02 FHA Mutual Mortgage Insurance
            Guaranteed Loan, negative
            subsidies, addition to 1996
            Continuing Resolution level.....                   1,066
    02.03 FHA Mutual Mortgage Insurance
            Guaranteed Loan, negative
            subsidies, legislative proposal.                     161         260
                                               ---------   ---------  ----------

    02.99   Total receipts..................         309       2,727       1,515
                                               ---------   ---------  ----------

    04.00 Total: Balances and collections...         309       2,727       3,900
        Appropriation:
    05.01 FHA mutual mortgage insurance
            program account.................        -309        -342        -351
    07.99 Total balance, end of year........                   2,385       3,549
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.09 Administrative expenses...........         309         342         351
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              25.3).........................         309         342         351
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         309         342         351
    23.95 New obligations...................        -309        -342        -351
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.25 Appropriation (special fund,
            indefinite).....................         309         342         351
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................         309         342         351
    73.20 Total outlays (gross).............        -309        -342        -351
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         309         342         351
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         309         342         351
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         309         342         351
    90.00 Outlays...........................         309         342         351
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................                     200         200
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  MMI Fund, Section 203(b)..........      50,323      77,793      70,721
    2150  Standby commitment authority......                  32,207      39,279
                                               ---------   ---------  ----------

    2159    Total loan guarantee levels.....      50,323     110,000     110,000
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       -1.95       -2.77       -2.33
        Guaranteed loan subsidy budget authority:
    2330  MMI Section 203(b) negative
            subsidy.........................        -869      -1,316      -1,255
    ---------------------------------------------------------------------------

        FHA will continue to serve first-time home buyers, minorities,
    lower-income, and urban residents whom the conventional market does not
    serve. It will seek greater flexibility in product design to tailor its
    services to the needs of local markets and special populations. The
    Department also proposes a demonstration program that tests risk-sharing
    arrangements with various partners. To aid in the achievement of these
    goals, the Administration is supporting the transformation of FHA into a
    ``Performance-Based Organization'' with flexibility in human resources
    management, procurement, and other administrative functions. FHA will
    continue to operate within HUD and will be led by executives operating
    under term, performance-based contracts negotiated by the Secretary of
    Housing and Urban Development.

        Recent legislation requires FHA to develop a new loss mitigation
    program. As a result, it is expected that future default claims,
    assignment of defaulted mortgages, and property acquisitions will
    decrease.

        Credit Subsidy and Administrative Expenses.--As required by the
    Federal Credit Reform Act of 1990, this account records, for this
    program, the subsidy costs associated with the loan guarantees committed
    in 1992 and thereafter, as well as administrative expenses of this
    program. The subsidy amounts are estimated on a present value basis; the
    administrative expenses are estimated on a cash basis.

                 FHA--Mutual Mortgage Insurance Program Account

                  (Legislative proposal, not subject to PAYGO)

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

    ----------------------------------------------------------------------------
    Identification code 86-0183-2-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Guaranteed loan subsidy (in percent):
    2320  Change to subsidy rate............                   -0.39       -0.55
                                               ---------   ---------  ----------

    2329    Weighted average subsidy rate...                   -0.39       -0.55
        Guaranteed loan subsidy budget authority:
    2330  Change to negative subsidy........                    -197        -260
                                               ---------   ---------  ----------

    2339    Guaranteed loan subsidy budget
              authority.....................                    -197        -260
        Guaranteed loan subsidy outlays:
    2340  Increase in negative subsidy......                    -197        -260
                                               ---------   ---------  ----------

    2349    Guaranteed loan subsidy outlays.                    -197        -260
    ---------------------------------------------------------------------------

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

          FHA--Mutual Mortgage Insurance Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                     200         200
    00.02 Interest paid to Treasury.........                       5          16
                                               ---------   ---------  ----------

    10.00   Total obligations...............                     205         216
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         185         205         216
    22.30 Unobligated balance expiring......        -185
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......                     205         216
    23.95 New obligations...................                    -205        -216
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         178         197         193
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           7           8          23
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................         185         205         216
    ----------------------------------------------------------------------------

    [[Page 529]]

        Change in unpaid obligations:
    73.10 New obligations...................                     205         216
    73.20 Total financing disbursements
            (gross).........................                    -205        -214
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................                     205         214
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.40     Other collections from non-
                Federal sources.............                      -8         -23
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........                      -8         -23
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         185         197         193
    90.00 Financing disbursements...........                     197         191
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and thereafter (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals. The $200 million in 1997 direct loan
    limitation in the MMI Fund would permit the Department to use Purchase
    Money Mortgages (PMMs) to help finance the sale of acquired single
    family properties. HUD would extend credit for these single-family homes
    to community nonprofit organizations or local government entities who
    would be expected to sell the properties to low- and medium-income
    buyers. The use of PMMs provides a tool for State and local nonprofit
    organizations to use in revitalizing communities, and creates enhanced
    homeownership opportunities for low- and moderate-income families.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         180         200         200
    1112  Unobligated direct loan limitation        -180
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...                     200         200
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                                 200
    1231  Disbursements: Direct loan
            disbursements...................                     200         200
    1251  Repayments: Repayments and
            prepayments.....................
    1263  Write-offs for default: Direct
            loans...........................                                  -1
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........                     200         399
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4242-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                      200            399
    1402    Interest receivable.............                                        5             16
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                      205            415
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                      205            415
    -----------------------------------------------------------------------------------------------

        FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims and other..........       1,026       1,904       2,833
    00.04 Working capital fund
            reimbursements..................                      19          19
    00.05 Payment of negative subsidy to
            receipt account.................         309       1,363       1,275
    00.06 Payment of negative subsidy to
            liquidating account.............         560
    00.07 Subsidy reestimate paid to
            liquidating account.............       1,227
    00.08 Interest payments to Treasury.....          77          13          13
    00.09 Payment to liquidating account for
            asset sale......................                   1,602         895
                                               ---------   ---------  ----------

    10.00   Total obligations...............       3,199       4,901       5,035
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....       1,128         701         610
    22.00 New financing authority (gross)...       2,772       4,810       4,827
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       3,900       5,511       5,437
    23.95 New obligations...................      -3,199      -4,901      -5,035
    24.90 Unobligated balance available, end
            of year: Fund balance...........         701         610         402
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         885         350
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............       1,887       4,460       4,827
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................       2,772       4,810       4,827
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         -61          77          77
    73.10 New obligations...................       3,199       4,901       5,035
    73.20 Total financing disbursements
            (gross).........................      -3,061      -4,901      -5,291
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.          77          77          77
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       3,061       4,901       5,291
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

    88.90       Total, offsetting
                  collections (cash)........      -1,887      -4,460      -4,827
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         885         350
    90.00 Financing disbursements...........       1,175         441         464
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     100,000     110,000     110,000
    2112  Uncommitted loan guarantee
            limitation......................     -49,677     -32,207     -39,279
                                               ---------   ---------  ----------

    2150    Total guaranteed loan
              commitments...................      50,323      77,793      70,721
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     184,190     222,021     252,379
    2231  Disbursements of new guaranteed
            loans...........................      40,142      51,543      58,592
    2251  Repayments and prepayments........      -1,392     -19,450     -27,449
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -263        -453        -677
    2262    Terminations for default that
              result in acquisition of
              property......................        -647      -1,260      -1,900
    2263    Terminations for default that
              result in claim payments......          -9         -22         -36
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........     222,021     252,379     280,909
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     222,021     252,379     280,909
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         152         413         841

    [[Page 530]]

    2331    Disbursements for guaranteed
              loan claims...................         263         453         677
    2351    Repayments of loans receivable..          -1         -14        -860
    2364    Other adjustments, net..........          -1         -11        -552
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......         413         841         106
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and thereafter. The
    amounts in this account are considered a means of financing and are not
    included in the budget totals.

                       Balance Sheet (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371   1995 actual\1\   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         777         336         742
          Net value of assets related to post-1991
              acquired defaulted guaranteed loans
              receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         413         841         105
    1504    Foreclosed property.............         324         584         906
    1505    Allowance for subsidy cost......        -429        -851        -356
                                               ---------   ---------  ----------

    1599      Net value of assets related to
                defaulted guaranteed loan...         308         574         655
                                               ---------   ---------  ----------

    1999    Total assets....................       1,085         910       1,397
        LIABILITIES:
    2103  Federal liabilities: Federal
            liabilities, Debt...............       1,171         771         521
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         -86         139         876
                                               ---------   ---------  ----------

    2999    Total liabilities...............       1,085         910       1,397
        NET POSITION:
    3300  Cumulative results of operations..
                                               ---------   ---------  ----------

    3999    Total net position..............
                                               ---------   ---------  ----------

    4999  Total liabilities and net position       1,085         910       1,397
    ---------------------------------------------------------------------------
        \1\ Preliminary results pending final audit. Subsidy reestimates for
    1995 will be performed for the mid-session review of the Budget.

    FHA--Mutual Mortgage and Cooperative Housing Insurance Funds Liquidating
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.03   Other operating costs...........          59          93          98
    00.04   Working Capital Fund
              reimbursements................                      30          30
    00.05   Participation payments..........           2           2           2
                                               ---------   ---------  ----------

    00.91     Total operating expenses......          61         125         130
          Capital investment:

    01.02   Assignment of defaulted
              mortgages.....................         606         502         395
    01.03   Acquisition of real properties..       2,427       1,397       1,099
    01.05   Acquisition of other assets.....          39          39          39
    01.07   Capitalized property expenses...         344         238         168
    01.08   Loss on defaulted guaranteed
              loans.........................           2           4           3
    01.09   Preforeclosure sale claims......          15          19          15
                                               ---------   ---------  ----------

    01.91     Total capital investment......       3,433       2,199       1,719
                                               ---------   ---------  ----------

    10.00   Total obligations...............       3,494       2,324       1,849
    ----------------------------------------------------------------------------

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

    21.90   Fund balance....................        -416        -163        -636
            U.S. Securities:
    21.91     Par value.....................       5,726       6,673       8,633
    21.92     Unrealized discounts..........         -36         -64         -64
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............       5,274       6,446       7,933
    22.00 New budget authority (gross)......       4,664       3,811       2,565
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       9,939      10,257      10,498
    23.95 New obligations...................      -3,494      -2,324      -1,849
          Unobligated balance available, end of year:

    24.90   Fund balance....................        -163        -636        -639
            U.S. Securities:
    24.91     Par value.....................       6,673       8,633       9,353
    24.92     Unrealized discounts..........         -64         -64         -65
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................       6,446       7,933       8,649
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.75   Reduction pursuant to P.L. 103-
              327...........................          -1
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       4,664       3,811       2,565
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       4,664       3,811       2,565
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         661         659         659
    73.10 New obligations...................       3,494       2,324       1,849
    73.20 Total outlays (gross).............      -3,495      -2,324      -1,849
    73.45 Adjustments in unexpired accounts.          -1
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.         659         659         659
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       2,834       1,665       1,190
    86.98 Outlays from permanent balances...         661         659         659
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       3,495       2,324       1,849
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.90       Total, offsetting
                  collections (cash)........      -4,664      -3,811      -2,565
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -1
    90.00 Outlays...........................      -1,169      -1,487        -716
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          17          15          13
    1251  Repayments: Repayments and
            prepayments.....................          -2          -1          -1
    1264  Write-offs for default: Other
            adjustments, net................                      -1          -1
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........          15          13          11
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371   1995 actual\1\   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     118,688      96,145      81,535
    2251  Repayments and prepayments........     -19,493     -12,391      -9,015
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -606        -502        -395
    2262    Terminations for default that
              result in acquisition of
              property......................      -2,427      -1,398      -1,099

    [[Page 531]]

    2263    Terminations for default that
              result in claim payments......         -17         -23         -17
    2264    Other adjustments, net..........                    -296
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........      96,145      81,535      71,009
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      96,145      81,535      71,009
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       3,642       3,886       1,801
    2331    Disbursements for guaranteed
              loan claims...................         606         502         395
    2351    Repayments of loans receivable..        -192      -1,747        -844
    2361    Write-offs of loans receivable..         -16
    2364    Other adjustments, net..........        -154        -840        -510
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......       3,886       1,801         842
    ---------------------------------------------------------------------------
        \1\ Unaudited preliminary results.

        The Federal Housing Administration Fund currently consists of four
    separate insurance funds. Prior to 1992, all budget transactions for the
    four funds were reflected in a single consolidated budget account (86-
    4070). Beginning in 1992, the transactions of the Fund appear in six
    separate accounts. (However, financial data for each individual
    insurance fund are continuing to be maintained for control and reporting
    purposes.)

        In order to present more clearly the operations of the various
    funds, FHA's budget transactions were separated into two major business
    segments. The basic single-family insurance programs in the Mutual
    Mortgage Insurance Fund and the multifamily Cooperative Management
    Housing insurance funds (MMI/CMHI) form one segment. The basic
    multifamily and other specialized insurance programs in the General
    Insurance and Special Risk Insurance funds (GI/SRI) form the other.

        The Federal Credit Reform Act of 1990 creates a structure of three
    accounts for existing credit programs. For each of the FHA business
    segments (MMI/CMHI and GI/SRI) there is a liquidating account, which
    records the revenues and costs associated with loan insurance committed
    prior to October 1, 1991; a financing account which records the revenues
    and costs associated with commitments to insure loans made after
    September 30, 1991; and, a program account which records the
    transactions associated with the program subsidy costs, if any, and the
    costs of administering the program.

        This liquidating account records, for this program, all cash flows
    to and from the Government resulting from MMI/CMHI loan guarantees
    committed prior to fiscal year 1992, and is shown on a cash basis. All
    new activity in this program in 1992 and thereafter (including
    modifications of loan guarantees that resulted from commitments in any
    year) is recorded in the corresponding program (86-0183) and financing
    (86-4587 and 86-4242) accounts.

        The program activity in the ``Program Highlights'' table shown below
    reflects only the activity in the MMI/CMHI liquidating and financing
    accounts. The GI/SRI program activity can be found with the GI/SRI
    liquidating account (86-4072).

                               PROGRAM HIGHLIGHTS

                            [In millions of dollars]

                                            1995
                                          actual\1\   1996 est.   1997 est.
    Insurance initiation:
      Mortgage insurance applications
        (units).........................     735,946   1,014,871     902,983
                                        ====================================
    Mortgage insurance written:
      Units.............................     534,082     659,141     645,022
      Amount............................      40,142      51,543      51,250
                                        ====================================
    Insurance maintenance: Outstanding
        balance of insurance in force,
        end of year:
      Mortgage insurance................     318,166     333,915     351,919
                                        ====================================
        \1\ Unaudited preliminary results.

        Insurance reserves from operations at the end of 1995 are estimated
    to be in a surplus position for the Mutual Mortgage Insurance and
    Cooperative Management Housing insurance funds. The status of estimated
    insurance reserves from operations (retained income or deficit) through
    1997 for the MMI/CMHI account follows:

                  STATUS OF INSURANCE RESERVES FROM OPERATIONS

                            [In millions of dollars]

                                        1995 est.\1\  1996 est.   1997 est.
    Insurance fund:
      Mutual mortgage/CMHI:
        Liquidating account \2\.........       6,902       7,390       7,234
        \1\ Unaudited preliminary results.
        \2\ Reflects impact from the transfer of negative subsidy from the
    Financing account to the Liquidating account in 1995 only. Negative
    subsidy transfers are to the Receipt Account in 1996 and 1997.

        Financial condition.--The following tables reflect the revenues,
    expenses and financial condition of the MMI/CMHI liquidating funds based
    on Generally Accepted Accounting Principles.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4070-0-3-371          1994
                                               actual\1\ 1995 actual\2\     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       4,531          2,821         2,239          1,573
    0102  Expense...........................      -1,392         -1,123        -1,011           -926
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............       3,139          1,698         1,228            647
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 1996 Budget.
        \2\ Estimated result on GAAP basis pending final audit.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4070-0-3-371          1994
                                               actual\1\ 1995 actual\2\     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         245            495            23             21
            Investments in US securities:
              Treasury securities, par:
    1102        Treasury securities, par....       5,726          6,673         8,633          9,353
    1102        Unamortized net premium/
                  discount..................         -46            -67           -67            -67
    1106      Receivables, net..............          97            123           123            123
    1107      Advances and prepayments......                         72            72             72
          Non-Federal assets:

    1206    Receivables, net................         172            159           159            159
    1207    Advances and prepayments........           7             12            12             12
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          17             15            13             11
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -3             -3            -3             -2
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          14             12            10              9
    1701    Defaulted guaranteed loans,
              gross.........................       3,642          3,886         1,800            842
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -686           -738          -342           -160
    1704    Defaulted guaranteed loans and
              interest receivable, net......       2,956          3,148         1,458            682
    1705    Allowance for uncollectables
              from foreclosed property......                       -526          -351           -263
    1706    Foreclosed property.............       1,103          1,379           923            691
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............       4,059          4,001         2,030          1,110
    1901  Other Federal assets: Other assets                                       18             35
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      10,274         11,480        11,013         10,827
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................          14              4             4              4
          Non-Federal liabilities:

    2201    Accounts payable................         578            496           496            496
    2206    Pension and other actuarial
              liabilities...................       2,177          2,254         2,254          2,254
    2207    Unearned revenue and advances...       1,403          1,805         1,734          1,703
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       4,172          4,559         4,488          4,457
        NET POSITION:
    3100  Appropriated capital..............          19             19            19             19
    3300  Cumulative results of operations..       6,083          6,902         6,506          6,350
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       6,102          6,921         6,525          6,369
                                            ------------ --------------  ------------  -------------

    [[Page 532]]

    4999  Total liabilities and net position      10,274         11,480        11,013         10,826
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 1996 Budget.
        \2\ Preliminary results pending final audit.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          59         123         128
    32.0  Land and structures...............       2,771       1,635       1,267
    33.0  Investments and loans.............         645         541         434
    42.0  Insurance claims and indemnities..          17          23          18
    44.0  Refunds...........................           2           2           2
    99.0  Subtotal, reimbursable obligations       3,494       2,324       1,849
                                               ---------   ---------  ----------

    99.9    Total obligations...............       3,494       2,324       1,849
    ---------------------------------------------------------------------------

                  FHA--General and Special Risk Program Account

                         (including transfers of funds)

        For the costs of guaranteed loans, as authorized by sections 238 and
    519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including
    the cost of loan guarantee modifications (as that term is defined in
    section 502 of the Congressional Budget Act of 1974, as amended),
    $160,000,000, to remain available until expended: Provided, That these
    funds are available to subsidize total loan principal, any part of which
    is to be guaranteed, of up to $17,400,000,000: Provided further, That
    during fiscal year 1997, the Secretary shall sell assigned mortgage
    notes having an unpaid principal balance of up to $2,500,000,000, which
    notes are held by the Secretary under the General Insurance and Special
    Risk Insurance funds: Provided further, That of the amount provided, up
    to $75,000,000 shall be derived from negative subsidy in the General
    Insurance and Special Risk Insurance receipt account resulting from the
    sale of such assigned mortgage notes: Provided further, That in addition
    to amounts otherwise provided herein, the Secretary may use 25 percent
    of any negative subsidy in excess of $75,000,000 (but not to exceed
    $25,000,000) resulting from such mortgage note sales during fiscal year
    1997 for the costs of such guaranteed loans and for administrative
    expenses.
        Gross obligations for the principal amount of direct loans, as
    authorized by sections 204(g), 207(l), 238(a), and 519(a) of the
    National Housing Act, shall not exceed $120,000,000; of which not to
    exceed $100,000,000 shall be for bridge financing in connection with the
    sale of multifamily real properties owned by the Secretary and formerly
    insured under such Act; and of which not to exceed $20,000,000 shall be
    for loans to nonprofit and governmental entities in connection with the
    sale of single-family real properties owned by the Secretary and
    formerly insured under such Act.
        In addition, for administrative expenses necessary to carry out the
    guaranteed and direct loan programs, $207,470,000, of which $203,299,000
    shall be transferred to the appropriation for Salaries and Expenses; and
    of which $4,171,000 shall be transferred to the appropriation for the
    Office of Inspector General.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, subsidy downward
            reestimate, start of year.......         803       1,209       2,944
        Receipts:
    02.01 Negative Subsidies................         525         434         267
    02.02 Negative Subsidies, legislative
            proposal........................                   1,386
                                               ---------   ---------  ----------

    02.99   Total receipts..................         525       1,820         267
                                               ---------   ---------  ----------

    04.00 Total: Balances and collections...       1,328       3,029       3,211
        Appropriation:
    05.01 General and special risk program
            account.........................        -119         -85         -75
    07.99 Total balance, end of year........       1,209       2,944       3,136
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........          89         155         160
    00.03 Section 221(g)(4) auction.........                      34
    00.04 FHA Multifamily Demonstration.....                      30
    00.09 Administrative expenses...........         197         202         207
                                               ---------   ---------  ----------

    10.00   Total obligations...............         286         421         367
    ----------------------------------------------------------------------------

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

            Uninvested balance:
    21.40     Uncommitted...................                      31
    21.40     Administratively Committed....                      69          30
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............                     100          30
    22.00 New budget authority (gross)......         386         351         367
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         386         451         397
    23.95 New obligations...................        -286        -421        -367
          Unobligated balance available, end of year:

            Uninvested balance:
    24.40     Uncommitted...................          31
    24.40     Administratively Committed....          69          30          30
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................         100          30          30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Appropriation:

    40.00   Appropriation...................         267         202         292
    40.00   Appropriation, 221(g)(4) auction                      34
    40.00   FHA Multifamily Demonstration...                      30
    40.25 Appropriation (special fund,
            indefinite).....................         119          85          75
                                               ---------   ---------  ----------

    43.00   Appropriation (total)...........         386         351         367
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         386         351         367
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          59          30          35
    73.10 New obligations...................         286         421         367
    73.20 Total outlays (gross).............        -315        -416        -367
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          30          35          35
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         280         317         303
    86.93 Outlays from current balances.....          35         100          64
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         315         416         367
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         386         351         367
    90.00 Outlays...........................         315         416         367
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Single-family PMMs................          20          20          20
    1150  Multifamily bridge loans..........         200         100         100
                                               ---------   ---------  ----------

    1159    Total direct loan levels........         220         120         120
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Multifamily development...........         755         805       1,538
    2150  Refinance of FHA-insured mortgages         937       1,199       1,249
    2150  Risk sharing programs.............         452         571
    2150  Mixed Income......................                                  90
    2150  Cooperatives......................                                  45
    2150  Health and residential care
            facilities......................         814       1,200       1,805
    2150  Indian Housing....................                                   2
    2150  Preservation......................         844         542         150
    2150  Single family, negative...........       5,081       5,750       5,750
    2150  Title I guarantees................       1,255       1,757       2,304

    [[Page 533]]

    2150  Standby commitment authority......                   5,576       4,467
                                               ---------   ---------  ----------

    2159    Total loan guarantee levels.....      10,138      17,400      17,400
        Guaranteed loan subsidy (in percent):
    2320  Multifamily development...........       13.40       11.93        8.78
    2320  Refinance of multifamily mortgages        3.44        2.54       -0.79
    2320  Risk sharing programs.............        5.97        5.00        0.00
    2320  Mixed Income......................        0.00        0.00       12.26
    2320  Cooperatives......................        0.00        0.00       30.47
    2320  Health and residential care
            facilities......................       -1.96       -2.31        0.00
    2320  Preservation......................       -1.42       -1.87        0.00
    2320  Single family programs............       -1.32       -1.34       -1.55
    2320  Title I...........................       -1.48       -1.49       -1.66
                                               ---------   ---------  ----------

    2329    Weighted average subsidy rate...       -0.39        0.34        1.06
        Guaranteed loan subsidy budget authority:
    2330  Multifamily development...........          47          95         135
    2330  Refinance.........................          18          31
    2330  Risk sharing programs.............          24          29
    2330  Mixed Income......................                                  11
    2330  Cooperatives......................                                  14
                                               ---------   ---------  ----------

    2339    Total subsidy budget authority..          89         155         160
        Guaranteed loan subsidy outlays:
    2340  Multifamily development...........          76         102          79
    2340  Refinance.........................          40          18          28
    2340  Risk sharing......................           2          30          53
                                               ---------   ---------  ----------

    2349    Total subsidy outlays...........         118         150         160
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         197         202         207
    3590  Outlays from new authority........         197         202         207
    ---------------------------------------------------------------------------

        Multifamily Product Mix.--The FHA intends to phase out insuring
    activity that has traditionally been performed under various sections of
    the National Housing Act. The FHA seeks to streamline the delivery of
    insurance products under two main categories: development and refinance.
    The development category will include new construction, substantial
    rehabilitation and risk sharing with various partners. The refinance
    category will involve purchase, refinance, as well as risk sharing with
    various institutions. Insurance of nursing home mortgages will be
    separated into three categories: skilled nursing facilities; residential
    care facilities; and mixed-use continuum facilities.

        Subsidy Costs and Administrative Expenses.--As required by the
    Federal Credit Reform Act of 1990, this account records, for the single
    family, multifamily and Title I insurance programs of FHA's General and
    Special Risk Insurance Funds, the subsidy costs associated with the loan
    guarantees committed or direct loans obligated in 1992 and thereafter
    (including modifications of loan guarantees or direct loans that
    resulted from obligations or commitments in any year), as well as
    administrative expenses of these programs. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    accounted for on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....          89         219         160
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................         197         202         207
                                               ---------   ---------  ----------

    99.9    Total obligations...............         286         421         367
    ---------------------------------------------------------------------------

        FHA--General and Special Risk Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment, claims and other:

    00.01   Default claims and other........         189         481         489
    00.03   Working Capital Fund
              reimbursements................           4           4           5
    00.04   Payment of negative subsidy to
              receipt account...............         132         122         119
    00.05   Interest paid to Treasury.......          30          65          90
    00.08   Asset sale negative subsidy
              payment to receipt account....         399         272         173
    00.09   Asset sale payment to
              liquidating account...........         566         964         726
    00.10   Cost of mortgage note sales.....          30          66          62
    00.11   Portfolio restructuring
              legislation, modification
              savings.......................                   1,386
    00.12   1996 Waiver of PD law, savings..                      40
                                               ---------   ---------  ----------

    10.00     Total obligations.............       1,350       3,400       1,664
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....         272         435           1
    22.00 New financing authority (gross)...       1,534       3,035       1,927
    22.60 Redemption of debt................         -21         -70        -264
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,785       3,400       1,664
    23.95 New obligations...................      -1,350      -3,400      -1,664
    24.90 Unobligated balance available, end
            of year: Fund balance...........         435           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                   1,032
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,552       1,999       1,927
    68.10   Change in receivables from
              program account...............         -18           5
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................       1,534       2,004       1,927
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................       1,534       3,035       1,927
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Obligated balance: Appropriation         -51          16           2
    72.95   Receivables from program account          61          43          48
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............          10          59          50
    73.10 New obligations...................       1,350       3,400       1,664
    73.20 Total financing disbursements
            (gross).........................      -1,301      -3,409      -1,595
          Unpaid obligations, end of year:

    74.40   Obligated balance: Appropriation          16           2          71
    74.95   Receivables from program account          43          48          48
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................          59          50         119
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       2,117       2,762
    86.98 Outlays from permanent balances...         221         464
                                               ---------   ---------  ----------

    87.00   Total financing disbursements
              (gross).......................       1,301       3,409       1,595
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................         -83        -253        -160
    88.00       Modification adjustment
                  transfer from liquidating/
                  section 223(a)(7).........          -3          -3
    88.00       Collections.................         -25
    88.25     Interest on uninvested funds..         -17
              Non-Federal sources:
    88.40       Fees and premiums...........        -195        -241        -272
    88.40       Recoveries on defaulted
                  mortgages.................         -49        -131        -139
    88.40       Interest and other income...                    -114        -134
    88.40       Proceeds from sale of
                  mortgage notes............      -1,083      -1,160        -918
    88.40       Repayment of principal and
                  interest from liquidating
                  account...................         -97         -97        -304
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........      -1,552      -1,999      -1,927
    88.95 Change in receivables from program
            accounts........................          18          -5
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                   1,031
    90.00 Financing disbursements...........        -251       1,410        -332
    ---------------------------------------------------------------------------

    [[Page 534]]

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371   1995 actual\1\   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      20,885      17,400      17,400
    2112  Uncommitted loan guarantee
            limitation......................     -10,747     -16,323      -4,467
    2113  Uncommitted limitation carried
            forward.........................                  10,747
                                               ---------   ---------  ----------

    2150    Total guaranteed loan
              commitments...................      10,138      11,824      12,933
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      26,228      35,457      38,972
    2231  Disbursements of new guaranteed
            loans...........................       9,622       9,971      10,741
    2251  Repayments and prepayments........        -214      -6,164      -5,066
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -55        -120         -55
    2262    Terminations for default that
              result in acquisition of
              property......................        -122        -166        -196
    2263    Terminations for default that
              result in claim payments......          -2          -6          -7
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........      35,457      38,972      44,389
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      35,457      38,972      44,389
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......          38          87         163
    2331    Disbursements for guaranteed
              loan claims...................          55         120          55
    2351    Repayments of loans receivable..          -1      -1,180        -946
    2361    Write-offs of loans receivable..          -6         272         173
    2364    Other adjustments, net..........           1         864         726
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......          87         163         171
    ---------------------------------------------------------------------------
        \1\ Preliminary results pending final audit.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and thereafter
    (including modifications of loan guarantees that resulted from
    commitments in any year) for FHA's General and Special Risk Insurance
    Fund programs. The amounts in this account are a means of financing and
    are not included in the budget totals.

                       Balance Sheet (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371   1995 actual\1\   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         451         344         324
            Investments in US securities:
    1107      Borrowings receivable from
                liquidating account.........         476       1,665       1,461
          Net value of assets related to post-1991
              acquired defaulted guaranteed loans
              receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............          87         163         171
    1504    Foreclosed property.............          69         325         356
    1505    Allowance for subsidy cost......         -77        -212        -273
                                               ---------   ---------  ----------

    1599      Net value of assets related to
                defaulted guaranteed loan...          79         276         254
                                               ---------   ---------  ----------

    1999    Total assets....................       1,006       2,285       2,039
        LIABILITIES:
    2103  Federal liabilities: Debt.........         476       1,665       1,461
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         530         620         578
                                               ---------   ---------  ----------

    2999    Total liabilities...............       1,006       2,285       2,039
        NET POSITION:
                                               ---------   ---------  ----------

    3999    Total net position..............
                                               ---------   ---------  ----------

    4999  Total liabilities and net position       1,006       2,285       2,039
    ---------------------------------------------------------------------------
        \1\ Preliminary results pending final audit. Subsidy reestimates
    will be performed for the Mid-Session review of the Budget.

           FHA--General and Special Risk Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................                     120         120
    00.02 Interest paid to Treasury.........                       4          13
                                               ---------   ---------  ----------

    10.00   Total obligations...............                     124         133
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                     124         133
    23.95 New obligations...................                    -124        -133
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                     120         120
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                       4          13
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................                     124         133
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                     124         133
    73.20 Total financing disbursements
            (gross).........................                    -124        -133
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................                     124         133
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.40     Interest received on loans....                      -4         -13
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........                      -4         -13
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     120         120
    90.00 Financing disbursements...........                     120         120
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         220         120         120
    1112  Unobligated direct loan limitation        -220
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...                     120         120
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                                 120
    1231  Disbursements: Direct loan
            disbursements...................                     120         120
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........                     120         240
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and thereafter (including
    loan modifications) for FHA's General and Special Risk Insurance Fund
    programs. The amounts in this account are a means of financing and are
    not included in the budget totals.

        This schedule includes two direct loan programs. One provides bridge
    loan financing to facilitate the disposition of multifamily housing
    owned by the Department to non-profit organizations who agree to
    preserve it as affordable rental or cooperative housing. The second is a
    single-family direct loan program for purchase money mortgages, as
    discussed in the preceding section for the Mutual Mortgage Insurance
    Fund.

    [[Page 535]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4105-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                      120            240
    1405    Allowance for subsidy cost (-)..
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                      120            240
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                      120            240
        LIABILITIES:
    2103  Federal liabilities: Treasury
            borrowing.......................                                      120            240
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                      120            240
        NET POSITION:
    3300  Cumulative results of operations..
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                      120            240
    -----------------------------------------------------------------------------------------------

        FHA--General and Special Risk Insurance Funds Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Interest on debentures..........          15          15          15
    00.03   Other operating costs...........          45         137         142
    00.04   Working capital fund
              reimbursements................                      12          15
    00.05   Repayment to financing account..          97          97          97
    00.06   Prior Year Adjustment...........                      25
                                               ---------   ---------  ----------

    00.91     Total operating expenses......         157         286         269
          Capital investment: Claims and other:

    01.01   Acquisition of defaulted Title I
              notes.........................          29          21          15
    01.02   Assignment of defaulted
              mortgages.....................         488       1,160       1,183
    01.03   Acquisition of real properties..         325         479         416
    01.04   Rehabilitation of real
              properties....................                     724         229
    01.06   Assignment of current mortgages.                       4           1
    01.07   Capitalized property expenses...         231         187         243
    01.08   Loss on defaulted guaranteed
              loans.........................          12           3           3
    01.09   Interest subsidy on auctioned
              mortgages.....................           4           1           4
    01.10   Tax advances on held mortgages..          90          90          90
                                               ---------   ---------  ----------

    01.91     Total capital investment......       1,179       2,669       2,184
                                               ---------   ---------  ----------

    10.00   Total obligations...............       1,336       2,955       2,453
    ----------------------------------------------------------------------------

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

    21.40   Uninvested balance..............       1,040       1,637         767
    21.91   U.S. Securities: Par value......          15           5           5
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............       1,055       1,642         772
    22.00 New budget authority (gross)......       1,947       2,126       2,275
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          42
    22.60 Redemption of debt................         -66         -41         -41
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       2,978       3,727       3,006
    23.95 New obligations...................      -1,336      -2,955      -2,453
          Unobligated balance available, end of year:

    24.40   Uninvested balance..............       1,637         767         548
    24.91   U.S. Securities: Par value......           5           5           5
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................       1,642         772         553
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.75   Procurement reduction pursuant
              to P.L. 103-327...............          -1
          Permanent:

    60.05   Appropriation (indefinite)......                                 500
    64.00   Proceeds of loan asset sales
              with recourse.................                     100
    67.15   Authority to borrow (indefinite)          41          41          41
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       1,906       1,985       1,734
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       1,947       2,126       2,275
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         408         366         366
    73.10 New obligations...................       1,336       2,955       2,453
    73.20 Total outlays (gross).............      -1,336      -2,955      -2,453
    73.45 Adjustments in unexpired accounts.         -42
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.         366         366         366
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         970       2,026       2,087
    86.98 Outlays from permanent balances...         366         929         366
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       1,336       2,955       2,453
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Fees and premiums...........        -264        -241        -226
    88.40       Rebates of insurance
                  premiums..................           7           7           7
    88.40       Multifamily foreclosure
                  sales.....................         -24         -24         -24
    88.40       Proceeds from sale of real
                  property..................        -320        -301        -263
    88.40       Repayment of mortgage notes
                  and sales contracts.......         -10         -10          -6
    88.40       Proceeds from sale of
                  mortgage notes............        -566        -963        -726
    88.40       Prior Year Adjustment.......                     100
    88.40       Recoveries from portfolio
                  restructuring.............                                 -96
    88.40       Recoveries on defaulted
                  mortgages.................        -368        -262        -155
    88.40       Interest and operating
                  income....................        -334        -231        -173
    88.40       Recoveries on defaulted
                  Title I mortgages.........         -22         -22         -17
    88.40       Other interest, dividends
                  and revenue...............                     -34         -50
    88.40       Miscellaneous collections...          -5          -4          -5
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........      -1,906      -1,985      -1,734
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          41         141         541
    90.00 Outlays...........................        -571         970         719
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................          40         141         541
      Outlays...........................        -570         970         719
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                               1,051
      Outlays...........................                    -142       1,051
                                        ------------------------------------
    Total:
      Budget Authority..................          40         141       1,592
      Outlays...........................        -570         828       1,770
                                        ====================================

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         112         107         101
    1251  Repayments: Repayments and
            prepayments.....................         -10          -6          -6
    1264  Write-offs for default: Other
            adjustments, net................           5
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         107         101          95
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      52,754      47,729      44,758
    2251  Repayments and prepayments........      -4,171      -1,307        -593
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -517      -1,181      -1,198
    2262    Terminations for default that
              result in acquisition of
              property......................        -325        -478        -416
    2263    Terminations for default that
              result in claim payments......         -12          -5          -3
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........      47,729      44,758      42,548
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      47,729      44,758      42,548
    ----------------------------------------------------------------------------

    [[Page 536]]

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       6,822       5,201       3,420
    2331    Disbursements for guaranteed
              loan claims...................         517       1,181       1,199
    2351    Repayments of loans receivable..        -990      -1,178      -1,023
    2361    Write-offs of loans receivable
              \1\...........................        -417
    2364    Other adjustments, net..........        -731      -1,784      -1,873
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......       5,201       3,420       1,723
    ---------------------------------------------------------------------------
        \1\ Includes foreclosures of HUD-held mortgage notes.

        The General insurance fund provides for a large number of
    specialized mortgage insurance programs, including the insurance of
    loans for property improvements as well as for cooperatives,
    condominiums, housing for the elderly, rental housing and nonprofit
    hospitals.

        The Special risk insurance fund provides mortgage insurance on
    behalf of mortgagors eligible for interest reduction payments who
    otherwise would not be eligible for mortgage insurance. In addition, the
    fund provides insurance on mortgages covering experimental housing where
    strict adherence to State or local building regulations is not observed.
    Also provided is insurance for high-risk mortgagors who normally would
    not be eligible for mortgage insurance.
        Budget program.--As required by the Federal Credit Reform Act of
    1990, this account records, for this program, all cash flows to and from
    the Government resulting from loan guarantees committed and direct loans
    obligated prior to 1992. This account is shown on a cash basis. All new
    activity in this program in 1992 and thereafter (including modifications
    of loan guarantees that resulted from obligations, direct loans or
    commitments in any year and direct loans) is recorded in corresponding
    program (86-0200) and financing (86-4077 and 86-4105) accounts.
        The detailed program activities in the ``Program Highlights'' table
    shown below reflect the consolidated activity of the GI/SRI accounts.
                               PROGRAM HIGHLIGHTS

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Insurance initiation:
      Mortgage insurance applications
        (units).........................     235,658     231,806     239,262
                                        ====================================
    Mortgage insurance written:
      Units.............................     190,953     171,634     179,832
      Amount............................       8,366       8,214       8,882
                                        ====================================
    Title I property improvement loans
        insured:
      Notes.............................      93,107     116,000     138,000
      Amount............................       1,255       1,757       2,304
                                        ====================================
    Insurance maintenance: Outstanding
        balance of insurance in force,
        end of year:
      Mortgage insurance................      78,052      78,537      80,290
      Title I property improvement loan
        insurance.......................       4,837       5,193       6,645
                                        ------------------------------------
          Total outstanding balance of
            insurance in force, end of
            year........................      82,889      83,730      86,935
                                        ====================================

        Insurance reserves from operations at the end of 1995 are estimated
    to be in a deficit status for the GI and SRI funds. The status of
    estimated insurance reserves from operations (retained income or
    deficit) for the GI/SRI Liquidating Account through 1997 is as follows:

                  STATUS OF INSURANCE RESERVES FROM OPERATIONS

                            [In millions of dollars]

                                        1995 actual
                                             \1\      1996 est.   1997 est.
    Insurance fund:
      General and special risk
        insurance:
        Liquidating account.............     -20,510     -22,180     -23,587
        \1\ Preliminary results pending final audit.

        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          1994
                                               actual\1\ 1995 actual\2\     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         453            517           393            321
    0102  Expense...........................        -231           -563        -2,074         -1,717
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............         222            -46        -1,681         -1,396
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 1996 Budget.
        \2\ Preliminary results pending final audit.
                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4072-0-3-371          1994
                                               actual\1\ 1995 actual\2\     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         579          1,134           262             42
            Investments in US securities:
    1102      Treasury securities, par......          15              5             5              5
    1106      Receivables, net..............           4              3             4              4
    1107      Advances and prepayments......          20             20            20             20
          Non-Federal assets:

    1206    Receivables, net................         140             98            98             98
    1207    Advances and prepayments........         547             75            75             75
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         112            107           101             95
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -24            -22           -21            -20
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          88             85            80             75
    1701    Defaulted guaranteed loans,
              gross.........................       6,822          5,201         3,420          1,723
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -4,026         -2,460        -1,616           -814
    1704    Defaulted guaranteed loans and
              interest receivable, net......       2,796          2,741         1,804            909
    1705    Allowance for uncollectables
              from foreclosed property......                       -543          -626           -932
    1706    Foreclosed property.............         288            734           846          1,260
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............       3,084          2,932         2,024          1,237
    1901  Other Federal assets: Other assets                         38            54             65
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,477          4,390         2,622          1,621
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         561             63            63             63
    2102    Interest payable................           7              6             6              6
    2104    Resources payable to Treasury...          62             86            86             86
          Non-Federal liabilities:

    2201    Accounts payable................         130            131           131            131
    2202    Interest payable................          18             21            21             21
    2203    Debt............................         112            408           311            208
    2206    Pension and other actuarial
              liabilities...................      10,702          9,997         9,996          9,996
            Other:
    2207      Unearned revenue and advances.         418            380           380            380
    2207      Other.........................                         50            50             50
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      12,010         11,142        11,044         10,941
        NET POSITION:
    3100  Appropriated capital..............       7,287          6,287         6,287          6,797
    3300  Cumulative results of operations..     -22,291        -20,510       -22,180        -23,587
    3600  Debt Forgiveness..................       7,471          7,471         7,471          7,471
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -7,533         -6,752        -8,422         -9,319
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,477          4,390         2,622          1,622
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in 1996 Budget.
        \2\ Preliminary results pending final audit.

    [[Page 537]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          45         174         158
    32.0  Land and structures...............         325       1,203         645
    33.0  Investments and loans.............         607       1,274       1,288
    41.0  Grants, subsidies, and
            contributions...................           4           1           4
    42.0  Insurance claims and indemnities..         243         191         246
    43.0  Interest and dividends............          15          15          15
    44.0  Repayment to financing account....          97          97          97
    99.0  Subtotal, reimbursable obligations       1,336       2,955       2,453
                                               ---------   ---------  ----------

    99.9    Total obligations...............       1,336       2,955       2,453
    ---------------------------------------------------------------------------

        FHA--General and Special Risk Insurance Funds Liquidating Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing [in millions of dollars]

    ----------------------------------------------------------------------------
    Identification code 86-4072-2-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Repayment of portfolio
            reengineering legislative
            savings to the financing account                                 107
          Capital investment: Claims and other:

    01.01   Change to baseline claims.......                    -132       2,581
                                               ---------   ---------  ----------

    10.00   Total obligations...............                    -132       2,688
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                                 142
    22.00 New budget authority (gross)......                      10       2,688
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......                      10       2,830
    23.95 New obligations...................                     132      -2,688
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....                     142         142
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........                               1,051
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                      10       1,637
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................                      10       2,688
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.
    73.10 New obligations...................                    -132       2,688
    73.20 Total outlays (gross).............                     132      -2,688
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                    -132       2,688
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                    -132       2,688
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Fees and premiums...........                                  14
    88.40       Portfolio reengineering
                  recoveries................                     -10      -1,651
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........                     -10      -1,637
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               1,051
    90.00 Outlays...........................                    -142       1,051
    ---------------------------------------------------------------------------

        This account summarizes the impact on the FHA GI/SRI Liquidating
    Account of the Administration's proposal for reengineering of the
    multifamily insurance portfolio. The account reflects the net changes to
    projected future cash flows in the liquidating account arising from
    portfolio restructuring activities. A net present value PAYGO savings of
    $1.4 billion is estimated, which would be scored in the year of
    enactment.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-2-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.2  Repayment of financing account
            borrowing.......................                                 107
    33.0  Investments and loans.............                    -132       2,581
    99.0  Subtotal, reimbursable obligations                    -132       2,688
                                               ---------   ---------  ----------

    99.9    Total obligations...............                    -132       2,688
    ---------------------------------------------------------------------------

         Housing for the Elderly or Handicapped Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.01   Housing for the elderly or
              handicapped loans.............           1          17
    00.02   Maintenance security and
              collateral....................                       4           4
                                               ---------   ---------  ----------

    00.91     Capital Investment, Subtotal..           1          21           4
    01.01 Operating expenses: Interest on
            borrowings......................         552         498         436
                                               ---------   ---------  ----------

    10.00   Total obligations...............         553         519         440
    ----------------------------------------------------------------------------

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

    21.47   Authority to borrow.............          20
    21.90   Fund balance....................          28         315         547
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............          48         315         547
    22.00 New budget authority (gross)......         819         751         750
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         868       1,066       1,297
    23.95 New obligations...................        -553        -519        -440
    24.90 Unobligated balance available, end
            of year: Fund balance...........         315         547         858
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........         770         805         735
    60.47 Portion applied to debt reduction.        -770        -805        -735
                                               ---------   ---------  ----------

    63.00   Appropriation (total)...........
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         819         751         750
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         819         751         750
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         449         390         260
    73.10 New obligations...................         553         519         440
    73.20 Total outlays (gross).............        -611        -649        -500
    73.45 Adjustments in unexpired accounts.          -1
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.         390         260         200
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         611         649         500
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         611         649         500
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -819        -751        -750
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -209        -102        -250
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       8,462       8,331       8,462
    1231  Disbursements: Direct loan
            disbursements...................           7         192
    1251  Repayments: Repayments and
            prepayments.....................        -138         -61         -63
                                               ---------   ---------  ----------

    [[Page 538]]

    1290    Outstanding, end of year........       8,331       8,462       8,399
    ---------------------------------------------------------------------------
        Note.--Amounts for direct loan obligations reflect reservations of
    section 202 funds. Loan obligations shown under the program and
    financing schedule reflect loans that have reached the initial closing
    stage of processing.

        The Housing for the Elderly or Handicapped Fund was established
    pursuant to section 202 of the Housing Act of 1959, as amended. The fund
    provided direct loans to nonprofit organizations building and managing
    housing projects for lower income persons who are elderly or disabled.

        Projects must include an assured range of necessary services for the
    occupants of such projects. In addition, the section 8 lower income
    housing assistance payments program has been used in conjunction with
    the section 202 program. Applications under the two programs have been
    processed simultaneously.

        The data included in these schedules represent direct loan
    activities funded under the Housing for the Elderly or Handicapped Loan
    Fund. Further, activities in support of the needs of the elderly and
    disabled have been carried out under a grant program funded in the 1991
    Appropriations Act (P.L. 101-507) and authorized in the National
    Affordable Housing Act (P.L. 101-625).

        After April 1, 1992, all projects for which there were
    administrative reservations converted to the capital advance assistance
    program.

        The program and financing schedule for this account summarizes the
    Federal government's obligations for this loan program. The amounts
    reflected in the following summary of administrative commitments reflect
    outstanding section 202 fund reservations, whereas, the obligations
    portion of the program and financing schedule reflects commitments which
    have reached the initial loan closing stage of processing.

                      SUMMARY OF ADMINISTRATIVE COMMITMENTS

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Program by activities:
      Capital investment:
        Administrative commitments,
          start of year.................      20,100      17,025
        Recovery of prior year
          obligations...................      -2,570
        Administrative commitments, end
          of year.......................     -17,025
                                        ------------------------------------
          Subtotal, capital investment-
            loan obligations............         505      17,025
        Other expenses (Fee inspection).          33
      Capital investment:
        Loan obligations................         505      17,025
      Maintenance security and
        collateral......................         589       3,500       3,500
                                        ------------------------------------
          Total capital investment......       1,094      20,525       3,500
                                        ====================================

        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    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         709            672           690            688
    0102  Expense...........................        -690           -551          -502           -439
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          19            121           188            249
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         497            705           810          1,061
            Investments in US securities:
    1106      Receivables, net..............          -1
    1206  Non-Federal assets: Receivables,
            net.............................         242            167
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       8,462          8,331         8,461          8,400
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -21            -18           -19            -18
    1604    Direct loans and interest
              receivable, net...............       8,441          8,313         8,442          8,382
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       8,441          8,313         8,442          8,382
    1901  Other Federal assets: Other assets                         -7
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       9,179          9,178         9,252          9,443
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         335            275           248            217
    2104    Resources payable to Treasury...         175            142           142            142
    2207  Non-Federal liabilities: Other....       8,484          7,714         6,909          6,174
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,994          8,131         7,299          6,533
        NET POSITION:
    3100  Appropriated capital..............         456          1,183         1,183          1,183
    3300  Cumulative results of operations..        -271           -137           769          1,726
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         185          1,046         1,952          2,909
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       9,179          9,177         9,251          9,442
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    32.0  Land and structures...............                       4           4
    33.0  Investments and loans.............           1          17
    43.0  Interest and dividends............         552         498         436
                                               ---------   ---------  ----------

    99.9    Total obligations...............         553         519         440
    ---------------------------------------------------------------------------

                Nonprofit Sponsor Assistance Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4042-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....           6           6           6
    22.00 New budget authority (gross)......
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......           6           6           6
    23.95 New obligations...................
    24.90 Unobligated balance available, end
            of year: Fund balance...........           6           6           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    70.00 Total new budget authority (gross)
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................
    ----------------------------------------------------------------------------

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

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4042-0-3-604      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1           1           1
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........           1           1           1
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from direct loans obligated prior to 1992. This account is
    shown on a cash basis.

    [[Page 539]]

        The Nonprofit Sponsor Assistance fund provided interest-free loans
    to nonprofit organizations to plan housing projects to be financed under
    the section 202 housing for the elderly or disabled program.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4042-0-3-604    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           7              6             6              6
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............           1              1             1              1
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -1             -1            -1             -1
    1604    Direct loans and interest
              receivable, net...............
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           7              6             6              6
        NET POSITION:
    3300  Cumulative results of operations..           7              6             6              6
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           7              6             6              6
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           7              6             6              6
    -----------------------------------------------------------------------------------------------

                    GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

                                  Federal Funds

    Public enterprise funds:

                 Loans to Federal National Mortgage Association

        The Treasury is authorized to make up to $2.25 billion of loans to
    the Federal National Mortgage Association. Such loans were made in the
    first few months of the Association's existence as a private corporation
    while it arranged lines of credit with commercial banks. No loans have
    been made since that time and the loan authority may be used only at the
    discretion of the Secretary of the Treasury.

                    Management and Liquidating Functions Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4016-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.91 Unobligated balance available,
            start of year: U.S. Securities:
            Par value.......................          16          15
    22.00 New budget authority (gross)......           1
    22.40 Capital transfer to general fund..          -2         -15
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          15
    23.95 New obligations...................
    24.91 Unobligated balance available, end
            of year: U.S. Securities: Par
            value...........................          15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................
    73.20 Total outlays (gross).............          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           1
    86.98 Outlays from permanent balances...           1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -1
    ---------------------------------------------------------------------------

        Budget program.--The remaining $15 million portfolio in the
    Management and Liquidating Functions Fund was redeemed at par value plus
    accrued interest on January 1, 1996, on which date interest ceased.
    Debentures and interest earned of $15.4 million was transferred to the
    Treasury Department.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4016-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           1              1
    0102  Expense...........................
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............           1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4016-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1104    Federal assets: Agency
              securities, par...............          16             15
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          16             15
        NET POSITION:
    3300  Cumulative results of operations..          16             15
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          16             15
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          16             15
    -----------------------------------------------------------------------------------------------

    Credit accounts:

     Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

                          (includes transfer of funds)

        During fiscal year 1997, new commitments to issue guarantees to
    carry out section 306 of the National Housing Act, as amended (12 U.S.C.
    1721(g)), shall not exceed $110,000,000,000.
        For administrative expenses necessary to carry out the guaranteed
    mortgage-backed securities program, $9,383,000, to be derived from the
    GNMA-guarantees of mortgage-backed securities guaranteed loan receipt
    account, of which not to exceed $9,383,000 shall be transferred to the
    appropriation for salaries and expenses.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Guarantees of mortgage backed
            securities guarantee loans,
            negative subsidies..............           9           9           9
        Appropriation:
    05.01 Guarantees of mortgage-backed
            securities loan guarantee
            program account.................          -9          -9          -9
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            25.2)...........................           9           9           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9           9           9

    [[Page 540]]

    23.95 New obligations...................          -9          -9          -9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.25 Appropriation (special fund,
            indefinite).....................           9           9           9
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           9           9           9
    73.20 Total outlays (gross).............          -9          -9          -9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           9           9           9
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           9           9           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9           9           9
    90.00 Outlays...........................           9           9           9
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2159  Total guarantee loan levels.......     142,000     110,000     110,000
        Guaranteed loan subsidy budget authority:
    2339  Total subsidy budget authority....           9           9           9
        Guaranteed loan subsidy outlays:
    2349  Total subsidy outlays.............          -9          -9          -9
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records the administrative expenses of this program. The administrative
    expenses are estimated on a cash basis.

           Guarantees of Mortgage-Backed Securities Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to receipt account for
            administration..................           9           9           9
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              25.2).........................           9           9           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          78         101         128
    22.00 New financing authority (gross)...          32          36          36
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         110         137         164
    23.95 New obligations...................          -9          -9          -9
    24.90 Unobligated balance available, end
            of year: Fund balance...........         101         128         155
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...          30          35          36
    68.10   Change in orders on hand from
              Federal sources...............           2           1
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................          32          36          36
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................          32          36          36
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.95 Unpaid obligations, start of year:
            Orders on hand from Federal
            sources.........................           4           6           7
    73.10 New obligations...................           9           9           9
    73.20 Total financing disbursements
            (gross).........................          -7          -9          -9
    74.95 Unpaid obligations, end of year:
            Orders on hand from Federal
            sources.........................           6           7           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................           7           9           9
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -6          -2          -2
    88.40     Non-Federal sources:
                Commitment and other fees...         -20         -33         -34
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........         -26         -35         -36
    88.95 Change in receivables from program
            accounts........................          -2          -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           4
    90.00 Financing disbursements...........         -19         -26         -27
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     142,000     110,000     110,000
                                               ---------   ---------  ----------

    2150    Total guaranteed loan
              commitments...................     142,000     110,000     110,000
    ---------------------------------------------------------------------------

        The Housing and Urban Development Act of 1968 authorized the
    Government National Mortgage Association (GNMA) to guarantee the timely
    payment of principal and interest on privately issued securities that
    are backed by pools of FHA, Veterans Affairs (VA) and Farmers Home
    Administration (FmHA) mortgages. The GNMA guarantee gives lenders access
    to the capital markets for funds to originate new loans. New FHA and VA
    loans are currently pooled into GNMA securities.

        Financing.--GNMA Issuers are assessed commitment, guarantee and
    other fees to cover costs incurred by GNMA and to fund a reserve against
    possible future payments under the guarantee.

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $26 million and $27 million in 1996 and
    1997 respectively. These amounts will be retained to cover future year
    expenses and as a reserve against losses that may be incurred on
    guarantees.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4240-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          74             93           100            108
    1206  Non-Federal assets: Receivables,
            net.............................           4              6             7              7
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          78             99           107            115
        NET POSITION:
    3300  Cumulative results of operations..          78             99           107            115
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          78             99           107            115
    -----------------------------------------------------------------------------------------------
        Note.--GNMA guarantees the timely payment of principal and interest
    installments on securities which are backed by FHA-insured, FmHA-
    insured, and VA-guaranteed mortgages. Such guarantees are excluded from
    the Government total of guaranteed obligations duplicating FHA, FmHA,
    and VA guarantees.

    [[Page 541]]

          Guarantees of Mortgage-Backed Securities Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Functional services.............          13          13          14
    00.03   Default expenses................          17           8           9
    00.04   Servicing expenses..............          12          14          14
    00.05   Other expenses..................          13          19          20
    00.06   REMIC expenses..................           4           6           6
                                               ---------   ---------  ----------

    00.91     Total operating expenses......          59          60          63
          Capital investment:

    01.01   Advances of guaranty payments...         138         303         366
    01.02   Real estate owned properties....          34          35          34
                                               ---------   ---------  ----------

    01.91     Total capital investment......         172         338         400
                                               ---------   ---------  ----------

    10.00   Total obligations...............         231         398         463
    ----------------------------------------------------------------------------

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

    21.90   Fund balance....................          91          87          63
            U.S. Securities:
              Par value:
    21.91       Par value...................       3,714       4,211       4,666
    21.91       Par value (REMICs)..........                     -17
    21.92     Unrealized discounts..........         -10
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............       3,795       4,281       4,729
    22.00 New budget authority (gross)......         716         846         942
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       4,511       5,127       5,671
    23.95 New obligations...................        -231        -398        -463
          Unobligated balance available, end of year:

    24.90   Fund balance....................          87          63          65
            U.S. Securities:
              Par value:
    24.91       Par value...................       4,211       4,666       5,143
    24.91       Par value (REMICs)..........         -17
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................       4,281       4,729       5,208
    ----------------------------------------------------------------------------

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

            Offsetting collections (cash):
    68.00     Offsetting collections (cash).         703         824         920
    68.00     Spending authority from
                offsetting collections
                (REMICs)....................          13          22          22
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................         716         846         942
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         716         846         942
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.47 Unpaid obligations, start of year:
            Obligated balance: Orders on
            hand from Federal sources.......          65          44          68
    73.10 New obligations...................         231         398         463
    73.20 Total outlays (gross).............        -252        -374        -466
    74.47 Unpaid obligations, end of year:
            Obligated balance: Orders on
            hand from Federal Sources.......          44          68          65
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...         252         374         466
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         252         374         466
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on U.S. securities...        -216        -199        -247
              Non-Federal sources:
    88.40       Guarantee fees..............        -288        -304        -312
    88.40       Repayments of guaranteed
                  payments..................        -143        -251        -312
    88.40       Commitment and other fees...         -18         -27         -27
    88.40       Servicing income............         -18         -18         -18
    88.40       Receipts from sale of REO
                  properties and mobile home
                  units.....................         -17         -35         -15
    88.40       Interest income mortgages...          -1          -1          -1
    88.40       Repayments on mortgages.....          -9          -5          -4
    88.40       Sale of servicing rights....          -6          -6          -6
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -716        -846        -942
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -464        -472        -476
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         349         333         360
    1232  Disbursements: Purchase of loans
            assets from the public..........         149         314         378
    1252  Repayments: Proceeds from loan
            asset sales to the public or
            discounted......................        -165        -287        -329
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         333         360         409
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     444,990     463,848     489,597
    2231  Disbursements of new guaranteed
            loans...........................      63,727      94,440      81,575
    2251  Repayments and prepayments........     -44,869     -68,691     -72,221
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........     463,848     489,597     498,951
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year
            \1\.............................     463,848     489,597     498,951
    ---------------------------------------------------------------------------
        \1\ Ultimate liability for GNMA mortgage backed securities rests
    with other U.S. agencies. Total Federal contingent liability should not
    be double counted.

        Budget Program.--Program activity is summarized below:

                           Mortgage-backed Securities

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Commitment Limitation...............     142,000     110,000     110,000
    Commitments Issued..................      64,230     110,000     110,000
    Guarantees Issued...................      63,727      94,440      81,575
    Securities Outstanding..............     463,848     489,597     498,951

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $477 million and $532 million in 1996 and
    1997, respectively. These amounts will be retained to cover future year
    expenses and as a reserve against losses that may be incurred on
    guarantees.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        Revenue:
    0101  Revenue...........................         437            514           511            567
    0101  Revenue (REMICs)..................           5             13            22             22
        Expense:
    0102  Expense...........................          18            -46           -54            -55
    0102  Expense (REMICs)..................          -2             -4            -2             -2
        Net income or loss (-):
                                            ------------ --------------  ------------  -------------
    0109    Net income or loss (-)..........         455            468           457            512
                                            ------------ --------------  ------------  -------------
    0109    Net income or loss (-) (REMICs).           3              9            20             20
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................         458            477           477            532
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          26
            Investments in US securities:
    1102      Treasury securities, par......       3,713          4,232         4,666          5,143
    1104      Agency securities, par........           1              1
    1106      Receivables, net..............          45             59            52             60
    1206  Non-Federal assets: Receivables,
            net.............................          26             26            27             28

    [[Page 542]]

          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         349            333           360            409
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -172           -241          -181           -225
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         177             92           179            184
    1801  Other Federal assets: Cash and
            other monetary assets...........           7              4             5              5
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,995          4,414         4,929          5,420
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................          45             29            24             30
    2207    Other...........................         541            534           453            453
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         586            563           477            483
        NET POSITION:
    3300  Cumulative results of operations..       3,409          3,851         4,452          4,937
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       3,409          3,851         4,452          4,937
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,995          4,414         4,929          5,420
    -----------------------------------------------------------------------------------------------
        Note.--GNMA guarantees the timely payment of principal and interest
    installments on securities which are backed by FHA-insured, FmHA-
    insured, and VA-guaranteed mortgages. Such guarantees are excluded from
    the Government total of guaranteed obligations duplicating FHA, FmHA,
    and VA guarantees.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          59          65          66
    33.0  Investments and loans.............         172         333         397
                                               ---------   ---------  ----------

    99.9    Total obligations...............         231         398         463
    ---------------------------------------------------------------------------

                         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, $45,000,000, to remain
    available until September 30, 1998.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          41          35          45
                                               ---------   ---------  ----------

    10.00   Total obligations...............          41          35          45
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       1
    22.00 New budget authority (gross)......          42          34          45
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          42          35          45
    23.95 New obligations...................         -41         -35         -45
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          42          34          45
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          25          28          29
    73.10 New obligations...................          41          35          45
    73.20 Total outlays (gross).............         -38         -34         -39
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          28          29          35
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          17          14          18
    86.93 Outlays from current balances.....          21          21          21
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          38          34          39
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          42          34          45
    90.00 Outlays...........................          38          34          39
    ---------------------------------------------------------------------------

        The Housing and Urban Development Act of 1970 directs the Secretary
    to undertake programs of research, studies, testing, and demonstrations
    related to the HUD mission. These functions are carried out internally
    and through contracts with industry, nonprofit research organizations,
    and educational institutions, and through agreements with State and
    local governments and other Federal agencies.

        In 1997, the research program will focus on activities to support
    the reinvention of HUD, including examination of issues such as
    transformation of public housing and design of standards for
    performance-based funds. National housing surveys and research to reduce
    the cost of housing will continue in 1997.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          36          31          39
    41.0  Grants, subsidies, and
            contributions...................           5           4           6
                                               ---------   ---------  ----------

    99.9    Total obligations...............          41          35          45
    ---------------------------------------------------------------------------

                       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,
    $33,000,000, to remain available until September 30, 1998, of which
    $15,000,000 shall be to carry out activities pursuant to such section
    561.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0144-0-1-751      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fair housing assistance...........           7          16          18
    00.02 Fair housing initiatives..........          28          17          15
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................          35          33          33
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           5           3
    22.00 New budget authority (gross)......          33          30          33
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          38          33          33
    23.95 New obligations...................         -35         -33         -33

    [[Page 543]]

    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          33          30          33
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          37          44          56
    73.10 New obligations...................          35          33          33
    73.20 Total outlays (gross).............         -27         -21         -29
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          44          56          60
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          27          21          29
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          27          21          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          33          30          33
    90.00 Outlays...........................          27          21          29
    ---------------------------------------------------------------------------

        The Budget proposes an appropriation of $33 million in 1997 for fair
    housing activities to aid in eliminating housing discrimination. Of the
    amount requested, $18 million is for the Fair Housing Assistance program
    and $15 million is for the Fair Housing Initiatives program.

        The Fair Housing Assistance program, authorized by title VIII of the
    Civil Rights Act of 1968 as amended, provides funding to State and local
    agencies to assure prompt and effective processing of title VIII (Civil
    Rights Act of 1968) complaints.

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

                          MANAGEMENT AND ADMINISTRATION

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                          (including transfer of funds)

        For necessary administrative and non-administrative expenses of the
    Department of Housing and Urban Development, not otherwise provided for,
    including not to exceed $7,000 for official reception and representation
    expenses, $987,558,000, of which $546,782,000 shall be provided from the
    various funds of the Federal Housing Administration: $9,383,000 shall be
    provided from funds of the Government National Mortgage Association; and
    $675,000 shall be provided from the Community Opportunity Performance
    Funds Program account.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts in this
    budget are based on the levels provided in three continuing resolutions:
    P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Housing, mortgage credit,
              regulatory and energy
              conservation..................         214         200         211
    00.02   Community planning and
              development programs..........          33          31          30
    00.03   Equal opportunity and research
              programs......................          34          32          31
    00.04   Departmental management, legal
              and audit services............          25          23          22
    00.05   Field direction and
              administration................         143         134         138
                                               ---------   ---------  ----------

    00.91     Total direct program..........         449         420         432
    01.01 Reimbursable program..............         509         543         556
                                               ---------   ---------  ----------

    10.00   Total obligations...............         958         963         988
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       1
    22.00 New budget authority (gross)......         961         963         988
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         960         964         988
    23.95 New obligations...................        -958        -963        -988
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         453         420         432
    40.75   Reduction pursuant to P.L. 104-
              50............................          -1
                                               ---------   ---------  ----------

    43.00     Appropriation (total).........         452         420         432
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         509         543         556
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         961         963         988
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          84         112         111
    73.10 New obligations...................         958         963         988
    73.20 Total outlays (gross).............        -930        -963        -988
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         112         111         111
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         346         323         333
    86.93 Outlays from current balances.....          75          97          97
    86.97 Outlays from new permanent
            authority.......................         509         543         556
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         930         963         988
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.45     Offsetting governmental
                collections.................        -509        -543        -556
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -509        -543        -556
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         452         420         432
    90.00 Outlays...........................         422         420         432
    ---------------------------------------------------------------------------

        This appropriation finances all salaries and related costs
    associated with administering the programs of the Department of Housing
    and Urban Development, including: housing and mortgage credit programs;
    community planning and development programs; equal opportunity,
    research, regulatory and insurance programs; departmental management,
    and legal services; and, field direction and administration.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         243         210         210
    11.3      Other than full-time permanent           5           5           5
    11.5      Other personnel compensation..           3           3           3
                                               ---------   ---------  ----------

    11.9        Total personnel compensation         251         218         218
    12.1    Civilian personnel benefits.....          53          61          69
    13.0    Benefits for former personnel...          11          12          12
    21.0    Travel and transportation of
              persons.......................           7           7           7
    22.0    Transportation of things........           1           1           4
    23.1    Rental payments to GSA..........          33          32          32
    23.3    Communications, utilities, and
              miscellaneous charges.........          14          14          14
    24.0    Printing and reproduction.......           3           3           3
    25.1    Advisory and assistance services           7           7           7
    25.2    Other services..................           3           6           7
    25.3    Purchases of goods and services
              from Government accounts......          51          47          47
    25.4    Operation and maintenance of
              facilities....................           6           7           7
    26.0    Supplies and materials..........           3           3           3
    31.0    Equipment.......................           5           2           2
    42.0    Insurance claims and indemnities           1
                                               ---------   ---------  ----------

    [[Page 544]]

    99.0      Subtotal, direct obligations..         449         420         432
    99.0  Reimbursable obligations..........         509         543         556
                                               ---------   ---------  ----------

    99.9    Total obligations...............         958         963         988
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       5,280       4,774       4,452
    1005    Full-time equivalent of overtime
              and holiday hours.............          23          25          25
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.       5,973       6,172       5,995
    2005    Full-time equivalent of overtime
              and holiday hours.............          27          30          30
    ---------------------------------------------------------------------------

                           Office of Inspector General

                          (including transfer of funds)

        For necessary expenses of the Office of Inspector General in
    carrying out the Inspector General Act of 1978, as amended, $52,850,000,
    of which $11,283,000 shall be provided from the various funds of the
    Federal Housing Administration and $5,000,000 shall be provided from the
    amount earmarked for Operation Safe Home in the Drug Elimination Grants
    for Low Income Housing Account.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts in this
    budget are based on the levels provided in three continuing resolutions:
    P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          36          37          37
    01.01 Reimbursable program..............          12          11          16
                                               ---------   ---------  ----------

    10.00   Total obligations...............          48          48          53
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          49          48          53
    23.95 New obligations...................         -48         -48         -53
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          36          37          37
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          12          11          16
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................          49          48          53
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          11          10          10
    73.10 New obligations...................          48          48          53
    73.20 Total outlays (gross).............         -49         -48         -53
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          10          10          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          28          28          28
    86.93 Outlays from current balances.....           7           9           9
    86.97 Outlays from new permanent
            authority.......................          12          11          16
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          49          48          53
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -12         -11         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          37          37          37
    90.00 Outlays...........................          36          37          37
    ---------------------------------------------------------------------------

        This appropriation provides agency-wide audit and investigative
    functions to identify and correct management and administrative
    deficiencies that create conditions for existing or potential instances
    of fraud, waste and mismanagement. The audit function provides internal
    audit, contract audit, and inspection services. Contract audits provide
    professional advice to agency contracting officials on accounting and
    financial matters relative to negotiation, award, administration,
    repricing, and settlement of contracts. Internal audits review and
    evaluate all facets of agency operations. Inspection services provide
    detailed technical evaluations of agency operations. The investigative
    function provides for the detection and investigation of improper and
    illegal activities involving programs, personnel, and operations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          19          20          21
    11.5      Other personnel compensation..           1           2           2
                                               ---------   ---------  ----------

    11.9        Total personnel compensation          20          22          23
    12.1    Civilian personnel benefits.....           5           5           5
    21.0    Travel and transportation of
              persons.......................           2           2           3
    23.1    Rental payments to GSA..........           3           3           3
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................           1           1           1
    25.3    Purchases of goods and services
              from Government accounts......           2           1           1
    25.7    Operation and maintenance of
              equipment.....................           1           1
    31.0    Equipment.......................           1           1
                                               ---------   ---------  ----------

    99.0      Subtotal, direct obligations..          36          37          37
    99.0  Reimbursable obligations..........          11          11          16
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------

    99.9    Total obligations...............          48          48          53
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.         362         386         380
    1005    Full-time equivalent of overtime
              and holiday hours.............          25          25          25
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         121         116         114
    ---------------------------------------------------------------------------

                 Office of Federal Housing Enterprise Oversight

                              salaries and expenses

        For carrying out the Federal Housing Enterprise Financial Safety and
    Soundness Act of 1992, including not to exceed $3,000 for official
    reception and representation expenses, $15,751,000, to remain available
    until expended, from the Federal Housing Enterprise Oversight Fund:
    Provided, That such amounts shall be collected by the Director as
    authorized by section 1316(a) and (b) of such Act and deposited in the
    Fund under section 1316(f).
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts in this
    budget are based on the levels provided in three continuing resolutions:
    P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                   2
        Receipts:
    02.01 Office of federal housing
            enterprise oversight............          10          15          16
                                               ---------   ---------  ----------

    04.00 Total: Balances and collections...          10          15          18
        Appropriation:
    05.01 Office of federal housing
            enterprise oversight............         -10         -13         -16

    [[Page 545]]

    07.99 Total balance, end of year........                       2           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          15          15          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           5           2
    22.00 New budget authority (gross)......          10          13          16
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          16          15          16
    23.95 New obligations...................         -15         -15         -16
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.20 Appropriation (special fund,
            definite).......................          10          13          16
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           4           6           6
    73.10 New obligations...................          15          15          16
    73.20 Total outlays (gross).............         -11         -15         -16
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           6           6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          10          13          16
    86.93 Outlays from current balances.....           1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          11          15          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10          13          16
    90.00 Outlays...........................          11          15          16
    ---------------------------------------------------------------------------

        This appropriation funds the Office of Federal Housing Enterprise
    Oversight (the Office), which was established in 1992 to regulate the
    financial safety and soundness of the two housing Government Sponsored
    Enterprises (GSEs)--the Federal National Mortgage Association and the
    Federal Home Loan Mortgage Corporation. The Office was authorized in the
    Federal Housing Enterprise Safety and Soundness Act of 1992, which also
    instituted a three-part capital standard for the GSEs, and gave the
    regulator enhanced authority to enforce those standards. The Department
    will monitor the GSEs' compliance with affordable housing goals that
    were also contained in the Act.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Personnel
            Compensation....................           5           7           8
    12.1  Civilian personnel benefits.......           1           1           2
    23.1  Rental payments to GSA............           1           2           2
    25.2  Other services....................           6           4           4
    31.0  Equipment.........................           2
    99.5  Below reporting threshold.........                       1
                                               ---------   ---------  ----------

    99.9    Total obligations...............          15          15          16
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          56          72          78
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating Expenses: Data
            processing services.............         172         185         217
    00.03 Capital Investment: Data
            processing services.............           2           2           2
                                               ---------   ---------  ----------

    10.00   Total obligations...............         174         187         219
    ----------------------------------------------------------------------------

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

    21.90   Fund balance....................          36          31
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............          36          31
    22.00 New budget authority (gross)......         167         156         219
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         204         187         219
    23.95 New obligations...................        -174        -187        -219
    24.90 Unobligated balance available, end
            of year: Fund balance...........          31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         167         156         219
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          10          20          51
    73.10 New obligations...................         174         187         219
    73.20 Total outlays (gross).............        -163        -156        -219
    73.45 Adjustments in unexpired accounts.          -1
          Unpaid obligations, end of year:

            Obligated balance:
    74.90     Fund balance..................          20          51          51
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................          20          51          51
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         163         156         219
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         163         156         219
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.45     Offsetting governmental
                collections.................        -167        -156        -219
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -167        -156        -219
    ----------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          18          18          18
                                               ---------   ---------  ----------

    11.9      Total personnel compensation..          18          18          18
    12.1  Civilian personnel benefits.......           3           3           4
    13.0  Benefits for former personnel.....           1
    21.0  Travel and transportation of
            persons.........................                       1           1
    22.0  Transportation of things..........           1
    23.3  Communications, utilities, and
            miscellaneous charges...........          36          50          45
    25.2  Other services....................          90         102         138
    26.0  Supplies and materials............           4           1           1
    31.0  Equipment.........................          21          12          12
    99.0  Subtotal, reimbursable obligations         174         187         219
                                               ---------   ---------  ----------

    99.9    Total obligations...............         174         187         219
    ---------------------------------------------------------------------------

    [[Page 546]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         318         350         350
    ---------------------------------------------------------------------------

                            Administrative Provisions

        Sec. 101. Minimum Rents.--Notwithstanding section 3(a) and 8(o)(2)
    of the United States Housing Act of 1937, as amended, for fiscal year
    1997--
            (1) public housing agencies shall require each family who is
        assisted under the certificate or moderate rehabilitation program
        under section 8 of such Act to pay a minimum monthly rent of up to
        $25;
            (2) public housing agencies shall reduce the monthly assistance
        payment on behalf of each family who is assisted under the voucher
        program under section 8 of such Act so that the family pays a
        minimum monthly rent of up to $25;
            (3) with respect to housing assisted under other programs for
        rental assistance under section 8 of such Act, the Secretary shall
        require each family who is assisted under such program to pay a
        minimum monthly rent of up to $25; and
            (4) public housing agencies shall require each family who is
        assisted under the public housing program (including public housing
        for Indian families) to pay a minimum monthly rent of up to $25.
        Sec. 102. Administrative Fees.--Notwithstanding section 8(q) of the
    United States Housing Act of 1937, as amended--
        (a) The Secretary shall establish fees for the cost of administering
    the certificate, voucher and moderate rehabilitation programs.
            (1)(A) For fiscal year 1997, the fee for each month for which a
        dwelling unit is covered by an assistance contract shall be 7.65
        percent of the base amount in the case of an agency that, on an
        annual basis, is administering a program of no more than 600 units,
        and 7 percent of the base amount for each additional unit above 600.
            (B) The base amount shall be the higher of--
                (i) the fair market rental for fiscal year 1993 for a 2-
            bedroom existing rental dwelling unit in the market area of the
            agency; and
                (ii) such fair market rental for fiscal year 1994, but not
            more than 103.5 percent of the amount determined under clause
            (i);
            (C) The base amount shall be adjusted to reflect changes in the
        wage data or other objectively measurable data that reflect the
        costs of administering the program during fiscal year 1996; except
        that the Secretary may require that the base amount be not less than
        a minimum amount and not more than a maximum amount.
            (2) For subsequent fiscal years, the Secretary shall publish a
        notice in the Federal Register, for each geographic area,
        establishing the amount of the fee that would apply for the agencies
        administering the program, based on changes in wage data or other
        objectively measurable data that reflect the cost of administering
        the program, as determined by the Secretary.
            (3) The Secretary may increase the fee if necessary to reflect
        higher costs of administering small programs and programs operating
        over large geographic areas.
            (4) The Secretary may decrease the fee for PHA-owned units.
        (b) Beginning in fiscal year 1997 and thereafter, the Secretary
    shall also establish reasonable fees (as determined by the Secretary)
    for--
            (1) the costs of preliminary expenses, in the amount of $500,
        for a public housing agency, but only in the first year it
        administers a tenant-based assistance program under the United
        States Housing Act of 1937 and only if, immediately before the
        effective data of this Act, it was not administering a tenant-based
        assistance program under the 1937 Act (as in effect immediately
        before the effective date of this Act), in connection with its
        initial increment of assistance received;
            (2) the costs incurred in assisting families who experience
        difficulty (as determined by the Secretary) in obtaining appropriate
        housing under the program; and
            (3) extraordinary costs approved by the Secretary.
        Sec. 103. Establishment of Ceiling Rents.--Notwithstanding section
    212(3)(D) of the United States Housing Act of 1937, as amended, section
    3(a)(2) of such Act is amended to read as follows:
            ``(2) Notwithstanding paragraph (1), a public housing agency
        may--
                ``(A) adopt ceiling rents that reflect the reasonable market
            value of the housing, but that are not less than the monthly
            costs--
                    ``(i) to operate the housing of the agency; and
                    ``(ii) to make a deposit to a replacement reserve (in
                the sole discretion of the public housing agency): and
                ``(B) allow families to pay ceiling rents referred to in
            subparagraph (A), unless, with respect to any family, the
            ceiling rent established under this paragraph would exceed the
            amount payable as rent by that family under paragraph (1).''.
        Sec. 104. Repeal of Federal Preferences.--
        (a) Public Housing.--Section 6(c)(4)(A) of the United States Housing
    Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is amended to read as follows:
            ``(A) the establishment, after public notice and an opportunity
        for public comment, of a written system of preferences for admission
        to pubic housing, if any, that is not inconsistent with the
        comprehensive housing affordability strategy under title 1 of the
        Cranston-Gonzalez National Affordable Housing Act;''.
        (b) Section 8 Existing and Moderate Rehabilitation.--Section
    8(d)(1)(A) of the United States Housing Act of 1937 (42 U.S.C.
    1437f(d)(1)(A)) is amended to read as follows:
            ``(A) the selection of tenants shall be the function of the
        owner, subject to the provisions of the annual contributions
        contract between the Secretary and the agency, except that for the
        certificate and moderate rehabilitation programs only, for the
        purpose of selecting families to be assisted, the public housing
        agency may establish, after public notice and an opportunity for
        public comment, a written system of preferences for selection that
        is not inconsistent with the comprehensive housing affordability
        strategy under title I of the Cranston-Gonzalez National Affordable
        Housing Act;''.
        (c) Section 8 Voucher Program.--Section 8(o)(3)(B) of the United
    States Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B)) is amended to read
    as follows:
            ``(B) For the purpose of selecting families to be assisted under
        this subsection, the public housing agency may establish, after
        public notice and an opportunity for public comment, a written
        system of preferences for selection that is not inconsistent with
        the comprehensive housing affordability strategy under title I of
        the Cranston-Gonzalez National Affordable Housing Act.''.
        (d) Section 8 New Construction and Substantial Rehabilitation.--
            (1) Repeal.--Section 545(c) of the Cranston-Gonzalez National
        Affordable Housing Act (42 U.S.C. 1437f note) is amended to read as
        follows:
        ``(c) [Reserved.]''.
            (2) Prohibition.--Notwithstanding any other provision of law, no
        Federal tenant selection preferences under the United States Housing
        Act of 1937 shall apply with respect to--
                (i) housing constructed or substantially rehabilitated
            pursuant to assistance provided under section 8(b)(2) of the
            United States Housing Act of 1937 (as such section existed on
            the day before October 1, 1983); or
                (ii) projects financed under section 202 of the Housing Act
            of 1959 (as such section existed on the day before the date of
            enactment of the Cranston-Gonzalez National Affordable Housing
            Act).
        (e) Rent Supplements.--Section 101(k) of the Housing and Urban
    Development Act of 1965 (12 U.S.C. 1701s(k)) is amended to read as
    follows:
        ``(k) [Reserved.].''
        (f) Conforming Amendments.--
            (1) United states housing act of 1937.--The United States
        Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
                (A) in section 6(o), by striking ``preference rules
            specified in'' and inserting ``written system of preferences for
            selection established pursuant to'';
                (B) in the second sentence of section 7(a)(2), by striking
            ``according to the preferences for occupancy under'' and
            inserting ``in accordance with the written system of preferences
            for selection established pursuant to'';
                (C) in section 8(d)(2)(A), by striking the last sentence;

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                (D) in section 8(d)(2)(H), by striking ``Notwithstanding
            subsection (d)(1)(A)(i), an'' and inserting ``An'';
                (E) in section 16(c), in the second sentence, by striking
            ``the system of preferences established by the agency pursuant
            to section 6(c)(4)(A)(ii)'' and inserting ``the written system
            of preferences for selection established by the public housing
            agency pursuant to section 6(c)(4)(A)''; and
                (F) in section 24(e)--
                    (i) by striking ``(e) Exceptions'' and all that follows
                through ``The Secretary may'' and inserting the following:
        ``(e) Exception to General Program Requirements.--The Secretary
    may''; and
                    (ii) by striking paragraph (2).
            (2) Cranston-gonzalez national affordable housing act.--Section
        522(f)(6)(B) of the Cranston-Gonzalez National Affordable Housing
        Act (42 U.S.C. 12704 et seq.) is amended by striking ``any
        preferences for such assistance under section 8(d)(1(A)(i)'' and
        inserting ``the written system of preferences for selection
        established pursuant to section 8(d)(1)(A)''.
            (3) Housing and community development act of 1992.--Section 655
        of the Housing and Community Development Act of 1992 (42 U.S.C.
        13615) is amended by striking ``the preferences'' and all that
        follows up to the period at the end and inserting ``any
        preferences''.
            (4) References in other Law.--Any reference in any Federal law
        other than any provision of any law amended by subsection (a)
        through (e) of this section to the preferences for assistance under
        section 6(c)(4)(A)(i), 8(d)(1)(A)(i), or 8(o)(3)(B) of the United
        States Housing Act of 1937 (as such sections existed on the day
        before the date of enactment of this Act) shall be considered to
        refer to the written system of preferences for selection established
        pursuant to section 6(c)(4)(A), 8(d)(1)(A), or 8(o)(3)(B),
        respectively, of the United States Housing Act of 1937, as amended
        by this section.
        Sec. 105. Applicability.--In accordance with section 201(b)(2) of
    the United States Housing Act of 1937, the amendments made by sections
    101, 103, and 104 of this Act shall also apply to public housing
    developed or operated pursuant to contract between the Secretary of
    Housing and Urban Development and an Indian housing authority.
        Sec. 106. Sections 101 through 105 shall be effective upon the
    enactment of this Act and only for fiscal year 1997.
        Sec. 107. Targeting of vouchers and certificates.--(a) Vouchers.--
    Section 8(o)(3)(A) of the United States Housing Act of 1937, as amended,
    is further amended by inserting at the end the following new sentence:
            ``Notwithstanding any other provision of law, at least 75
        percent of the families initially assisted under this subsection by
        a public housing agency in any year shall be families with incomes
        equal to or less than 30 percent of the median income for the area,
        as determined by the Secretary with adjustments for smaller and
        larger families. The Secretary may establish such income ceilings
        higher or lower than 30 percent of the median for the area on the
        basis of the Secretary's findings that such variations are necessary
        because of unusually high or low family incomes.''
        (b) Certificate Program.--Section 8(d) of such Act is amended by
    adding at the end the following new paragraph:
            ``(5) Section 8(o)(3)(A) shall also apply to tenant-based
        assistance under the certificate program established under this
        section.''.
        Sec. 108. Transfers Between Appropriations.--Not to exceed 2 percent
    of any appropriation or earmarked amount made available for the current
    fiscal year in this Act may be transferred between such appropriations
    or earmarked amounts, but no such appropriations or earmarked amount
    shall be increased or decreased by more than 2 percent by any such
    transfers.
        Sec. 109. (a) ``Take One, Take All''.--Section 8(t) of the United
    States Housing Act of 1937 is hereby repealed.
        (b) Exemption From Notice Requirement for the Certificate and
    Voucher Programs.--Section 8(c) of such Act is amended--
            (1) in paragraph (8), by inserting after ``section'' the
        following: ``(other than a contract for assistance under the
        certificate or voucher program)''; and
            (2) in the first sentence of paragraph (9), by striking ``(but
        not less than 90 days in the case of housing certificates or
        vouchers under subsection (b) or (o))'' and inserting ``, other than
        a contract under the certificate or voucher program.''.
        (c) Endless Lease.--Section 8(d)(1)(B) of such Act is amended--
            (1) in clause (ii), by inserting ``during the term of the
        lease,'' after ``(ii)''; and
            (2) in clause (iii), by striking ``provide that'' and inserting
        ``during the term of the lease.''.
        (d) Applicability.--The provisions of this section shall be
    effective for fiscal year 1997 only.