[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;
            
[[Page 547]]

            (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.