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


                     THE BUDGET FOR FISCAL YEAR 1998

[[Page 529]]

 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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

    For the past 4 years, the Department has been engaged in a 
reinvention process which has emphasized: addressing homelessness 
through comprehensive continuum of care strategies; transforming public 
and assisted housing; enhancing homeownership opportunities through new 
national and local partnerships; reducing racial barriers to housing; 
and, encouraging locally-driven solutions and leveraging private sector 
investment through initiatives like consolidated planning, and 
Empowerment Zones and Enterprise Communities. An emphasis has also been 
placed on reinventing HUD, itself. The 1998 budget continues to move 
toward a ``right-side up'' Cabinet Department that is organized, 
staffed, and empowered to respond to locally driven priorities rather 
than Federal dictates.

    As part of the 1997 reinvention process, the Department proposed 
consolidating many of its programs into three core funds--with 
incentives for good performance. The 1997 Appropriations Act did not 
implement the Department's proposals but did enact a major 
reconfiguration of the Department's housing accounts structure. Three 
new accounts were created: Preserving Existing Housing Investment, 
Development of Additional New Subsidized Housing, and Prevention of 
Resident Displacement.

    This new account structure was an important first step to better 
organizing the Department's primary housing assistance programs. The 
1998 budget further refines this structure to reflect the Department's 
consolidation efforts. This new structure will also enhance the 
Department's ability to administer and track its funds.

    Activities funded under the Preserving Existing Housing Investment 
account will be divided into two separate accounts--an operating fund 
and a capital fund. Assistance provided for the elderly and disabled, 
and Native Americans in the Development of Additional New Subsidized 
Housing account in 1997 is being requested separately for 1998. Funds 
for the elderly and disabled are in the Housing for Special Populations 
account in 1998 and resources allocated to the Native American 
population will be consolidated under a Native American Housing Block 
Grants program as authorized by the 104th Congress. Funding for housing 
certificates, Section 8 contract renewals, and amendments in 1997 was 
provided in the Prevention of Resident Displacement account. This budget 
proposes to fund these activities under the Housing Certificate Fund for 
1998.

    The 1998 Budget includes two Presidential initiatives related to 
revitalizing America's urban areas. First, the HUD Budget requests 
funding for a second round of Empowerment Zones and Enterprise 
Communities. The first round has already proven successful in leveraging 
private sector funds and promoting economic opportunity and community-
wide revitalization. Second, the Brownfields Redevelopment program will 
enable cities to clean up polluted sites, returning them to productive 
uses that create jobs. The program will also enable cities to address 
the economic development needs of communities in and around such sites.

    The 1998 Budget maintains Community Development Block Grant (CDBG) 
funding. This program will continue to use a formula approach for 
allocating funds for a wide range of community and economic development 
activities. The Community Development Loan Guarantee program enables 
communities to borrow in the private market with a Federal guarantee. 
Communities must develop consolidated plans which identify local needs 
and priorities in order to tap into CDBG and other HUD funds.

    The HOME Investment Partnerships program will also continue formula 
allocations to states and participating jurisdictions to assist in 
expanding the supply of affordable housing.

    The Homeless Assistance Grants program would consolidate HUD's six 
Stewart B. McKinney homeless assistance programs into a performance-
based program that would enable communities to continue their 
development and implementation of comprehensive, coordinated continuum 
of care systems to address the needs of homeless people and families. 
This is the fourth consecutive year that HUD has sought consolidation of 
its homeless assistance programs to improve program administration and 
effectiveness.

    Funding is also included, either as set-asides or as separate 
programs, for the following community and economic development and 
affordable housing programs: Economic Development Grants; Homeownership 
Zones; Habitat for Humanity; Youthbuild; Bridges to Work; and Capacity 
Building for Community Development and Affordable Housing.

    The Department is reproposing to consolidate several categorical 
housing programs.

     The Public Housing Operating Fund would fund the operating 
costs of Public Housing. Through this fund, Public Housing Agencies will 
have greater flexibility in attracting and retaining low- and moderate-
income families.

     The Public Housing Capital Fund would address the capital 
needs of Public Housing. Based on the Public Housing Modernization 
program, this Fund will permit the upgrading of inventory and the 
demolition and replacement of obsolete buildings. Funds will also be 
available for: economic development supportive services; technical 
assistance and intervention to improve troubled authorities and 
management improvements; and the Tenant Opportunity Program.

     The Housing Certificate Fund would address the problems 
arising from lagging household income and high housing costs. The Fund 
would be based on the existing voucher and certificate programs with 
changes to make the system simpler and more effective. Funding for 
section 8 contract renewals and amendments is included within this Fund. 
The 1998 request includes 50,000 incremental certificates to help low-
income families move from welfare to work.

     Other Housing Programs. Lead-paint hazard reduction 
activities will be funded within the Community Development Block Grant 
Fund. Several other programs that assist communities will remain as 
free-standing activities: Housing Opportunities for Persons with AIDS, 
Youthbuild, housing counseling, drug elimination activities, and 
assistance for severely distressed public housing.

    A major initiative reflected in the budget estimates is 
``Multifamily Portfolio Reengineering,'' formerly known as ``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.

[[Page 530]]


 
                        PUBLIC AND INDIAN HOUSING

                              Federal Funds

General and special funds:

     [Prevention of Resident Displacement] Housing Certificate Fund

    For activities and assistance to prevent the involuntary 
displacement of low-income families, the elderly and the disabled 
because of the loss of affordable housing stock, expiration of subsidy 
contracts (other than contracts for which amounts are provided under the 
head ``Preserving Existing Housing Investment'') or expiration of use 
restrictions, or other changes in housing assistance arrangements, and 
for other purposes, [$4,640,000,000] $10,676,000,000, to remain 
available until expended: Provided, That of the total amount provided 
under this head, [$3,600,000,000] $9,232,000,000 shall be for assistance 
under the United States Housing Act of 1937 (42 U.S.C. 1437) for use in 
connection with expiring or terminating section 8 subsidy contracts: 
Provided further, That the Secretary may determine not to apply section 
8(o)(6)(B) of the Act to housing vouchers during fiscal year [1997] 
1998: Provided further, That of the total amount provided under this 
head, $850,000,000 shall be for amendments to section 8 contracts other 
than contracts for projects developed under section 202 of the Housing 
Act of 1959, as amended: Provided further, That of the total amount 
provided under this head, [$190,000,000] $594,000,000 shall be for 
section 8 rental assistance under the United States Housing Act [of 1937 
(42 U.S.C. 1437)] including assistance to relocate residents of 
properties (i) that are owned by the Secretary and being disposed of or 
(ii) that are discontinuing section 8 project-based assistance; [or 
(iii) or subject to special workout assistance team intervention 
compliance actions;] for the conversion of section 23 projects to 
assistance under section 8; for funds to carry out the family 
unification program; and for the relocation of witnesses in connection 
with efforts to combat crime in public and assisted housing pursuant to 
a request from a law enforcement or prosecution agency [: Provided 
further, That of the total amount made available under this head, 
$50,000,000 shall be made available to nonelderly disabled families 
affected by the designation of a public housing development under 
section 7 of such Act or the establishment of preferences in accordance 
with section 651 of the Housing and Community Development Act of 1992 
(42 U.S.C. 1361l)]. (Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0311-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Renew rental contracts............                   1,956       9,997
00.02 Contract amendments...............                     900         850
00.03 New housing certificates..........                     240         594
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................                   3,096      11,441
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................                               1,594
22.00 New budget authority (gross)......                   4,690      10,676
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                   4,690      11,441
23.95 New obligations...................                  -3,096     -11,441
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....                   1,594         829
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                   4,640      10,676
42.00 Transferred from other accounts...                      50
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........                   4,690      10,676
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                   4,690      10,676
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                               1,364
73.10 New obligations...................                   3,096      11,441
73.20 Total outlays (gross).............                  -1,732      -5,604
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                   1,364       7,201
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                   1,732       3,985
86.93 Outlays from current balances.....                               1,619
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                   1,732       5,604
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                   4,690      10,676
90.00 Outlays...........................                   1,732       5,604
---------------------------------------------------------------------------

    This account provides funding for some of the activities previously 
funded through the Annual Contributions for Assisted Housing account. 
These include the renewal of expiring Section 8 contracts, amending of 
Section 8 contracts, and the funding for additional Section 8 rental 
assistance.

                                

                Annual Contributions For Assisted Housing

    All balances remaining in the Preserving Existing Housing Investment 
Account for Preservation shall be transferred to and merged with the 
amounts previously provided for those purposes under this head.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0164-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Lower income housing..............       1,964       3,010
00.02 Public and Indian housing.........       2,907       1,695
00.03 Elderly/disabled grants...........       1,469       3,684
00.04 Other programs....................         267          28
00.05 Contract renewals.................       3,345       1,892
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................       9,952      10,309
----------------------------------------------------------------------------

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

        Uninvested balance:
21.40     Uninvested balance............         387       1,981
21.40     Uninvested balance............      11,153       8,030
21.49   Contract authority..............          73          88
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............      11,613      10,099
22.00 New budget authority (gross)......       9,819         -75
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................      11,266         325
22.21 Unobligated balance transferred to 
        other accounts..................                     -41
22.75 Balance of contract authority 
        withdrawn.......................     -12,646
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      20,052      10,308
23.95 New obligations...................      -9,952     -10,309
      Unobligated balance available, end of year:

        Uninvested balance:
24.40     Uninvested balance............       1,981
24.40     Uninvested balance............       8,030
24.49   Contract authority..............          88
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................      10,099
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       9,819
41.00   Transferred to other accounts...                     -75
                                           ---------   ---------  ----------
43.00     Appropriation (total).........       9,819         -75
      Permanent:

60.05   Appropriation (indefinite)......         632      19,848      15,541
60.49   Portion applied to liquidate 
          contract authority............        -632     -19,848     -15,541
                                           ---------   ---------  ----------
63.00     Appropriation (total).........
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       9,819         -75
----------------------------------------------------------------------------

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

        Obligated balance:
72.40     Appropriation.................      60,721      38,135      49,356
72.49     Contract authority............      69,331      56,034      36,236
72.90     Fund balance..................          24      14,265      12,614
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............     130,076     108,434      98,206
73.10 New obligations...................       9,952      10,309
73.20 Total outlays (gross).............     -20,327     -19,847     -15,912

[[Page 531]]

73.31 Obligated balance transferred to 
        other accounts..................                    -367
73.45 Adjustments in unexpired accounts.     -11,266        -325
      Unpaid obligations, end of year:

        Obligated balance:
74.40     Appropriation.................      38,135      49,356      51,184
74.49     Contract authority............      56,034      36,236      20,695
74.90     Fund balance..................      14,265      12,614      10,415
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................     108,434      98,206      82,294
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,019
86.93 Outlays from current balances.....      19,308      19,847      15,912
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      20,327      19,847      15,912
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       9,819         -75
90.00 Outlays...........................      20,327      19,847      15,912
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Enacted/requested:
  Budget Authority..................       9,819         -75
  Outlays...........................      20,327      19,847      15,912
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                -855
  Outlays...........................                                -375
Rescission proposal:
  Budget Authority..................                    -250
  Outlays...........................                     -10         -25
                                    ------------------------------------
Total:
  Budget Authority..................       9,819        -325        -855
  Outlays...........................      20,327      19,837      15,512
                                    ====================================

            Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0164-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Balance, start of year:
0100  Balance, start of year............          73          88
0100  Balance, start of year............      69,331      56,034      36,236
0340  Unobligated balance transferred...                     -41
0400  Appropriation to liquidate 
        contract authority..............        -632     -19,848     -15,541
0600  Balance of contract authority 
        withdrawn.......................     -12,646
    Balance, end of year:
0700  Balance, end of year..............          88
0700  Balance, end of year..............      56,034      36,236      20,695
---------------------------------------------------------------------------

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

    Low-income housing (section 8).--Included within the section 8 
category were incremental rental assistance in the form of housing 
certificates and housing vouchers; Public Housing and Housing 
Relocation/Replacement opt-out units; Housing Opportunities for Persons 
with AIDS; section 23 conversions; and loan management and property 
disposition activities.

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

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

    The Annual Contributions for Assisted Housing account provided 
funding for a wide range of housing assistance through the Low-Income 
Housing (Section 8), Housing for the Elderly and Disabled, and the 
Public and Indian Housing programs. In addition, various housing-related 
programs were carried out through funding provided under this account. 
Consistent with HUD's reinvention process, many of these activities will 
be funded under the new consolidated Funds being proposed for 1998.

    No new appropriation is requested for this account. Language is 
proposed to permit the transfer into this account of all unobligated and 
obligated balances for preservation assistance, which was previously 
made available in 1997 under the Preserving Existing Housing Investment 
account (See table below).

                      Proposed Transfer of Balances

                              [In millions]

                                     1996 Actual  1997 est.   1998 est.
Annual Contributions:
  Budget Authority..................       9,819       (325)       (855)
  Outlays...........................      20,327      19,837      15,512
Preserving Existing Housing 
    Investment:
  Budget Authority..................                     350
  Outlays...........................                     140         210
                                    ------------------------------------
      Total.........................
  Budget Authority..................       9,819          25       (855)
  Outlays...........................      20,327      19,977      15,722
                                    ====================================

    The 1998 budget proposes to transfer all preservation balances to 
the Annual Contributions for Assisted Housing account.

                Annual Contributions for Assisted Housing

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0164-2-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                -855
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                                 855
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................
40.35 Appropriation rescinded...........                                -855
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........                                -855
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                                -855
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.20 Total outlays (gross).............                                 375
73.45 Adjustments in unexpired accounts.                                -855
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                                -480
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....                                -375
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                -855
90.00 Outlays...........................                                -375
---------------------------------------------------------------------------

    An estimated $855 million of budget authority is anticipated to be 
recaptured and canceled in 1998 as a result of enactment and 
implementation of HUD's Multifamily Portfolio Reengineering proposal. 
This proposal would restructure mortgages of selected FHA-insured 
multifamily properties. These properties are presently subsidized at 
above market rates through HUD's rental assistance programs. Budget 
authority remaining on these long-term, multi-year contracts would be 
canceled. In the future, additional outlay savings will be achieved by 
avoiding the need for appropriations for funds to continue subsidizing 
these high-cost contracts.

                                

[[Page 532]]

                 Preserving Existing-Housing Investment

    [For operating, maintaining, revitalizing, rehabilitating, 
preserving, and protecting existing housing developments for low-income 
families, and the elderly, and the disabled, $5,750,000,000, to remain 
available until expended: Provided, That of the total amount made 
available under this head, $2,900,000,000 shall be available for 
payments to public housing agencies and Indian housing authorities for 
operating subsidies for low-income housing projects as authorized by 
section 9 of the United States Housing Act of 1937, as amended (42 
U.S.C. 1437g): Provided further, That of the total amount made available 
under this head, $2,500,000,000 shall be available for modernization of 
existing public housing projects as authorized under section 14 of the 
United States Housing Act of 1937, as amended (42 U.S.C. 1437l), of 
which $10,000,000 shall be for carrying out activities under section 
6(j) of the United States Housing Act of 1937 and technical assistance 
for the inspection of public housing units, contract expertise, and 
training and technical assistance directly or indirectly, under grants, 
contracts, or cooperative agreements, to assist in the oversight and 
management of public and Indian housing (whether or not the housing is 
being modernized with assistance under this proviso) or tenant-based 
assistance, including, but not limited to, an annual resident survey, 
data collection and analysis, training and technical assistance by or to 
officials and employees of the department and of public housing agencies 
and to residents in connection with the public and Indian housing 
program: Provided further, That of the total amount provided under this 
head, $350,000,000 shall be available for use in conjunction with 
properties that are eligible for assistance under the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the 
Emergency Low Income Housing Preservation Act of 1987 (ELIHPA), of which 
$75,000,000 shall be available for obligation until March 1, 1997 for 
projects (1) that are subject to a repayment or settlement agreement 
that was executed between the owner and the Secretary prior to September 
1, 1995; (2) whose submissions were delayed as a result of their 
location in areas that were designated as a Federal disaster area in a 
Presidential Disaster Declaration; or (3) whose processing was, in fact 
or in practical effect, suspended, deferred, or interrupted for a period 
of twelve months or more because of differing interpretations, by the 
Secretary and an owner or by the Secretary and a State or local rent 
regulatory agency, concerning the timing of filing eligibility or the 
effect of a presumptively applicable State or local rent control law or 
regulation on the determination of preservation value under section 213 
of LIHPRHA, as amended, if the owner of such project filed notice of 
intent to extend the low-income affordability restrictions of the 
housing, or transfer to a qualified purchaser who would extend such 
restrictions, on or before November 1, 1993; and of which, up to 
$100,000,000 may be used for rental assistance to prevent displacement 
of families residing in projects whose owners prepay their mortgages; 
and the balance of which shall be available from the effective date of 
this Act for sales to preferred priority purchasers: Provided further, 
That with the exception of projects described in clauses (1), (2), or 
(3) of the preceding proviso, the Secretary shall, notwithstanding any 
other provision of law, suspend further processing of preservation 
applications which have not heretofore received approval of a plan of 
action: Provided further, That $150,000,000 of amounts recaptured from 
interest reduction payment contracts for section 236 projects whose 
owners prepay their mortgages during fiscal year 1997 shall be 
rescinded: Provided further, That an owner of eligible low-income 
housing may prepay the mortgage or request voluntary termination of a 
mortgage insurance contract, so long as said owner agrees not to raise 
rents for sixty days after such prepayment: Provided further, That such 
developments have been determined to have preservation equity at least 
equal to the lesser of $5,000 per unit or $500,000 per project or the 
equivalent of eight times the most recently published monthly fair 
market rent for the area in which the project is located as the 
appropriate unit size for all of the units in the eligible project: 
Provided further, That the Secretary may modify the regulatory agreement 
to permit owners and priority purchasers to retain rental income in 
excess of the basic rental charge in projects assisted under section 236 
of the National Housing Act, for the purpose of preserving the low- and 
moderate-income character of the housing: Provided further, That 
eligible low-income housing shall include properties meeting the 
requirements of this paragraph with mortgages that are held by a State 
agency as a result of a sale by the Secretary without insurance, which 
immediately before the sale would have been eligible low-income housing 
under LIHPRHA: Provided further, That notwithstanding any other 
provision of law, subject to the availability of appropriated funds, 
each low-income family, and moderate-income family who is elderly or 
disabled or is residing in a low-vacancy area, residing in the housing 
on the date of prepayment or voluntary termination, and whose rent, as a 
result of a rent increase occurring no later than one year after the 
date of the prepayment, exceeds 30 percent of adjusted income, shall be 
offered tenant-based assistance in accordance with section 8 or any 
successor program, under which the family shall pay no less for rent 
than it paid on such date: Provided further, That any family receiving 
tenant-based assistance under the preceding proviso may elect (1) to 
remain in the unit of the housing and if the rent exceeds the fair 
market rent or payment standard, as applicable, the rent shall be deemed 
to be the applicable standard, so long as the administering public 
housing agency finds that the rent is reasonable in comparison with 
rents charged for comparable unassisted housing units in the market or 
(2) to move from the housing and the rent will be subject to the fair 
market rent of the payment standard, as applicable, under existing 
program rules and procedures: Provided further, That the tenant-based 
assistance made available under the preceding two provisos are in lieu 
of benefits provided in subsections 223(b), (c), and (d) of the Low-
Income Housing Preservation and Resident Homeownership Act of 1990: 
Provided further, That any sales shall be funded using the capital grant 
available under section 220(d)(3)(A) of LIHPRHA: Provided further, That 
any extensions shall be funded using a non-interest-bearing capital 
(direct) loan by the Secretary not in excess of the amount of the cost 
of rehabilitation approved in the plan of action plus 65 percent of the 
property's preservation equity and under such other terms and conditions 
as the Secretary may prescribe: Provided further, That any capital grant 
shall be limited to seven times, and any capital loan limited to six 
times, the annual fair market rent for the project, as determined using 
the fair market rent for fiscal year 1997 for the area in which the 
project is located, using the appropriate apartment sizes and mix in the 
eligible project, except where, upon the request of a priority 
purchaser, the Secretary determines that a greater amount is necessary 
and appropriate to preserve low-income housing: Provided further, That 
section 241(f) of the National Housing Act is repealed and insurance 
under such section shall not be offered as an incentive under LIHPRHA 
and ELIHPA: Provided further, That up to $10,000,000 of the amount of 
$350,000,000 made available by a preceding proviso in this paragraph may 
be used at the discretion of the Secretary to reimburse owners of 
eligible properties for which plans of action were submitted prior to 
the effective date of this Act, but were not executed for lack of 
available funds, with such reimbursement available only for documented 
costs directly applicable to the preparation of the plan of action as 
determined by the Secretary, and shall be made available on terms and 
conditions to be established by the Secretary: Provided further, That, 
notwithstanding any other provision of law, a priority purchaser may 
utilize assistance under the HOME Investment Partnerships Act or the Low 
Income Housing Tax Credit: Provided further, That projects with approved 
plans of action which exceed the limitations on eligibility for funding 
imposed by this Act may submit revised plans of action which conform to 
these limitations by March 1, 1997, and retain the priority for funding 
otherwise applicable from the original date of approval of their plan of 
action, subject to securing any additional necessary funding commitments 
by August 1, 1997.] (Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0312-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                   5,750
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                   5,750
23.95 New obligations...................                  -5,750
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                   5,750
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                               4,218

[[Page 533]]

73.10 New obligations...................                   5,750
73.20 Total outlays (gross).............                  -1,532      -1,962
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                   4,218       2,256
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                   1,532
86.93 Outlays from current balances.....                               1,962
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                   1,532       1,962
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                   5,750
90.00 Outlays...........................                   1,532       1,962
---------------------------------------------------------------------------

                                

                       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), $2,500,000,000, to 
remain available until expended for modernization of existing public 
housing projects as authorized under section 14 of such Act, of which 
$50,000,000 shall be available for grants to public housing agencies, 
non-profit corporations, and other appropriate entities for a supportive 
services program to assist residents of public and assisted housing, 
former residents of such housing receiving tenant-based assistance under 
section 8 of such Act (42 U.S.C. 1437f), and other low-income families 
and individuals to become self-sufficient: Provided, That the program 
shall provide supportive services, principally for the benefit of public 
housing residents, to the elderly and the disabled, and to families with 
children where the head of household would benefit from the receipt of 
supportive services and is working, seeking work, or is preparing for 
work by participating in job training or educational programs: Provided 
further, That the supportive services may include congregate services 
for the elderly and disabled, service coordinators, and coordinated 
educational, training, and other supportive services, including academic 
skills training, job search assistance, assistance related to retaining 
employment, vocational and entrepreneurship development and support 
programs, transportation, and child care: Provided further, That the 
Secretary shall require applicants to demonstrate firm commitments of 
funding or services from other sources: Provided further, That the 
Secretary shall select public and Indian housing agencies to receive 
assistance under this head on a competitive basis, taking into account 
the quality of the proposed program. Provided further, That of the total 
amounts, $45,000,000 shall be for carrying out activities under section 
6(j) of such Act and technical assistance for the inspection of public 
housing units, contract expertise, and training and technical assistance 
directly or indirectly, under grants, contracts, or cooperative 
agreements, to assist in the oversight and management of public housing 
(whether or not the housing is being modernized with assistance under 
this proviso) or tenant-based assistance, including, but no limited to, 
an annual resident survey, data collection and analysis, training and 
technical assistance by or to officials and employees of the department 
and of public housing agencies and to residents in connection with the 
public housing program and for lease adjustments to section 23 projects; 
Provided further, That of the total amount, $5,000,000 shall be for 
activities currently eligible under the Tenant Opportunity program: 
Provided, That all balances, as of September 30, 1997, of funds 
heretofore provided (other than for Indian families) for the development 
or acquisition costs of public housing, for modernization of existing 
public housing projects, for public housing amendments, for public 
housing modernization and development technical assistance, for lease 
adjustments under the section 23 program, and for the Family Investment 
Centers program, shall be transferred to and merged with amounts made 
available under this heading.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0304-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                               2,500
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                               2,500
23.95 New obligations...................                              -2,500
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                               2,500
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation
73.10 New obligations...................                               2,500
73.20 Total outlays (gross).............                                 -13
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                               2,487
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  13
86.93 Outlays from current balances.....
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                                  13
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                               2,500
90.00 Outlays...........................                                  13
---------------------------------------------------------------------------

                      Proposed Transfer of Balances

                              [In millions]

                                     1996 Actual  1997 est.   1998 est.
Annual Contributions:
  Budget Authority..................       2,711
  Outlays...........................       4,548       4,296       3,579
Preserving Existing Housing 
    Investment:
  Budget Authority..................                   2,500
  Outlays...........................                       0         276
Public Housing Capitol Fund:
  Budget Authority..................                               2,500
  Outlays...........................                                  13
                                    ------------------------------------
      Total.........................
  Budget Authority..................       2,711       2,500       2,500
  Outlays...........................       4,548       4,296       3,868
                                    ====================================

    The 1998 budget proposes to transfer all Modernization/Development 
balances to the Public Housing Capital Fund.

                                

                      Public Housing Operating Fund

                     (including transfers of funds)

    For payments to public housing agencies for operating subsidies for 
low-income housing projects as authorized by section 9 of the United 
States Housing Act of 1937, as amended (42 U.S.C. 1437g), 
$2,900,000,000, to remain available until expended: Provided, That all 
balances outstanding, as of September 30, 1997, of funds heretofore 
provided (other than for Indian families) for payments to public housing 
agencies for operating subsidies for low-income housing projects, shall 
be transferred to and merged with amounts made available under this 
heading.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0163-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating subsidies...............       2,800                   2,900
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................       2,800                   2,900
----------------------------------------------------------------------------

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

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

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation       1,507       1,606          85
73.10 New obligations...................       2,800                   2,900
73.20 Total outlays (gross).............      -2,688      -1,521      -1,421
73.40 Adjustments in expired accounts...         -13

[[Page 534]]

74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation       1,606          85       1,564
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,202                   1,392
86.93 Outlays from current balances.....       1,486       1,521          29
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,688       1,521       1,421
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       2,800                   2,900
90.00 Outlays...........................       2,688       1,521       1,421
---------------------------------------------------------------------------

                      Proposed Transfer of Balances

                              [In millions]

                                     1996 Actual  1997 est.   1998 est.
Public Housing Operating Fund:
  Budget Authority..................       2,900                   2,900
  Outlays...........................       2,688       1,521       1,421
Preserving Existing Housing 
    Investment:
  Budget Authority..................                   2,800
  Outlays...........................                   1,392       1,479
                                    ------------------------------------
      Total.........................
  Budget Authority..................       2,900       2,800       2,900
  Outlays...........................       2,688       2,913       2,900
                                    ====================================

    The 1998 budget proposes to transfer all Operating Subsidies to the 
Public Housing Operating Fund.

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

    In 1997, funding for these activities was provided under the 
Preserving Existing Housing Investment Fund.

    Beginning in 1998, funding for these activities would be provided 
under the Public Housing Operating Fund.

    In 1998, operating subsidy payments for tribally designated housing 
entities would be provided under the Native American Housing Block Grant 
program.

                                

             Drug Elimination Grants for Low-Income Housing

                      (including transfer of funds)

    For grants to public and Indian housing agencies for use in 
eliminating crime in public housing projects authorized by 42 U.S.C. 
11901-11908, for grants for federally assisted low-income housing 
authorized by 42 U.S.C. 11909, and for drug information clearinghouse 
services authorized by 42 U.S.C. 11921-11925, $290,000,000, to remain 
available until expended, $10,000,000 of which shall be for grants, 
technical assistance, contracts and other assistance training, program 
assessment, and execution for or on behalf of public housing agencies, 
[and] resident organizations, Indian Tribes and their Tribally 
designated housing entities (TDHEs) (including the cost of necessary 
travel for participants in such training), [$5,000,000] $10,000,000, of 
which shall be used in connection with efforts to combat violent crime 
in public and assisted housing under the Operation Safe Home Program 
administered by the Inspector General of the Department of Housing and 
Urban Development, and [$5,000,000] $10,000,000 of which shall be 
provided to the Office of Inspector General for Operation Safe Home: 
Provided, That the term ``drug-related crime'', as defined in 42 U.S.C. 
11905(2), shall also include other types of crime as determined by the 
Secretary: Provided further, That notwithstanding section 5130(c) of the 
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary may 
determine not to use any such funds to provide public housing youth 
sports grants. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0197-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................         243         290         290
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................          20          68          68
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......         311         358         358
23.95 New obligations...................        -243        -290        -290
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....          68          68          68
----------------------------------------------------------------------------

    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         532         516         595
73.10 New obligations...................         243         290         290
73.20 Total outlays (gross).............        -259        -210        -344
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         516         595         541
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....         259         210         344
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         290         290         290
90.00 Outlays...........................         259         210         344
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Enacted/requested:
  Budget Authority..................         290         290         290
  Outlays...........................         259         210         344
Supplemental proposal:
  Budget Authority..................                      30
  Outlays...........................                                   3
                                    ------------------------------------
Total:
  Budget Authority..................         290         320         290
  Outlays...........................         259         210         347
                                    ====================================

    The $290 million requested for this program in FY 1998 includes 
funding for technical assistance for drug elimination and operation safe 
home activities.

                                

Revitalization of Severely Distressed Public Housing [(Hope VII)] (Hope 
                                   VI)

    For grants to public housing agencies for assisting in the 
demolition of obsolete public housing projects or portions thereof, the 
revitalization (where appropriate) of sites (including remaining public 
housing units) on which such projects are located, replacement housing 
which will avoid or lessen concentrations of very low-income families, 
and tenant-based assistance in accordance with section 8 of the United 
States Housing Act of 1937; and for providing replacement housing and 
assisting tenants to be displaced by the demolition, [$550,000,000] 
$524,000,000, to remain available until expended, of which the Secretary 
may use up to $2,500,000 for technical assistance, to be provided 
directly or indirectly by grants, contracts or cooperative agreements, 
including training and cost of necessary travel for participants in such 
training, by or to officials and employees of the Department and of 
public housing agencies and to residents[: Provided, That no funds 
appropriated in this title shall be used for any purpose that is not 
provided for herein, in the Housing Act of 1937, in the Appropriations 
Acts for Veterans Affairs, Housing and Urban Development, and 
Independent Agencies, for the fiscal years 1993, 1994, and 1995, and the 
Omnibus Consolidated Rescis-

[[Page 535]]

sions and Appropriations Act of 1996: Provided further, That none of 
such funds shall be used directly or indirectly by granting competitive 
advantage in awards to settle litigation or pay judgments, unless 
expressly permitted herein: Provided further, That, notwithstanding any 
other provision of law, the funds made available to the Housing 
Authority of New Orleans under HOPE VI for purposes of Desire Homes, 
shall not be obligated or expended for on-site construction until an 
independent third party has determined whether the site is appropriate]. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0218-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          57         599         557
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................         116         539         490
22.00 New budget authority (gross)......         480         550         524
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         596       1,089       1,014
23.95 New obligations...................         -57        -599        -557
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....         539         490         457
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         480         550         524
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation       1,430       1,377       1,693
73.10 New obligations...................          57         599         557
73.20 Total outlays (gross).............        -110        -283        -409
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation       1,377       1,693       1,841
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  12
86.93 Outlays from current balances.....         110         283         397
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         110         283         409
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         480         550         524
90.00 Outlays...........................         110         283         409
---------------------------------------------------------------------------

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

                                

                  Native American Housing Block Grants

                      (including transfer of funds)

    For the Native American Housing Block Grants program, as authorized 
under title I of the Native American Housing Assistance and Self-
Determination Act of 1996 (Public Law 104-330), $485,000,000, to remain 
available until expended, of which $5,000,000, shall be used to support 
the inspection of Indian housing units, contract expertise, training, 
and technical assistance in the oversight and management of Indian 
housing and tenant-based assistance, including up to $200,000 for 
related travel: Provided, That all balances outstanding as of September 
30, 1997, previously appropriated under the headings ``Annual 
Contributions for Assisted Housing'', ``Development of Additional New 
Subsidized Housing'', ``Preserving Existing Housing Development'', 
``HOME Investment Partnerships Program'', ``Emergency Shelter Grants 
Program,'' and ``Homeless Assistance Funds'', identified for Indian 
Housing Authorities and other agencies primarily serving Indian or 
Indian areas, shall be transferred to and merged with amounts made under 
this heading.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                                 485
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 485
23.95 New obligations...................                                -485
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                 485
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation
73.10 New obligations...................                                 485
73.20 Total outlays (gross).............                                 -57
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                                 429
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  57
86.93 Outlays from current balances.....
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                                  57
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 485
90.00 Outlays...........................                                  57
---------------------------------------------------------------------------

                      Proposed Transfer of Balances

                              [In millions]

                                      1996 est.   1997 est.   1998 est.
Indian Development (Annual 
    Contributions):
  Budget Authority..................         163
  Outlays...........................         252         251         214
Indian Development (Development of 
    Additional New Subsidized 
    Housing):
  Budget Authority..................                     200
  Outlays...........................                       0          10
Modernization:
  Budget Authority..................         149         162
  Outlays...........................         161         162         181
HOME:
  Budget Authority..................          14          21
  Outlays...........................          13          14          25
Homeless:
  Budget Authority..................           1           1
  Outlays...........................           1           1           1
Native American Block Grant:
  Budget Authority..................                                 485
  Outlays...........................                                  57
                                    ------------------------------------
      Total.........................
  Budget Authority..................         327         384         485
  Outlays...........................         427         428         488
                                    ====================================

    The 1998 budget proposes to transfer all obligated and unobligated 
balances from Annual Contributions, Development of Additional New 
Subsidized Housing, Preserving Existing Housing Investment, HOME 
Investment Partnerships Program Emergency Shelter Grants, and Homeless 
Assistance for Indian housing authorities and other agencies primarily 
serving Indians or Indian areas to the Native American Housing Block 
Grants Program.

    Title I of the Native American Housing Assistance and Self-
Determination Act of 1996 (P.L. 104-330) authorized the Native American 
Housing Block Grants program. This program provides an allocation of 
funds on a formula basis to Indian tribes and their tribally designated 
housing entities to help them address housing needs within their 
communities. Indian tribes will use performance measures and benchmarks 
that are consistent with the national goals of the program, but can base 
these measures on the needs and priorities they establish in their own 
Indian housing plan.

                                

[[Page 536]]

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      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Capital investment: Loans to 
        public housing agencies and 
        Indian housing authorities......          38          50          50
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          33.0).........................          38          50          50
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           6          13          13
22.00 New budget authority (gross)......         107         115         118
22.60 Redemption of debt................         -62         -65         -68
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          51          63          63
23.95 New obligations...................         -38         -50         -50
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....          13          13          13
----------------------------------------------------------------------------

    New budget authority (gross), detail:
67.15 Authority to borrow (indefinite)..          20          50          50
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          87          65          68
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         107         115         118
----------------------------------------------------------------------------

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

        Obligated balance:
72.40     Appropriation.................       1,288       1,176       1,064
72.90     Fund balance..................
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       1,288       1,176       1,064
73.10 New obligations...................          38          50          50
73.20 Total outlays (gross).............        -150        -162        -165
      Unpaid obligations, end of year:

        Obligated balance:
74.40     Appropriation.................       1,176       1,064
74.90     Fund balance..................                                 950
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       1,176       1,064         950
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          50          65          68
86.98 Outlays from permanent balances...         100          97          97
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         150         162         165
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -62         -65         -68
88.40     Non-Federal sources...........         -25
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -87         -65         -68
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          20          50          50
90.00 Outlays...........................          64          97          97
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,689       1,627       1,562
1251  Repayments: Repayments and 
        prepayments.....................         -62         -65         -65
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,627       1,562       1,497
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       4,132       3,861       3,507
2251  Repayments and prepayments........        -271        -354        -280
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       3,861       3,507       3,227
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       3,861       3,507       3,227
---------------------------------------------------------------------------

    The Low-Rent Public Housing Loan Fund is used to provide direct 
Federal loans to fund remaining Public Housing Agency and Indian Housing 
Authority construction, acquisition, and modernization activities 
reserved under the Annual Contributions appropriation through 1986. 
These loans are made from borrowings from the Treasury. Under 
legislation enacted during 1986 (Public Law 99-272), the borrowings from 
the Treasury are forgiven at the end of each fiscal year and the loans 
to PHAs/IHAs are forgiven as construction, acquisition, and 
modernization activities are completed. Under the provisions of this 
legislation, $20 million of borrowings from the Treasury were forgiven 
in 1996, an estimated $50 million will be borrowed from the Treasury and 
forgiven in 1997, and an estimated $50 million will be borrowed from the 
Treasury and forgiven in 1998. The table below shows the status of 
outstanding loans for the period 1996-1998. The balance at the end of 
each year represents administrative loans, 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]

                                     1996 actual  1997 est.   1998 est.
Outstanding, start of year..........          64          45          45
Direct loan disbursements...........          38          50          50
Repayments..........................         -20
Adjustments.........................           2
Total loans forgiven................         -39         -50         -50
                                    ------------------------------------
Outstanding, end of year............          45          45          45
                                    ====================================

    Since 1987, new reservations of capital funds for construction, 
acquisition, and modernization activities have been provided directly 
from the Annual Contributions, Preserving Existing Housing Investment, 
and Development of Additional New Subsidized Housing appropriations.

    Operating results.--The actual and estimated net operating income 
for 1995, 1996, 1997, and 1998 follows:

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4098-0-3-604    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         116            112           108            104
0102  Expense...........................        -131           -127          -123           -119
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............         -15            -15           -15            -15
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4098-0-3-604    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,294          1,189         1,084            979
        Investments in US securities:
1106      Receivables, net..............       1,791          1,726         1,661          1,596
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............          64             45            45             45
1602    Interest receivable.............           6              3             3              3
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -12            -12           -12            -12
1604    Direct loans and interest 
          receivable, net...............          58             36            36             36
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          58             36            36             36
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,143          2,951         2,781          2,611

[[Page 537]]

    LIABILITIES:
      Federal liabilities:

2102    Interest payable................         205            198           191            184
2104    Resources payable to Treasury...       1,688          1,627         1,565          1,503
2207  Non-Federal liabilities: Other....           1              1             1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,894          1,826         1,757          1,688
    NET POSITION:
3100  Appropriated capital..............       1,184          1,076           968            860
3300  Cumulative results of operations..          65             49            56             63
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       1,249          1,125         1,024            923
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,143          2,951         2,781          2,611
-----------------------------------------------------------------------------------------------

                                

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, to remain available until expended: Provided, That such 
costs, including the costs of modifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974, as amended: 
Provided further, That these funds are available to subsidize total loan 
principal, any part of which is to be guaranteed, not to exceed 
$36,900,000. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371      1996 actual   1997 est.   1998 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           6           6
73.10 New obligations...................           3           3           3
73.20 Total outlays (gross).............                      -2          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation           6           6           6
----------------------------------------------------------------------------

    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 86-0223-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Loan guarantee levels.............          37          37          37
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....          37          37          37
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................        8.13        8.13        8.13
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        8.13        8.13        8.13
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........           3           3           3
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..           3           3           3
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................                       2           3
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                       2           3
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, the subsidy costs associated with the loan 
guarantees committed in 1994 and beyond (including modifications of 
guarantees that resulted from obligations in any year). The subsidy 
amounts are estimated on a net present value basis. The administrative 
expenses are shown on a cash basis.

    This program provides access to sources of private financing for 
Indian families, Indian tribes and their tribally designated housing 
entities (TDHEs) who otherwise could not acquire housing financing 
because of the unique legal status of Indian trust land.

                                

          Indian Housing Loan Guarantee Fund Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....           3           3           5
22.00 New financing authority (gross)...                       2           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3           5           8
23.95 New obligations...................
24.90 Unobligated balance available, end 
        of year: Fund balance...........           3           5           8
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Spending 
        authority from offsetting 
        collections, Federal sources....                       2           3
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                       1           2
90.00 Financing disbursements...........          -1                      -3
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........          37          37          37
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................          37          37          37
2199  Guaranteed amount of guaranteed 
        loan commitments................          37          37
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........           1           6          11
2231  Disbursements of new guaranteed 
        loans...........................           5           5          17
                                           ---------   ---------  ----------
2290    Outstanding, end of year........           6          11          28
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..           6          11
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this 
nonbudgetary account records all cash flows to and from the Government 
resulting from the loan guarantees committed in 1994 and beyond 
(including modifications of loan guarantees that resulted from 
obligations in any year). The amounts in this account are a means of 
financing and not included in the budget totals.

[[Page 538]]

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4104-0-3-604    1995 actual    1996 actual     1997 est.      1998 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] $204,000,000, 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]. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0308-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                     237         204
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                     196         204
22.22 Unobligated balance transferred 
        from other accounts.............                      41
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                     237         204
23.95 New obligations...................                    -237        -204
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                     171         204
42.00 Transferred from other accounts...                      25
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........                     196         204
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                     196         204
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                                 471
73.10 New obligations...................                     237         204
73.20 Total outlays (gross).............                    -133        -165
73.32 Obligated balance transferred from 
        other accounts..................                     367
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                     471         510
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                       4           4
86.93 Outlays from current balances.....                     129         161
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                     133         165
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                     196         204
90.00 Outlays...........................                     133         165
---------------------------------------------------------------------------

    The Housing Opportunities for Persons with AIDS program was 
established as a separate account in 1997. All of the balances from 
prior appropriations for this program have been transferred to and 
merged with this account. This program is now accounted for on an 
obligation basis. The purpose of the program is to provide States and 
localities with resources and incentives to devise long-term 
comprehensive strategies for meeting the housing needs of persons with 
HIV/AIDS and their families.

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

                                

                Community Development Block Grants [Fund]

                     (including transfers of funds)

    For grants to States and units of general local government and for 
related expenses, not otherwise provided for, to carry out a community 
development grants program as authorized by title I of the Housing and 
Community Development Act of 1974, as amended (the ``Act'' herein) (42 
U.S.C. 5301), $4,600,000,000, to remain available until September 30, 
[1999,] 2000; of which $67,000,000 shall be for grants to Indian tribes 
notwithstanding section 106(a)(1) of the Act[: Provided, That $2,100,000 
shall be available as a grant to the Housing Assistance Council, 
$1,500,000 shall be available as a grant to the National American Indian 
Housing Council, and $49,000,000]; of which [$35,000,000] $32,600,000 
shall be [available] for grants pursuant to section 107 of such Act[, 
including up to $14,000,000 for the development and operation of a 
management information system]; of which $50,000,000 shall be for 
Economic Development Grants; $50,000,000 shall be for activities to 
promote and implement homeownership in targeted geographic areas; 
$10,000,000 shall be for the Capacity Building for Community Development 
and Affordable Housing program; $10,000,000 shall be for a grant to 
Habitat for Humanity International; $10,000,000 shall be for grants to 
units of local government, preferably for communities designated as 
Empowerment Zones or Enterprise Communities, to develop strategies for 
Bridges to Work programs, which include assistance for job search, 
transportation, child care and other needed supportive services to 
increase job opportunities; and $60,000,000 shall be for the lead-based 
paint hazard reduction program: Provided further, That not to exceed 20 
percent of any grant made with funds appropriated herein (other than [a 
grant made available under the preceding proviso to the Housing 
Assistance Council or the National American Indian Housing Council, or] 
a grant using funds under section 107(b)(3) of the Housing and Community 
Development Act of 1974, as amended) shall be expended for ``Planning 
and Management Development'' and ``Administration'' as defined in 
regulations promulgated by the Department[: Provided further, That for 
fiscal year 1997 and thereafter, section 105(a)(25) of such Act, shall 
continue to be effective and the termination and conforming provisions 
of section 907(b)(2) of the Cranston-Gonzalez National Affordable 
Housing Act shall not be effective: Provided further, That section 
916(f) of the Cranston-Gonzalez National Affordable Housing Act is 
repealed].
    [Of the amount provided under this heading, the Secretary of Housing 
and Urban Development may use up to $60,000,000 for grants to public 
housing agencies (including Indian housing authorities), nonprofit 
corporations, and other appropriate entities for a supportive services 
program to assist residents of public and assisted housing, former 
residents of such housing receiving tenant-based assistance under 
section 8 of such Act (42 U.S.C. 1437f), and other low-income families 
and individuals to become self-sufficient: Provided, That the program 
shall provide supportive services, principally for the benefit of public 
housing residents, to the elderly and the disabled, and to families with 
children where the head of household would benefit from the receipt of 
supportive services and is working, seeking work, or is preparing for 
work by participating in job training or educational programs: Provided 
further, That the supportive serv-

[[Page 539]]

ices may include congregate services for the elderly and disabled, 
service coordinators, and coordinated educational, training, and other 
supportive services, including academic skills training, job search 
assistance, assistance related to retaining employment, vocational and 
entrepreneurship development and support programs, transportation, and 
child care: Provided further, That the Secretary shall require 
applications to demonstrate firm commitments of funding or services from 
other sources: Provided further, That the Secretary shall select public 
and Indian housing agencies to receive assistance under this head on a 
competitive basis, taking into account the quality of the proposed 
program (including any innovative approaches, the extent of the proposed 
coordination of supportive services, the extent of commitments of 
funding or services from other sources, the extent to which the proposed 
program includes reasonably achievable, quantifiable goals for measuring 
performance under the program over a three-year period, the extent of 
success an agency has had in carrying out other comparable initiatives, 
and other appropriate criteria established by the Secretary). Provided 
further, That from the foregoing $60,000,000, up to $5,000,000 shall be 
available for the Tenant Opportunity Program, and up to $5,000,000 shall 
be available for the Moving to Work Demonstration for public housing 
families.]
    [Of the amount made available under this heading, notwithstanding 
any other provision of law, $20,000,000 shall be available for grants to 
entities managing or operating public housing developments, federally-
assisted multifamily-housing developments, or other multifamily-housing 
developments for low-income families supported by non-Federal 
governmental entities or similar housing developments supported by 
nonprofit private sources, to reimburse local law enforcement entities 
for additional police presence in and around such housing developments; 
to provide or augment such security services by other entities or 
employees of the recipient agency; to assist in the investigation and/or 
prosecution of drug related criminal activity in and around such 
developments; and to provide assistance for the development of capital 
improvements at such developments directly relating to the security of 
such developments: Provided, That such grants shall be made on a 
competitive basis as specified in section 102 of the HUD Reform Act.]
    [Of the amount made available under this heading, notwithstanding 
any other provision of law, $30,000,000 shall be available for 
youthbuild program activities authorized by subtitle D of title IV of 
the Cranston-Gonzalez National Affordable Housing Act, as amended, and 
such activities shall be an eligible activity with respect to any funds 
made available under this heading.]
    [Of the amount made available under this heading, notwithstanding 
any other provision of law, $60,000,000 shall be available for the lead-
based paint hazard reduction program as authorized under sections 1011 
and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992.]
    For the cost of guaranteed loans, [$31,750,000] $29,000,000, as 
authorized by section 108 of the Housing and Community Development Act 
of 1974: Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974, as amended: Provided further, That these funds are 
available to subsidize total loan principal, any part of which is to be 
guaranteed, not to exceed [$1,500,000,000], $1,261,000,000, 
notwithstanding any aggregate limitation on outstanding obligations 
guaranteed in section 108(k) of the Housing and Community Development 
Act [of 1974]. In addition, for administrative expenses to carry out the 
guaranteed loan program, [$675,000] $1,000,000, which shall be 
transferred to and merged with the appropriation for departmental 
salaries and expenses. (Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants............................       4,415       5,326       4,600
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................       4,415       5,326       4,600
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................         487         726
22.00 New budget authority (gross)......       4,650       4,600       4,600
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       5,140       5,326       4,600
23.95 New obligations...................      -4,415      -5,326      -4,600
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....         726
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       4,650       4,600       4,600
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation       8,645       8,512       9,001
73.10 New obligations...................       4,415       5,326       4,600
73.20 Total outlays (gross).............      -4,545      -4,837      -4,641
73.45 Adjustments in unexpired accounts.          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation       8,512       9,001       8,960
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         186          91          91
86.93 Outlays from current balances.....       4,359       4,746       4,550
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       4,545       4,837       4,641
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       4,650       4,600       4,600
90.00 Outlays...........................       4,545       4,837       4,641
---------------------------------------------------------------------------

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

    Funds are allocated to Indian tribes and, on an entitlement basis, 
to metropolitan cities and urban counties which receive their grants 
using the higher of two objective formulas. States and small cities are 
also allocated a portion of the available funds. Section 107 Grants 
include funding for Insular Areas, technical assistance, Historically 
Black Colleges and Universities, Community Development Work Study and 
Community Outreach Partnership programs.

    A revised and enhanced Economic Development Initiative (EDI) program 
which will build upon the success of the existing program, is proposed 
for 1998. The proposal will expand funding available for job creation 
projects, expand the list of eligible recipients, and provide more 
flexibility in meeting community and economic development needs. The 
focus of the 1998 EDI grants will be on the need to create employment 
opportunities in the wake of welfare reform.

    The Homeownership Zones program will provide flexible grants to 
States and Community Development Block Grant (CDBG) entitlement units of 
general local government for large-scale redevelopment of abandoned 
neighborhoods to create viable communities of mixed income homebuyers.

    The Capacity Building for Community Development and Affordable 
Housing program provides funding to the National Community Development 
Initiative (NCDI) to build the capacity of community-based development 
corporations and housing development organizations, and to assist such 
entities to carry out community development and affordable housing 
activities.

    Title X of the Housing and Community Development Act of 1992 (Public 
Law 102-550) authorizes a Lead-Based Paint Hazard Reduction program to 
address lead-hazard reduction activities in privately owned housing.

    Habitat for Humanity International would use this grant to undertake 
innovative homeownership opportunities through the provision of self-
help housing, under which a homeowner would contribute a significant 
amount of sweat equity toward the construction of the new dwelling. 
These decent, safe and sanitary nonluxury dwellings must be made 
available to eligible homeowners at prices below prevailing market 
prices. Eligible activities include land acquisition (including 
financing and closing costs) and infrastructure improvement (installing, 
extending, constructing, rehabilitating or otherwise improving utilities 
and other infrastructure).

    The Bridges to Work program will provide assistance to low-income 
work-ready, but unemployed or underemployed,

[[Page 540]]

city residents in finding and maintaining employment. These grants will 
emphasize the link between transportation services and other supportive 
services to increase access to jobs throughout a metropolitan area. The 
funding will provide time-limited assistance for job search, 
transportation, child care and other needed supportive services to 
increase job opportunities. The program will build on the existing 
demonstration program by expanding collaborative efforts by private 
businesses, non-profit organizations and public agencies, including the 
Federal Government. The Bridges to Work program would be available on a 
competitive basis and would be targeted, but not limited to, Empowerment 
Zones and Enterprise Communities.

                                

              Empowerment Zones and Enterprise Communities

              (Legislative proposal, not subject to PAYGO)

    For grants to Empowerment Zones and Enterprise Communities, to be 
designated by the Secretary of the Department of Housing and Urban 
Development, to continue efforts to stimulate economic opportunity in 
America's distressed communities, $100,000,000, to remain available 
until expended. (Additional authorizing legislation required.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0315-2-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                                 100
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 100
23.95 New obligations...................                                -100
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                 100
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                 100
73.20 Total outlays (gross).............                                  -2
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                                  98
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                   2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 100
90.00 Outlays...........................                                   2
---------------------------------------------------------------------------

    This program would provide grants to support the financing of 
capital projects, including housing and economic development, in urban 
Empowerment Zones and Enterprise Communities. Applicants would be 
challenged to develop their own comprehensive strategic plans for 
revitalization, with the input of residents and a wide array of 
community partners. Grants could be used for a range of activities, at 
local discretion, including: workforce preparation and job creation 
efforts linked to welfare reform, repayment of debt financed by 
municipal bonds; financing of projects in conjunction with the section 
108 financing loan guarantee program and other economic development 
projects; and support for project-based rental assistance and other 
housing initiatives.

                                

                        Brownfields Redevelopment

    For Economic Development Grants, as authorized by section 108 of the 
Housing and Community Development Act of 1974, as amended, for 
Brownfields redevelopment projects, $25,000,000, to remain available 
until expended.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0314-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                                  25
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  25
23.95 New obligations...................                                 -25
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  25
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                  25
73.20 Total outlays (gross).............                                  -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                                  24
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                   1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  25
90.00 Outlays...........................                                   1
---------------------------------------------------------------------------

    This program would make competitive economic development grants in 
conjunction with Section 108 loan guarantees for qualified brownfield 
projects. This is the first of four annual funding requests, for a total 
of $100 million, to be dedicated to the initiative between 1998 and 
2001. This program will solicit applications from communities with the 
best proposals for returning these sites to productive, and employment 
generating uses, with an emphasis on creating substantial numbers of 
jobs for lower income people in physically and economically distressed 
neighborhoods.

    Grants would be made in accordance with section 108(q) selection 
criteria and such other criteria deemed appropriate for brownfield 
projects, including the extent to which an applicant is currrently 
operating a brownfields program and is working with appropriate 
environmental regulatory agencies. Priority would be given to those 
projects that are located in designated Empowerment Zones or Enterprise 
Communities.

                                

                  HOME Investment Partnerships Program

    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] $1,309,000,000, 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 integrated community development management 
information systems[; Provided further, That $15,000,000 shall be 
available for Housing Counseling under section 106 of the Housing and 
Urban Development Act of 1968]. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0205-0-1-999      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................       1,367       1,582       1,309
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................         148         182
22.00 New budget authority (gross)......       1,400       1,400       1,309
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,549       1,582       1,309
23.95 New obligations...................      -1,367      -1,582      -1,309

[[Page 541]]

24.40 Unobligated balance available, end 
        of year: Uninvested balance.....         182
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       1,400       1,400       1,309
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation       3,189       3,349       3,486
73.10 New obligations...................       1,367       1,582       1,309
73.20 Total outlays (gross).............      -1,206      -1,445      -1,440
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation       3,349       3,486       3,355
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          28          28          26
86.93 Outlays from current balances.....       1,178       1,417       1,414
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,206       1,445       1,440
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,400       1,400       1,309
90.00 Outlays...........................       1,206       1,445       1,440
---------------------------------------------------------------------------

    The HOME Investment Partnership program is authorized by the 
National Affordable Housing Act (P.L. 101-625). This program provides 
assistance to States and units of local government, through formula 
allocation, for the purpose of expanding the supply and affordability of 
housing. Eligible activities include acquisition, rehabilitation, and 
new construction of housing and tenant-based rental assistance.

    The 1998 proposal includes funds to continue to develop, implement 
and refine integrated community development management information 
systems which are critical to establishing a national database of local 
needs and program performance, as well as to provide localities, States 
and community members with software to plan and track performance. 
Funding for technical assistance is also included.

                                

                     Urban Development Action Grants

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0170-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation         163         136          76
73.20 Total outlays (gross).............         -27         -60         -45
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         136          76          31
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          27          60          45
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          27          60          45
---------------------------------------------------------------------------

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

                                

   Capacity Building for Community Development and Affordable Housing

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0222-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          19          13           3
73.20 Total outlays (gross).............          -5         -10          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          13           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           5          10           3
----------------------------------------------------------------------------

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

    As authorized by section 4 of the HUD Demonstration Act of 1993, 
this program provides funding to the National Community Development 
Initiative to build the capacity of community-based development 
corporations and housing development organizations, and to assist such 
corporations and organizations to carry out community development and 
affordable housing activities. Funding for this program was provided 
under the Annual Contributions for Assisted Housing account in 1996, and 
is requested under the Community Development Block Grant account in 
1998.

                                

                    Emergency Shelter Grants Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0181-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          36           6
73.20 Total outlays (gross).............         -30          -6
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          30           6
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          30           6
---------------------------------------------------------------------------

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

                                

                       Supportive Housing Program

    Of the funds made available under this heading in Public Law 102-389 
and prior laws for the Supportive Housing Demonstration Program, as 
authorized by the Stewart B. McKinney Homeless Assistance Act, 
$6,000,000 of funds recaptured during fiscal year 1998 shall be 
rescinded.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0188-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          44          31
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................          66          31
22.00 New budget authority (gross)......                                  -6
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           9                       6
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          75          31
23.95 New obligations...................         -44         -31
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....          31
----------------------------------------------------------------------------

[[Page 542]]



    New budget authority (gross), detail:
40.36 Unobligated balance rescinded.....                                  -6
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation         575         462         336
73.10 New obligations...................          44          31
73.20 Total outlays (gross).............        -148        -157        -144
73.45 Adjustments in unexpired accounts.          -9                      -6
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         462         336         186
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....         148         157         144
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  -6
90.00 Outlays...........................         148         157         144
---------------------------------------------------------------------------

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

    Since fiscal year 1995, this type of assistance has been funded 
under the Homeless Assistance Grants account.

    This proposal would rescind funding, recaptured in 1998, for 
approved projects in prior years which were either not undertaken or 
utilized less funding than originally obligated.

                                

      Supplemental Assistance for Facilities To Assist the Homeless

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0187-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................                       1           1
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           1           1           1
23.95 New obligations...................
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....           1           1           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation           9           3
73.10 New obligations...................
73.20 Total outlays (gross).............          -5          -3
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           5           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           5           3
---------------------------------------------------------------------------

    Title IV, subtitle D, of the Stewart B. McKinney Homeless Assistance 
Act, authorized the Supplemental Assistance for Facilities To Assist the 
Homeless program (SAFAH) to 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

    Of the funds made available under this heading in Public Law 102-389 
and prior laws for the Shelter Plus Care program, as authorized by the 
Stewart B. McKinney Homeless Assistance Act, $4,000,000 of funds 
recaptured during fiscal year 1998 shall be rescinded.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0204-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................           9          16
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................          24          16
22.00 New budget authority (gross)......                                  -4
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1                       4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          25          16
23.95 New obligations...................          -9         -16
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....          16
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.36 Unobligated balance rescinded.....                                  -4
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation         454         419         385
73.10 New obligations...................           9          16
73.20 Total outlays (gross).............         -43         -50         -49
73.45 Adjustments in unexpired accounts.          -1                      -4
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         419         385         332
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority
86.93 Outlays from current balances.....          43          50          49
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          43          50          49
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  -4
90.00 Outlays...........................          43          50          49
---------------------------------------------------------------------------

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

    Since fiscal year 1995, this type of assistance has been funded 
under the Homeless Assistance Grants account.

    This proposal would rescind funding, recaptured in 1998, for 
approved projects in prior years which were either not undertaken or 
utilized less funding than was originally obligated.

                                

          Innovative Homeless Initiatives Demonstration Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0221-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          79          58          39
73.20 Total outlays (gross).............         -20         -19         -17

[[Page 543]]

74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          58          39          22
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          20          19          17
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          20          19          17
---------------------------------------------------------------------------

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

                                

                   Homeless Assistance [Funds] Grants

    For grants to States, units of general local government, nonprofit 
organizations, or public housing authorities, and for related expenses 
not otherwise provided for, necessary for carrying out a performance-
based homeless assistance program, $823,000,000, to remain available 
until expended: Provided, That up to one percent of such funds shall be 
available to the Secretary for technical assistance. (Additional 
authorizing legislation required.)
    [For the emergency shelter grants program (as authorized under 
subtitle B of title IV of the Stewart B. McKinney Homeless Assistance 
Act (Public Law 100-77), as amended); the supportive housing program (as 
authorized under subtitle C of title IV of such Act); the section 8 
moderate rehabilitation single room occupancy program (as authorized 
under the United States Housing Act of 1937, as amended) to assist 
homeless individuals pursuant to section 441 of the Stewart B. McKinney 
Homeless Assistance Act; and the shelter plus care program (as 
authorized under subtitle F of title IV of such Act), $823,000,000, to 
remain available until expended.] (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0192-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................         785       1,711         823
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................         849         888
22.00 New budget authority (gross)......         823         823         823
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,673       1,711         823
23.95 New obligations...................        -785      -1,711        -823
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....         888
----------------------------------------------------------------------------

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

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation         260         857       2,283
73.10 New obligations...................         785       1,711         823
73.20 Total outlays (gross).............        -186        -285        -474
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         857       2,283       2,632
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          41          41          41
86.93 Outlays from current balances.....         145         244         433
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         186         285         474
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         823         823         823
90.00 Outlays...........................         186         285         474
---------------------------------------------------------------------------

    The Homeless Assistance Grants program consolidates the activities 
of HUD's six McKinney homeless assistance programs--Shelter Plus Care, 
Supportive Housing, Emergency Shelter Grants, Section 8 Single Room 
Occupancy, Rural Homeless Grants and Safe Havens--as well as those of 
the Innovative Homeless Initiatives Demonstration program. This 
consolidation would enable localities to continue to shape and implement 
comprehensive, flexible, coordinated ``continuum of care'' approaches to 
solving rather than institutionalizing homelessness. In fact, over the 
last three years, many communities have made great strides in developing 
holistic continuum of care approaches to solving homelessness. A 
community-based process would be required as part of the application 
process. Communities will be required to include in their applications 
performance measures that contain specific goals that would accrue from 
the community's efforts, and will be required to demonstrate tangible 
results on an annual basis. Approved funding would be available for a 
wide range of activities to assist homeless persons and prevent future 
homelessness.

    Funding is also requested for technical assistance to provide needed 
assistance to grantees in resolving problems that hinder successful 
project completion and implementation.

                                

                           Youthbuild Program

    For the HOPE for Youth: Youthbuild program, authorized by subtitle D 
of title IV of the Cranston-Gonzalez National Affordable Housing Act, as 
amended, $30,000,000, to remain available until expended.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0219-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                       3          30
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           2           3
22.00 New budget authority (gross)......                                  30
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3           3          30
23.95 New obligations...................                      -3         -30
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  30
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          85          43          21
73.10 New obligations...................                       3          30
73.20 Total outlays (gross).............         -41         -25         -15
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          43          21          36
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          41          25          15
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  30
90.00 Outlays...........................          41          25          15
---------------------------------------------------------------------------

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

[[Page 544]]

    For fiscal years 1996 and 1997, funding for the Youthbuild program 
was included in the Community Development Block Grants account.

                                

        National Cities in Schools Community Development Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0220-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

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

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

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

    This program provides grants for community-wide programs designed to 
assist at-risk youth and their families. Funding for this program was 
provided under the Annual Contributions for Assisted Housing account in 
fiscal year 1996.

                                

Public enterprise funds:

                  Revolving Fund (Liquidating Programs)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.03 Loan servicing and other expenses.           8           7           7
00.04 Maintenance of acquired security 
        and collateral..................                       7           6
00.05 Administrative expenses...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............           9          15          14
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....         102          97          87
22.00 New budget authority (gross)......          74          65          60
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
22.40 Capital transfer to general fund..         -70         -60         -60
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         107         102          87
23.95 New obligations...................          -9         -15         -14
24.90 Unobligated balance available, end 
        of year: Fund balance...........          97          87          73
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          74          65          60
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.90 Unpaid obligations, start of year: 
        Obligated balance: Fund balance.          46          27           7
73.10 New obligations...................           9          15          14
73.20 Total outlays (gross).............         -28         -35         -21
73.45 Adjustments in unexpired accounts.          -1
74.90 Unpaid obligations, end of year: 
        Obligated balance: Fund balance.          27           7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...          28          35          21
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -74         -65         -60
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -46         -30         -39
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         388         328         282
1251  Repayments: Repayments and 
        prepayments.....................         -51         -45         -40
1263  Write-offs for default: Direct 
        loans...........................          -9          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         328         282         242
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........           4           3           2
2251  Repayments and prepayments........          -1          -1          -1
                                           ---------   ---------  ----------
2290    Outstanding, end of year........           3           2           1
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..           3           2           1
---------------------------------------------------------------------------

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

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4015-0-3-451    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          19             31            20             20
0102  Expense...........................         -12            -18           -15            -12
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           7             13             5              8
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4015-0-3-451    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         149            125           135            130
1206  Non-Federal assets: Receivables, 
        net.............................           3              4             3              2
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         391            331           301            254
1602    Interest receivable.............          21             18            20             18
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -36            -25           -39            -30
1604    Direct loans and interest 
          receivable, net...............         376            324           282            242
1606    Foreclosed property.............           1              1             1
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................         377            325           283            242
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         529            454           421            374
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................           1
2207    Other...........................          13              9             8              7
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          14              9             8              7
    NET POSITION:
3100  Appropriated capital..............                         28            28             28
3200  Invested capital..................                        301           301            301
3300  Cumulative results of operations..         514            116            84             38
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         514            445           413            367
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         528            454           421            374
-----------------------------------------------------------------------------------------------

[[Page 545]]



               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
25.2  Other services....................           5          10          10
32.0  Land and structures...............           4           5           4
                                           ---------   ---------  ----------
99.9    Total obligations...............           9          15          14
---------------------------------------------------------------------------

                                

Credit accounts:

          Community Development Loan Guarantees Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........           9          32          29
00.09 Administrative expenses...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          33.0).........................          10          33          30
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          33          33          30
22.30 Unobligated balance expiring......         -23
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          10          33          30
23.95 New obligations...................         -10         -33         -30
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          33          33          30
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                       9          19
73.10 New obligations...................          10          33          30
73.20 Total outlays (gross).............          -1         -23         -35
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation           9          19          14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           1          17          16
86.93 Outlays from current balances.....                       6          19
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1          23          35
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          33          33          30
90.00 Outlays...........................           1          23          35
---------------------------------------------------------------------------

    Guaranteed Loans.--The Community Development Block Grant program 
includes a guaranteed loan provision (Section 108). A commitment level 
of $1.3 billion is proposed for the Community Development Loan 
Guarantees (Section 108) program for 1998. The credit subsidy/
administrative cost estimate for the guaranteed loan program is $30 
million in FY 1998.

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

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Loan guarantee levels.............       1,500       1,380       1,261
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....       1,500       1,380       1,261
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................        2.10        2.30        2.30
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        2.10        2.30        2.30
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........          32          32          29
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..          32          32          29
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................                      22          23
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                      22          23
----------------------------------------------------------------------------

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

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

                                

         Community Development Loan Guarantees Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....                                  23
22.00 New financing authority (gross)...                      23          37
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                      23          60
24.90 Unobligated balance available, end 
        of year: Fund balance...........                      23          60
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                      23          37
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............                     -22         -34
88.25     Interest on uninvested funds..                      -1          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                     -23         -37
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                     -23         -37
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........       1,500       1,380       1,261
2112  Uncommitted loan guarantee 
        limitation......................      -1,066
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................         434       1,380       1,261
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         430         750       1,425
2231  Disbursements of new guaranteed 
        loans...........................         360         750       1,150
2251  Repayments and prepayments........         -40         -75        -135
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         750       1,425       2,440
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         750       1,425       2,440
---------------------------------------------------------------------------

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

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from loan guarantees committed in 1992 and beyond (including 
modifications of loan guaran-

[[Page 546]]

tees that resulted from commitments in any year). The amounts in this 
account are a means of financing and are not included in the budget 
totals.

                                

        Community Development Loan Guarantees Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          50           4           4
22.60 Redemption of debt................         -50          -4          -4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          50           4           4
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.47 Unpaid obligations, start of year: 
        Obligated balance: Authority to 
        borrow..........................         153         147         147
73.20 Total outlays (gross).............          -6
74.47 Unpaid obligations, end of year: 
        Obligated balance: Authority to 
        borrow..........................         147         147         147
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...           6
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -50          -4          -4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -44          -4          -4
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          89          39          35
1251  Repayments: Repayments and 
        prepayments.....................         -50          -4          -4
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          39          35          31
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         246         243         203
2231  Disbursements of new guaranteed 
        loans...........................          44          15          10
2251  Repayments and prepayments........         -47         -55         -33
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         243         203         180
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         243         203         180
---------------------------------------------------------------------------

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

    Guaranteed loans.--Guaranteed loan assistance under the Community 
Development Loan Guarantees program is provided to eligible communities 
to finance economic development activities, housing rehabilitation, 
public facilities, acquisition of real property, rehabilitation of 
publicly owned real 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:

 [Development of Additional New Subsidized Housing] Housing for Special 
                               Populations

    For assistance for the purchase, construction, acquisition, or 
development of additional public and subsidized housing units for low 
income families under the United States Housing Act of 1937, as amended, 
[(``the Act'' herein)] (42 U.S.C. 1437), not otherwise provided for, 
[$1,039,000,000] $474,000,000, to remain available until expended: 
Provided, That of the total amount provided under this head, 
[$645,000,000] $300,000,000 shall be for capital advances, including 
amendments to capital advance contracts, for housing for the elderly, as 
authorized by section 202 of the Housing Act of 1959, as amended, and 
for project rental assistance, and amendments to contracts for project 
rental assistance, for supportive housing for the elderly under section 
202(c)(2) of the Housing Act of 1959; and [$194,000,000] $174,000,000 
shall be for capital advances, including amendments to capital advance 
contracts, for supportive housing for persons with disabilities, as 
authorized by section 811 of the Cranston-Gonzalez National Affordable 
Housing Act, and for project rental assistance, and amendments to 
contracts for project rental assistance, for supportive housing for 
persons with disabilities as authorized by section 811 of [the Cranston-
Gonzalez National Affordable Housing] such Act: Provided further, That 
the Secretary may designate up to 25 percent of the amounts earmarked 
under this paragraph for section 811 of [the Cranston-Gonzalez National 
Affordable Housing] such Act for tenant-based assistance, as authorized 
under that section, including such authority as may be waived under the 
next proviso, which assistance is five years in duration: Provided 
further, That the Secretary may waive any provision of section 202 of 
the Housing Act of 1959 and section 811 of the National Affordable 
Housing Act (including the provisions governing the terms and conditions 
of project rental assistance and tenant-based assistance) that the 
Secretary determines is not necessary to achieve the objectives of these 
programs, or that otherwise impedes the ability to develop, operate or 
administer projects assisted under these programs, and may make 
provision for alternative conditions or terms where appropriate: 
Provided further, That [of the total amount provided under this head 
$200,000,000, shall be for the development or acquisition cost of public 
housing for Indian families, including amounts for housing under the 
mutual help homeownership opportunity program under section 202 of the 
Act (42 U.S.C. 1437bb)] all obligated and unobligated balances remaining 
in either the Annual Contributions for Assisted Housing account or the 
Development of Additional New Subsidized Housing account for capital 
advances, including amendments to capital advances, for housing for the 
elderly, as authorized by section 202 of the Housing Act of 1959, as 
amended, and for project rental assistance, and amendments to contracts 
for project rental assistance, for supportive housing for the elderly, 
under section 202(c)(2) of such Act, shall be transferred to and merged 
with the amounts for those purposes under this head; and, all obligated 
and unobligated balances remaining in either the Annual Contributions 
for Assisted Housing account or the Development of Additional New 
Subsidized Housing account for capital advances, including amendments to 
capital advances, for supportive housing for persons with disabilities, 
as authorized by section 811 of the Cranston-Gonzales National 
Affordable Housing Act, and for project rental assistance, and 
amendments to contracts for project rental assistance, for supportive 
housing for persons with disabilities, as authorized under section 811 
of such Act, shall be transferred to and merged with the amounts for 
those purposes under this head. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997.)

[[Page 547]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0310-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                   1,039         474
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                   1,039         474
23.95 New obligations...................                  -1,039        -474
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                   1,039         474
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                               1,039
73.10 New obligations...................                   1,039         474
73.20 Total outlays (gross).............                                 -15
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                   1,039       1,498
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....                                  15
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                   1,039         474
90.00 Outlays...........................                                  15
---------------------------------------------------------------------------

    This account consolidates the new activity under the Section 202 
Housing for the Elderly Program and the Section 811 Housing for the 
Disabled Program. Program activity prior to 1997 is reflected in the 
Annual Contributions for Assisted Housing account. Renewal of prior year 
contracts is reflected in the Prevention of Resident Displacement 
account.

    A program level of $300 million for Housing for the Elderly grants 
and rental assistance is proposed for 1998. This is estimated to support 
the production of 3,865 additional units.

    A program level of $174 million is proposed for disabled housing, 
including $43.5 million for 1,630 5-year vouchers and $130.5 million for 
grant and rental assistance to support 1,488 additional units.

    During fiscal year 1996 funding for supportive housing for the 
elderly and disabled was provided under the Annual Contributions for 
Assisted Housing account. For 1997, funding was provided under the 
Development of Additional New Subsidized Housing, and in 1998 funding is 
proposed under the new Housing for Special Populations account. The 
table below shows the total budget authority and outlays associated with 
all three accounts. Language is being proposed in this budget to 
transfer the balances from Annual Contributions and Development of 
Additional New Housing accounts to the Housing for Special Populations 
account.

                      Proposed Transfer of Balances

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Annual Contributions for Assisted 
    Housing:
  Budget Authority..................       1,013          NA          NA
  Outlays...........................         757         853         911
Development of Additional New 
    Subsidized Housing:
  Budget Authority..................          NA         839          NA
  Outlays...........................          NA          NA          NA
Housing for Special Populations:
  Budget Authority..................          NA          NA         474
  Outlays...........................          NA          NA          NA
                                    ------------------------------------
Total:
  Budget Authority..................       1,013         839         474
  Outlays...........................         757         853         911
                                    ====================================

                     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 1998 by not more than $7,350,000 in uncommitted balances 
of authorizations provided for this purpose in appropriation Acts: 
Provided, That up to $125,000,000 of recaptured budget authority shall 
be canceled.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0206-0-1-999      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Rent supplement...................           9          39          37
00.02 Homeownership and rental housing 
        assistance (Sections 235 and 
        236)............................          16          68          64
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          25         107         101
----------------------------------------------------------------------------

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

21.40   Uninvested balance..............          12          15
21.49   Contract authority (available)..       1,032         978         959
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............       1,044         993         959
22.00 New budget authority (gross)......                                -125
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         340         111         278
22.75 Balance of contract authority 
        withdrawn.......................        -365         -38         -33
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,019       1,066       1,079
23.95 New obligations...................         -25        -107        -101
      Unobligated balance available, end of year:

24.40   Uninvested balance..............          15
24.49   Contract authority (available)..         978         959         978
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................         993         959         978
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.36   Unobligated balance canceled....                                -125
      Permanent:

60.05   Appropriation (indefinite)......         709         727         678
60.49   Portion applied to liquidate 
          contract authority............        -709        -727        -678
                                           ---------   ---------  ----------
63.00     Appropriation (total).........
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                                -125
----------------------------------------------------------------------------

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

        Obligated balance:
72.40     Administrative commitment 
            (reserved)..................         104         140         140
72.49     Contract authority............      22,774      21,687      20,956
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............      22,878      21,827      21,096
73.10 New obligations...................          25         107         101
73.20 Total outlays (gross).............        -736        -727        -678
73.45 Adjustments in unexpired accounts.        -340        -111        -278
      Unpaid obligations, end of year:

        Obligated balance:
74.40     Administrative commitment 
            reserved....................         140         140         140
74.49     Contract authority............      21,687      20,956      20,101
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................      21,827      21,096      20,241
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....         736         727         678
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                -125
90.00 Outlays...........................         736         727         678
---------------------------------------------------------------------------

            Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0206-0-1-999      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Balance, start of year:
0100  Balance, start of year............       1,032         978         959
0100  Balance, start of year............      22,774      21,687      20,956
    Contract authority:
0200  Contract authority................                                -125

[[Page 548]]

0400  Appropriation to liquidate 
        contract authority..............        -709        -727        -678
0600  Balance of contract authority 
        withdrawn.......................        -365         -38         -33
    Balance, end of year:
0700  Balance, end of year..............         978         959         978
0700  Balance, end of year..............      21,687      20,956      20,101
---------------------------------------------------------------------------

                         OTHER ASSISTED HOUSING

                  Summary of Administrative Commitments

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Program by activities...............
  Assistance contracts:
    Rent supplement.................           9          39          37
    Homeownership and rental housing 
      assistance (sections 235 and 
      236)..........................          16          68          64
  Administrative commitments, start 
    of year.........................          16          16          16
  Administrative commitments, end of 
    year............................         -16         -16         -16
                                    ------------------------------------
      Total obligations.............          25         107         101
                                    ====================================

    The Other Assisted Housing Account contains the programs listed 
below:

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

    Section 235.--The Housing and Urban-Rural Recovery Act of 1983 
(Public Law 98-181) authorized a restructured section 235 (Homeownership 
Assistance) program based on a 10-year interest reduction subsidy. A 
total of $150 million of budget authority was provided in the Second 
Supplemental Appropriations Act of 1984 (Public Law 98-396) to fund the 
program. Recaptures of budget authority from terminations must be 
transferred into the Homeownership Assistance Fund account established 
pursuant to Public Law 98-181.

    Section 236.--The Housing and Urban Development Act of 1968, as 
amended, authorizes the section 236 Rental Housing Assistance Program 
which subsidizes the monthly mortgage payment that an owner of a rental 
or cooperative project is required to make. This interest subsidy 
reduces rents for lower income tenants. During 1998, as a result of 
foreclosures from mortgage defaults or regulatory violations, the 
Department will rescind up to $125 million.

    During 1998, as a result of foreclosures from mortgage defaults or 
regulatory violations, the Department will rescind up to $125 million.

    The table below reflects the consolidated outlay total for both the 
Annual Contributions for Assisted Housing account and the Other Assisted 
Housing account, for fiscal years 1996, 1997, and 1998.

                           SUMMARY OF OUTLAYS

                        [In millions of dollars]

 (Annual Contributions for Assisted Housing, Housing Certificate Fund, 
                     and Other Assisted Housing) \1\

                                     1996 actual  1997 est.   1998 est.
Subsidized housing programs, total..      21,064      22,308      22,494
Low-income housing assistance (sec. 
8)..................................      15,779      17,283      17,937
Public housing......................       4,548       4,296       3,867
Rent supplement.....................          57          58          60
Homeownership assistance (sec. 235).                      31          31
Rental housing assistance (sec. 236)         663         623         582
College housing grants..............          17          17          17
    \1\ Includes outlays for contract renewals.

Homeownership and Opportunity for People Everywhere Grants (HOPE Grants)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0196-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Hope I............................                       3
00.02 Hope II...........................                      31
00.03 Hope III..........................           3           2
00.04 Elderly independence..............           1           2
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................           4          38
----------------------------------------------------------------------------

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

        Uninvested balance:
21.40     Uncommitted...................          36          34
21.40     Administratively committed....           5           4
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............          41          38
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          42          38
23.95 New obligations...................          -4         -38
      Unobligated balance available, end of year:

        Uninvested balance:
24.40     Uncommitted...................          34
24.40     Administratively committed....           4
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................          38
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation         244         184         136
73.10 New obligations...................           4          38
73.20 Total outlays (gross).............         -63         -86         -59
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         184         136          77
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          63          86          59
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          63          86          59
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Enacted/requested:
  Budget Authority..................
  Outlays...........................          63          86          59
Supplemental proposal:
  Budget Authority..................                     -30
  Outlays...........................                      -6          -8
                                    ------------------------------------
Total:
  Budget Authority..................                     -30
  Outlays...........................          63          80          51
                                    ====================================

    The Homeownership and Opportunity for People Everywhere Program 
provided affordable homeownership opportunities for low-income families. 
Units were converted to homeownership from public and Indian housing 
properties in HOPE 1, from FHA-insured and Government-held multifamily 
properties in HOPE 2 and from Government-owned or -held single family 
properties in HOPE 3. HOPE Grants were used for property acquisition, 
rehabilitation, mortgage subsidies, security measures, and technical 
assistance. In addition, grants have been devoted to counseling and 
training of residents, and other activities intended to help them become 
economically self-sufficient homeowners. No funding is being requested 
for fiscal year 1998. Approximately $30 million of HOPE unobligated 
balances are proposed for transfer to the Drug Elimination Grants 
program in 1997. This schedule reflects the liquidation of prior year 
balances.

                                

[[Page 549]]

                           Congregate Services

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0178-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
23.95 New obligations...................                      -1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          38          30          23
73.10 New obligations...................                       1
73.20 Total outlays (gross).............          -8          -7          -7
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          30          23          16
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           8           7           7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           8           7           7
---------------------------------------------------------------------------

    Under the Congregate Services program, HUD contracted directly with 
local public housing agencies and section 202 housing for the elderly or 
disabled sponsors to supply support services, including meals and other 
services. No funding is being requested for this program in fiscal year 
1998. This schedule reflects the liquidation of prior year balances.

                                

                      Housing Counseling Assistance

    For assistance, not otherwise provided, for providing counseling and 
advice to tenants and homeowners, both current and prospective, with 
respect to property maintenance, financial management, and such other 
matters as may be appropriate to assist them in improving their housing 
conditions and meeting the responsibilities of tenancy or homeownership, 
as authorized by section 106 of the Housing and Urban Development Act of 
1968, as amended, $23,000,000.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0156-0-1-506      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                                  23
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  23
23.95 New obligations...................                                 -23
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  23
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          17           6           3
73.10 New obligations...................                                  23
73.20 Total outlays (gross).............         -10          -3          -3
73.40 Adjustments in expired accounts...          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation           6           3          23
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          10           3           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  23
90.00 Outlays...........................          10           3           3
---------------------------------------------------------------------------

    The Housing Counseling Assistance program provides comprehensive 
housing counseling services to eligible homeowners and tenants, 
including pre-purchase, default and renter counseling.

                                

                    Section 8 Moderate Rehabilitation

                          single room occupancy

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0195-0-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          85         106
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................         191         106
23.95 New obligations...................         -85        -106
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....         106
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation         319         382         433
73.10 New obligations...................          85         106
73.20 Total outlays (gross).............         -21         -55         -51
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         382         433         382
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          21          55          51
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          21          55          51
---------------------------------------------------------------------------

    Section 8 assistance for single room occupancy dwellings is 
authorized by Title IV, subtitle E, of the Stewart B. McKinney Homeless 
Assistance Act, as amended by the Housing and Community Development Act 
of 1992. Since fiscal year 1995, these activities have been funded in 
the Homeless Assistance Grants account.

                                

               Manufactured Home Inspection and Monitoring

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5271-0-2-376      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Manufactured home inspection and 
        monitoring......................          13          14          16
    Appropriation:
05.01 Manufactured home inspection and 
        monitoring......................         -13         -14         -16
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5271-0-2-376      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Transfer to salaries and expenses.           1           1           1
00.02 Other program costs...............          11          13          14
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          25.2).........................          12          14          15
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           7           9          10
22.00 New budget authority (gross)......          13          14          16
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          20          23          26
23.95 New obligations...................         -12         -14         -15
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....           9          10          10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.25 Appropriation (special fund, 
        indefinite).....................          13          14          16
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation           2           2           3
73.10 New obligations...................          12          14          15

[[Page 550]]

73.20 Total outlays (gross).............         -12         -13         -15
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation           2           3           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          12          13          15
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          13          14          16
90.00 Outlays...........................          12          13          15
---------------------------------------------------------------------------

    Section 620 of the National Manufactured Housing Construction and 
Safety Standards Act of 1974, as amended, authorizes enforcement of 
appropriate construction standards for the construction, design and 
performance of manufactured homes to assure their quality, durability, 
and safety. All manufactured homes produced since the standards took 
effect on June 15, 1976 must comply with Federal construction and safety 
standards. The States are actively encouraged to participate in the 
program under compliance plans approved by HUD.

    A fee is charged to the manufacturers for each manufactured home 
produced to cover the costs of the monitoring and enforcement activities 
by HUD and its contract agents. Fees are deposited in a special fund 
administered by the Department, and a portion of the fee receipts are 
transferred to the salaries and expenses account to defray the direct 
administrative expenses of the program.

                                

                          Interstate Land Sales

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5270-0-2-376      1996 actual   1997 est.   1998 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      1996 actual   1997 est.   1998 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
----------------------------------------------------------------------------

    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 limitations as provided by 
section 104 of the Act as may be necessary in carrying out the programs 
set forth in the budget for [1997] 1998 for such corporation or agency 
except as hereinafter provided: Provided, That collections of these 
corporations and agencies may be used for new loan or mortgage purchase 
commitments only to the extent expressly provided for in this Act 
(unless such loans are in support of other forms of assistance provided 
for in this or prior appropriations Acts), except that this proviso 
shall not apply to the mortgage insurance or guaranty operations of 
these corporations, or where loans or mortgage purchases are necessary 
to protect the financial interest of the United States Government. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997.)

                                

                     Rental Housing Assistance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4041-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        25.2)...........................          55          57          51
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....           1           1           1
22.00 New budget authority (gross)......          55          57          51
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          56          57          51
23.95 New obligations...................         -55         -57         -51
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)..............          55          57          51
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.90 Unpaid obligations, start of year: 
        Obligated balance: Fund balance.           8           8           1
73.10 New obligations...................          55          57          51
73.20 Total outlays (gross).............         -55         -64         -51
74.90 Unpaid obligations, end of year: 
        Obligated balance: Fund balance.           8           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          47          57          51
86.98 Outlays from permanent balances...           8           7
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          55          64          51
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -55         -57         -51
----------------------------------------------------------------------------

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



[[Page 551]]



    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    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          61             53            57             51
0102  Expense...........................         -61            -53           -57            -51
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4041-0-3-604    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           8              8             1              1
1206  Non-Federal assets: Receivables, 
        net.............................           7              7
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          15             15             1              1
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           8              4
2105    Other...........................                          3
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           8              7
    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          15             14             1              1
-----------------------------------------------------------------------------------------------

                                

                          Flexible Subsidy Fund

    From the Rental Housing Assistance Fund, all uncommitted balances of 
excess rental charges as of September 30, 1997, and any collections made 
during fiscal year 1998, shall be transferred to the Flexible Subsidy 
Fund, as authorized by section 236(g) of the National Housing Act, as 
amended.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          80          15          60
----------------------------------------------------------------------------

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

        Fund balance:
21.90     Treasury balance: Uncommitted.          27          88
21.90     Treasury balance: 
            Administratively committed..          82          15          60
21.91   U.S. Securities: Par value, 
          uncommitted...................          46          39         135
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............         155         142         195
22.00 New budget authority (gross)......          67          68          63
22.30 Unobligated balance expiring......          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         221         210         258
23.95 New obligations...................         -80         -15         -60
      Unobligated balance available, end of year:

        Fund balance:
24.90     Fund balance, Uncommitted.....          88                      33
24.90     Fund balance: Administratively 
            committed...................          15          60
24.91   U.S. Securities: Par value 
          uncommitted...................          39         135         165
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................         142         195         198
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          67          68          63
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.91 Unpaid obligations, start of year: 
        Obligated balance: U.S. 
        Securities: Par value...........         114         101          21
73.10 New obligations...................          80          15          60
73.20 Total outlays (gross).............         -93         -95         -73
74.91 Unpaid obligations, end of year: 
        Obligated balance: U.S. 
        Securities: Par value...........         101          21           7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...          93          95          73
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -56         -57         -51
88.20     Interest on U.S. securities...          -8          -8          -9
88.40     Non-Federal sources...........          -3          -3          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -67         -68         -63
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          26          27          10
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         584         675         768
1231  Disbursements: Direct loan 
        disbursements...................          93          95          73
1251  Repayments: Repayments and 
        prepayments.....................          -2          -2          -3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         675         768         838
---------------------------------------------------------------------------

    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. Beginning in FY 1996 these resources are no longer used 
for new reservations, but they continue to offset Flexible Subsidy 
outlays and other discretionary expenditures.

                  Summary of Administrative Commitments

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Program by activities:
  Capital investments:
    Flexible subsidy reservations...          18          60
    Administrative commitments, 
      start of year.................          82          15          60
    Cancellation of prior year 
      commitments...................          -5
    Administrative commitments, end 
      of year.......................         -15         -60
                                    ------------------------------------
      Capital investment--
        obligations.................          80          15          60
                                    ====================================

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4044-0-3-604    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          71             66            65             60
0102  Expense...........................         -86            -64           -82            -62
                                        ------------ --------------  ------------  -------------

[[Page 552]]


0109  Net income or loss (-)............         -15              2           -17             -2
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4044-0-3-604    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         126            120            76             44
        Investments in US securities:
1102      Treasury securities, par......          82            140           156            172
1106      Receivables, net..............           6              4
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         584            676           768            838
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -493           -536          -609           -665
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          91            140           159            173
1901  Other Federal assets: Other assets          26              4
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         331            408           391            389
    LIABILITIES:
2201  Non-Federal liabilities: Accounts 
        payable.........................           2              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           2              1
    NET POSITION:
3100  Appropriated capital..............         217            217           217            217
3300  Cumulative results of operations..         112            191           174            172
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         329            408           391            389
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         331            409           391            389
-----------------------------------------------------------------------------------------------

                                

                      Homeownership Assistance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4043-0-3-604      1996 actual   1997 est.   1998 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 86-4043-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Refunds of offsetting collections.          31
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          44.0).........................          31
----------------------------------------------------------------------------

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

21.49   Contract authority..............          57          57          57
21.90   Treasury balance................           2           2           2
21.91   U.S. Securities: Par value......          49          18          18
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............         108          77          77
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         108          77          77
23.95 New obligations...................         -31
      Unobligated balance available, end of year:

24.49   Contract authority..............          57          57          57
24.90   Treasury balance................           2           2           2
24.91   U.S. Securities: Par value......          18          18          18
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................          77          77          77
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...                       4           4
68.45   Portion not available for 
          obligation (limitation on 
          obligations)..................                      -4          -4
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.90 Unpaid obligations, start of year: 
        Obligated balance: Fund balance.          -1          -1          -1
73.10 New obligations...................          31
73.20 Total outlays (gross).............         -31
74.90 Unpaid obligations, end of year: 
        Obligated balance: Fund balance.          -1          -1          -1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...          31
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Interest on 
            U.S. securities.............                      -3          -3
88.40     Non-Federal sources...........                      -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                      -4          -4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                      -4          -4
90.00 Outlays...........................          31          -4          -4
---------------------------------------------------------------------------

            Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4043-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
0100  Balance, start of year............          57          57          57
0700  Balance, end of year..............          57          57          57
---------------------------------------------------------------------------

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

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4043-0-3-604    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................           4              2             4              4
0102  Expense...........................
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           4              2             4              4
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4043-0-3-604    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....           2              1             2              2
        Investments in US securities:
1102      Treasury securities, par......          49             18            21             21
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          51             19            23             23
    NET POSITION:
3300  Cumulative results of operations..          51             19            23             23
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          51             19            23             23
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          51             19            23             23
-----------------------------------------------------------------------------------------------

                                

[[Page 553]]

                    Nehemiah Housing Opportunity Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4071-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        33.0)...........................           2          21
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....          18          21
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          23          21
23.95 New obligations...................          -2         -21
24.90 Unobligated balance available, end 
        of year: Fund balance...........          21
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.90 Unpaid obligations, start of year: 
        Obligated balance: Fund balance.          18          11          22
73.10 New obligations...................           2          21
73.20 Total outlays (gross).............          -4         -10         -21
73.45 Adjustments in unexpired accounts.          -5
74.90 Unpaid obligations, end of year: 
        Obligated balance: Fund balance.          11          22           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           4          10          21
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           4          10          21
---------------------------------------------------------------------------

    The Nehemiah grants program was authorized by the Housing and 
Community Development Act of 1987 to provide loans to eligible families 
to assist in the purchase of new or substantially rehabilitated units. 
This schedule reflects the liquidation of remaining reserved and 
obligated balances. During fiscal year 1997, up to $20 million of 
unobligated balances were available for homeownership activities 
pursuant to Public Law 104-204.

                                

Credit accounts:

             FHA--Mutual Mortgage Insurance Program Account

                     (including transfers of funds)

    During fiscal year [1997] 1998, commitments to guarantee loans to 
carry out the purposes of section 203(b) of the National Housing Act, as 
amended, shall not exceed a loan principal of $110,000,000,000[: 
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 the purposes 
included under this heading].
    During fiscal year [1997] 1998, obligations to make direct loans to 
carry out the purposes of section 204(g) of the National Housing Act, as 
amended, shall not exceed $200,000,000: Provided, That the foregoing 
amount shall be for loans to nonprofit and governmental entities in 
connection with sales of single family real properties owned by the 
Secretary and for- merly insured under [section 203 of such Act] the 
Mutual Mortgage Insurance Fund.
    For administrative expenses necessary to carry out the guaranteed 
and direct loan program, [$350,595,000] $333,421,000, to be derived from 
the FHA-mutual mortgage insurance guaranteed loans receipt account, of 
which not to exceed [$343,483,000] $326,309,000 shall be transferred to 
the appropriation for departmental salaries and expenses; and of which 
not to exceed $7,112,000 shall be transferred to the appropriation for 
the Office of Inspector General. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Receipts:
02.01 FHA Mutual Mortgage Insurance 
        Guaranteed Loan, negative 
        subsidies.......................         523         351       1,576
02.02 FHA Mutual Mortgage Insurance 
        Guaranteed Loan, negative 
        subsidies, legislative proposal 
        not subject to PAYGO............                                  52
02.03 FHA Mutual Mortgage Insurance 
        Guaranteed Loan, negative 
        subsidies, legislative proposal 
        subject to PAYGO................                                 370
                                           ---------   ---------  ----------
02.99   Total receipts..................         523         351       1,998
    Appropriation:
05.01 FHA mutual mortgage insurance 
        program account.................        -523        -351        -333
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............        -523        -351        -333
07.99 Total balance, end of year........                               1,665
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.09 Administrative expenses...........         342         351         333
00.10 Subsidy rate reestimate...........         181
                                           ---------   ---------  ----------
10.00   Total obligations...............         523         351         333
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         523         351         333
23.95 New obligations...................        -523        -351        -333
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.25   Appropriation (special fund, 
          definite).....................         342         351         333
      Permanent:

60.25   Appropriation (special fund, 
          indefinite)...................         181
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         523         351         333
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................         523         351         333
73.20 Total outlays (gross).............        -523        -351        -333
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         342         351         333
86.97 Outlays from new permanent 
        authority.......................         181
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         523         351         333
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         523         351         333
90.00 Outlays...........................         523         351         333
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................         200         200         200
                                           ---------   ---------  ----------
1159    Total direct loan levels........         200         200         200
    Direct loan subsidy (in percent):
1320  Subsidy rate......................        0.00        0.00        0.00
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        0.00        0.00        0.00
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  MMI Fund, Section 203(b)..........      74,324      93,173      83,450
2150  Standby commitment authority......                  16,827      26,550
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....      74,324     110,000     110,000
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................       -2.77       -2.88       -2.62
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...       -2.77       -2.88       -2.62
    Guaranteed loan subsidy budget authority:
2330  MMI Section 203(b) negative 
        subsidy.........................      -1,549      -1,855      -1,523
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..      -1,549      -1,855      -1,523

[[Page 554]]

    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................      -1,549      -1,855      -1,523
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........      -1,549      -1,855      -1,523
---------------------------------------------------------------------------

    FHA will continue to provide mortgage insurance to encourage lenders 
to make credit available to expand homeownership. FHA will continue to 
predominantly serve borrowers that the conventional market does not 
adequately serve: first-time homebuyers; minorities; lower-income 
families; and, residents of underserved areas (central cities and rural 
areas). Currently, the maximum mortgage amount for FHA-insured one-
family loans is set at 95 percent of area median house price, provided 
that the amount is never less than 38 percent of the conforming loan 
limit--the maximum mortgage amount for loans purchased by the housing 
secondary market Government-Sponsored Enterprises, Fannie Mae and 
Freddie Mac--and never more than 75 percent of the conforming loan 
limit. The Administration proposes to increase the maximum mortgage 
amount for FHA-insured loans in all areas to equal the conforming loan 
limit. In addition, starting in 1997, FHA hopes to test the viability of 
sharing single-family mortgage risk between the Federal Government and 
other partners, including private mortgage insurers and state agencies.

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................         523         351         333
                                           ---------   ---------  ----------
99.9    Total obligations...............         523         351         333
---------------------------------------------------------------------------

              FHA-Mutual Mortgage Insurance Program Account

                (Legislative proposal, subject to PAYGO)

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

----------------------------------------------------------------------------
Identification code 86-0183-4-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  MMI Fund, Section 203(b)..........                               7,094
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................                               -0.37
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...                               -0.37
    Guaranteed loan subsidy budget authority:
2330  MMI Section 203(b) negative 
        subsidy.........................                                -370
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..                                -370
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................                                -370
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                                -370
---------------------------------------------------------------------------

    This adjustment reflects the effect of two pieces of legislation. 
The first is the Administration's proposal to increase the maximum 
mortgage amount for single family FHA-insured loans in all areas to 
equal the GSE conforming loan limits. If enacted, this change is 
anticipated to increase insurance written by $7 billion in 1998, 
generating $206 million in additional negative credit subsidy. The 
second is anticipated action by the Congress to eliminate permanently 
the assignment program and replace it with additional loss mitigation 
tools. This change has already been enacted for insurance endorsed in 
all prior years. If enacted permanently, it would decrease the 
(negative) credit subsidy rate for MMI loans in 1998 by 0.37 percent, 
producing $164 million in negative credit subsidy in 1998. These two 
changes would result in additional outlay reductions in subsequent 
years.

                                

      FHA--Mutual Mortgage Insurance Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................           3         200         200
00.02 Interest paid to Treasury.........                       7          11
00.03 Claims & other....................                                   4
                                           ---------   ---------  ----------
10.00   Total obligations...............           3         207         215
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....                       1          61
22.00 New financing authority (gross)...           4         267         311
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           4         268         372
23.95 New obligations...................          -3        -207        -215
24.90 Unobligated balance available, end 
        of year: Fund balance...........           1          61         157
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           3         200         200
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1          67         111
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4         267         311
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................           3         207         215
73.20 Total financing disbursements 
        (gross).........................          -3        -207        -215
87.00 Total financing disbursements 
        (gross).........................           3         207         215
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..                                  -2
88.40     Other collections from non-
            Federal sources.............          -1         -67        -109
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -1         -67        -111
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           3         200         200
90.00 Financing disbursements...........           2         140         104
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and thereafter (including 
modifications of direct loans that resulted from obligations in any 
year). The amounts in this account are a means of financing and are not 
included in the budget totals. The $200 million in 1998 direct loan 
limitation in the MMI Fund would permit the Department to use Purchase 
Money Mortgages (PMMs) to help finance the sale of acquired single 
family properties. HUD would extend credit for these single-family homes 
to community nonprofit organizations or local government entities who 
would be expected to sell the properties to low- and moderate-income 
buyers. The use of PMMs provides a tool for State and local nonprofit 
organizations to use in revitalizing communities, and creates

[[Page 555]]

enhanced homeownership opportunities for low- and moderate-income 
families.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         200         200         200
1112  Unobligated direct loan limitation        -197
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           3         200         200
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........                       2         145
1231  Disbursements: Direct loan 
        disbursements...................           3         200         200
1251  Repayments: Repayments and 
        prepayments.....................          -1         -57         -88
1263  Write-offs for default: Direct 
        loans...........................                                  -3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           2         145         255
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4242-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..                          2           145            254
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....                          2           145            254
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                          2           145            254
-----------------------------------------------------------------------------------------------

                                

    FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims and other..........       1,698       1,562       1,944
00.04 Working capital fund 
        reimbursements..................          19          19          19
00.05 Payment of negative subsidy to 
        receipt account.................         342         351       1,523
00.06 Payment of negative subsidy to 
        liquidating account.............       1,473       1,182
00.07 Subsidy reestimate paid to 
        liquidating account.............       1,227
00.08 Interest payments to Treasury.....         153         184         215
00.09 Payment to liquidating account for 
        asset sale......................       1,321       1,011
                                           ---------   ---------  ----------
10.00   Total obligations...............       6,233       4,309       3,701
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....         701         907       1,321
22.00 New financing authority (gross)...       6,439       4,722       3,908
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       7,140       5,629       5,229
23.95 New obligations...................      -6,233      -4,309      -3,701
24.90 Unobligated balance available, end 
        of year: Fund balance...........         907       1,321       1,528
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..       1,527
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............       4,912       4,722       3,908
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       6,439       4,722       3,908
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.90 Unpaid obligations, start of year: 
        Obligated balance: Obligated 
        balance.........................          77          47          47
73.10 New obligations...................       6,233       4,309       3,701
73.20 Total financing disbursements 
        (gross).........................      -6,263      -4,309      -3,701
74.90 Unpaid obligations, end of year: 
        Obligated balance: Obligated 
        balance.........................          47          47          47
87.00 Total financing disbursements 
        (gross).........................       6,263       4,309       3,701
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..        -114        -163        -146
          Non-Federal sources:
88.40       Fees and premiums...........      -2,515      -2,519      -2,709
88.40       Recoveries on defaulted 
              notes.....................        -670        -945      -1,053
88.40       Gross proceeds from asset 
              sales.....................      -1,613      -1,095
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -4,912      -4,722      -3,908
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       1,527
90.00 Financing disbursements...........       1,350        -414        -207
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........     110,000     110,000     110,000
2112  Uncommitted loan guarantee 
        limitation......................     -35,676     -16,827     -26,550
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      74,324      93,173      83,450
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     203,414     242,407     283,605
2231  Disbursements of new guaranteed 
        loans...........................      59,221      65,440      60,718
2251  Repayments and prepayments........     -18,616     -22,858     -22,458
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -416        -145        -231
2262    Terminations for default that 
          result in acquisition of 
          property......................      -1,154      -1,118      -1,365
2263    Terminations for default that 
          result in claim payments......         -42        -121        -166
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     242,407     283,605     320,103
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..     242,407     283,605     320,103
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         413         866         818
2331    Disbursements for guaranteed 
          loan claims...................         416         145         232
2351    Repayments of loans receivable..          -1         -36         -34
2364    Other adjustments, net..........          38        -157        -161
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         866         818         855
---------------------------------------------------------------------------

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4587-0-3-371   1995 actual 
                                                 \1\    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         777            954         1,368            724
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............         413            866           818            855
1504    Foreclosed property.............         324            521           534            609
1505    Allowance for subsidy cost......        -429           -405          -399           -437
                                        ------------ --------------  ------------  -------------
1599      Net value of assets related to 
            defaulted guaranteed loan...         308            982           953          1,027
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,085          1,936         2,321          1,751
    LIABILITIES:
2103  Federal liabilities: Federal 
        liabilities, Debt...............       1,171          2,698         2,698          1,838
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.         -86           -762          -377            -87
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,085          1,936         2,321          1,751
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,085          1,936         2,321          1,751
-----------------------------------------------------------------------------------------------

[[Page 556]]


    \1\ As reflected in the 1997 Budget. Subsidy reestimates for fiscal 
year 1996 disbursements will be performed for the mid-session review of 
the Budget.

                                

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

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.03   Other operating costs...........         216         147         146
00.04   Working Capital Fund 
          reimbursements................          31          31          31
00.05   Participation payments..........           1           1           1
                                           ---------   ---------  ----------
00.91     Total operating expenses......         248         179         178
      Capital investment:

01.02   Assignment of defaulted 
          mortgages.....................         465         309          73
01.03   Acquisition of real properties..       2,017         785         485
01.05   Acquisition of other assets.....          39          39          39
01.07   Capitalized property expenses...         264         159          76
01.08   Loss on defaulted guaranteed 
          loans.........................           2          10           8
01.09   Preforeclosure sale claims......          18          73          59
                                           ---------   ---------  ----------
01.91     Total capital investment......       2,805       1,375         740
                                           ---------   ---------  ----------
10.00   Total obligations...............       3,053       1,554         918
----------------------------------------------------------------------------

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

21.90   Treasury balance................        -163       2,905       1,242
        U.S. Securities:
21.91     Par value.....................       6,673       7,045      11,161
21.92     Unrealized discounts..........         -66         -87         -67
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............       6,444       9,863      12,336
22.00 New budget authority (gross)......       6,472       4,027       1,438
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      12,916      13,890      13,774
23.95 New obligations...................      -3,053      -1,554        -918
      Unobligated balance available, end of year:

24.90   Fund balance....................       2,905       1,242         965
        U.S. Securities:
24.91     Par value.....................       7,045      11,161      11,958
24.92     Unrealized discounts..........         -87         -67         -67
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................       9,863      12,336      12,856
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............       6,472       4,027       1,438
----------------------------------------------------------------------------

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

        Obligated balance:
72.90     Fund balance..................         659                     685
72.91     U.S. Securities: Par value....                     685
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         659         685         685
73.10 New obligations...................       3,053       1,554         918
73.20 Total outlays (gross).............      -3,031      -1,554        -918
73.32 Obligated balance transferred from 
        other accounts..................           4
      Unpaid obligations, end of year:

        Obligated balance:
74.90     Fund balance..................                     685         685
74.91     U.S. Securities: Par value....         685
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         685         685         685
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................       2,372         869         233
86.98 Outlays from permanent balances...         659         685         685
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,031       1,554         918
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.20     Interest on U.S. securities...        -531        -676        -785
          Non-Federal sources:
88.40       Fees and premiums...........         -92         -81         -72
88.40       Rebate of unearned prepaid 
              premiums collected........         287          48          16
88.40       Proceeds from sale of real 
              property..................      -1,901        -962        -485
88.40       Proceeds from sale of 
              mortgage notes............      -1,321      -1,011
88.40       Repayment of mortgage notes 
              and sales contracts.......          -1          -1          -1
88.40       Interest and operating 
              income....................         -31         -37         -46
88.40       Recoveries on defaulted 
              mortgages.................        -237        -142         -22
88.40       Other interest, dividends 
              and revenues..............                      -1         -43
88.40       Payment from financing 
              account...................      -2,700      -1,164
88.40       Miscellaneous collections...         -10
88.40       Other income................          65
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -6,472      -4,027      -1,438
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................      -3,441      -2,473        -520
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          15           7           5
1251  Repayments: Repayments and 
        prepayments.....................          -1          -1
1264  Write-offs for default: Other 
        adjustments, net................          -7          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           7           5           5
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      96,145     121,587     107,374
2251  Repayments and prepayments........     -15,754     -13,036     -11,885
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -465        -309         -73
2262    Terminations for default that 
          result in acquisition of 
          property......................      -2,017        -784        -485
2263    Terminations for default that 
          result in claim payments......         -20         -84         -67
2264    Other adjustments, net..........      43,698
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     121,587     107,374      94,864
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..     121,587     107,374      94,864
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......       3,886       1,862         358
2331    Disbursements for guaranteed 
          loan claims...................         465         309          73
2351    Repayments of loans receivable..      -1,725      -1,111         -63
2361    Write-offs of loans receivable..        -763        -702         -28
2364    Other adjustments, net..........          -1                      -1
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       1,862         358         339
---------------------------------------------------------------------------

    The Federal Housing Administration Fund currently consists of four 
separate insurance funds.

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

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

[[Page 557]]

September 30, 1991; and, a program account which records the 
transactions associated with the program subsidy costs, if any, and the 
costs of administering the program.

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

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

                           PROGRAM HIGHLIGHTS

                        [In millions of dollars]

                                    1996 actual 
                                         \1\      1997 est.   1998 est.
Insurance initiation:
  Mortgage insurance applications 
    (units).........................     977,702   1,152,163   1,016,302
                                    ====================================
Mortgage insurance written:
  Units.............................     739,603     810,439     737,002
  Amount............................      59,221      65,440      60,718
                                    ====================================
Insurance maintenance: Outstanding 
    balance of insurance in force, 
    end of year:
  Mortgage insurance................     363,995     390,979     414,967
                                    ====================================
    \1\ Unaudited preliminary results.

    Insurance reserves from operations at the end of 1996 are estimated 
to be in a surplus position for the Mutual Mortgage Insurance and 
Cooperative Management Housing insurance funds. The status of estimated 
insurance reserves from operations (retained income or deficit) through 
1998 for the MMI/CMHI account follows:

              STATUS OF INSURANCE RESERVES FROM OPERATIONS

                        [In millions of dollars]

                                    1996 est.\1\  1997 est.   1998 est.
Insurance fund:
  Mutual mortgage/CMHI:
    Liquidating account \2\.........       8,776      10,288      10,877
    Receipt Account \2\.............                               1,414
    \1\ Unaudited preliminary results.
    \2\ Reflects impact from the transfer of negative subsidy from the 
Financing account to the Liquidating account in 1996 and 1997. Negative 
subsidy transfers are to the Receipt Account in 1998.

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

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4070-0-3-371   1995 actual 
                                                 \1\   1996 actual 
                                                                \2\     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................       2,821          2,103         1,935            958
0102  Expense...........................      -1,123         -1,097          -421           -368
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............       1,698          1,006         1,514            590
-----------------------------------------------------------------------------------------------
    \1\ As reflected in the 1997 Budget.
    \2\ Estimated result on GAAP basis pending final audit.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4070-0-3-371   1995 actual 
                                                 \1\    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         495          2,905         1,724          1,728
        Investments in US securities:
          Treasury securities, par:
1102        Treasury securities, par....       6,673          7,729        11,230         11,780
1102        Unamortized net premium/
              discount..................         -67            -87           -69            -69
1106      Receivables, net..............         123            106           106            106
1107      Advances and prepayments......          72
      Non-Federal assets:

1206    Receivables, net................         159            207           207            207
1207    Advances and prepayments........          12            -62           -62            -62
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............          15              7             6              4
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -3             -1            -1             -1
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          12              6             5              3
1701    Defaulted guaranteed loans, 
          gross.........................       3,886          1,862           358            339
1703    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -738           -495           -95            -90
1704    Defaulted guaranteed loans and 
          interest receivable, net......       3,148          1,367           263            249
1705    Allowance for uncollectables 
          from foreclosed property......        -526           -354          -140            -71
1706    Foreclosed property.............       1,379            872           344            174
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............       4,001          1,885           467            352
1901  Other Federal assets: Other assets                         18             7             15
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      11,480         12,707        13,615         14,060
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................           4
      Non-Federal liabilities:

2201    Accounts payable................         496            676           567            542
2206    Pension and other actuarial 
          liabilities...................       2,254          2,175         1,729          1,626
2207    Unearned revenue and advances...       1,805          1,061         1,013            997
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       4,559          3,912         3,309          3,165
    NET POSITION:
3100  Appropriated capital..............          19             19            18             18
3300  Cumulative results of operations..       6,902          8,776        10,288         10,877
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       6,921          8,795        10,306         10,895
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      11,480         12,707        13,615         14,060
-----------------------------------------------------------------------------------------------
    \1\ As reflected in the 1997 Budget.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
25.2  Other services....................         246         178         177
32.0  Land and structures...............       2,282         943         560
33.0  Investments and loans.............         504         348         112
42.0  Insurance claims and indemnities..          20          84          68
44.0  Refunds...........................           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       3,053       1,554         918
                                           ---------   ---------  ----------
99.9    Total obligations...............       3,053       1,554         918
---------------------------------------------------------------------------

                                

              FHA--General and Special Risk Program Account

                     (including transfers of funds)

    For the cost of guaranteed loans, as authorized by sections 238 and 
519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including 
the cost of loan guarantee modifications (as that term is defined in 
section 502 of the Congressional Budget Act of 1974, as amended) 
[$85,000,000] $81,000,000, to remain available until expended: Provided, 
That these funds are available to subsidize total loan principal, any 
part of which is to be guaranteed, of up to $17,400,000,000: [Provided 
further, That during fiscal year 1997, the Secretary shall sell assigned 
notes having an unpaid principal balance of up to $2,500,000,000, which 
notes are held by the Secretary under the General Insurance and Special 
Risk Insurance funds:] Provided further, That any amounts made available 
in any prior appropriations Act for the cost (as such term is defined in 
section 502 of the Congressional Budget Act of 1974) of guaranteed loans 
that are obligations of the funds established under section 238 or 519 
of the National Housing Act that have not been obligated or that are 
deobligated shall be available to the Secretary of Housing and Urban 
Development in connection with the making of such guarantees and shall 
remain available until expended, notwithstanding the expiration of any 
period of availability otherwise applicable to such amounts.
    Gross obligations for the principal amount of direct loans, as 
authorized by sections 204(g), 207(l), 238(a), and 519(a) of the 
National Housing Act, shall not exceed $120,000,000; of which not to 
exceed $100,000,000 shall be for bridge financing in connection with the 
sale of multifamily real properties owned by the Secretary and for

[[Page 558]]

merly insured under such Act; and of which not to exceed $20,000,000 
shall be for loans to nonprofit and governmental entities in connection 
with the sale of single-family real properties owned by the Secretary 
and formerly insured under such Act.
    In addition, for administrative expenses necessary to carry out the 
guaranteed and direct loan programs, [$207,470,000] $222,305,000, of 
which [$203,299,000] $218,134,000, including $25,000,000 for the 
enforcement of housing standards on FHA-insured multifamily projects,  
shall be transferred to the appropriation for departmental salaries and 
expenses; and of which $4,171,000 shall be transferred to the 
appropriation for the Office of Inspector General. (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1997.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, subsidy downward 
        reestimate, start of year.......       1,209       1,506       2,119
    Receipts:
02.01 Negative Subsidies................         721         613         122
02.02 Negative Subsidies, legislative 
        proposal........................                                 665
02.03 Downward reestimates of subsidies.         110
                                           ---------   ---------  ----------
02.99   Total receipts..................         831         613         787
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       2,040       2,119       2,906
    Appropriation:
05.01 General and special risk program 
        account.........................        -534
07.99 Total balance, end of year........       1,506       2,119       2,906
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Guaranteed loan subsidy...........         143         176         154
00.02 Prior year adjustment.............          32
00.03 Indirect modification subsidy.....          37
00.04 FHA multi-family demonstration....                      30          10
00.09 Administrative expenses...........         202         207         222
                                           ---------   ---------  ----------
10.00   Total obligations...............         414         413         386
----------------------------------------------------------------------------

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

        Uninvested balance:
21.40     Uncommitted...................          31         534         439
21.40     Administratively committed....          69          56          40
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............         100         590         479
22.00 New budget authority (gross)......         905         302         303
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,005         892         782
23.95 New obligations...................        -414        -413        -386
      Unobligated balance available, end of year:

        Uninvested balance:
24.40     Uncommitted...................         534         439         358
24.40     Administratively committed....          56          40          38
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................         590         479         396
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Appropriation:

40.00   Appropriation...................         202
40.00   Indirect modification subsidy...          37
40.00   FHA multi-family demonstration..          30          10
40.00   Appropriation...................          85
40.25 Appropriation (special fund, 
        indefinite).....................         534         292         303
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........         888         302         303
50.05 Reappropriation (indefinite)......          17
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         905         302         303
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          30          46          88
73.10 New obligations...................         414         413         386
73.20 Total outlays (gross).............        -398        -371        -396
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          46          88          78
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         307         271         283
86.93 Outlays from current balances.....          91         100         113
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         398         371         396
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         905         302         303
90.00 Outlays...........................         398         371         396
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Single-family PMMs................          20          20          20
1150  Multifamily bridge loans..........         100         100         100
                                           ---------   ---------  ----------
1159    Total direct loan levels........         120         120         120
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Multifamily development...........       1,013       1,170       1,053
2150  Refinance of FHA-insured mortgages       1,134       1,000         927
2150  Risk sharing programs.............         337         577         876
2150  Mixed Income......................                     404         150
2150  Cooperatives......................          31          25          20
2150  Health and residential care 
        facilities......................         694       1,748       2,052
2150  Neighborhood improvement program..                                 100
2150  Small Projects....................                     374         537
2150  Micro Loans.......................                     671         895
2150  Indian Housing....................                       2           2
2150  Preservation......................         267         150
2150  Single family, negative...........       7,619       8,569       8,388
2150  Title I guarantees................       1,656       2,710       2,400
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....      12,751      17,400      17,400
    Guaranteed loan subsidy (in percent):
2320  Multifamily development...........       11.96        8.78        8.51
2320  Refinance of multifamily mortgages        2.51       -0.79       -0.75
2320  Mixed Income......................        0.00       12.26       12.13
2320  Cooperatives......................       27.04       30.47       29.21
2320  Nursing Homes.....................       -1.98        0.00       -0.70
2320  Hospitals.........................       -3.78        0.00        1.75
2320  Preservation......................       -1.96        0.00        0.00
2320  234c/Other single family programs.       -1.34       -1.55       -1.32
2320  Single family indian housing......        0.00        9.51        9.12
2320  Title I...........................       -1.44       -1.59       -1.50
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        0.00       -0.21       -0.22
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........         703          95          81
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..         703          95          81
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................         196         164         174
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........         196         164         174
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         202         207         222
3590  Outlays from new authority........         202         207         222
---------------------------------------------------------------------------

    Multifamily Products.--This account includes budget authority for 
multifamily insurance programs requiring positive credit subsidies, as 
well as for salaries and expenses for all General and Special Risk 
Insurance Fund programs.

    The credit subsidy appropriation of $81 million requested for 1998 
will be used in conjunction with $71 million of carryover budget 
authority to provide a total program level of $152 million. The $222.3 
million requested in 1998 for administrative expenses includes $25 
million to support enhanced measures being undertaken to enforce 
standards for multifamily housing projects.

    Subsidy Costs and Administrative Expenses.--As required by the 
Federal Credit Reform Act of 1990, this account records, for the single 
family, multifamily and Title I insur-

[[Page 559]]

ance programs of FHA's General and Special Risk Insurance Funds, the 
subsidy costs associated with the loan guarantees committed or direct 
loans obligated in 1992 and thereafter (including modifications of loan 
guarantees or direct loans that resulted from obligations or commitments 
in any year), as well as administrative expenses of these programs. The 
subsidy amounts are estimated on a present value basis; the 
administrative expenses are accounted for on a cash basis.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....         212         206         164
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................         202         207         222
                                           ---------   ---------  ----------
99.9    Total obligations...............         414         413         386
---------------------------------------------------------------------------

                                

     FHA--General and Special Risk Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment, claims and other:

00.01   Default claims and other........         376         822       1,052
00.03   Working capital fund 
          reimbursements................           5           5           5
00.04   Payment of negative subsidy to 
          receipt account...............         142         119         122
00.05   Interest paid to Treasury.......          31          42          82
00.06   Downward subsidy rate reestimate         110
00.08   Asset sale negative subsidy 
          payment to receipt account....         534         414
00.09   Asset sale payment to 
          liquidating account...........       1,204         643
00.10   Modification of pre-1992 
          guarantees, costs.............          37          20          20
00.11   Portfolio reengineering 
          legislative savings...........                                 665
00.12   Waiver of PD/mortgage sale law, 
          savings.......................          40          80
                                           ---------   ---------  ----------
10.00     Total obligations.............       2,479       2,145       1,946
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....         435         547         553
22.00 New financing authority (gross)...       2,731       2,226       1,994
22.60 Redemption of debt................        -140         -75        -135
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,026       2,698       2,412
23.95 New obligations...................      -2,479      -2,145      -1,946
24.90 Unobligated balance available, end 
        of year: Fund balance...........         547         553         466
----------------------------------------------------------------------------

    New financing authority (gross), detail:
61.00 Transferred to other accounts.....        -100
67.15 Authority to borrow (indefinite)..          86         166         760
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       2,788       2,060       1,234
68.10   Change in receivables from 
          program account...............         -43
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................       2,745       2,060       1,234
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       2,731       2,226       1,994
----------------------------------------------------------------------------

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

72.40   Obligated balance: Appropriation          16          42          42
72.95   Receivables from program account          43
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          59          42          42
73.10 New obligations...................       2,479       2,145       1,946
73.20 Total financing disbursements 
        (gross).........................      -2,496      -2,145      -1,946
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          42          42          42
87.00 Total financing disbursements 
        (gross).........................       2,496       2,145       1,946
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Payments from program 
              account...................        -172        -164        -174
88.00       Modification subsidy, 
              program acct..............         -37         -20         -20
88.00       Repayment of principal and 
              interest from liquidating 
              account...................        -137        -117        -117
88.00       Repayment of portfolio 
              reengineering savings 
              borrowed..................                                 -67
88.25     Interest on uninvested funds..         -35         -27         -23
          Non-Federal sources:
88.40       Fees and premiums...........        -234        -379        -483
88.40       Recoveries on defaulted 
              mortgages.................        -135        -276        -350
88.40       Proceeds from sale of 
              mortgage notes............      -2,038      -1,077
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -2,788      -2,060      -1,234
88.95 Change in receivables from program 
        accounts........................          43
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         -14         166         760
90.00 Financing disbursements...........        -292          85         712
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........      17,400      17,400      17,400
2112  Uncommitted loan guarantee 
        limitation......................      -4,649
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      12,751      17,400      17,400
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      35,457      41,830      52,076
2231  Disbursements of new guaranteed 
        loans...........................      12,220      14,652      15,005
2251  Repayments and prepayments........      -5,510      -3,646      -2,594
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....         -90        -399        -552
2262    Terminations for default that 
          result in acquisition of 
          property......................        -247        -251        -295
2263    Terminations for default that 
          result in claim payments......                    -110        -125
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      41,830      52,076      63,515
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      41,830      52,076      63,515
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......          88         159         539
2331    Disbursements for guaranteed 
          loan claims...................          90         399         552
2351    Repayments of loans receivable..          -9         -19         -25
2361    Write-offs of loans receivable..         -10
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         159         539       1,066
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from loan guarantees committed in 1992 and thereafter 
(including modifications of loan guarantees that resulted from 
commitments in any year) for FHA's General and Special Risk Insurance 
Fund programs. The amounts in this account are a means of financing and 
are not included in the budget totals.

                           Balance Sheet (in millions of dollars) \1\

-----------------------------------------------------------------------------------------------
Identification code   86-4077-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         451            589           504            152
        Investments in US securities:
1107      Borrowings receivable from 
            liquidating account.........         476            336           299            780
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............          87            159           539          1,066
1504    Foreclosed property.............          69            118           153            271
1505    Allowance for subsidy cost......         -77           -164          -437           -850
                                        ------------ --------------  ------------  -------------

[[Page 560]]


1599      Net value of assets related to 
            defaulted guaranteed loan...          79            113           255            487
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,006          1,038         1,058          1,419
    LIABILITIES:
2103  Federal liabilities: Debt.........         476            421           385            533
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.         530            617           673            886
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,006          1,038         1,058          1,419
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,006          1,038         1,058          1,419
-----------------------------------------------------------------------------------------------
    \1\ Preliminary results pending final audit. Subsidy reestimates for 
fiscal year 1996 disbursements 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      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................                      40         120
00.02 Interest paid to Treasury.........                       3          10
                                           ---------   ---------  ----------
10.00   Total obligations...............                      43         130
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................                                   2
22.00 New financing authority (gross)...                      45         142
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                      45         144
23.95 New obligations...................                     -43        -130
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....                       2          14
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..                      40         120
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                       5          22
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                      45         142
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                      43         130
73.20 Total financing disbursements 
        (gross).........................                     -43        -130
87.00 Total financing disbursements 
        (gross).........................                      43         130
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

88.40   Offsetting collections (cash) 
          from: Interest received on 
          loans.........................                      -5         -22
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                      40         120
90.00 Financing disbursements...........                      38         108
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         120         120         120
1112  Unobligated direct loan limitation        -120         -80
                                           ---------   ---------  ----------
1150    Total direct loan obligations...                      40         120
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........                                  40
1231  Disbursements: Direct loan 
        disbursements...................                      40         120
1251  Repayments: Repayments and 
        prepayments.....................                                 -20
                                           ---------   ---------  ----------
1290    Outstanding, end of year........                      40         140
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and thereafter (including 
loan modifications) for FHA's General and Special Risk Insurance Fund 
programs. The amounts in this account are a means of financing and are 
not included in the budget totals.

    This schedule includes two direct loan programs. One provides bridge 
loan financing to facilitate the disposition of multifamily housing 
owned by the Department to non-profit organizations who agree to 
preserve it as affordable rental or cooperative housing. The second is a 
single-family direct loan program for purchase money mortgages, as 
discussed in the preceding section for the Mutual Mortgage Insurance 
Fund.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4105-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..                                       40            140
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....                                       40            140
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                       40            140
    LIABILITIES:
2103  Federal liabilities: Treasury 
        borrowing.......................                                       40            140
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                       40            140
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                       40            140
-----------------------------------------------------------------------------------------------

                                

          FHA--Loan Guarantee Recovery Fund--Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....                                   4
22.00 New financing authority (gross)...                       4           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                       4           5
24.90 Unobligated balance available, end 
        of year: Fund balance...........                       4           5
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                       4           1
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -4          -1
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                      -4          -1
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........                      10
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                      10
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........                                   7
2231  Disbursements of new guaranteed 
        loans...........................                       7           3
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                       7          10
----------------------------------------------------------------------------

[[Page 561]]


    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                       7          10
---------------------------------------------------------------------------

    Section 4 of the Church Arson Prevention Act of 1996 (P.L. 104-155), 
entitled ``Loan Guarantee Recovery Fund,'' authorizes the Secretary of 
Housing and Urban Development to guarantee loans made by financial 
institutions to assist certain nonprofit organizations that have been 
damaged as a result of acts of arson or terrorism.

                                

    FHA--General and Special Risk Insurance Funds Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.02   Interest on debentures..........          18          19          20
00.03   Other operating costs...........          41         148         148
00.04   Working capital fund 
          reimbursements................          13          15          15
00.05   Legislative savings repayments..         138         117         117
                                           ---------   ---------  ----------
00.91     Total operating expenses......         210         299         300
      Capital investment: Claims and other:

01.01   Acquisition of defaulted Title I 
          notes.........................          36          36          36
01.02   Assignment of defaulted 
          mortgages.....................         210         372       1,152
01.03   Acquisition of real properties..         299         112          89
01.04   Rehabilitation of real 
          properties....................                     236         140
01.06   Assignment of current mortgages.                       1           1
01.07   Capitalized property expenses...         182          97         117
01.08   Loss on defaulted guaranteed 
          loans.........................          23          66         287
01.10   Tax advances on held mortgages..          70          70          70
01.11   Claims, other...................                      17          13
                                           ---------   ---------  ----------
01.91     Total capital investment......         820       1,007       1,905
                                           ---------   ---------  ----------
10.00   Total obligations...............       1,030       1,306       2,205
----------------------------------------------------------------------------

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

21.40   Uninvested balance..............       1,637       1,818       2,143
21.91   U.S. Securities: Par value......           5           7           7
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............       1,642       1,825       2,150
22.00 New budget authority (gross)......       2,134       1,697         775
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          18
22.60 Redemption of debt................         -70         -66         -66
22.70 Balance of permanent authority 
        withdrawn.......................        -869
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,855       3,456       2,859
23.95 New obligations...................      -1,030      -1,306      -2,205
      Unobligated balance available, end of year:

24.40   Uninvested balance..............       1,818       2,143         647
24.91   U.S. Securities: Par value......           7           7           7
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................       1,825       2,150         654
----------------------------------------------------------------------------

    New budget authority (gross), detail:
62.00 Transferred from other accounts...         100
67.15 Authority to borrow (indefinite)..          66          66          66
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............       1,968       1,631         709
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,134       1,697         775
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.90 Unpaid obligations, start of year: 
        Obligated balance: Net obligated 
        balance: Fund balance...........         366         278         278
73.10 New obligations...................       1,030       1,306       2,205
73.20 Total outlays (gross).............      -1,096      -1,306      -2,205
73.31 Obligated balance transferred to 
        other accounts..................          -4
73.45 Adjustments in unexpired accounts.         -18
74.90 Unpaid obligations, end of year: 
        Obligated balance: Obligated 
        balance.........................         278         278         278
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         731          66         757
86.98 Outlays from permanent balances...         365       1,240       1,448
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,096       1,306       2,205
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Fees and premiums...........        -245        -219        -205
88.40       Rebates of insurance 
              premiums..................           8           8           8
88.40       Multifamily foreclosure 
              sales.....................                     -42         -96
88.40       Proceeds from sale of real 
              property..................        -261        -128        -132
88.40       Proceeds from sale of 
              mortgage notes............      -1,204        -643
88.40       Mortgage sale accounting 
              adjustment................         323        -323
88.40       Prior year adjustment.......          -5
88.40       Recoveries on defaulted 
              mortgages.................        -284         -14         -14
88.40       Interest and operating 
              income....................        -210        -221        -225
88.40       Recoveries on defaulted 
              Title I mortgages.........         -19         -17         -14
88.40       Other interest, dividends 
              and revenue...............         -34         -12         -11
88.40       Modification subsidy........         -37         -20         -20
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,968      -1,631        -709
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         166          66          66
90.00 Outlays...........................        -872        -325       1,496
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Enacted/requested:
  Budget Authority..................         166          66          66
  Outlays...........................        -872        -325       1,496
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 523
  Outlays...........................                                 523
                                    ------------------------------------
Total:
  Budget Authority..................         166          66         589
  Outlays...........................        -872        -325       2,019
                                    ====================================

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         107          97          85
1251  Repayments: Repayments and 
        prepayments.....................          -8          -9          -7
1264  Write-offs for default: Other 
        adjustments, net................          -2          -3          -2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          97          85          76
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      53,756      49,346      46,247
2251  Repayments and prepayments........      -3,843      -2,531      -1,387
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -246        -408      -1,188
2262    Terminations for default that 
          result in acquisition of 
          property......................        -298        -112         -89
2263    Terminations for default that 
          result in claim payments......         -23         -48        -287
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      49,346      46,247      43,296
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      49,346      46,247      43,296
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......       5,234       2,933       1,801
2331    Disbursements for guaranteed 
          loan claims...................         246         408       1,188
2351    Repayments of loans receivable..        -395        -142        -313
2361    Write-offs of loans receivable..      -1,271        -755        -152
2364    Other adjustments, net..........        -881        -643
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       2,933       1,801       2,524
---------------------------------------------------------------------------

    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.

[[Page 562]]

    The Special risk insurance fund provides mortgage insurance on 
behalf of mortgagors eligible for interest reduction payments who 
otherwise would not be eligible for mortgage insurance. In addition, the 
fund provides insurance on mortgages covering experimental housing where 
strict adherence to State or local building regulations was not 
observed. Insurance is also provided for high-risk mortgagors who 
normally would not be eligible for mortgage insurance.

    Budget program.--As required by the Federal Credit Reform Act of 
1990, this account records, for this program, all cash flows to and from 
the Government resulting from loan guarantees committed and direct loans 
obligated prior to 1992. This account is shown on a cash basis. New 
insurance and direct loan activity in 1992 and thereafter in the GI/SRI 
programs is recorded in corresponding program (86-0200) and financing 
(86-4077 and 86-4105) accounts.

    The program activities in the ``Program Highlights'' table shown 
below reflect the consolidated activity of the GI/SRI accounts.

                           PROGRAM HIGHLIGHTS

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Insurance commitments:
  Mortgage insurance applications 
    (units).........................     300,794     402,018     434,744
                                    ====================================
Mortgage and loan insurance written:
  Units.............................     301,730     370,341     407,501
  Amount............................      12,220      14,602      14,988
                                    ====================================
Insurance maintenance: Outstanding 
    balance of insurance in force, 
    end of year:
  Mortgage insurance................      95,386     103,367     110,878
                                    ====================================

    Financial Condition.--The following tables reflect the revenues, 
expenses, and financial condition of the GI/SRI Liquidating Account 
based on Generally Accepted Accounting Principles.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4072-0-3-371   1995 actual 
                                                 \1\   1996 actual 
                                                                \2\     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         517            370           359            322
0102  Expense...........................        -563           -167          -271         -1,821
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............         -46            203            88         -1,499
-----------------------------------------------------------------------------------------------
    \1\ As reflected in the 1997 Budget.
    \2\ Preliminary results pending final audit.
                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4072-0-3-371   1995 actual 
                                                 \1\    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,134          2,092         2,392            871
        Investments in US securities:
1102      Treasury securities, par......           5              7             7              7
1106      Receivables, net..............           3             16            16             16
1107      Advances and prepayments......          20
      Non-Federal assets:

1206    Receivables, net................          98            175           175            175
1207    Advances and prepayments........          75
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         107             97            85             76
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -22            -21           -18            -16
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          85             76            67             60
1701    Defaulted guaranteed loans, 
          gross.........................       5,201          2,940         1,801          2,523
1703    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................      -2,460         -1,957        -1,198         -1,678
1704    Defaulted guaranteed loans and 
          interest receivable, net......       2,741            983           603            845
1705    Allowance for uncollectables 
          from foreclosed property......        -543           -479          -293           -371
1706    Foreclosed property.............         734            632           387            490
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............       2,932          1,136           697            964
1901  Other Federal assets: Other assets          38                          236
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       4,390          3,502         3,590          2,093
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          63            373           373            373
2102    Interest payable................           6
2104    Resources payable to Treasury...          86
      Non-Federal liabilities:

2201    Accounts payable................         131            131           131            131
2202    Interest payable................          21
2203    Debt............................         408             82            82             82
2206    Pension and other actuarial 
          liabilities...................       9,997          8,890         8,890          8,890
        Other:
2207      Unearned revenue and advances.         380            111           111            111
2207      Other.........................          50            209           209            209
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      11,142          9,796         9,796          9,796
    NET POSITION:
3100  Appropriated capital..............       6,287          5,350         5,350          5,350
3300  Cumulative results of operations..     -20,510        -19,115       -19,026        -20,525
3600  Debt Forgiveness..................       7,471          7,471         7,471          7,471
                                        ------------ --------------  ------------  -------------
3999    Total net position..............      -6,752         -6,294        -6,205         -7,704
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       4,390          3,502         3,591          2,092
-----------------------------------------------------------------------------------------------
    \1\ As reflected in 1997 Budget.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
25.2  Other services....................          55         164         164
32.0  Land and structures...............         299         348         229
33.0  Investments and loans.............         246         426       1,433
42.0  Insurance claims and indemnities..         275         233         244
43.0  Interest and dividends............          18          18          18
44.0  Repayments to financing account...         137         117         117
                                           ---------   ---------  ----------
99.9    Total obligations...............       1,030       1,306       2,205
---------------------------------------------------------------------------

    FHA--General and Special Risk Insurance Funds Liquidating Account

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-2-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment: Claims and other:

01.01   Change to baseline claims.......                                 449
01.02   Change to repair and holding 
          costs.........................                                 -19
01.03   Legislative savings repayments..                                  67
                                           ---------   ---------  ----------
01.91     Total capital investment......                                 497
                                           ---------   ---------  ----------
10.00   Total obligations...............                                 497
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 497
23.95 New obligations...................                                -497
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........                                 523
68.00 Spending authority from offsetting 
        collections: Change to 
        offsetting collections (cash)...                                 -26
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                                 497
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                 497
73.20 Total outlays (gross).............                                -497
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                                 497
----------------------------------------------------------------------------

[[Page 563]]



    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Change to recoveries on 
          defaults......................                                  26
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 523
90.00 Outlays...........................                                 523
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-2-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
32.0  Land and structures...............                                 -19
33.0  Investments and loans.............                                 449
44.0  Repayment to financing account....                                  67
                                           ---------   ---------  ----------
99.9    Total obligations...............                                 497
---------------------------------------------------------------------------

     Housing for the Elderly or Handicapped Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment:

00.01   Housing for the elderly or 
          handicapped loans.............           3          14
00.02   Maintenance security and 
          collateral....................           2           4           4
                                           ---------   ---------  ----------
00.91     Capital Investment, Subtotal..           5          18           4
01.01 Operating expenses: Interest on 
        borrowings......................         572         435         361
                                           ---------   ---------  ----------
10.00   Total obligations...............         577         453         365
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....         315         462         760
22.00 New budget authority (gross)......         722         751         751
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,039       1,213       1,511
23.95 New obligations...................        -577        -453        -365
24.90 Unobligated balance available, end 
        of year: Fund balance...........         462         760       1,146
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........         805         735         881
60.47 Portion applied to debt reduction.        -805        -735        -881
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............         722         751         751
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         722         751         751
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.90 Unpaid obligations, start of year: 
        Obligated balance: Fund balance.         390         425         251
73.10 New obligations...................         577         453         365
73.20 Total outlays (gross).............        -540        -627        -439
73.45 Adjustments in unexpired accounts.          -2
74.90 Unpaid obligations, end of year: 
        Obligated balance: Fund balance.         425         251         176
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         540         627         439
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....        -722        -751        -751
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -182        -124        -311
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       8,331       8,306       8,424
1231  Disbursements: Direct loan 
        disbursements...................           2         189
1251  Repayments: Repayments and 
        prepayments.....................         -71         -71         -72
1264  Write-offs for default: Other 
        adjustments, net................          44
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       8,306       8,424       8,352
---------------------------------------------------------------------------
    Note.--Amounts for direct loan obligations reflect reservations of 
section 202 funds. Loan obligations shown under the program and 
financing schedule reflect loans that have reached the initial closing 
stage of processing.

    The Housing for the Elderly or Handicapped Fund was established 
pursuant to section 202 of the Housing Act of 1959, as amended. The fund 
provided direct loans to nonprofit organizations building and managing 
housing projects for lower income persons who are elderly or disabled.

    Projects must include an assured range of necessary services for the 
occupants of such projects. In addition, the section 8 lower income 
housing assistance payments program has been used in conjunction with 
the section 202 program. Applications under the two programs have been 
processed simultaneously.

    The data included in these schedules represent direct loan 
activities funded under the Housing for the Elderly or Handicapped Loan 
Fund. Further, activities in support of the needs of the elderly and 
disabled have been carried out under a grant program funded in the 1991 
Appropriations Act (P.L. 101-507) and authorized in the National 
Affordable Housing Act (P.L. 101-625).

    After April 1, 1992, all projects for which there were 
administrative reservations converted to the capital advance assistance 
program.

    For FY 1998, funding is being requested for assistance on behalf of 
the elderly and disabled under the Housing for Special Populations 
Account.

    The program and financing schedule for this account summarizes the 
Federal government's obligations for this loan program. The amounts 
reflected in the following summary of administrative commitments reflect 
outstanding section 202 fund reservations, whereas, the obligations 
portion of the program and financing schedule reflects commitments which 
have reached the initial loan closing stage of processing.

                  SUMMARY OF ADMINISTRATIVE COMMITMENTS

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Program by activities:
  Capital investment:
    Administrative commitments, 
      start of year.................          17          14
    Recovery of prior year 
      obligations...................           4
    Administrative commitments, end 
      of year.......................         -14
                                    ------------------------------------
      Subtotal, capital investment-
        loan obligations............           3          14
    Other expenses (Fee inspection).
  Capital investment:
    Loan obligations................           3          14
  Maintenance security and 
    collateral......................           2           4           4
                                    ------------------------------------
      Total capital investment......           5          18           4
                                    ====================================

    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    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         672            700           680            679
0102  Expense...........................        -551           -573          -439           -364
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............         121            127           241            315
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4115-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         705            887         1,011          1,322
1206  Non-Federal assets: Receivables, 
        net.............................         167             83

[[Page 564]]

      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       8,331          8,306         8,424          8,353
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -18            -20           -20            -20
1604    Direct loans and interest 
          receivable, net...............       8,313          8,286         8,404          8,333
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       8,313          8,286         8,404          8,333
1901  Other Federal assets: Other assets          -7              1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       9,178          9,257         9,415          9,655
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................         275            291           222            184
2104    Resources payable to Treasury...         142              8             8              8
2207  Non-Federal liabilities: Other....       7,714          6,909         6,174          5,293
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       8,131          7,208         6,404          5,485
    NET POSITION:
3100  Appropriated capital..............       1,183          2,021         2,756          3,637
3300  Cumulative results of operations..        -137             28           256            534
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       1,046          2,049         3,011          4,170
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       9,177          9,257         9,416          9,656
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
32.0  Land and structures...............           2           4           4
33.0  Investments and loans.............           3          14
43.0  Interest and dividends............         572         435         361
                                           ---------   ---------  ----------
99.9    Total obligations...............         577         453         365
---------------------------------------------------------------------------

                                

            Nonprofit Sponsor Assistance Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4042-0-3-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....           6           6           6
23.95 New obligations...................
24.90 Unobligated balance available, end 
        of year: Fund balance...........           6           6           6
----------------------------------------------------------------------------

    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      1996 actual   1997 est.   1998 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.

    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    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           6              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
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           6              6             6              6
    NET POSITION:
3300  Cumulative results of operations..           6              6             6              6
                                        ------------ --------------  ------------  -------------
3999    Total net position..............           6              6             6              6
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           6              6             6              6
-----------------------------------------------------------------------------------------------

                                


 
                GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

                              Federal Funds

    The Housing and Urban Development Act of 1968 authorized the 
Government National Mortgage Association (Ginnie Mae) to guarantee the 
timely payment of principal and interest on privately issued securities 
that are backed by pools of FHA, Veterans Affairs (VA) and Rural Housing 
Service mortgages. The Ginnie Mae guarantee gives lenders access to the 
capital markets for funds to originate new loans. New FHA and VA loans 
are currently pooled into Ginnie Mae securities.

    Financing.--Ginnie Mae issuers are assessed commitment, guarantee 
and other fees to cover costs incurred by Ginnie Mae and to fund a 
reserve against possible future payments under the guarantee.

    Operating results.--Fee collections, interest, and other income are 
expected to exceed expenses by $23 million and $60 million in 1997 and 
1998 respectively.

                                

                Management and Liquidating Functions Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4016-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.91 Unobligated balance available, 
        start of year: U.S. Securities: 
        Par value.......................          15
22.40 Capital transfer to general fund..         -15
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
23.95 New obligations...................
24.91 Unobligated balance available, end 
        of year: U.S. Securities: Par 
        value...........................
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................
86.98 Outlays from permanent balances...
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........
----------------------------------------------------------------------------

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

    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.

[[Page 565]]

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4016-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................           1
0102  Expense...........................
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           1
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4016-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Investments in US securities:

1104    Federal assets: Agency 
          securities, par...............          15
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          15
    NET POSITION:
3300  Cumulative results of operations..          15
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          15
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          15
-----------------------------------------------------------------------------------------------

                                

Credit accounts:

 Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

                      (includes transfer of funds)

    During fiscal year [1997] 1998, new commitments to issue guarantees 
to carry out the purposes of section 306 of the National Housing Act, as 
amended (12 U.S.C. 1721(g)), shall not exceed [$110,000,000,000] 
$130,000,000,000.
    For administrative expenses necessary to carry out the guaranteed 
mortgage-backed securities program, $9,383,000, to be derived from the 
Ginnie Mae-guarantees of mortgage-backed securities guaranteed loan 
receipt account, of which not to exceed $9,383,000 shall be transferred 
to the appropriation for salaries and expenses.
    [During fiscal year 1996 and in addition to commitments previously 
provided, additional commitments to issue guarantees to carry out 
section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)), 
shall not exceed $20,000,000,000.] (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371      1996 actual   1997 est.   1998 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          81
    Appropriation:
05.01 Guarantees of mortgage-backed 
        securities loan guarantee 
        program account.................          -9          -9          -9
07.99 Total balance, end of year........                                  72
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371      1996 actual   1997 est.   1998 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
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
86.93 Outlays from current balances.....
                                           ---------   ---------  ----------
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      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
2159  Total loan guarantee levels.......     130,000     110,000     130,000
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................        0.00        0.00       -0.32
    Guaranteed loan subsidy budget authority:
2339  Total subsidy budget authority....          -9          -9          -9
    Guaranteed loan subsidy outlays:
2349  Total subsidy outlays.............          -9          -9          -9
---------------------------------------------------------------------------

    The schedule above reflects new methodology under credit reform for 
GNMA. During transition to the new methodology, negative subsidy will 
not match disbursement from the GNMA financing account to the GNMA 
receipt account.

    As required by the Federal Credit Reform Act of 1990, this account 
records the administrative expenses of this program. The administrative 
expenses are estimated on a cash basis.

                                

       Guarantees of Mortgage-Backed Securities Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payment to receipt account for 
        administration..................           9           9           9
00.02 Payment to receipt account for 
        negative subsidy................                                  45
00.03 Payment to receipt account for 
        multi-class savings proposals...                                  27
00.04 Operating expenses................                                  15
00.05 Capital investment................                                   6
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          25.2).........................           9           9         102
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....          99         127         150
22.00 New financing authority (gross)...          37          32         102
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         136         159         252
23.95 New obligations...................          -9          -9        -102
24.90 Unobligated balance available, end 
        of year: Fund balance...........         127         150         150
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          37          32         102
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.47 Unpaid obligations, start of year: 
        Obligated balance: Authority to 
        borrow..........................          -6
73.10 New obligations...................           9           9         102
73.20 Total financing disbursements 
        (gross).........................          -3          -9        -102
74.47 Unpaid obligations, end of year: 
        Obligated balance: Authority to 
        borrow..........................
87.00 Total financing disbursements 
        (gross).........................           3           9         102
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..          -8          -2          -2
88.40     Non-Federal sources: 
            Commitment and other fees...         -29         -30        -100
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -37         -32        -102
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............

[[Page 566]]

90.00 Financing disbursements...........         -35         -23
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........
1232  Disbursements: Purchase of loans 
        assets from the public..........                                   5
1252  Repayments: Proceeds from loan 
        asset sales to the public or 
        discounted......................                                  -5
                                           ---------   ---------  ----------
1290    Outstanding, end of year........
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........     130,000     110,000     130,000
2112  Uncommitted loan guarantee 
        limitation......................     -20,000
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................     110,000     110,000     130,000
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........
2231  Disbursements of new guaranteed 
        loans...........................                              75,799
2251  Repayments and prepayments........
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                              75,799
----------------------------------------------------------------------------

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4240-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          93            127           137            149
1206  Non-Federal assets: Receivables, 
        net.............................           6                                         105
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          99            127           137            254
    NET POSITION:
3300  Cumulative results of operations..          99            127           137            254
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          99            127           137            254
-----------------------------------------------------------------------------------------------
    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.

                                

      Guarantees of Mortgage-Backed Securities Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.02   Functional services.............          12          13          13
00.03   Default expenses................           8           9           8
00.04   Servicing expenses..............           9          10          10
00.05   Other expenses..................          15          20          19
00.06   REMIC expenses..................           4           5           6
                                           ---------   ---------  ----------
00.91     Total operating expenses......          48          57          56
      Capital investment:

01.01   Advances of guaranty payments...         129         145         111
01.02   Real estate owned properties....          13          13          12
                                           ---------   ---------  ----------
01.91     Total capital investment......         142         158         123
                                           ---------   ---------  ----------
10.00   Total obligations...............         190         215         179
----------------------------------------------------------------------------

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

21.90   Treasury balance................          87          82          52
        U.S. Securities:
          Par value:
21.91       Par value...................       4,211       4,762       5,341
21.91       Par value (REMICs)..........         -17
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............       4,281       4,844       5,393
22.00 New budget authority (gross)......         753         765         735
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       5,034       5,609       6,128
23.95 New obligations...................        -190        -215        -179
      Unobligated balance available, end of year:

24.90   Fund balance....................          82          52          45
24.91   U.S. Securities: Par value......       4,762       5,341       5,903
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................       4,844       5,393       5,948
----------------------------------------------------------------------------

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

        Offsetting collections (cash):
68.00     Offsetting collections (cash).         742         743         714
68.00     Spending authority from 
            offsetting collections 
            (REMICs)....................          11          22          21
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         753         765         735
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         753         765         735
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.47 Unpaid obligations, start of year: 
        Obligated balance: Orders on 
        hand from Federal sources.......         -87         -78         -48
73.10 New obligations...................         190         215         179
73.20 Total outlays (gross).............        -181        -185        -173
74.47 Unpaid obligations, end of year: 
        Obligated balance: Orders on 
        hand from Federal Sources.......         -78         -48         -41
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...         181         185         173
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.20     Interest on U.S. securities...        -264        -261        -277
          Non-Federal sources:
88.40       Guarantee fees..............        -305        -311        -297
88.40       Repayments of guaranteed 
              payments..................        -120        -130        -102
88.40       Commitment and other fees...         -17         -28         -27
88.40       Servicing income............         -16         -16         -15
88.40       Receipts from sale of REO 
              properties and mobile home 
              units.....................         -11         -11         -10
88.40       Repayments on mortgages.....         -12
88.40       Sale of servicing rights....          -8          -8          -7
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -753        -765        -735
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -571        -580        -562
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         333         321         327
1232  Disbursements: Purchase of loans 
        assets from the public..........         128         144         111
1252  Repayments: Proceeds from loan 
        asset sales to the public or 
        discounted......................        -140        -138        -109
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         321         327         329
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     463,848     497,433     533,333

[[Page 567]]

2231  Disbursements of new guaranteed 
        loans...........................     101,540      79,560
2251  Repayments and prepayments........     -67,955     -43,660     -45,465
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     497,433     533,333     487,868
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..     497,433     503,333     487,868
---------------------------------------------------------------------------

    Budget Program.--Program activity is summarized below:

                       Mortgage-backed Securities

                        [In millions of dollars]

                                     1996 actual  1997 est.   1998 est.
Commitment limitation...............     130,000     110,000           *
Commitments issued..................     110,000     110,000           *
Guarantees issued...................     101,540      79,560           *
Securities outstanding..............     497,423     533,333           *

    * 1998 figures are reflected in the GNMA financing account.

    Operating results.--Fee collections, interest, and other income are 
expected to exceed expenses by $570 million in 1996 and $570 million in 
1997 and 1998, respectively. These amounts will be retained to cover 
future year expenses and as a reserve against losses that may be 
incurred on guarantees.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4238-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    Revenue:
0101  Revenue...........................         514            576           602            602
0101  Revenue (REMICs)..................          13             11            22             21
    Expense:
0102  Expense...........................         -46            -96           -52            -51
0102  Expense (REMICs)..................          -4             -4            -2             -2
    Net income or loss (-):
                                        ------------ --------------  ------------  -------------
0109    Net income or loss (-)..........         468            480           550            551
                                        ------------ --------------  ------------  -------------
0109    Net income or loss (-) (REMICs).           9              7            20             19
                                        ------------ --------------  ------------  -------------
0199  Net income or loss................         477            487           570            570
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4238-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....                          4             4              4
        Investments in US securities:
1102      Treasury securities, par......       4,232          4,785         5,341          5,903
1104      Agency securities, par........           1
1106      Receivables, net..............          59             60            60             64
1206  Non-Federal assets: Receivables, 
        net.............................          26             28            28             27
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         333            321           327            329
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -241           -288          -163           -162
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          92             33           164            167
1801  Other Federal assets: Cash and 
        other monetary assets...........           4              5             5              6
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       4,414          4,915         5,602          6,171
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................          29             36            45             53
2207    Other...........................         534            473           471            471
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         563            509           516            524
    NET POSITION:
3300  Cumulative results of operations..       3,851          4,406         5,085          5,647
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       3,851          4,406         5,085          5,647
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       4,414          4,915         5,601          6,171
-----------------------------------------------------------------------------------------------
    Note.--Ginnie Mae guarantees the timely payment of principal and 
interest installments on securities which are backed by FHA-insured, 
FmHA-insured, and VA-guaranteed mortgages. Such guarantees are excluded 
from the Government total of guaranteed obligations duplicating FHA, 
FmHA, and VA guarantees.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
25.2  Other services....................          48          57          56
33.0  Investments and loans.............         142         158         123
99.0  Subtotal, reimbursable obligations         190         215         179
                                           ---------   ---------  ----------
99.9    Total obligations...............         190         215         179
---------------------------------------------------------------------------

                                


 
                     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, [$34,000,000] 
$39,000,000, to remain available until September 30, [1998] 1999. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          33          36          39
                                           ---------   ---------  ----------
10.00   Total obligations...............          33          36          39
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           1           2
22.00 New budget authority (gross)......          34          34          39
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          35          36
23.95 New obligations...................         -33         -36         -39
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          34          34          39
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          28          25          29
73.10 New obligations...................          33          36          39
73.20 Total outlays (gross).............         -36         -32         -37
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          25          29          31
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          14          14          16
86.93 Outlays from current balances.....          22          18          21
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          36          32          37
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          34          34          39
90.00 Outlays...........................          36          32          37
---------------------------------------------------------------------------

    The Housing and Urban Development Act of 1970 directs the Secretary 
to undertake programs of research, studies, testing, and demonstrations 
related to the HUD mission. These functions are carried out internally 
and through contracts with industry, nonprofit research organizations, 
and educational institutions, and through agreements with State and 
local governments and other Federal agencies.

    In 1998, the research program will focus on activities to support 
the reinvention of HUD, including examination of issues such as the 
transformation of public housing and design of standards for 
performance-based funds. National housing surveys and research to reduce 
the cost of housing will continue in 1998.

[[Page 568]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
25.2  Other services....................          29          32          34
41.0  Grants, subsidies, and 
        contributions...................           4           4           5
                                           ---------   ---------  ----------
99.9    Total obligations...............          33          36          39
---------------------------------------------------------------------------

                                


 
                   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, 
[$30,000,000] $39,000,000, to remain available until September 30, 
[1998] 1999, of which [$15,000,000] $24,000,000 shall be to carry out 
activities pursuant to such section 561. [No funds made available under 
this heading shall be used to lobby the executive or legislative 
branches of the Federal Government in connection with a specific 
contract, grant or loan.] (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0144-0-1-751      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Fair housing assistance...........          11          19          15
00.02 Fair housing initiatives..........           9          24          24
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          20          43          39
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           3          13
22.00 New budget authority (gross)......          30          30          39
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          33          43          39
23.95 New obligations...................         -20         -43         -39
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....          13
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          30          30          39
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          44          32          51
73.10 New obligations...................          20          43          39
73.20 Total outlays (gross).............         -32         -24         -27
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          32          51          63
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          32          24          27
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          30          30          39
90.00 Outlays...........................          32          24          27
---------------------------------------------------------------------------

    The Budget proposes an appropriation of $39 million in 1998 for fair 
housing activities to aid in eliminating housing discrimination. Of the 
amount requested, $15 million is for the Fair Housing Assistance program 
and $24 million is for the Fair Housing Initiatives program.

    The Fair Housing Assistance program, authorized by title VIII of the 
Civil Rights Act of 1968 as amended, provides funding to State and local 
agencies to assure prompt and effective processing of title VIII (Civil 
Rights Act of 1968) complaints.

    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, [$976,840,000, of which $15,000,000 may be used for additional 
retraining, relocation, permanent change of station, and other 
activities related to downsizing only upon submission of a detailed and 
specific, multi-year downsizing plan to the Committees on Appropriations 
of the House of Representatives and the Senate, and] [$955,471,000,] 
$1,005,826,000 of which $544,443,000 shall be provided from the various 
funds of the Federal Housing Administration, $9,383,000 shall be 
provided from funds of the Government National Mortgage Association, and 
[$675,000] $1,000,000 shall be provided from the Community Development 
Grants Program account. (Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Housing, mortgage credit, 
          regulatory and energy 
          conservation..................          94          95         121
00.02   Community planning and 
          development programs..........          59          60          61
00.03   Equal opportunity and research 
          programs......................          59          59          60
00.04   Departmental management, legal 
          and audit services............          51          51          52
00.05   Field direction and 
          administration................         154         155         157
                                           ---------   ---------  ----------
00.91     Total direct program..........         417         420         451
01.01 Reimbursable program..............         546         557         555
                                           ---------   ---------  ----------
10.00   Total obligations...............         963         977       1,006
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           1
22.00 New budget authority (gross)......         965         977       1,006
22.30 Unobligated balance expiring......          -4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         962         977       1,006
23.95 New obligations...................        -963        -977      -1,006
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         420         420         451
40.75   Reduction pursuant to P.L. 104-
          134...........................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         419         420         451
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         546         557         555
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         965         977       1,006
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation         112         136         136
73.10 New obligations...................         963         977       1,006
73.20 Total outlays (gross).............        -928        -977        -998
73.40 Adjustments in expired accounts...         -11                      -8
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         136         136         136
----------------------------------------------------------------------------

[[Page 569]]



    Outlays (gross), detail:
86.90 Outlays from new current authority         321         324         347
86.93 Outlays from current balances.....          61          96          96
86.97 Outlays from new permanent 
        authority.......................         546         557         555
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         928         977         998
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -546        -557        -555
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         419         420         451
90.00 Outlays...........................         382         420         443
---------------------------------------------------------------------------

    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      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         223         222         217
11.3      Other than full-time permanent           4           4           4
11.5      Other personnel compensation..           5           5           5
                                           ---------   ---------  ----------
11.9        Total personnel compensation         232         231         226
12.1    Civilian personnel benefits.....          49          49          47
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons.......................           6           7          11
22.0    Transportation of things........                       3           2
23.1    Rental payments to GSA..........          32          33          34
23.3    Communications, utilities, and 
          miscellaneous charges.........          10          13          15
24.0    Printing and reproduction.......           3           3           3
25.1    Advisory and assistance services          13          10          25
25.2    Other services..................           2           2           2
25.3    Purchases of goods and services 
          from Government accounts......          54          53          71
25.4    Operation and maintenance of 
          facilities....................           6           6           6
25.7    Operation and maintenance of 
          equipment.....................                       1
26.0    Supplies and materials..........           3           3           3
31.0    Equipment.......................           6           4           4
42.0    Insurance claims and indemnities                       1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         417         420         451
99.0  Reimbursable obligations..........         546         557         555
                                           ---------   ---------  ----------
99.9    Total obligations...............         963         977       1,006
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Direct:
      Total compensable workyears:

1001    Full-time equivalent employment.       4,565       4,491       4,443
1005    Full-time equivalent of overtime 
          and holiday hours.............          24          24          25
    Reimbursable:
      Total compensable workyears:

2001    Full-time equivalent employment.       5,977       5,956       5,518
2005    Full-time equivalent of overtime 
          and holiday hours.............          32          32          31
---------------------------------------------------------------------------

                                

                       Office of Inspector General

                      (including transfer of funds)

    For necessary expenses of the Office of Inspector General in 
carrying out [the provisions of] the Inspector General Act of 1978, as 
amended, [$52,850,000] $57,850,000, of which $11,283,000 shall be 
provided from the various funds of the Federal Housing Administration 
and [$5,000,000] $10,000,000 shall be provided from the amount earmarked 
for Operation Safe Home in the Drug Elimination Grants for Low Income 
Housing Account. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          36          37          37
01.01 Reimbursable program..............          12          16          21
                                           ---------   ---------  ----------
10.00   Total obligations...............          48          53          58
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          49          53          58
23.95 New obligations...................         -48         -53         -58
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          37          37          37
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          12          16          21
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          49          53          58
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          10          18          18
73.10 New obligations...................          48          53          58
73.20 Total outlays (gross).............         -40         -53         -58
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          18          18          18
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          23          28          28
86.93 Outlays from current balances.....           5           9           9
86.97 Outlays from new permanent 
        authority.......................          12          16          21
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          40          53          58
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -12         -16         -21
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          37          37          37
90.00 Outlays...........................          28          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      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          20          21          21
11.5      Other personnel compensation..           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          22          23          23
12.1    Civilian personnel benefits.....           5           5           5
21.0    Travel and transportation of 
          persons.......................           2           3           3
23.1    Rental payments to GSA..........           4           3           3
25.1    Advisory and assistance services           1           1           1
25.2    Other services..................                       1           1
25.3    Purchases of goods and services 
          from Government accounts......           1           1           1
25.7    Operation and maintenance of 
          equipment.....................           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          36          37          37
99.0  Reimbursable obligations..........          12          16          21
                                           ---------   ---------  ----------

[[Page 570]]


99.9    Total obligations...............          48          53          58
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Direct:
      Total compensable workyears:

1001    Full-time equivalent employment.         372         376         367
1005    Full-time equivalent of overtime 
          and holiday hours.............           1           1           1
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         120         167         214
---------------------------------------------------------------------------

                                

             Office of Federal Housing Enterprise Oversight

                          salaries and expenses

    For carrying out the Federal Housing Enterprise Financial Safety and 
Soundness Act of 1992, [$15,500,000] including not to exceed $3,000 for 
official reception and representation expenses, $16,312,000, to remain 
available until expended, from the Federal Housing Enterprise Oversight 
Fund: Provided, That [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).] not to exceed such amount shall be 
available from the General Fund of the Treasury to the extent necessary 
to incur obligations and make expenditures pending the receipt of 
collections to the Fund: Provided further, That the General Fund amount 
shall be reduced as collections are received during the fiscal year so 
as to result in a final appropriation from the General Fund estimated at 
not more than $0. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           2           2           2
    Receipts:
02.01 Office of federal housing 
        enterprise oversight............          13          16          16
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          15          18          18
    Appropriation:
05.01 Office of federal housing 
        enterprise oversight............         -15         -16         -16
07.99 Total balance, end of year........           2           2           2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations.................          15          16          16
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           2
22.00 New budget authority (gross)......          15          16          16
22.30 Unobligated balance expiring......          -2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          15          16          16
23.95 New obligations...................         -15         -16         -16
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.20 Appropriation (special fund, 
        definite).......................          15          16          16
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation           6           7           6
73.10 New obligations...................          15          16          16
73.20 Total outlays (gross).............         -14         -16         -16
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation           7           6           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          14          16          16
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          15          16          16
90.00 Outlays...........................          14          16          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 risk-based capital standard for the GSEs, and gave the 
regulator enhanced authority to enforce those standards. The office is 
also required by statute to conduct on-site annual examinations at the 
GSEs to determine the condition of each enterprise for the purpose of 
ensuring their financial safety and soundness.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Personnel 
        Compensation....................           6           7           7
12.1  Civilian personnel benefits.......           2           2           2
23.1  Rental payments to GSA............           2           2           2
25.2  Other services....................           5           5           5
                                           ---------   ---------  ----------
99.9    Total obligations...............          15          16          16
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          66          78          78
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                          Working Capital Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: Data 
        processing services.............         196         217         257
00.03 Capital investment: Data 
        processing services.............           2           2           2
                                           ---------   ---------  ----------
10.00   Total obligations...............         198         219         259
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....          31          32          33
22.00 New budget authority (gross)......         198         219         259
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         230         252         292
23.95 New obligations...................        -198        -219        -259
24.90 Unobligated balance available, end 
        of year: Fund balance...........          32          33          33
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...         183         219         259
68.10   Change in orders on hand from 
          Federal sources...............          14
68.15   Adjustment to orders on hand 
          from Federal sources..........           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         198         219         259
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         198         219         259
----------------------------------------------------------------------------

[[Page 571]]



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

72.90   Obligated balance: Fund balance.          -1          -3          -3
72.95   Orders on hand from Federal 
          sources.......................          10          24          24
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............           9          21          21
73.10 New obligations...................         198         219         259
73.20 Total outlays (gross).............        -185        -219        -259
73.45 Adjustments in unexpired accounts.          -1          -1
      Unpaid obligations, end of year:

        Obligated balance:
74.40     Appropriation.................
74.90     Fund balance..................          -3          -3          -3
74.95   Orders on hand from Federal 
          sources.......................          24          24          24
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          21          21          21
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         185         219         259
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -183        -219        -259
88.95 Change in orders on hand from 
        Federal sources.................         -14
88.96 Adjustment to orders on hand from 
        Federal sources.................          -1
----------------------------------------------------------------------------

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

    The Working Capital Fund, authorized by the Department of Housing 
and Urban Development Act of 1965, finances information technology and 
office automation initiatives which can be performed more efficiently on 
a centralized basis. The fund is financed from fees charged for services 
performed.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          18          18          19
12.1  Civilian personnel benefits.......           3           4           4
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........          45          53          50
25.2  Other services....................          94         125         169
26.0  Supplies and materials............           5           3           1
31.0  Equipment.........................          32          15          15
                                           ---------   ---------  ----------
99.9    Total obligations...............         198         219         259
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         301         330         330
---------------------------------------------------------------------------

                                

                        Administrative Provisions

    Sec. 201. Extenders.--(a) Public Housing Funding Flexibility.--
Section 201(a)(2) of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1996 is 
amended by striking [``1996''] ``1997'' and inserting [``1997''] 
``1998''.
    (b) One-for-One Replacement of Public and Indian Housing.--Section 
1002(d) of Public Law 104-19 is amended by striking [``before September 
30, 1996''] ``1997'' and inserting [``on or before September 30, 1997''] 
``1998''.
    (c) Public and Assisted Housing Rents, Income Adjustments, and 
Preferences.--(1)[(A)] Section 402(a) of The Balanced Budget Downpayment 
Act, I is amended[--]
         [(i)] by striking ``[effective for fiscal year 1996 and no 
    later than October 30, 1995'' and inserting ``and subsection (f) of 
    this section, effective for] fiscal year 1997''[;], and inserting 
    ``fiscal year 1998.''
        [(ii) in paragraphs (1), (2), and (4), by striking ``not less 
    than $25, and may require a minimum monthly rent of''; and
        (iii) in paragraph (3), by striking ``not less than $25 for the 
    unit, and may require a minimum monthly rent of''.
    (B) Section 230 of Public Law 104-134 is hereby repealed.]
    (2) Section 402(f) of The Balanced Budget Downpayment Act, I is 
amended by striking [``fiscal year 1996'' and inserting] ``fiscal years 
1996 and 1997'' and inserting ``fiscal years 1996, 1997, and 1998''.
    (d) Applicability to IHAs.--In accordance with section 201(b)(2) of 
the United States Housing Act of 1937, the amendments made by 
subsections (a), (b), and (c) shall apply to public housing developed or 
operated pursuant to a contract between the Secretary of Housing and 
Urban Development and an Indian housing authority.
    (e) Streamlining Section 8 Tenant-Based Assistance.--Section 203(d) 
of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996 is 
amended by striking [``fiscal year 1996'' and inserting] ``fiscal years 
1996 and 1997'' and inserting ``fiscal year 1996, 1997, and 1998.''
    (f) Section 8 Fair Market Rentals [and Delay in Reissuance.]--[(1)] 
The first sentence of section 403(a) of the Balanced Budget Downpayment 
Act, I, is amended by striking [``1996''] ``1997'' and inserting 
[``1997''] ``1998''.
    [(2) Section 403(c) of such Act is amended--
         (A) by striking ``fiscal year 1996'' and inserting ``fiscal 
    years 1996 and 1997''; and
         (B) by inserting before the semicolon the following: ``for 
    assistance made available during fiscal year 1996 and October 1, 
    1997 for assistance made available during fiscal year 1997''.]
    (g) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United 
States Housing Act of 1937 is amended--
        (1) in the third sentence, by striking ``fiscal year 1997'' and 
    inserting ``fiscal years 1997 and 1998'';
        (2) in the last sentence, by striking ``fiscal year 1997'' and 
    inserting ``fiscal year 1997 and 1998''.
        [(1) in the third sentence by inserting ``, fiscal year 1996 
    prior to April 26, 1996, and fiscal year 1997'' after ``1995'';
         (2) in the fourth sentence, by striking ``For'' and inserting 
    ``Except for assistance under the certificate program, for'';
         (3) after the fourth sentence, by inserting the following new 
    sentence: ``In the case of assistance under the certificate program, 
    0.01 shall be subtracted from the amount of the annual adjustment 
    factor (except that the factor shall not be reduced to less than 
    1.0), and the adjusted rent shall not exceed the rent for a 
    comparable unassisted unit of similar quality, type, and age in the 
    market area.''; and
         (4) in the last sentence, by--
             (A) striking ``sentence'' and inserting ``two sentences''; 
        and
            (B) inserting ``, fiscal year 1996 prior to April 26, 1996, 
        and fiscal year 1997'' after ``1995''.]
    Sec. 202. Section 8 Administrative Fees.--Section 202(a)(1)(A) of 
the Departments of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1997, is amended by--
        (1) striking ``7.5 percent'' and inserting ``7.65 percent'';
        (2) striking ``a program of'' and inserting ``one or more such 
    programs totaling''; and
        (3) inserting before the final period, ``of such total units.'' 
    The amendments made by this section shall take effect on October 1, 
    1997. [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 7.5 
    percent of the base amount, adjusted as provided herein, in the case 
    of an agency that, on an annual basis, is administering a program of 
    no more than 600 units, and 7 percent of the base amount, adjusted 
    as provided herein, for each additional unit above 600.
         (B) The base amount shall be the higher of--
            (i) the fair market rental for fiscal year 1993 for a 2-
        bedroom existing rental dwelling unit in the market area of the 
        agency; and
            (ii) such fair market rental for fiscal year 1994, but not 
        more than 103.5 percent of the amount determined under clause 
        (i).
         (C) The base amount shall be adjusted to reflect changes in the 
    wage data or other objectively measurable data that reflect the 
    costs of administering the program during fiscal year 1996; except 
    that the Secretary may require that the base amount be not less than 
    a minimum amount and not more than a maximum amount.

[[Page 572]]

         (2) For subsequent fiscal years, the Secretary shall publish a 
    notice in the Federal Register, for each geographic area, 
    establishing the amount of the fee that would apply for the agencies 
    administering the program, based on changes in wage data or other 
    objectively measurable data that reflect the cost of administering 
    the program, as determined by the Secretary.
        (3) The Secretary may increase the fee if necessary to reflect 
    higher costs of administering small programs and programs operating 
    over large geographic areas.
        (4) The Secretary may decrease the fee for PHA-owned units.
    (b) Beginning in fiscal year 1997 and thereafter, the Secretary 
shall also establish reasonable fees (as determined by the Secretary) 
for--
        (1) the costs of preliminary expenses, in the amount of $500, 
    for a public housing agency, but only in the first year it 
    administers a tenant-based assistance program under the United 
    States Housing Act of 1937 and only if, immediately before the 
    effective date of this Act, it was not administering a tenant-based 
    assistance program under the 1937 Act (as in effect immediately 
    before the effective date of this Act), in connection with its 
    initial increment of assistance received;
         (2) the costs incurred in assisting families who experience 
    difficulty (as determined by the Secretary) in obtaining appropriate 
    housing under the program; and
         (3) extraordinary costs approved by the Secretary.]
    [Sec. 203. Single Family Assignment Program.--Section 407(c) of the 
Balanced Budget Downpayment Act, I (12 U.S.C. 1710 note), is amended by 
striking ``October 1, 1996'' and inserting ``October 1, 1997''.]
    [Sec. 204. Flexible Authority.--During fiscal year 1997 and fiscal 
years thereafter, the Secretary may manage and dispose of multifamily 
properties owned by the Secretary and multifamily mortgages held by the 
Secretary on such terms and conditions as the Secretary may determine, 
notwithstanding any other provision of law.]
    [Sec. 205. Use of Available Funding for Homeownership.--Up to 
$20,000,000 of amounts of unobligated balances that are or become 
available from the Nehemiah Housing Opportunity Grant program, repealed 
under section 289(b) of the Cranston-Gonzalez National Affordable 
Housing Act, Public Law 101-625, shall be available for use for 
activities relating to promotion and implementation of homeownership in 
targeted geographic areas, as determined by the Secretary. Any grant or 
assistance made under this section shall be made in accordance with 
section 102 of the Department of Housing and Urban Development Reform 
Act of 1989 on a competitive basis.]
    [Sec. 206. Debt Forgiveness.--The Secretary of Housing and Urban 
Development shall cancel the indebtedness of the Greene County Rural 
Health Center relating to a loan received under the Public Facility Loan 
program to establish the health center (Loan #Mis-22-PFL0096). The 
Greene County Rural Health Center is hereby relieved of all liability to 
the Federal Government for such loan and any fees and charges payable in 
connection with such loan.]
    [Sec. 207. Flexible Subsidy Fund.--From the fund established by 
section 236(g) of the National Housing Act, as amended, all uncommitted 
balances of excess rental charges as of September 30, 1996, and any 
collection during fiscal year 1997, shall be transferred, as authorized 
under such section, to the fund authorized under section 201(j) of the 
Housing and Community Development Amendments of 1978, as amended.]
    [Sec. 208. Rental Housing Assistance.--The limitation otherwise 
applicable to the maximum payments that may be required in any fiscal 
year by all contracts entered into under section 236 of the National 
Housing Act (12 U.S.C. 1715z-1) is reduced in fiscal year 1997 by not 
more than $2,000,000 in uncommitted balances of authorizations provided 
for this purpose in appropriations Acts.]
    [Sec. 209. D.C. Modernization Funding.--Notwithstanding the 
provisions of section 14(k)(5)(D) of the United States Housing Act of 
1937, the withheld modernization funds that became credited in fiscal 
years 1993, 1994, and 1995, due to the troubled status of the former 
Department of Public and Assisted Housing of the District of Columbia, 
shall be made available without diminution to its successor, the 
District of Columbia Housing Authority, at such time between the 
effective date of this Act and the end of fiscal year 1998 as the 
District of Columbia Housing Authority is no longer deemed ``mod-
troubled'' under section 6(j)(2)(A)(i) of such Act; after fiscal year 
1998, the District of Columbia Housing Authority shall become subject to 
the provisions of section 14(k)(5)(D) of such Act should it remain mod-
troubled.]
    Sec. [210. (a)] 203. Financing Adjustment Factors.--Fifty per centum 
of the amounts of budget authority, or in lieu thereof 50 per centum of 
the cash amounts associated with such budget authority, that are 
recaptured from projects described in section 1012(a) of the Stewart B. 
McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100- 
628, 102 Stat. 3224, 3268) shall be rescinded, or in the case of cash, 
shall be remitted to the Treasury, and such amounts of budget authority 
or cash recaptured and not rescinded or remitted to the Treasury shall 
be used by State housing finance agencies or local governments or local 
housing agencies with projects approved by the Secretary of Housing and 
Urban Development for which settlement occurred after January 1, 1992, 
in accordance with such section.
    [(b) In addition to amounts otherwise provided by this Act, $464,442 
is appropriated to the Department of Housing and Urban Development for 
payment to the Utah Housing Finance Agency, in lieu of amounts lost to 
such agency in bond refinancings during 1994, for its use in accordance 
with subsection (a).]
    Sec. 204. Section 8 Contract Renewals.--Section 405(a) of the 
Balanced Budget Downpayment Act, I is amended by inserting at the end 
the following new sentences:
``Notwithstanding the preceding sentence, upon the expiration of a 
contract with rent levels that exceed the section 8 Existing Fair Market 
Rents, if the Secretary determines that (i) the primary financing or 
mortgage insurance for the multifamily housing project that is covered 
by that expiring contract was provided by a public agency and the 
financing does not involve mortgage insurance under the National Housing 
Act, or (ii) the project is a section 202 project or a section 515 
project, the Secretary may, at the request of the owner and, in the case 
of projects under clause (i), the public agency, provide assistance 
under section 8 at rent levels that are equal to those under the 
expiring contract as of the date on which the contract expires, which 
assistance shall be in accordance with terms and conditions prescribed 
by the Secretary.''.
    [Sec. 211. Section 8 Contract Renewal Authority.--(a) Definitions.-- 
For purposes of this section--
     (1) the term ``expiring contract'' means a contract for project-
based assistance under section 8 of the United States Housing Act of 
1937 that expires during fiscal year 1997;
     (2) the term ``family'' has the same meaning as in section 3(b) of 
the United States Housing Act of 1937;
     (3) the term ``multifamily housing project'' means a property 
consisting of more than 4 dwelling units that is covered in whole or in 
part by a contract for project-based assistance under section 8 of the 
United States Housing Act of 1937;
     (4) the term ``owner'' has the same meaning as in section 8(f) of 
the United States Housing Act of 1937;
     (5) the term ``project-based assistance'' means rental assistance 
under section 8 of the United States Housing Act of 1937 that is 
attached to a multifamily housing project;
     (6) the term ``public agency'' means a State housing finance 
agency, a local housing agency, or other agency with a public purpose 
and status;
     (7) the term ``Secretary'' means the Secretary of Housing and Urban 
Development; and
     (8) the term ``tenant-based assistance'' has the same meaning as in 
section 8(f) of the United States Housing Act of 1937.
    (b) Section 8 Contract Renewal Authority.--
        (1) In general.--Notwithstanding section 405(a) of the Balanced 
    Budget Downpayment Act, I, upon the request of the owner of a 
    multifamily housing project that is covered by an expiring contract, 
    the Secretary shall use amounts made available for the renewal of 
    assistance under section 8 of the United States Housing Act of 1937 
    to renew the expiring contract as project-based assistance for a 
    period of not more than one year, at rent levels that are equal to 
    those under the expiring contract as of the date on which the 
    contract expires: Provided, That those rent levels do not exceed 120 
    percent of the fair market rent for the market area in which the 
    project is located. For an FHA-insured multifamily housing project 
    with an expiring contract at rent levels that exceed 120 percent of 
    the fair market rent for the market area, the Secretary shall 
    provide, at the request of the owner, section 8 project-based 
    assistance, for a period of not more than one year, at rent levels 
    that do not exceed 120 percent of the fair market rent.

[[Page 573]]

        (2) Exemption for state and local housing agency projects.--
    Notwithstanding paragraph (1), upon the expiration of a contract 
    with rent levels that exceed the percentage described in that 
    paragraph, if the Secretary determines that the primary financing or 
    mortgage insurance for the multifamily housing project that is 
    covered by that expiring contract was provided by a public agency, 
    the Secretary shall, at the request of the owner and the public 
    agency, renew the expiring contract--
            (A) for a period of not more than one year; and
            (B) at rent levels that are equal to those under the 
        expiring contract as of the date on which the contract expires.
        (3) Section 202, section 811, and section 515 projects.--
    Notwithstanding paragraph (1), for section 202 projects, section 811 
    projects and section 515 projects, upon the expiration of a section 
    8 contract, the Secretary shall, at the request of the owner, renew 
    the expiring contract--
            (A) for a period of not more than one year; and
            (B) at rent levels that are equal to those under the 
        expiring contract as of the date on which the contract expires.
        (4) Other contracts.--
            (A) Participation in demonstration.--For a contract covering 
        an FHA-insured multifamily housing project that expires during 
        fiscal year 1997 with rent levels that exceed the percentage 
        described in paragraph (1) and after notice to the tenants, the 
        Secretary shall, at the request of the owner of the project and 
        after notice to the tenants, include that multifamily housing 
        project in the demonstration program under section 212 of this 
        Act. The Secretary shall ensure that a multifamily housing 
        project with an expiring contract in fiscal year 1997 shall be 
        allowed to be included in the demonstration.
            (B) Effect of material adverse actions and omissions.--
        Notwithstanding paragraph (1) or any other provision of law, the 
        Secretary shall not renew an expiring contract if the Secretary 
        determines that the owner of the multifamily housing project has 
        engaged in material adverse financial or managerial actions or 
        omissions with regard to the project (or with regard to other 
        similar projects if the Secretary determines that such actions 
        or omissions constitute a pattern of mismanagement that would 
        warrant suspension or debarment by the Secretary).
         (C) Transfer of property.--For properties disqualified from the 
    demonstration program because of actions by an owner or purchaser in 
    accordance with subparagraph (B), the Secretary shall establish 
    procedures to facilitate the voluntary sale or transfer of the 
    property, with a preference for tenant organizations and tenant-
    endorsed community-based nonprofit and public agency purchasers 
    meeting such reasonable qualifications as may be established by the 
    Secretary. The Secretary may include the transfer of section 8 
    project-based assistance.
             (5) Tenant protections.--Any family residing in an assisted 
        unit in a multifamily housing project that is covered by an 
        expiring contract that is not renewed, shall be offered tenant-
        based assistance before the date on which the contract expires 
        or is not renewed.]
    [Sec. 212. FHA Multifamily Demonstration Authority.--
(a) In General.--
     (1) Repeal.--
         (A) In general.--Section 210 of the Departments of Veterans 
    Affairs and Housing and Urban Development and Independent Agencies 
    Appropriations Act, 1996 (110 Stat. 1321) is repealed.
         (B) Exception.--Notwithstanding the repeal under subparagraph 
    (A), amounts made available under section 210(f) the Departments of 
    Veterans Affairs and Housing and Urban Development and Independent 
    Agencies Appropriations Act, 1996 shall remain available for the 
    demonstration program under this section through the end of fiscal 
    year 1997.
     (2) Savings provisions.--Nothing in this section shall be construed 
to affect any commitment entered into before the date of enactment of 
this Act under the demonstration program under section 210 of the 
Departments of Veterans Affairs and Housing and Urban Development and 
Independent Agencies Appropriations Act, 1996.
     (3) Definitions.--For purposes of this section--
         (A) the term ``demonstration program'' means the program 
    established under subsection (b);
         (B) the term ``expiring contract'' means a contract for 
    project-based assistance under section 8 of the United States 
    Housing Act of 1937 that expires during fiscal year 1997;
         (C) the term ``family'' has the same meaning as in section 3(b) 
    of the United States Housing Act of 1937;
         (D) the term ``multifamily housing project'' means a property 
    consisting of more than 4 dwelling units that is covered in whole or 
    in part by a contract for project-based assistance;
         (E) the term ``owner'' has the same meaning as in section 8(f) 
    of the United States Housing Act of 1937;
         (F) the term ``project-based assistance'' means rental 
    assistance under section 8 of the United States Housing Act of 1937 
    that is attached to a multifamily housing project;
         (G) the term ``Secretary'' means the Secretary of Housing and 
    Urban Development; and
         (H) the term ``tenant-based assistance'' has the same meaning 
    as in section 8(f) of the United States Housing Act of 1937.
    (b) Demonstration Authority.--
        (1) In general.--Subject to the funding limitation in subsection 
    (l), the Secretary shall administer a demonstration program with 
    respect to multifamily projects--
            (A) whose owners agree to participate;
            (B) with rents on units assisted under section 8 of the 
        United States Housing Act of 1937 that are, in the aggregate, in 
        excess of 120 percent of the fair market rent of the market area 
        in which the project is located; and
            (C) the mortgages of which are insured under the National 
        Housing Act.
        (2) Purpose.--The demonstration program shall be designed to 
    obtain as much information as is feasible on the economic viability 
    and rehabilitation needs of the multifamily housing projects in the 
    demonstration, to test various approaches for restructuring 
    mortgages to reduce the financial risk to the FHA Insurance Fund 
    while reducing the cost of section 8 subsidies, and to test the 
    feasibility and desirability of--
            (A) ensuring, to the maximum extent practicable, that the 
        debt service and operating expenses, including adequate 
        reserves, attributable to such multifamily projects can be 
        supported at the comparable market rent with or without mortgage 
        insurance under the National Housing Act and with or without 
        additional section 8 rental subsidies;
            (B) utilizing section 8 rental assistance, while taking into 
        account the capital needs of the projects and the need for 
        adequate rental assistance to support the low- and very low-
        income families residing in such projects; and
            (C) preserving low-income rental housing affordability and 
        availability while reducing the long-term cost of section 8 
        rental assistance.
    (c) Goals.--
        (1) In general.--The Secretary shall carry out the demonstration 
    program in a manner that will protect the financial interests of the 
    Federal Government through debt restructuring and subsidy reduction 
    and, in the least costly fashion, address the goals of--
            (A) maintaining existing affordable housing stock in a 
        decent, safe, and sanitary condition;
            (B) minimizing the involuntary displacement of tenants;
            (C) taking into account housing market conditions;
            (D) encouraging responsible ownership and management of 
        property;
            (E) minimizing any adverse income tax impact on property 
        owners; and
            (F) minimizing any adverse impacts on residential 
        neighborhoods and local communities.
        (2) Balance of competing goals.--In determining the manner in 
    which a mortgage is to be restructured or a subsidy reduced under 
    this subsection, the Secretary may balance competing goals relating 
    to individual projects in a manner that will further the purposes of 
    this section.
    (d) Participation Arrangements.--
        (1) In general.--In carrying out the demonstration program, the 
    Secretary may enter into participation arrangements with designees, 
    under which the Secretary may provide for the assumption by 
    designees (by delegation, by contract, or otherwise) of some or all 
    of the functions, obligations, responsibilities and benefits of the 
    Secretary.
        (2) Designees.--In entering into any arrangement under this 
    subsection, the Secretary shall select state housing finance 
    agencies, housing agencies or nonprofits (separately or in 
    conjunction with each other) to act as designees to the extent such 
    agencies are determined to be qualified by the Secretary. In 
    locations where there is no qualified State housing finance agency, 
    housing agency or nonprofit to act as a designee, the Secretary may 
    act as a designee. Each participation arrangement entered into under 
    this

[[Page 574]]

    subsection shall include a designee as the primary partner. Any 
    organization selected by the Secretary under this section shall have 
    a long-term record of service in providing low-income housing and 
    meet standards of fiscal responsibility, as determined by the 
    Secretary.
        (3) Designee partnerships.--For purposes of any participation 
    arrangement under this subsection, designees are encouraged to 
    develop partnerships with each other, and to contract or subcontract 
    with other entities, including--
            (A) public housing agencies;
            (B) financial institutions;
            (C) mortgage servicers;
            (D) nonprofit and for-profit housing organizations;
            (E) the Federal National Mortgage Association;
            (F) the Federal Home Loan Mortgage Corporation;
            (G) Federal Home Loan Banks; and
            (H) other State or local mortgage insurance companies or 
        bank lending consortia.
    (e) Long-Term Affordability.--
        (1) In general.--After the renewal of a section 8 contract 
    pursuant to a restructuring under this section, the owner shall 
    accept each offer to renew the section 8 contract, for a period of 
    20 years from the date of the renewal under the demonstration, if 
    the offer to renew is on terms and conditions, as agreed to by the 
    Secretary or designee and the owner under a restructuring.
        (2) Affordability requirements.--Except as otherwise provided by 
    the Secretary, in exchange for any mortgage restructuring under this 
    section, a project shall remain affordable for a period of not less 
    than 20 years. Affordability requirements shall be determined in 
    accordance with guidelines established by the Secretary or designee. 
    The Secretary or designee may waive these requirements for good 
    cause.
    (f) Procedures.--
        (1) Notice of participation in demonstration.--Not later than 45 
    days before the date of expiration of an expiring contract (or such 
    later date, as determined by the Secretary, for good cause), the 
    owner of the multifamily housing project covered by that expiring 
    contract shall notify the Secretary or designee and the residents of 
    the owner's intent to participate in the demonstration program.
        (2) Demonstration contract.--Upon receipt of a notice under 
    paragraph (1), the owner and the Secretary or designee shall enter 
    into a demonstration contract, which shall provide for initial 
    section 8 project-based rents at the same rent levels as those under 
    the expiring contract or, if practical, the budget-based rent to 
    cover debt service, reasonable operating expenses (including 
    reasonable and appropriate services), and a reasonable return to the 
    owner, as determined solely by the Secretary. The demonstration 
    contract shall be for the minimum term necessary for the rents and 
    mortgages of the multifamily housing project to be restructured 
    under the demonstration program, but shall not be for a period of 
    time to exceed 180 days, unless extended for good cause by the 
    Secretary.
    (g) Project-Based Section 8.--The Secretary shall renew all expiring 
contracts under the demonstration as section 8 project-based contracts, 
for a period of time not to exceed one year, unless otherwise provided 
under subsection (h).
    (h) Demonstration Actions.--
        (1) Demonstration actions.--For purposes of carrying out the 
    demonstration program, and in order to ensure that contract rights 
    are not abrogated, subject to such third party consents as are 
    necessary (if any), including consent by the Government National 
    Mortgage Association if it owns a mortgage insured by the Secretary, 
    consent by an issuer under the mortgage-backed securities program of 
    the Association, subject to the responsibilities of the issuer to 
    its security holders and the Association under such program, and 
    consent by parties to any contractual agreement which the Secretary 
    proposes to modify or discontinue, the Secretary or, except with 
    respect to subparagraph (B), designee, subject to the funding 
    limitation in subsection (l), shall take not less than one of the 
    actions specified in subparagraphs (G), (H), and (I) and may take 
    any of the following actions:
            (A) Removal of restrictions.--
                (i) In general.--Consistent with the purposes of this 
            section, subject to the agreement of the owner of the 
            project and after consultation with the tenants of the 
            project, the Secretary or designee may remove, relinquish, 
            extinguish, modify, or agree to the removal of any mortgage, 
            regulatory agreement, project-based assistance contract, use 
            agreement, or restriction that had been imposed or required 
            by the Secretary, including restrictions on distributions of 
            income which the Secretary or designee determines would 
            interfere with the ability of the project to operate without 
            above-market rents.
                (ii) Accumulated residual receipts.--The Secretary or 
            designee may require an owner of a property assisted under 
            the section 8 new construction/substantial rehabilitation 
            program under the United States Housing Act of 1937 to apply 
            any accumulated residual receipts toward effecting the 
            purposes of this section.
            (B) Reinsurance.--With respect to not more than 5,000 units 
        within the demonstration during fiscal year 1997, the Secretary 
        may enter into contracts to purchase reinsurance, or enter into 
        participations or otherwise transfer economic interest in 
        contracts of insurance or in the premiums paid, or due to be 
        paid, on such insurance, on such terms and conditions as the 
        Secretary may determine. Any contract entered into under this 
        paragraph shall require that any associated units be maintained 
        as low-income units for the life of the mortgage, unless waived 
        by the Secretary for good cause.
            (C) Participation by third parties.--The Secretary or 
        designee may enter into such agreements, provide such 
        concessions, incur such costs, make such grants (including 
        grants to cover all or a portion of the rehabilitation costs for 
        a project) and other payments, and provide other valuable 
        consideration as may reasonably be necessary for owners, 
        lenders, servicers, third parties, and other entities to 
        participate in the demonstration program. The Secretary may 
        establish performance incentives for designees.
            (D) Section 8 administrative fees.--Notwithstanding any 
        other provision of law, the Secretary may make fees available 
        from the section 8 contract renewal appropriation to a designee 
        for contract administration under section 8 of the United States 
        Housing Act of 1937 for purposes of any contract restructured or 
        renewed under the demonstration program.
            (E) Full or partial payment of claim.--Notwithstanding any 
        other provision of law, the Secretary may make a full payment of 
        claim or partial payment of claim prior to default.
            (F) Credit enhancement.--
                (i) In general.--The Secretary or designee may provide 
            FHA multifamily mortgage insurance, reinsurance, or other 
            credit enhancement alternatives, including retaining the 
            existing FHA mortgage insurance on a restructured first 
            mortgage at market value or using the multifamily risk-
            sharing mortgage programs, as provided under section 542 of 
            the Housing and Community Development Act of 1992. Any 
            limitations on the number of units available for mortgage 
            insurance under section 542 shall not apply to insurance 
            issued for purposes of the demonstration program.
                (ii) Maximum percentage.--During fiscal year 1997, not 
            more than 25 percent of the units in multifamily housing 
            projects with expiring contracts in the demonstration, in 
            the aggregate, may be restructured without FHA insurance, 
            unless otherwise agreed to by the owner of a project.
                (iii) Credit subsidy.--Any credit subsidy costs of 
            providing mortgage insurance shall be paid from amounts made 
            available under subsection (l).
            (G) Mortgage restructuring.--
                (i) In general.--The Secretary or designee may 
            restructure mortgages to provide a restructured first 
            mortgage to cover debt service and operating expenses 
            (including a reasonable rate of return to the owner) at the 
            market rent, and a second mortgage equal to the difference 
            between the restructured first mortgage and the mortgage 
            balance of the eligible multifamily housing project at the 
            time of restructuring.
                (ii) Credit subsidy.--Any credit subsidy costs of 
            providing a second mortgage shall be paid from amounts made 
            available under subsection (l).
            (H) Debt forgiveness.--The Secretary or designee, for good 
        cause and at the request of the owner of a multifamily housing 
        project, may forgive at the time of the restructuring of a 
        mortgage any portion of a debt on the project that exceeds the 
        market value of the project.
            (I) Budget-based rents.--The Secretary or designee may renew 
        an expiring contract, including a contract for a project

[[Page 575]]

        in which operating costs exceed comparable market rents, for a 
        period of not more than one year, at a budget-based rent that 
        covers debt service, reasonable operating expenses (including 
        all reasonable and appropriate services), and a reasonable rate 
        of return to the owner, as determined solely by the Secretary, 
        provided that the contract does not exceed the rent levels under 
        the expiring contract. The Secretary may establish a preference 
        under the demonstration program for budget-based rents for 
        unique housing projects, such as projects designated for 
        occupancy by elderly families and projects in rural areas.
            (J) Section 8 tenant-based assistance.--For not more than 10 
        percent of units in multifamily housing projects that have had 
        their mortgages restructured in any fiscal year under the 
        demonstration, the Secretary or designee may provide, with the 
        agreement of an owner and in consultation with the tenants of 
        the housing, section 8 tenant-based assistance for some or all 
        of the assisted units in a multifamily housing project in lieu 
        of section 8 project-based assistance. Section 8 tenant-based 
        assistance may only be provided where the Secretary determines 
        and certifies that there is adequate available and affordable 
        housing within the local area and that tenants will be able to 
        use the section 8 tenant-based assistance successfully.
        (2) Offer and acceptance.--Notwithstanding any other provision 
    of law, an owner of a project in the demonstration must accept any 
    reasonable offer made by the Secretary or a designee under this 
    subsection. An owner may appeal the reasonableness of any offer to 
    the Secretary and the Secretary shall respond within 30 days of the 
    date of appeal with a final offer. If the final offer is not 
    acceptable, the owner may opt out of the program.
     (i) Community and Tenant Input.--In carrying out this section, the 
Secretary shall develop procedures to provide appropriate and timely 
notice, including an opportunity for comment and timely access to all 
relevant information, to officials of the unit of general local 
government affected, the community in which the project is situated, and 
the tenants of the project.
     (j) Transfer of Property.--The Secretary shall establish procedures 
to facilitate the voluntary sale or transfer of multifamily housing 
projects under the demonstration to tenant organizations and tenant-
endorsed community-based nonprofit and public agency purchasers meeting 
such reasonable qualifications as may be established by the Secretary.
     (k) Limitation on Demonstration Authority.--The Secretary shall 
carry out the demonstration program with respect to mortgages not to 
exceed 50,000 units.
     (l) Funding.--In addition to the $30,000,000 made available under 
section 210 of the Departments of Veterans Affairs and Housing and Urban 
Development and Independent Agencies Appropriations Act, 1996 (110 Stat. 
1321), for the costs (including any credit subsidy costs associated with 
providing direct loans or mortgage insurance) of modifying and 
restructuring loans held or guaranteed by the Federal Housing 
Administration, as authorized under this section, $10,000,000 is hereby 
appropriated, to remain available until September 30, 1998.
     (m) Report to Congress.--
         (1) In general.--
             (A) Quarterly reports.--Not less than every 3 months, the 
        Secretary shall submit to the Congress a report describing and 
        assessing the status of the projects in the demonstration 
        program.
             (B) Final report.--Not later than 6 months after the end of 
        the demonstration program, the Secretary shall submit to the 
        Congress a final report on the demonstration program.
         (2) Contents.--Each report submitted under paragraph (1)(A) 
    shall include a description of--
             (A) each restructuring proposal submitted by an owner of a 
        multifamily housing project, including a description of the 
        physical, financial, tenancy, and market characteristics of the 
        project;
             (B) the Secretary's evaluation and reasons for each 
        multifamily housing project selected or rejected for 
        participation in the demonstration program;
             (C) the costs to the FHA General Insurance and Special Risk 
        Insurance funds;
             (D) the subsidy costs provided before and after 
        restructuring;
             (E) the actions undertaken in the demonstration program, 
        including the third-party arrangements made; and
             (F) the demonstration program's impact on the owners of the 
        projects, including any tax consequences.
         (3) Contents of final report.--The report submitted under 
    paragraph (1)(B) shall include--
             (A) the required contents under paragraph (2); and (B) any 
        findings and recommendations for legislative action.]
    [Sec. 213. Hawaiian Home Lands.--Section 282 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12832) is amended by 
adding at the end the following new sentence: ``The Secretary may waive 
this section in connection with the use of funds made available under 
this title on lands set aside under the Hawaiian Homes Commission Act, 
1920 (42 Stat. 108).''.]
    [Sec. 214. Uses of Certain Assisted Housing Amounts.--(a) Transfer 
Authority.--The Secretary may transfer recaptured section 8 amounts from 
the Annual Contributions for Assisted Housing account under Public Law 
104-134 (approved April 26, 1996; 110 Stat. 1321, 1321-265) and prior 
laws to the accounts and for the purposes set forth in subsection (b). 
The amounts transferred under this section shall be made available for 
use as prescribed under this section notwithstanding section 8(bb) of 
the United States Housing Act of 1937.
    (b) Receiving Accounts.--
         (1) Prevention of resident displacement.--The Secretary may 
    transfer to the Prevention of Resident Displacement account an 
    amount up to $50,000,000, in addition to amounts in such account, 
    that may be used to extend, under existing terms and conditions, 
    existing project-based section 8 contracts in effect before a Plan 
    of Action was approved, so that these contracts expire 5 years from 
    the date on which funds were obligated for the Plan of Action 
    approved under the Low-Income Housing Preservation and Resident 
    Homeownership Act of 1990 or the Emergency Low Income Housing 
    Preservation Act of 1987. The Secretary shall transfer all amounts 
    that the Secretary determines to be necessary for fiscal year 1997 
    for the purposes of this paragraph before transferring any amounts 
    under any other paragraph in this subsection.
        (2) HOPWA.--The Secretary may transfer to the Housing 
    Opportunities for Persons with AIDS account up to $25,000,000, for 
    use in addition to amounts appropriated in such account.]
    [Sec. 215. Requirement for HUD To Maintain Public Notice and Comment 
Rulemaking.--The Secretary of Housing and Urban Development shall 
maintain all current requirements under part 10 of the Department of 
Housing and Urban Development's regulations (24 CFR part 10) with 
respect to the Department's policies and procedures for the promulgation 
and issuance of rules, including the use of public participation in the 
rulemaking process.]
    [Sec. 216. Community Development Block Grants.--Section 102(a)(6)(D) 
of the Housing and Community Development Act of 1974 (42 U.S.C. 
5302(a)(6)(D)) is amended--
         (1) in clause (iv), by striking ``or'' at the end;
         (2) in clause (v), by striking the period at the end and 
    inserting ``; or''; and
         (3) by adding at the end the following new clause:
             ``(vi) has entered into a local cooperation agreement with 
        a metropolitan city that received assistance under section 106 
        because of such classification, and has elected under paragraph 
        (4) to have its population included with the population of the 
        county for the purposes of qualifying as an urban county, except 
        that to qualify as an urban county under this clause, the county 
        must--
                 ``(I) have a combined population of not less than 
            210,000, excluding any metropolitan city located in the 
            county that is not relinquishing its metropolitan city 
            classification, according to the 1990 decennial census of 
            the Bureau of the Census of the Department of Commerce;
                 ``(II) including any metropolitan cities located in the 
            county, have had a decrease in population of 10,061 from 
            1992 to 1994, according to the estimates of the Bureau of 
            the Census of the Department of Commerce; and
                 ``(III) have had a Federal naval installation that was 
            more than 100 years old closed by action of the Base Closure 
            and Realignment Commission appointed for 1993 under the Base 
            Closure and Realignment Act of 1990, directly resulting in a 
            loss of employment by more than 7,000 Federal Government 
            civilian employees and more than 15,000 active duty military 
            personnel, which naval installation was located within one 
            mile of an enterprise community designated by the Secretary 
            pursuant to section 1391 of the Internal Revenue Code of 
            1986, which enterprise community has a population of not 
            less than 20,000, according to the 1990 decennial census of 
            the Bureau of the Census of the Department of Commerce.''.]

[[Page 576]]

    [Sec. 217. Fair Housing and Free Speech.--None of the amounts made 
available under this Act may be used during fiscal year 1997 to 
investigate or prosecute under the Fair Housing Act any otherwise lawful 
activity engaged in by one or more persons, including the filing or 
maintaining of a nonfrivolous legal action, that is engaged in solely 
for the purpose of achieving or preventing action by a government 
official or entity, or a court of competent jurisdiction.]
    [Sec. 218. Account Transition.--The amounts of obligated balances in 
appropriations accounts, as set forth in title II of the Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 and prior Acts that are recaptured 
hereafter, to the extent not governed by the specific language in an 
account or provision in this Act, shall be held in reserve subject to 
reprogramming, notwithstanding any other provision of law.]
    [Sec. 219. Treatment of Certain Properties.--Notwithstanding any 
other provision of law, rehabilitation activities undertaken in projects 
using the Low-Income Housing Tax Credit allocated to developments in the 
city of New Brunswick, New Jersey, in 1991, are deemed to have met the 
requirements for rehabilitation in accordance with clause (ii) of the 
third sentence of section 8(d)(2)(A) of the United States Housing Act of 
1937, as in effect before the date of the enactment of this Act.]
    [Sec. 220. Amendment Relating to Community Development Assistance.--
Section 105(a) of the Housing and Community Development Act of 1974 (42 
U.S.C. 5305(a)(8)) is amended by striking ``through 1997'' and inserting 
``through 1998''.]
    [Sec. 221. Section 236 Program Amendments.--(a) Section 236(f)(1) of 
the National Housing Act (12 U.S.C. 1715z-1), as amended by section 
405(d)(1) of The Balanced Budget Downpayment Act, I, and by section 
228(a) of The Balanced Budget Downpayment Act, II, is amended--
         (1) in the second sentence, by striking ``the lower of (i)'';
         (2) in the second sentence, by striking ``or (ii) the fair 
    market rental established under section 8(c) of the United States 
    Housing Act of 1937 for the market area in which the housing is 
    located, or (iii) the actual rent (as determined by the Secretary) 
    paid for a comparable unit in comparable unassisted housing in the 
    market area in which the housing assisted under this section is 
    located,''; and
         (3) by inserting after the second sentence the following: 
    ``However, in the case of a project which contains more than 5,000 
    units, is subject to an interest reduction payments contract, and is 
    financed under a State or local program, the Secretary may reduce 
    the rental charge ceiling, but in no case shall the rent be below 
    basic rent. For plans of action approved for Capital Grants under 
    the Low-Income Housing Preservation and Resident Homeownership Act 
    of 1990 (LIHPRHA) or the Emergency Low Income Housing Preservation 
    Act of 1987 (ELIHPA), the rental charge for each dwelling unit shall 
    be at the basic rental charge or such greater amount, not exceeding 
    the lower of (i) the fair market rental charge determined pursuant 
    to this paragraph, or (ii) the actual rent paid for a comparable 
    unit in comparable unassisted housing in the market area in which 
    the housing assisted under this section is located, as represents 30 
    percent of the tenant's adjusted income, but in no case shall the 
    rent be below basic rent.''.
     (b) Section 236(f) of the National Housing Act is amended by adding 
the following new paragraph at the end:
             ``(7) The Secretary shall determine whether and under what 
        conditions the provisions of this subsection shall apply to 
        mortgages sold by the Secretary on a negotiated basis.''.
     (c) Section 236(g) of the National Housing Act is amended to read 
as follows:
    ``The project owner shall, as required by the Secretary, accumulate, 
safeguard, and periodically pay the Secretary or such other entity as 
determined by the Secretary and upon such terms and conditions as the 
Secretary deems appropriate, all rental charges collected on a unit-by-
unit basis in excess of the basic rental charges. Unless otherwise 
directed by the Secretary, such excess charges shall be credited to a 
reserve fund to be used by the Secretary to make additional assistance 
payments as provided in paragraph (3) of subsection (f). However, a 
project owner with a mortgage project use if authorized by the Secretary 
and upon such terms and conditions insured under this section may retain 
some or all of such excess charges for project use if authorized by the 
Secretary and upon such terms and conditions as established by the 
Secretary.''.]
    Sec. 205. Transfers Between Appropriations.--Not to exceed 2 percent 
of any appropriation or earmarked amount made available for the current 
fiscal year in this Act may be transferred between such appropriations 
or earmarked amounts, but no such appropriations or earmarked amounts 
shall be increased or decreased by more than 2 percent by any such 
transfers. (Department of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997.)