    [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 1999

    [[Page 437]]

                   DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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

        For the past 4 years, the Department has been engaged in a
    reinvention process which has emphasized: addressing homelessness
    through comprehensive continuum of care strategies; transforming public
    and assisted housing; enhancing homeownership opportunities through new
    national and local partnerships; reducing racial barriers to housing;
    and, encouraging locally-driven solutions and leveraging private sector
    investment through initiatives like consolidated planning, and
    Empowerment Zones and Enterprise Communities. Emphasis has also been
    placed on reinventing HUD, itself. The 1999 Budget continues to move
    toward a ``right-side up'' Cabinet Department that is organized,
    staffed, and empowered to respond to locally driven priorities rather
    than Federal dictates.

        The 1999 Budget request would continue funding the Community
    Development Block Grant (CDBG) program at an increased level. This
    program will continue to use a formula approach for allocating funds for
    a wide range of community and economic development activities. The
    Community Development Loan Guarantee program will also be maintained to
    enable communities to borrow in the private market with a Federal
    guarantee. Communities must develop consolidated plans which identify
    local needs and priorities in order to tap into CDBG and other HUD
    funds.

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

        The Homeless Assistance Grants program consolidated HUD's six
    Stewart B. McKinney homeless assistance programs. This program enables
    communities to continue their development and implementation of
    comprehensive, coordinated continuum of care systems to address the
    needs of homeless people and families. Homeless programs are maintained
    in their current structure although they are increased and augmented by
    incremental vouchers.

        Major changes in funding levels and approach will occur in community
    and economic development programs. Significant funding is included for
    an Economic Development Initiative/Community Empowerment Fund program to
    finance a variety of economic development efforts and to help establish
    a secondary market for expanded and improved operation of the Section
    108 Loan Guarantee program. Proposed as separate programs are: Lead
    Hazard Reduction, Homeownership Zones, and Urban Empowerment Zones,
    (which is proposed as a ten year mandatory program). Several set-asides
    remain within the block grant program including Regional Connections,
    Supportive Services, Section 107 and Grants to Indian tribes.

        The HOPE VI, Public and Indian Housing Operating Fund, and the
    Public Housing Capital Fund retain their current form. In total, the
    budget will provide almost 140,000 new or replacement subsidies and
    would provide for the renewal of all expiring units. The Housing
    Certificate Fund and the homeless and elderly/disabled programs account
    for approximately 90,000 new or replacement subsidies. Also, an
    Administrative Fee Bonus program is proposed as part of the President's
    Housing Mobility Initiative.

        In addition, a new separate account is proposed for 50,000 new
    Welfare-to-Work vouchers as a part of the President's Welfare-to-Work
    Initiative.

        FHA and GNMA programs are retained, although the FHA guarantee
    limitation is proposed to be increased to the conforming limit, and
    separate funding within the program account for contractual support is
    requested to conform with credit reform rules.

                            PUBLIC AND INDIAN HOUSING

                                  Federal Funds

    General and special funds:

                            Housing Certificate Fund

                         (including transfers of funds)

        For activities and assistance to prevent the involuntary
    displacement of low-income families, the elderly and the disabled
    because of the loss of affordable housing stock, expiration of subsidy
    contracts (other than contracts for which amounts are provided under
    another heading in this Act) or expiration of use restrictions, or other
    changes in housing assistance arrangements, and for other purposes,
    [$9,373,000,000] $8,981,187,705, to remain available until expended:
    Provided, That of the total amount provided under this heading,
    [$8,180,000,000] $7,190,645,675 shall be for assistance under the United
    States Housing Act of 1937 (42 U.S.C. 1437) for use in connection with
    expiring or terminating section 8 subsidy contracts, [for enhanced
    vouchers as provided under the ``Preserving Existing Housing
    Investment'' account in the Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act, 1997
    (Public Law 104-204),] and contracts entered into pursuant to section
    441 of the Stewart B. McKinney Homeless Assistance Act: Provided
    further, That the Secretary may determine not to apply section
    8(o)(6)(B) of the Act to housing vouchers during fiscal year [1998]
    1999: Provided further, That of the total amount provided under this
    heading, [$850,000,000] $1,337,000,000 shall be for amendments to
    section 8 contracts other than contracts for projects developed under
    section 202 of the Housing Act of 1959, as amended: Provided further,
    That of the total amount provided under this heading, [$343,000,000
    shall be for section 8 rental assistance under the United States Housing
    Act of 1937 including assistance to relocate residents of properties:
    (1) that are owned by the Secretary and being disposed of; or (2) that
    are discontinuing section 8 project-based assistance; for the conversion
    of section 23 projects to assistance under section 8; for funds to carry
    out the family unification program; and for the relocation of witnesses
    in connection with efforts to combat crime in public and assisted
    housing pursuant to a request from a law enforcement or prosecution
    agency: Provided further, That of the total amount made available in the
    preceding proviso, $40,000,000 shall be made available to nonelderly
    disabled families affected by the designation of a public housing
    development under section 7 of such Act, the establishment of
    preferences in accordance with section 651 of the Housing and Community
    Development Act of 1992 (42 U.S.C. 1361l), or the restriction of
    occupancy to elderly families in accordance with section 658 of such
    Act, and to the extent the Secretary determines that such amount is not
    needed to fund applications for such affected families, to other
    nonelderly disabled families: Provided further, That the amount made
    available under the fifth proviso under the heading ``Prevention of
    Resident Displacement'' in title II of the Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 1997, Public Law 104-204, shall also be made
    available to nonelderly disabled families affected by the restriction of
    occupancy to elderly families in accordance with section 658 of the
    Housing and Community Development Act of 1992: Provided further, That to
    the extent the Secretary determines that the amount made available under
    the fifth proviso under the heading ``Prevention of Resident
    Displacement'' in title II of the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1997, Public Law 104-204, is not needed to fund applications for
    affected families described in the fifth proviso, or in the preceding
    proviso under this heading in this Act, the amount not needed shall be
    made available to other nonelderly disabled fami-

    [[Page 438]]

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0319-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Contract renewals.................         756      11,215       7,191
    00.02 Section 8 amendments..............         401       1,228       1,337
    00.03 Relocation & other................          30         661         393
    00.04 Preservation amendments...........          17           8
    00.05 Incremental rental assistance.....                                  60
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................       1,204      13,112       8,981
    ----------------------------------------------------------------------------

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

            Uninvested:
    21.40     Uninvested....................                   2,306
    21.40     Uninvested....................                   1,180
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............                   3,486
    22.00 New budget authority (gross)......       4,690       9,373       8,981
    22.22 Unobligated balance transferred
            from other accounts.............                     253
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,690      13,112       8,981
    23.95 New obligations...................      -1,204     -13,112      -8,981
          Unobligated balance available, end of year:

            Uninvested:
    24.40     Uninvested....................       2,306
    24.40     Uninvested....................       1,180
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................       3,486
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       4,640       9,373       8,981
    42.00 Transferred from other accounts...          50
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........       4,690       9,373       8,981
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,690       9,373       8,981
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                   1,011      15,219
    73.10 New obligations...................       1,204      13,112       8,981
    73.20 Total outlays (gross).............        -193      -4,780      -6,394
    73.32 Obligated balance transferred from
            other accounts..................                   5,876
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...       1,011      15,219      17,806
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         193         478         898
    86.93 Outlays from current balances.....                   4,302       5,496
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         193       4,780       6,394
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,690       9,373       8,981
    90.00 Outlays...........................         193       4,780       6,394
    ---------------------------------------------------------------------------

        The funds requested will support the following activities for 1999:

        1. Contract Renewals. Contract renewals provide funding to renew
    expiring Section 8 rental assistance contracts covering certificates,
    vouchers, and moderate rehabilitation (renewed as certificates or
    vouchers), Loan Management, New Construction/Substantial Rehabilitation,
    Property Disposition, and Preservation. In 1999, $7.2 billion is
    requested to support 2 million units.

        2. Section 8 Amendments. The need for amendment funding results from
    insufficient funding being provided for long-term contracts funded in
    the 1970's and 1980's. During those years, the Department provided
    contracts for terms of up to 40 years. Estimating funding needs over
    such a long period of time proved to be problematic, and as a result
    many of these Section 8 contracts were inadequately funded. The current
    practice of providing contracts for 1-year terms helps to ensure that
    the problem of inadequately funded contracts is not repeated. However,
    older long-term contracts must still be provided additional funding to
    maintain the current inventory of assisted rental housing. For 1999,
    $1,800 million is proposed for Section 8 Amendment contracts. This is
    partially offset by $463 million in recaptures, resulting in a net
    requirement of $1,337 million in budget authority in 1999.

        3. Incremental Rental Assistance. For 1999, the Department is
    requesting $60 million in budget authority to support a total of 10,655
    incremental certificates and vouchers. A portion of this assistance may
    be used for family unification, witness relocation, settlement of
    litigation, section 23 conversions, and for families exercising
    portability.

    Public and Indian Housing

        Regional Opportunity Counseling. The Department is committed to
    increasing the housing opportunities available to low-income families.
    The Budget request includes $20 million to pay for special counseling
    conducted by public housing agencies in partnership with local non-
    profit agencies to expand housing opportunities and deconcentrate the
    number of families living in high poverty neighborhoods.

        Some of the results the Department expects to receive by providing
    intense regional opportunity counseling include: (1) expanding landlord
    participation in the Section 8 program and increases in the number and
    diversity of neighborhoods in which Section 8 recipients locate; (2)
    assisting and encouraging Section 8 families to move to low poverty
    neighborhoods that offer high quality housing, education, and employment
    opportunities; (3) addressing existing barriers to mobility and choice
    in the Section 8 program, including administrative barriers to
    portability; (4) promoting greater cooperation and joint problem-solving
    among Section 8 programs operating in a metropolitan housing market;
    and, (5) creating or strengthening institutions that administer the
    Section 8 program on a regional basis, including the provision of
    regional mobility counseling.

        Family Self-Sufficiency (FSS) Coordinators. In 1990, the National
    Affordable Housing Act established the Family Self-Sufficiency Program.
    In establishing the program, Congress mandated that any housing agency
    that received any funding for rental vouchers and certificates in 1993
    and subsequent would be required to establish a self-sufficiency program
    equal to the number of rental vouchers or certificates received.

        Since that time Congress has appropriated funds to support
    approximately one service coordinator in approximately 375 Public
    Housing Authorities over a 3-year period. The PHAs that receive the
    special funding for FSS service coordinators were the smallest agencies
    that administered less than 1,000 rental vouchers and certificates.

    [[Page 439]]

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

    Housing

        Tenant Protection Set-Asides. The Housing Certificate Fund also
    serves a role in supporting families in FHA-insured, privately owned
    assisted housing projects affected by changes in project status. It is
    intended that income-eligible families who, through no fault of their
    own, are affected by HUD's management of the multifamily inventory be
    aided through the Housing Certificate Fund.

        The $373 million requested for 1999 Housing tenant protections will
    be used to provide funding for an estimated 17,000 preservation
    prepayment vouchers, and for 15,000 vouchers for residents in properties
    which are proposed for disposition from the assisted housing inventory,
    voluntarily terminating project-based assistance, terminations due to
    HUD housing quality enforcement actions, or which are undergoing
    portfolio re-engineering.

        Of this amount, $130 million is included for Housing tenant
    protections to accommodate the more aggressive enforcement activities of
    the Department, including the cost of relocating affected families, and
    to address the potential need to modify current assistance payment
    standards and eligibility to avoid undue hardship or displacement of
    currently assisted families.

                        Welfare to Work Housing Vouchers

        For tenant-based assistance under the United States Housing Act of
    1937 to help eligible families make the transition from welfare to work,
    $283,000,000, to be administered by public housing agencies (including
    Indian housing authorities, as defined by the Secretary of Housing and
    Urban Development), and to remain available until expended: Provided,
    That families initially selected to receive assistance under this head
    (a) shall be eligible to receive, shall be currently receiving, or shall
    have received within the preceding year, assistance or services funded
    under the Temporary Assistance for Needy Families (TANF) program under
    part A of title IV of the Social Security Act or as part of a State's
    qualified State expenditure under section 409(a)(7)(B)(i) of such Act;
    (b) shall be determined by the agency to be families for which tenant-
    based housing assistance is critical to successfully obtaining or
    retaining employment; and (c) shall not already be receiving tenant-
    based assistance: Provided further, That each application shall (a)
    describe the proposed program, which shall be developed by the public
    housing agency in consultation with the State, local or Tribal entity
    administering the TANF program and the entity, if any, administering the
    Welfare-to-Work grants allocated by the United States Department of
    Labor pursuant to section 403(a)(5)(A) of the Social Security Act, and
    which shall take into account the particular circumstances of the
    community; (b) demonstrate that tenant-based housing assistance is
    critical to the success of assisting eligible families to obtain or
    retain employment; (c) specify the criteria for selecting among eligible
    families to receive housing assistance under this head; (d) describe the
    proposed strategy for tenant counseling and housing search assistance
    and landlord outreach; (e) include any requests for waivers of any
    administrative requirements or any provisions of the United States
    Housing Act of 1937, with a demonstration of how approval of the waivers
    would substantially further the objective of this head; (f) include
    certifications from the State, local, or Tribal entity administering
    assistance under the TANF program and from the entity, if any,
    administering the Welfare-to-Work grants allocated by the United States
    Department of Labor, that the entity supports the proposed program and
    will cooperate with the public housing agency that administers the
    housing assistance to assure that such assistance is coordinated with
    other welfare reform and welfare to work initiatives; however, if either
    does not respond to the public housing agency within a reasonable time
    period, its concurrence shall be assumed, and if either objects to the
    application, its concerns shall accompany the application to the
    Secretary, who shall take them into account in this funding decision;
    and (g) include such other information as the Secretary may require and
    meet such other requirements as the Secretary may establish: Provided
    further, That the Secretary, after consultation with the Secretary of
    Health and Human Services and the Secretary of Labor, shall select
    public housing agencies to receive assistance under this head on a
    competitive basis, taking into account the need for and quality of the
    proposed program (including innovative approaches), the extent to which
    the assistance will be coordinated with welfare reform and welfare to
    work initiatives, the extent to which the application demonstrates that
    tenant-based assistance is critical to the success of assisting eligible
    families to obtain or retain employment, and other appropriate criteria
    established by the Secretary: Provided further, That the Secretary may
    waive any administrative requirement or any provision of the United
    States Housing Act of 1937 if the Secretary determines that the waiver
    would substantially further the objective of the assistance under this
    head, and in the event of any waiver, may make provision for alternative
    conditions or terms where appropriate: Provided further, That the
    Secretary may use up to one percent of the amount available under this
    head, directly or indirectly, to conduct detailed evaluations of the
    effect of providing assistance under this head.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0321-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Welfare-to-work housing assistance                                 283
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                 283
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 283
    23.95 New obligations...................                                -283
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 283
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 283
    73.20 Total outlays (gross).............                                 -27
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                 256
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                  27
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 283
    90.00 Outlays...........................                                  27
    ---------------------------------------------------------------------------

        These funds would provide 50,000 housing vouchers to be used to help
    families make the transition from welfare to work. Lack of affordable,
    stable housing, or housing located close to employment, impedes the
    efforts of families moving from welfare to work. These vouchers will
    provide States and communities with a new flexible tool to help families
    who need housing assistance in order to achieve self-sufficiency.

        The additional vouchers will be available on a competitive basis to
    the local housing agencies, including Indian housing authorities. Local
    housing agencies will submit an application plan, developed in
    consultation with the State, local, or Tribal welfare agency and the
    local Welfare-To-Work formula funds grantee (generally the local Private
    Industry Council), allowing both state and local participation in the
    effort. The vouchers will be used where they are essential to a
    successful transition from welfare to work, that is, where housing
    assistance is critical for a family to achieve or maintain employment.
    For example, a family could use a welfare-to-work housing voucher to
    move to an area where there are more job opportunities, to reduce an
    extremely long commute, or to stabilize its housing situation in order
    to improve attendance and performance at work.

        Families who receive the vouchers must initially be eligible for, or
    be currently receiving, Temporary Assistance for Needy

    [[Page 440]]

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

                     Section 8 Reserve Preservation Account

        The amounts recaptured during fiscal year [1998] 1999 that were
    heretofore made available to public housing agencies for tenant-based
    assistance under the section 8 existing housing certificate and housing
    voucher programs from the Annual Contributions for Assisted Housing
    account shall be collected in the account under this heading, for use as
    provided for under this heading, as set forth under the Annual
    Contributions for Assisted Housing heading in chapter 11 of Public Law
    105-18, approved June 12, 1997. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0316-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Contract Renewals.................                     700       3,652
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                     700       3,652
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                   4,202       3,652
    22.00 New budget authority (gross)......                    -550
    22.22 Unobligated balance transferred
            from other accounts.............       4,202         700
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,202       4,352       3,652
    23.95 New obligations...................                    -700      -3,652
    24.40 Unobligated balance available, end
            of year: Uninvested.............       4,202       3,652
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.36 Unobligated balance rescinded.....                    -550
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                                 350
    73.10 New obligations...................                     700       3,652
    73.20 Total outlays (gross).............                    -350      -2,176
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                     350       1,826
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....                     350       2,176
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                    -550
    90.00 Outlays...........................                     350       2,176
    ---------------------------------------------------------------------------

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

                    Annual Contributions For Assisted Housing

                 [(including rescission and transfer of funds)]

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0164-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Lower income housing..............         879       4,407
    00.02 Public and Indian housing.........       1,327
    00.03 Elderly/disabled grants...........       1,340
    00.04 Other programs....................          53
    00.05 Contract renewals.................       1,463
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................       5,062       4,407
    ----------------------------------------------------------------------------

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

            Uninvested:
    21.40     Uninvested....................       1,981         495
    21.40     Uninvested....................       8,029       4,090
    21.49   Contract authority..............          89          73
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............      10,099       4,658
    22.00 New budget authority (gross)......      -3,725
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       7,780         700
    22.21 Unobligated balance transferred to
            other accounts..................      -4,245        -968
    22.22 Unobligated balance transferred
            from other accounts.............                      17
    22.75 Balance of contract authority
            withdrawn.......................        -190
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       9,719       4,407
    23.95 New obligations...................      -5,062      -4,407
          Unobligated balance available, end of year:

            Uninvested:
    24.40     Uninvested....................         495
    24.40     Uninvested....................       4,090
    24.49   Contract authority..............          73
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................       4,658
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.36   Unobligated balance rescinded...      -3,650
    41.00   Transferred to other accounts...         -75
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........      -3,725
          Permanent:

    60.05   Appropriation (indefinite)......         595      10,706       7,552
    60.49   Portion applied to liquidate
              contract authority............        -595     -10,706      -7,552
                                               ---------   ---------  ----------
    63.00     Appropriation (total).........
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      -3,725
    ----------------------------------------------------------------------------

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

            Obligated balance:
    72.40     Uninvested....................      52,400      29,723        -700
    72.49     Contract authority............      56,034      55,249      59,591
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............     108,434      84,972      58,891
    73.10 New obligations...................       5,062       4,407
    73.20 Total outlays (gross).............     -20,375     -10,869      -7,552
    73.31 Obligated balance transferred to
            other accounts..................        -368     -19,070
    73.32 Obligated balance transferred from
            other accounts..................                     150
    73.45 Adjustments in unexpired accounts.      -7,780        -700
          Unpaid obligations, end of year:

            Obligated balance:
    74.40     Uninvested....................      29,723        -700        -700
    74.49     Contract authority............      55,249      59,591      52,039
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................      84,972      58,891      51,339
    ----------------------------------------------------------------------------

    [[Page 441]]

        Outlays (gross), detail:
    86.93 Outlays from current balances.....      20,375      10,869       7,552
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -3,725
    90.00 Outlays...........................      20,375      10,869       7,552
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0164-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............      56,123      55,322      59,591
    0400  Appropriation to liquidate
            contract authority..............        -595     -10,706      -7,552
    0600  Balance of contract authority
            withdrawn.......................        -190
    0700  Balance, end of year..............      55,322      59,591      52,039
    ---------------------------------------------------------------------------

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

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

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

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

        This account provided funding for a wide range of housing assistance
    through the Low-Income Housing (Section 8), Housing for the Elderly and
    Disabled, and the Public and Indian Housing programs. In addition,
    various housing-related programs were carried out through funding
    provided under this account.

        The account now displays the spendout of all remaining balances.
    Pursuant to P.L. 105-65: (1) all balances for Public Housing
    Development, Modernization, Family Investment Centers, Public Housing
    Amendments, and Leave Adjustments were transferred to the Public Housing
    Capital Fund; (2) all balances for Section 8 Amendments and Contract
    Renewals were transferred to the Housing Certificate Fund; (3) all
    balances for the Supportive Housing for the Elderly and Supportive
    Housing for the Disabled were transferred to the Housing for Special
    Populations account; and, (4) all balances for Indian Housing were
    transferred to the Indian Housing Block Grants account. The $550 million
    rescission of recaptured 1998 and prior years section 8 reserves,
    enacted in the fiscal year 1998 Appropriations Act, can be found under
    the Section 8 Reserve Preservation Account.

                     Preserving Existing-Housing Investment

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0312-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Modernization.....................       1,186
    00.02 Preservation......................         336
    00.03 Operating Subsidies...............       2,786
    09.01 Operating Subsidies...............           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............       4,312
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                   1,445
    22.00 New budget authority (gross)......       5,757
    22.21 Unobligated balance transferred to
            other accounts..................                  -1,445
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,757
    23.95 New obligations...................      -4,312
    24.40 Unobligated balance available, end
            of year: Uninvested.............       1,445
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       5,753
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       5,757
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.90 Outlays from new current authority       1,483
    86.97 Outlays from new permanent
            authority.......................           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,487
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.45   Offsetting collections (cash)
              from: Offsetting governmental
              collections...................          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       5,753
    90.00 Outlays...........................       1,483
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0312-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....       4,308
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............       4,312
    ---------------------------------------------------------------------------

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

                           Public Housing Capital Fund

                         (including transfers of funds)

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

    [[Page 442]]

    (whether or not the housing is being modernized with assistance under
    this proviso) or tenant-based assistance, including, but not limited to,
    an annual resident survey, data collection and analysis, training and
    technical assistance by or to officials and employees of the Department
    and of public housing agencies and to residents in connection with the
    public housing [program] programs and for lease adjustments to section
    23 projects: [Provided further, That of the amount available under this
    heading, up to $5,000,000 shall be for the Tenant Opportunity Program:]
    Provided further, That all balances, as of September 30, [1997] 1998, 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,] for section 673 public housing service
    coordinators shall be transferred to and merged with amounts made
    available under this heading. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................                   3,782       2,550
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                   3,782       2,550
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                   2,500       2,550
    22.22 Unobligated balance transferred
            from other accounts.............                   1,282
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                   3,782       2,550
    23.95 New obligations...................                  -3,782      -2,550
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                   2,500       2,550
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                               7,270
    73.10 New obligations...................                   3,782       2,550
    73.20 Total outlays (gross).............                  -3,810      -3,509
    73.32 Obligated balance transferred from
            other accounts..................                   7,299
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                   7,270       6,311
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....                   3,810       3,511
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                   2,500       2,550
    90.00 Outlays...........................                   3,810       3,509
    ---------------------------------------------------------------------------

        The Public Housing Capital Fund, which is a comprehensive formula-
    driven program based on need, is designed to respond to the capital and
    management improvement requirements of public housing. The fund
    consolidates the following programs: public housing modernization;
    public housing development; Major Reconstruction of Obsolete Public
    Housing (MROP) Projects; public housing amendments; lease adjustments;
    and Family Investment Centers.

        The 1999 Budget proposes to transfer all balances reflected in the
    Annual Contributions for Assisted Housing account for the Public Housing
    Service Coordinators program to the Public Housing Capital Fund.

        Pursuant to P.L. 105-65, all balances for modernization and public
    housing development previously funded under the Annual Contributions for
    Assisted Housing and Preserving Existing Housing Investment accounts
    were transferred to the Public Housing Capital Fund.

                          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] $2,818,000,000, 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]. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0163-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating subsidies...............                   2,901       2,931
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                   2,901       2,931
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                                 113
    22.00 New budget authority (gross)......                   2,900       2,818
    22.22 Unobligated balance transferred
            from other accounts.............                     114
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                   3,014       2,931
    23.95 New obligations...................                  -2,901      -2,931
    24.40 Unobligated balance available, end
            of year: Uninvested.............                     113
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                   2,900       2,818
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.90 Outlays from new current authority                   1,392       1,353
    86.93 Outlays from current balances.....       1,529       1,698       1,508
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,529       3,090       2,861
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                   2,900       2,818
    90.00 Outlays...........................       1,529       3,090       2,861
    ---------------------------------------------------------------------------

        Operating subsidies are provided to public housing authorities
    (PHAs) to assist in funding the operation and maintenance expenses of
    public housing units in accordance with Section 9 of the United States
    Housing Act of 1937, as amended. Annual subsidy requirements are
    calculated on the basis of the Performance Funding System (PFS) formula.
    It is anticipated that sufficient funds will be available to provide 100
    percent of PFS requirements in 1999.

        Pursuant to P.L. 105-65, all balances of operating subsidy funding
    that were provided under the Preserving Existing Housing Investment
    account in 1997 were transferred to this account.

                 Drug Elimination Grants for Low-Income Housing

                         [(including transfer of funds)]

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

    [[Page 443]]

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0197-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          78         591         310
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................          78         591         310
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          68         281
    22.00 New budget authority (gross)......         290         310         310
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         359         591         310
    23.95 New obligations...................         -78        -591        -310
    24.40 Unobligated balance available, end
            of year: Uninvested.............         281
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         290         310         310
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         516         302         605
    73.10 New obligations...................          78         591         310
    73.20 Total outlays (gross).............        -291        -288        -273
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         302         605         642
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         291         288         273
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         290         310         310
    90.00 Outlays...........................         291         288         273
    ---------------------------------------------------------------------------

        The $310 million requested for this program in 1999 includes funding
    for technical assistance for drug elimination, operation safe home
    activities and the new approach anti-drug program.

        The Public Housing Drug Elimination Grants program has been
    authorized since 1988, and provides funds to Public Housing Authorities
    (PHAs) and Tribally Designated Housing Entities (TDHEs) for their anti-
    drug, anti-crime efforts. To combat the concentration of crime in and
    around public housing, staff and residents use these resources to
    increase police coverage and security as well as to provide alternative
    activities to residents. Eligible activities include reimbursing local
    law enforcement for additional services, security contracts,
    investigators, and training residents for volunteer resident programs.
    Recent appropriation acts have expanded the definition of crime beyond
    drug-related patrols, physical changes to enhance security, drug
    prevention, and intervention and treatment; thus allowing housing
    authorities greater scope in targeting crime and developing successful
    alternatives.

        Of the $310 million requested in 1999, $243.8 million will be
    targeted to PHA and TDHE grants and clearinghouse information services.
    In addition, $50 million will be available to HUD for: (1) technical
    assistance, training, and information dissemination; (2) Operation Safe
    Home; and, (3) the New Approach Anti-Drug program. An additional $16.2
    million is estimated to be available for other Federally assisted low-
    income housing grants.

         Revitalization of Severely Distressed Public Housing (Hope VI)

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0218-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         391         604         550
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................         391         604         550
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         539         698         644
    22.00 New budget authority (gross)......         550         550         550
                                               ---------   ---------  ----------

    [[Page 444]]

    23.90   Total budgetary resources
              available for obligation......       1,089       1,248       1,194
    23.95 New obligations...................        -391        -604        -550
    24.40 Unobligated balance available, end
            of year: Uninvested.............         698         644         644
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...       1,377       1,563       1,761
    73.10 New obligations...................         391         604         550
    73.20 Total outlays (gross).............        -205        -405        -524
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...       1,563       1,761       1,787
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         205         405         524
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         550         550         550
    90.00 Outlays...........................         205         405         524
    ---------------------------------------------------------------------------

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

                  [Native American] Indian Housing Block Grants

                         [(including transfer of funds)]

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Indian Housing Block Grants.......                     703         600
    00.02 Title VI Indian Federal Guarantees                       4
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                     707         600
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     600         600
    22.21 Unobligated balance transferred to
            other accounts..................                      -1
    22.22 Unobligated balance transferred
            from other accounts.............                     108
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                     707         600
    23.95 New obligations...................                    -707        -600
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                               2,400
    73.10 New obligations...................                     707         600
    73.20 Total outlays (gross).............                     -81        -240
    73.31 Obligated balance transferred to
            other accounts..................                      -3
    73.32 Obligated balance transferred from
            other accounts..................                   1,777
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                   2,400       2,760
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                      71          70
    86.93 Outlays from current balances.....                      10         170
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      81         240
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     600         600
    90.00 Outlays...........................                      81         240
    ---------------------------------------------------------------------------

        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 use performance measures and benchmarks that
    are consistent with the national goals of the program but can base these
    measures on the needs and priorities they establish in their own Indian
    housing plan.

        Pursuant to P.L. 105-65, all balances previously appropriated under
    Annual Contributions for Assisted Housing, Development of Additional New
    Subsidized Housing, Preserving Existing Housing Investment, HOME
    Investment Partnerships Program, Emergency Shelter Grants Program, and
    Homeless Assistance Funds identified for Indian Housing Authorities and
    other agencies primarily serving Indians or Indian areas were
    transferred to this account.

    Public enterprise funds:

                Low-Rent Public Housing--Loans and Other Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital investment: Loans to
            public housing agencies and
            Indian housing authorities......          82          60          50
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              33.0).........................          82          60          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          13           3           3
    22.00 New budget authority (gross)......         152         130         121
    22.60 Redemption of debt................         -80         -70         -71
                                               ---------   ---------  ----------

    [[Page 445]]

    23.90   Total budgetary resources
              available for obligation......          85          63          53
    23.95 New obligations...................         -82         -60         -50
    24.40 Unobligated balance available, end
            of year: Uninvested.............           3           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          85          60          50
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          67          70          71
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         152         130         121
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...       1,176       1,068         964
    73.10 New obligations...................          82          60          50
    73.20 Total outlays (gross).............        -189        -164        -149
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...       1,068         964         865
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          67          60          50
    86.98 Outlays from permanent balances...         122         104          99
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         189         164         149
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -65         -70         -71
    88.40     Non-Federal sources...........          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -67         -70         -71
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          85          60          50
    90.00 Outlays...........................         122          94          78
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,627       1,562       1,492
    1251  Repayments: Repayments and
            prepayments.....................         -65         -70         -71
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,562       1,492       1,421
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,861       3,586       3,306
    2251  Repayments and prepayments........        -275        -280        -280
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,586       3,306       3,026
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       3,586       3,306       3,026
    ---------------------------------------------------------------------------

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

        Since 1987, new reservations of capital funds for construction,
    acquisition, and modernization activities have been provided directly
    from the Annual Contributions and Public Housing Capital Fund
    appropriations.

        Operating results.--The actual and estimated net operating income
    for 1996, 1997, 1998, and 1999 follows:

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         112            108           104            100
    0102  Expense...........................        -127            -99           -95            -91
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............         -15              9             9              9
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,189          1,072           968            854
            Investments in US securities:
    1106      Receivables, net..............       1,726          1,656         1,585          1,513
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          45             45            35             24
    1602    Interest receivable.............           3              6             3              3
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -12            -13           -12            -12
    1604    Direct loans and interest
              receivable, net...............          36             38            26             15
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          36             38            26             15
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,951          2,766         2,579          2,382
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         198            189           181            173
    2104    Resources payable to Treasury...       1,627          1,561         1,491          1,420
    2207  Non-Federal liabilities: Other....           1              1             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,826          1,751         1,673          1,594
        NET POSITION:
    3100  Appropriated capital..............       1,076            972           866            757
    3300  Cumulative results of operations..          49             43            40             31
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       1,125          1,015           906            788
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,951          2,766         2,579          2,382
    -----------------------------------------------------------------------------------------------

    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),
    [$5,000,000] $6,000,000, to remain available until expended: Provided,
    That such costs, including the costs of modifying such loans, shall be
    as defined in section 502 of the Congressional Budget Act of 1974, as
    amended: Provided further, That these funds are available to subsidize
    total loan principal, any part of which is to be guaranteed, not to
    exceed [$73,800,000] $68,881,000.
        In addition, for administrative expenses to carry out the guaranteed
    loan program, up to $400,000, which shall be transferred to and merged
    with the appropriation for departmental salaries and expenses, to be
    used only for the administrative costs of these guarantees. (Departments
    of Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................           4           5           6
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................           4           5           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           4           5           6
    23.95 New obligations...................          -4          -5          -6
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1
    ----------------------------------------------------------------------------

    [[Page 446]]

        New budget authority (gross), detail:
    40.00 Appropriation.....................           3           5           6
    50.00 Reappropriation...................           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           4           5           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           5           6           8
    73.10 New obligations...................           4           5           6
    73.20 Total outlays (gross).............          -1          -3          -3
    73.40 Adjustments in expired accounts...          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           6           8          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1           1
    86.93 Outlays from current balances.....                       2           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           5           6
    90.00 Outlays...........................           1           3           3
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............          47          62          69
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....          47          62          69
        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..........           4           5           6
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..           4           5           6
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................           1           3           3
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           1           3           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 1992 and beyond (including modifications of
    guarantees that resulted from obligations in any year). The subsidy
    amounts are estimated on a net present value basis. The administrative
    expenses are shown on a cash basis.

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

        It is anticipated that the funding requested for 1999 will support
    420 loans.

              Indian Housing Loan Guarantee Fund Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           1           2           5
    22.00 New financing authority (gross)...           1           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           5           8
    24.40 Unobligated balance available, end
            of year: Uninvested.............           2           5           8
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Federal
            sources.........................           1           3           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources:
              Payments from program account.          -1          -3          -3
    ----------------------------------------------------------------------------

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          53          62          69
    2112  Uncommitted loan guarantee
            limitation......................          -6
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          47          62          69
    2199  Guaranteed amount of guaranteed
            loan commitments................          47          62          69
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           6          17          37
    2231  Disbursements of new guaranteed
            loans...........................          11          20          34
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          17          37          71
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          17          37          71
    ---------------------------------------------------------------------------

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4104-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           2              2             3              4
            Investments in US securities:
    1106      Receivables, net..............           1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           3              2             3              4
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           1              2             3              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              2             3              3
        NET POSITION:
    3100  Appropriated capital..............           2
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           2
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           3              2             3              3
    -----------------------------------------------------------------------------------------------

               Title VI Indian Federal Guarantees Program Account

                          (including transfer of funds)

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

    [[Page 447]]

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0322-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Title VI Indian Federal loan
            guarantees......................                                   6
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                   6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                                   1
    22.00 New budget authority (gross)......                                   5
    22.22 Unobligated balance transferred
            from other accounts.............                       1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       1           6
    23.95 New obligations...................                                  -6
    24.40 Unobligated balance available, end
            of year: Uninvested.............                       1
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    73.10 New obligations...................                                   6
    73.20 Total outlays (gross).............                                  -1
    73.32 Obligated balance transferred from
            other accounts..................                       3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                       3           5
    ----------------------------------------------------------------------------

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

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

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

    ----------------------------------------------------------------------------
    Identification code 86-0322-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............                                  44
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....                                  44
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................                               11.00
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...                               11.00
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........                                   5
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..                                   5
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................                                   1
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                                   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 1998 and beyond (including modifications of
    guarantees that resulted from obligations in any year), as well as
    administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

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

              Title VI Indian Federal Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                                   4
    22.00 New financing authority (gross)...                       4           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       4           9
    24.40 Unobligated balance available, end
            of year: Uninvested.............                       4           9
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                       4           5
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -4          -5
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -4          -5
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                      45          44
    2112  Uncommitted loan guarantee
            limitation......................
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                      45          44
    2199  Guaranteed amount of guaranteed
            loan commitments................                      45          44
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  11
    2231  Disbursements of new guaranteed
            loans...........................                      11          11
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                      11          22
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      11          22
    ---------------------------------------------------------------------------

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4244-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                                        4              5

    [[Page 448]]

            Investments in US securities:
    1106      Receivables, net..............
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                        4              5
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............
        NET POSITION:
    3100  Appropriated capital..............                                        4              5
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                        4              5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                        4              5
    -----------------------------------------------------------------------------------------------

                       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), [$204,000,000] $225,000,000, to remain available until expended:
    Provided, That up to 1 percent of such funds shall be available to the
    Secretary for technical assistance[: Provided, That of the amount made
    available under this heading for non-formula allocation, the Secretary
    may designate, on a noncompetitive basis, one or more nonprofit
    organizations that provide meals delivered to homebound persons with
    acquired immunodeficiency syndrome or a related disease to receive
    grants, not exceeding $250,000 for any grant, and the Secretary shall
    assess the efficacy of providing such assistance to such persons].
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0308-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing for AIDs victims..........         201         240         225
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................         201         240         225
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                      36
    22.00 New budget authority (gross)......         196         204         225
    22.22 Unobligated balance transferred
            from other accounts.............          41
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         237         240         225
    23.95 New obligations...................        -201        -240        -225
    24.40 Unobligated balance available, end
            of year: Uninvested.............          36
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         171         204         225
    42.00 Transferred from other accounts...          25
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........         196         204         225
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         196         204         225
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           4           5
    86.93 Outlays from current balances.....         126         164         171
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         130         168         176
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         196         204         225
    90.00 Outlays...........................         130         168         176
    ---------------------------------------------------------------------------

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

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

                       Community Development Block Grants

                         (including transfers of funds)

        For grants to States and units of general local government and for
    related expenses, not otherwise provided for, to carry out a community
    development grants program as authorized by title I of the Housing and
    Community Development Act of 1974, as amended (the ``Act'' herein) (42
    U.S.C. 5301), [$4,675,000,000] $4,725,000,000, to remain available until
    September 30, [2000] 2001: Provided, That $67,000,000 shall be for
    grants to Indian tribes notwithstanding section 106(a)(1) of such Act;
    [$2,100,000 shall be available as a grant to the Housing Assistance
    Council; $1,500,000 shall be available as a grant to the National
    American Indian Housing Council; $32,000,000] $50,000,000 shall be for
    grants pursuant to section 107 of such Act; [$7,500,000 shall be for the
    Community Outreach Partnership program; $16,700,000 shall be for grants
    pursuant to section 11 of the Housing Opportunity Program Extension Act
    of 1996 (Public Law 104-120)] $20,000,000 shall be provided to Habitat
    for Humanity: Provided further, That not to exceed 20 percent of any
    grant made with funds appropriated herein (other than [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.
        [Of the amount made available under this heading, $15,000,000 shall
    be made available for ``Capacity Building for Community Development and
    Affordable Housing'', as authorized by section 4 of the HUD
    Demonstration Act of 1993 (Public Law 103-120), as in effect immediately
    before June 12, 1997, with not less than $5,000,000 of the funding to be
    used in rural areas, including tribal areas.]
         Of the amount provided under this heading, the Secretary of Housing
    and Urban Development may use up to $55,000,000 for a public and
    assisted housing self-sufficiency program, of which [up to $5,000,000
    may be used for the Moving to Work Demonstration, and] at least
    $7,000,000 shall be used for grants for service coordinators and
    congregate services for the elderly and disabled: Provided, That for
    self-sufficiency activities, the Secretary may make grants to public
    housing agencies (including Indian tribes and their tribally designated
    housing entities), nonprofit corporations, and other appropriate
    entities for a supportive services program to assist residents of public
    and assisted housing, former residents of such housing receiving tenant-
    based assistance under section 8 of such Act (42 U.S.C. 1437f), and
    other low-income families and individuals: Provided further, That the
    program shall provide supportive services, principally for the benefit
    of public housing residents, to the elderly and the disabled, and to
    families with children where the head of household would benefit from
    the receipt of supportive services and is working,

    [[Page 449]]

    seeking work, or is preparing for work by participating in job training
    or educational programs: Provided further, That the supportive services
    may include congregate services for the elderly and disabled, service
    coordinators, and coordinated education, training, and other supportive
    services, including [academic] Case management skills training, job
    search assistance, assistance related to retaining employment,
    vocational and entrepreneurship development and support programs[,] such
    as transportation, and child care: Provided further, That the Secretary
    shall require applications to demonstrate firm commitments of funding or
    services from other sources: Provided further, That the Secretary shall
    select public and Indian housing agencies to receive assistance under
    this heading on a competitive basis, taking into account the quality of
    the proposed program, including any innovative approaches, the extent of
    the proposed coordination of supportive services, the extent of
    commitments of funding or services from other sources, the extent to
    which the proposed program includes reasonably achievable, quantifiable
    goals for measuring performance under the program over a three-year
    period, the extent of success an agency has had in carrying out other
    comparable initiatives, and other appropriate criteria established by
    the Secretary (except that this proviso shall not apply to renewal of
    grants for service coordinators and congregate services for the elderly
    and disabled).
        [Of the amount made available under this heading, notwithstanding
    any other provision of law, $35,000,000 shall be available for
    YouthBuild program activities authorized by subtitle D of title IV of
    the Cranston-Gonzalez National Affordable Housing Act, as amended, and
    such activities shall be an eligible activity with respect to any funds
    made available under this heading. Local YouthBuild programs that
    demonstrate an ability to leverage private and nonprofit funding shall
    be given a priority for YouthBuild funding.]
        [Of the amount made available under this heading, $25,000,000 shall
    be available for the Secretary, in consultation with the Secretary of
    Agriculture, to make grants, not to exceed $4,000,000 each, for rural
    and tribal areas, including at least one Native American area in Alaska
    and one rural area in each of the States of Iowa and Missouri, to test
    comprehensive approaches to developing a job base through economic
    development, developing affordable low- and moderate-income rental and
    homeownership housing, and increasing the investment of both private and
    nonprofit capital.]
        [Of the amount made available under this heading, $138,000,000 shall
    be available for the Economic Development Initiative (EDI) to finance a
    variety of efforts, including $100,000,000 for making grants for
    targeted economic investments in accordance with the terms and
    conditions specified for such grants in the conference report and the
    joint explanatory statement of the committee of conference accompanying
    this Act.]
        [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.]
        [Of the amount made available under this heading, $25,000,000,
    including $15,000,000 for the County of San Bernardino, California,
    shall be used for neighborhood initiatives that are utilized to improve
    the conditions of distressed and blighted areas and neighborhoods, and
    to determine whether housing benefits can be integrated more effectively
    with welfare reform initiatives.]
        Of the amount made available under this heading, $100,000,000 shall
    be for Regional Connections, for grants to facilitate existing and new
    coordinated regional approaches to economic growth, housing, and
    community development, and to encourage and stimulate the development of
    coordinated regional strategies that promote economic empowerment of a
    region's low- and moderate-income residents: Provided, That such grants
    shall be made to entities eligible under title I of the Housing and
    Community Development Act of 1974, for activities which may be assisted
    under section 105 of such Act.
         For the cost of guaranteed loans, $29,000,000, as authorized by
    section 108 of the Housing and Community Development Act of 1974:
    Provided, That such costs, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974, as amended: Provided further, That these funds are available to
    subsidize total loan principal, any part of which is to be guaranteed,
    not to exceed $1,261,000,000, notwithstanding any aggregate limitation
    on outstanding obligations guaranteed in section 108(k) of the Housing
    and Community Development Act of 1974. In addition, for administrative
    expenses to carry out the guaranteed loan program, $1,000,000, which
    shall be transferred to and merged with the appropriation for
    departmental salaries and expenses.
        [Of the $500,000,000 made available under the heading ``Community
    Development Block Grants Fund'' in the 1997 Emergency Supplemental
    Appropriations Act for Recovery from Natural Disasters, and for Overseas
    Peacekeeping Efforts, Including Those in Bosnia (Public Law 105-18), not
    more than $3,500,000 shall be made available for the non-Federal cost-
    share for a levee project at Devils Lake, North Dakota: Provided, That
    the Secretary of Housing and Urban Development shall provide the State
    of North Dakota with a waiver to allow the use of its annual Community
    Development Block Grant allocation for use in funding the non-Federal
    cost-share for a levee project at Devils Lake, North Dakota: Provided
    further, That notwithstanding any other provision of law, the Secretary
    is prohibited from providing waivers, other than those provided herein,
    for funds in excess of $100,000 in emergency Community Development Block
    Grants funds for the non-Federal cost-share of projects funded by the
    Secretary of the Army through the Corps of Engineers.] (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Community development.............       4,804       5,701       4,725
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................       4,804       5,701       4,725
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         726         777
    22.00 New budget authority (gross)......       4,854       4,924       4,725
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,581       5,701       4,725
    23.95 New obligations...................      -4,804      -5,701      -4,725
    24.40 Unobligated balance available, end
            of year: Uninvested.............         777
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       4,600       4,675       4,725
    40.15 Appropriation (emergency).........         250         250
    40.79 Line item veto cancellation.......                      -1
    42.00 Transferred from other accounts...           4
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........       4,854       4,924       4,725
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,854       4,924       4,725
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...       8,512       8,793       9,505
    73.10 New obligations...................       4,804       5,701       4,725
    73.20 Total outlays (gross).............      -4,517      -4,989      -4,959
    73.40 Adjustments in expired accounts...          -4
    73.45 Adjustments in unexpired accounts.          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...       8,793       9,505       9,271
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         194          98          95
    86.93 Outlays from current balances.....       4,323       4,891       4,864
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,517       4,989       4,959
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,854       4,924       4,725
    90.00 Outlays...........................       4,517       4,989       4,959
    ---------------------------------------------------------------------------

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

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

    [[Page 450]]

    tion 108 Loan Guarantee Program will support an estimated 276,000 jobs.
    These funds will also help to rehabilitate 171,100 housing units.

        Section 107 Grants include funding for Insular Areas, technical
    assistance, Historically Black Colleges and Universities, management
    information systems support, and the Community Development Work Study
    and Community Outreach Partnership programs.

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

        The 1999 request includes funding of $55 million for the Resident
    Opportunity and Supportive Services (ROSS) program. Formerly called the
    Economic Development and Supportive Services (EDSS) and Tenant
    Opportunity Program (TOP) programs, ROSS is intended to fuse the
    objectives of the two predecessor programs. The program will also
    address the expanded needs among residents and housing authorities
    brought upon by welfare reform legislation that sets time limits on how
    long recipients can receive welfare assistance. Principally for the
    benefit of public housing residents, ROSS grants are intended to assist
    the elderly and disabled, and families with children where the head of
    the household is working, seeking work, or participating in job training
    or educational programs. Eligible services under ROSS include academic
    skills training, residential management, microenterprise and small
    business development and start-ups, and social service support programs.

        The Regional Connections initiative will make funds available to
    States and localities to develop and implement strategic plans that
    address key regional issues facing the nation's metropolitan areas and
    rural communities. The initiative will help communities address the
    significant demographic and economic shifts that are taking place in
    metropolitan regions by encouraging regional strategies that emphasize
    coordinated metropolitan economic growth and regional solutions to a
    range of environmental and social equity issues.

        The initiative will enable communities to address one or more of the
    following topics: regional economic development strategies, that tap the
    competitive advantage or location efficiency of the inner city;
    sustainable growth or compact development strategies; regional job
    training and access to work initiatives; regional affordable housing
    strategies; or, other regional concerns identified by communities
    themselves. Proposed outcomes include: strengthened partnerships between
    city and suburban governments and their private sector partners;
    enhanced regional coordination of Federal resources and planning
    requirements; expanded use of HUD's existing Consolidated Planning
    process; and, increased community capacity to implement more
    comprehensive, regional solutions to local problems.

        Funds for this initiative will be distributed by competition and are
    intended to: (1) maximize local innovation and creativity; (2) maximize
    participation by local partners, including multiple jurisdictions and
    private sector and community stakeholders; and, (3) maximize and enhance
    coordination with existing planning and regional development efforts.
    HUD will undertake this initiative in close cooperation with other
    Federal agencies and will utilize the expertise of an Advisory Board of
    distinguished urban planners, economists and regional experts to
    implement the program.

                         Economic Development Initiative

        For grants for the Economic Development Initiative (EDI), as
    authorized by section 108(q) of the Housing and Community Development
    Act of 1974, to finance a variety of economic development efforts,
    $400,000,000, to remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0173-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Economic development..............                                 400
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                 400
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 400
    23.95 New obligations...................                                -400
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    73.10 New obligations...................                                 400
    73.20 Total outlays (gross).............                                  -8
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                 392
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                   8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 400
    90.00 Outlays...........................                                   8
    ---------------------------------------------------------------------------

        Funding requested for the Economic Development Initiative (EDI)/
    Community Empowerment Fund (CEF) will support the financing for a
    variety of economic development efforts, in tandem with the existing
    Section 108 guaranteed loan program, to facilitate and encourage use of
    the Section 108 Program by State and local governments. The purpose of
    the EDI program is to help communities enhance the security of the
    Section 108 guaranteed loans and to improve the viability of projects
    financed with these loans.

        The EDI/CEF financing will support new jobs, thereby assisting
    former welfare recipients to successfully move from welfare to work. It
    will be used in conjunction with Section 108 Loan Guarantees to support
    a variety of employment-generating investments, including: (1) revolving
    loan funds for business expansion or modernization; (2) startup funds
    for new, small- and medium-sized businesses; (3) preservation and
    expansion of new and existing industrial facilities; (4) neighborhood-
    based commercial revitalization efforts; and, (5) regional economic
    strategies. The 1999 request of $400 million will leverage an estimated
    $2 billion in private sector loans and will support an estimated 280,000
    jobs when projects are completed.

        The EDI/CEF grants will include mechanisms to: (1) assist state and
    local governments to standardize the underwriting and documentation of
    loans to businesses in distressed areas; (2) expand credit for economic
    and community development lending; (3) augment communities' underwriting
    and loan servicing capacity; and, (4) use funds more efficiently for
    credit enhancement. These mechanisms will help reduce risk to the
    communities' and States' CDBG program funds and remove the impediments
    to the use of Section 108.

        In 1998, Congress provided $138 million for EDI, including $100
    million for Congressionally earmarked projects. The Administration has
    objected repeatedly to the inclusion of earmarked projects in
    Appropriations Acts. The Administration

    [[Page 451]]

    urges the Congress to permit a merit selection process for all
    communities for EDI grants in 1999.

     [Empowerment Zones and Enterprise Communities] Urban Empowerment Zones

        [For planning grants, technical assistance, contracts and other
    assistance, and training in connection with Empowerment Zones and
    Enterprise Communities, designated by the Secretary of Housing and Urban
    Development, to continue efforts to stimulate economic opportunity in
    America's distressed communities, $5,000,000, to remain available until
    expended.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0315-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Develop urban sites...............                       5
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                       5
    ----------------------------------------------------------------------------

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

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                                   5
    73.10 New obligations...................                       5
    73.20 Total outlays (gross).............                                  -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                       5           3
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                       5
    90.00 Outlays...........................                                   2
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................                       5
      Outlays...........................                                   2
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                 150
      Outlays...........................                                   3
                                        ------------------------------------
    Total:
      Budget Authority..................                       5         150
      Outlays...........................                                   5
                                        ====================================

        The goal of the Empowerment Zone (EZ) initiative is to revitalize
    city neighborhoods in a way that will retain and attract middle-class
    residents and provide employment opportunities that will move people
    from welfare to work. Grant funds will allow the 15 new urban EZs that
    were authorized by the Taxpayer Relief Act of 1997, in accordance with
    their strategic plans, to create economic opportunity in America's
    distressed communities, with a special emphasis on stimulating job
    creation linked to welfare reform. Flexible grant funds will be used to
    integrate human capital needs with economic development initiatives.

        Funding will be available for a broad range of activities aimed at
    assisting residents, businesses and organizations in urban EZs,
    including: community policing; health care; neighborhood development;
    brownfields clean-up and redevelopment; support for financing of capital
    projects; education; work force preparation and job creation efforts
    linked to welfare reform; repayment of debt financing by municipal
    bonds; financing of projects in conjunction with the Section 108 loan
    guarantee program and other economic development projects; support for
    project-based rental assistance; and, financing other housing
    activities.

        Preliminary reports indicate that the Round I EZ's are stimulating
    billions of dollars in private investment, reviving inner city
    neighborhoods once given up for dead, and supporting jobs and helping
    families move from welfare to work. The second round will build on these
    successes.

                             Urban Empowerment Zones

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0315-4-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

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

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

        Change in unpaid obligations:
    73.10 New obligations...................                                 150
    73.20 Total outlays (gross).............                                  -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                 147
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                 150
    90.00 Outlays...........................                                   3
    ---------------------------------------------------------------------------

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

                            Brownfields Redevelopment

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0314-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Cleanup and develop contaminated
            sites...........................                      25          50
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                      25          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      25          50
    23.95 New obligations...................                     -25         -50
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                      25          50
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                                  24
    73.10 New obligations...................                      25          50
    73.20 Total outlays (gross).............                      -1         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                      24          64
    ----------------------------------------------------------------------------

    [[Page 452]]

        Outlays (gross), detail:
    86.90 Outlays from new current authority                       1           1
    86.93 Outlays from current balances.....                                   9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       1          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      25          50
    90.00 Outlays...........................                       1          10
    ---------------------------------------------------------------------------

        The Brownfields Redevelopment program was first provided an initial
    appropriation of $25 million in 1998. The $50 million request for FY
    1999 represents an acceleration of the President's commitment to help
    communities clean up and redevelop the approximately 450,000 brownfields
    sites nationwide. This level of funding is expected to leverage $200
    million in Section 108 loan guarantee commitments, which will support
    more than 28,000 jobs.

        This program provides competitive economic development grants in
    conjunction with Section 108 loan guarantees for qualified brownfield
    projects. Eligible communities will be invited to submit proposals to
    return contaminated sites to productive and employment-generating uses,
    with an emphasis on creating substantial numbers of jobs for lower-
    income people in physically and economically distressed neighborhoods.

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

                               Homeownership Zones

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0323-2-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Develop homeownership.............                                  25
                                               ---------   ---------  ----------
    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: Uninvested...                                  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
    ---------------------------------------------------------------------------

        The 1999 request includes $25 million for Homeownership Zones in
    1999. This level of funding would support approximately five zones at an
    average of $5 million each, and would create 1,500 new homeowners. The
    Homeownership Zones program will provide flexible grants on a
    competitive basis to local governments for large-scale redevelopment of
    abandoned neighborhoods to create viable communities of mixed income
    homebuyers. Applications will be evaluated on specific criteria, such as
    the degree to which the proposed activities meet the goal of the
    program, the financial soundness of the proposals, level of economic
    distress of the area to be served, and the capacity of applicants to
    carry out the proposal. Funds will be used to create new housing
    opportunities in distressed areas. Eligible activities will include:
    property acquisition; housing construction; housing rehabilitation;
    demolition; site preparation; homeownership counseling; relocation;
    housing marketing; activities to further fair housing; and, other
    activities essential to homeownership.

                               Youthbuild Program

        For the Hope for Youth: Youthbuild program, authorized by subtitle D
    of title IV of the Cranston-Gonzalez National Affordable Housing Act, as
    amended, $45,000,000, to remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0219-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Youth training....................           3                      45
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................           3                      45
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                  45
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          43          13           5
    73.10 New obligations...................           3                      45
    73.20 Total outlays (gross).............         -32          -8          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          13           5          45
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          32           8           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  45
    90.00 Outlays...........................          32           8           5
    ---------------------------------------------------------------------------

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

        For 1996 through 1998, funding for the Youthbuild program was
    included in the Community Development Block Grants account.

    [[Page 453]]

                      HOME Investment Partnerships Program

                          [including transfer of funds]

        For the HOME investment partnerships program, as authorized under
    title II of the Cranston-Gonzalez National Affordable Housing Act
    (Public Law 101-625), as amended, [$1,500,000,000] $1,883,000,000, to
    remain available until expended: Provided, That $1,550,000,000 shall be
    for grants under the HOME Investment Partnerships Program,[:] [Provided,
    That] including up to $7,000,000 [shall be available] for the
    development and operation of integrated community development management
    information systems[: Provided further, That], and including $25,000,000
    [shall be available] for Housing Counseling under section 106 of the
    Housing and Urban Development Act of [1968: Provided further, That up to
    $10,000,000 shall be available to carry out a demonstration program in
    which the Secretary makes grants to up to three organizations exempt
    from Federal taxation under section 501(c)(3) of the Internal Revenue
    Code, selected on a competitive basis, to demonstrate methods of
    expanding homeownership opportunities for low-income borrowers through
    expanding the secondary market for non-conforming home mortgage loans to
    low-wealth borrowers: Provided further, That grantees for such
    demonstration program shall have experience in working with lenders who
    make non-conforming loans to low-income borrowers, have experience in
    expanding the secondary market for such loans, have demonstrated success
    in carrying out such activities including raising non-Federal grants and
    capital on concessionary terms for the purpose of expanding the
    secondary market for loans in the previous two years in amounts equal to
    or exceeding the amount awarded to such organization under this
    paragraph, and have demonstrated the ability to provide data on the
    performance of such loans sufficient to allow for future analysis of the
    investment risk of such loans] 1986: Provided further, That $159,000,000
    shall be available for housing for the elderly under a formula block
    grant program, including funds for capital advance contracts and project
    rental assistance: Provided further, That $50,000,000 shall be used to
    provide tenant-based assistance for the elderly under section 8(o) of
    the United States Housing Act of 1937: Provided further, That
    $174,000,000 shall be available for a grant program, including
    amendments to capital advance contracts and project rental assistance,
    for housing for persons with disabilities, of which at least 25 percent
    will be designated by the Secretary for tenant-based assistance for
    persons with disabilities under section 8(o) of the United States
    Housing Act of 1937. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 1998;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0205-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 HOME grants.......................       1,373       1,697       1,550
    00.02 Elderly program...................                                 109
    00.03 Disabled program..................                                 174
    00.04 Elderly vouchers..................                                  50
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................       1,373       1,697       1,883
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         182         210
    22.00 New budget authority (gross)......       1,400       1,500       1,883
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.21 Unobligated balance transferred to
            other accounts..................                     -13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,583       1,697       1,883
    23.95 New obligations...................      -1,373      -1,697      -1,883
    24.40 Unobligated balance available, end
            of year: Uninvested.............         210
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       1,400       1,500       1,883
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...       3,350       3,511       3,614
    73.10 New obligations...................       1,373       1,697       1,883
    73.20 Total outlays (gross).............      -1,211      -1,559      -1,525
    73.31 Obligated balance transferred to
            other accounts..................                     -35
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...       3,511       3,614       3,972
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                      30          31
    86.93 Outlays from current balances.....       1,211       1,529       1,494
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,211       1,559       1,525
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,400       1,500       1,883
    90.00 Outlays...........................       1,211       1,559       1,525
    ---------------------------------------------------------------------------

        The HOME Investment Partnership program is authorized by the
    National Affordable Housing Act (P.L. 101-625). This program provides
    assistance to States and units of local government, through formula
    allocation, for the purpose of expanding the supply and affordability of
    housing. Eligible activities include acquisition, rehabilitation, and
    new construction of housing and tenant-based rental assistance. The 1999
    request of $1.550 billion will result in the production of 78,500 units
    of affordable housing through new construction, rehabilitation, or
    acquisition. In addition, tenant-based rental assistance will be
    provided for 11,200 units.

        Funding is included for a new component of the HOME program,
    integrating housing assistance for the elderly and disabled into the
    HOME account. The consolidated program will include project-based
    assistance through the current non-profit delivery system. For the
    elderly, a total of $159 million is proposed, including $50 million to
    fund an estimated 8,839 section 8 vouchers and 1,938 new units for the
    elderly. For persons with disabilities, $174 million is proposed, of
    which at least 25 percent shall be used for tenant-based rental
    assistance in order to provide 3,118 units for the disabled.

        The HOME request also includes up to $7 million to continue to
    develop, implement and refine integrated community development
    management information systems in order to establish a national database
    of local programs. Funding for technical assistance is also included.

                           Homeless Assistance Grants

        [For the emergency shelter grants program (as authorized under
    subtitle B of title IV of the Stewart B. McKinney Homeless Assistance
    Act, as amended); the supportive housing program (as authorized under
    subtitle C of title IV of such Act); the section 8 moderate
    rehabilitation single room occupancy program (as authorized under the
    United States Housing Act of 1937, as amended) to assist homeless
    individuals pursuant to section 441 of the Stewart B. McKinney Homeless
    Assistance Act; and the shelter plus care program (as authorized under
    subtitle F of title IV of such Act), $823,000,000, to remain available
    until expended.]
        For grants to States, units of general government, nonprofit
    organizations, or public housing authorities, and for related expenses
    not otherwise provided for, to carry out a comprehensive homeless
    assistance program that emphasizes performance, $1,150,000,000, to
    remain available until expended, of which $192,000,000 shall be for
    section 8 rental assistance under the United States Housing Act of 1937
    (42 U.S.C. 1437): Provided, That up to one percent of the funds provided
    shall be available to the Secretary for technical assistance: Provided
    further, That the Secretary may determine not to apply section
    8(o)(6)(B) of the Act to housing vouchers funded under this account
    heading during fiscal year 1999. (Additional authorizing legislation
    required.) (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0192-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Homeless assistance grants........         758       1,778         958
    00.02 Homeless vouchers.................                                 192
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................         758       1,778       1,150
    ----------------------------------------------------------------------------

    [[Page 454]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         888         955
    22.00 New budget authority (gross)......         823         823       1,150
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,712       1,778       1,150
    23.95 New obligations...................        -758      -1,778      -1,150
    24.40 Unobligated balance available, end
            of year: Uninvested.............         955
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         823         823       1,150
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.90 Outlays from new current authority          41          41          67
    86.93 Outlays from current balances.....         278         568         731
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         319         609         798
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         823         823       1,150
    90.00 Outlays...........................         319         609         798
    ---------------------------------------------------------------------------

        The Homeless Assistance Grants program consolidates the activities
    of HUD's six McKinney homeless assistance programs--Shelter Plus Care,
    Supportive Housing, Emergency Shelter Grants, Section 8 Single Room
    Occupancy, Rural Homeless Grants and Safe Havens--as well as those of
    the Innovative Homeless Initiatives Demonstration program. This
    consolidation enables localities to continue to shape and implement
    comprehensive, flexible, coordinated ``continuum of care'' approaches to
    solving rather than institutionalizing homelessness. In fact, over the
    last four years, many communities have made great strides in developing
    holistic continuum of care approaches to solving homelessness. A
    community-based process is required as part of the application process.
    Communities are required to include in their applications performance
    measures that contain specific goals that would accrue from the
    community's efforts, and are required to demonstrate tangible results on
    an annual basis. Requested funding would be available for a wide range
    of activities to assist homeless persons and prevent future
    homelessness. The 1999 request will provide between 125,000-140,000
    transitional and 59,000-62,500 permanent housing beds.

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

        Funding for incremental housing vouchers will be used to provide
    permanent housing vouchers for up to 34,000 families or individuals who
    have achieved a sufficient level of independence to move to permanent
    housing linked to services. These vouchers will offer the ongoing
    assistance so desperately needed to help move homeless people into the
    housing mainstream when they are ready to do so. These vouchers are
    intended for homeless individuals and families who would otherwise have
    the most difficult time in securing permanent housing resources, as
    determined through the approved Continuum of Care strategy. Helping them
    secure permanent housing will allow HUD to assist even more homeless
    persons through existing emergency and transitional programs.

                         Urban Development Action Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0170-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          -4
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    41.00 Transferred to other accounts.....          -4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         136         102          52
    73.20 Total outlays (gross).............         -30         -50         -30
    73.45 Adjustments in unexpired accounts.          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         102          52          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          30          50          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -4
    90.00 Outlays...........................          30          50          30
    ---------------------------------------------------------------------------

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Build capacity of community
            development organizations.......                      30
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                      30
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
    42.00 Transferred from other accounts...          30
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          13           5          23
    73.10 New obligations...................                      30
    73.20 Total outlays (gross).............          -8         -12         -15
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           5          23           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           8          12          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30
    90.00 Outlays...........................           8          12          15
    ---------------------------------------------------------------------------

    [[Page 455]]

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

                        Emergency Shelter Grants Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0181-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           6           2
    73.20 Total outlays (gross).............          -4          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           4           2
    ----------------------------------------------------------------------------

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

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

                           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.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0188-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Homelessness prevention...........          15          19
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................          15          19
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          31          19
    22.00 New budget authority (gross)......                      -6
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          34          19
    23.95 New obligations...................         -15         -19
    24.40 Unobligated balance available, end
            of year: Uninvested.............          19
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         462         315         182
    73.10 New obligations...................          15          19
    73.20 Total outlays (gross).............        -159        -146        -112
    73.45 Adjustments in unexpired accounts.          -3          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         315         182          70
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         159         146         112
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      -6
    90.00 Outlays...........................         159         146         112
    ---------------------------------------------------------------------------

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

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

        Public Law 105-65 included a $6 million rescission of funding,
    recaptured in 1998, for approved projects from prior years which were
    either not undertaken or utilized less funding than was originally
    obligated.

          Supplemental Assistance for Facilities To Assist the Homeless

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0187-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

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

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

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

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

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

    [[Page 456]]

                                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.] (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0204-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Homelessness prevention...........           8          10
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................           8          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          16          10
    22.00 New budget authority (gross)......                      -4
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          18          10
    23.95 New obligations...................          -8         -10
    24.40 Unobligated balance available, end
            of year: Uninvested.............          10
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         419         367         326
    73.10 New obligations...................           8          10
    73.20 Total outlays (gross).............         -58         -47         -49
    73.45 Adjustments in unexpired accounts.          -2          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         367         326         277
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          58          47          49
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      -4
    90.00 Outlays...........................          58          47          49
    ---------------------------------------------------------------------------

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

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

        Public Law 105-65 included a $4 million rescission of funding,
    recaptured in 1998, for approved projects from prior years which were
    either not undertaken or utilized less funding than was originally
    obligated.

              Innovative Homeless Initiatives Demonstration Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0221-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          58          37          20
    73.20 Total outlays (gross).............         -21         -17         -14
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          37          20           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          21          17          14
    ----------------------------------------------------------------------------

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

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

    Public enterprise funds:

                      Revolving Fund (Liquidating Programs)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Loan servicing....................           5           7           7
    09.02 Maintenance of acquired security
            and collateral..................                       6           6
    09.03 Administrative expenses...........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............           6          14          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          97         103          89
    22.00 New budget authority (gross)......          71          60          55
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.40 Capital transfer to general fund..         -60         -60         -55
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         109         103          89
    23.95 New obligations...................          -6         -14         -14
    24.40 Unobligated balance available, end
            of year: Uninvested.............         103          89          75
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          71          60          55
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          27          19           9
    73.10 New obligations...................           6          14          14
    73.20 Total outlays (gross).............         -14         -24         -23
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          19           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...          14          24          23
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -71         -60         -55
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -57         -36         -32
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         328         271         231
    1251  Repayments: Repayments and
            prepayments.....................         -52         -40         -40
    1263  Write-offs for default: Direct
            loans...........................          -5
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         271         231         191
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           3           2           1

    [[Page 457]]

    2251  Repayments and prepayments........          -1          -1          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           2           1
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          31             15            14             13
    0102  Expense...........................         -18            -12           -11            -10
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          13              3             3              3
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4015-0-3-451    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         125            121           115            110
          Non-Federal assets:

    1206    Receivables, net................           4              3             2              2
    1207    Advances and prepayments........                          1
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         331            274           233            193
    1602    Interest receivable.............          18             18            18             18
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -25            -24           -20            -18
    1604    Direct loans and interest
              receivable, net...............         324            268           231            193
    1606    Foreclosed property.............           1              1
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         325            269           231            193
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         454            394           348            305
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................
    2207    Other...........................           9              8             7              6
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           9              8             7              6
        NET POSITION:
    3100  Appropriated capital..............          28             25            23             21
    3200  Invested capital..................         301            172           126             83
    3300  Cumulative results of operations..         116            189           192            195
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         445            386           341            299
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         454            394           348            305
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           1           6           6
    32.0  Land and structures...............           5           8           8
                                               ---------   ---------  ----------
    99.9    Total obligations...............           6          14          14
    ---------------------------------------------------------------------------

    Credit accounts:

              Community Development Loan Guarantees Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Community development loan
            guarantee credit subsidy........           6          29          29
    00.09 Administrative expense............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              33.0).........................           7          30          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          32          30          30
    22.30 Unobligated balance expiring......         -25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7          30          30
    23.95 New obligations...................          -7         -30         -30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          32          30          30
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           9          13          27
    73.10 New obligations...................           7          30          30
    73.20 Total outlays (gross).............          -3         -16         -17
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          13          27          40
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           5           5
    86.93 Outlays from current balances.....           2          11          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3          16          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          32          30          30
    90.00 Outlays...........................           3          16          17
    ---------------------------------------------------------------------------

        Guaranteed Loans.--The Community Development Block Grant program
    includes a guaranteed loan provision (Section 108). A commitment level
    of $1.3 billion is proposed for the Community Development Loan
    Guarantees (Section 108) program for 1999. The credit subsidy/
    administrative cost estimate for the guaranteed loan program is $30
    million in 1999.

        Section 108 loan guarantees are used by entitlement and
    nonentitlement communities (assisted by their State), to cover the cost
    of: acquiring real property; rehabilitating publicly owned real
    property; housing rehabilitation; and, certain other economic
    development activities. In addition, Section 108 has, in some cases,
    been used to finance the construction of housing by nonprofit
    organizations.

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

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............       1,380       1,261       1,261
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....       1,380       1,261       1,261
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................        2.30        2.30        2.30
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        2.30        2.30        2.30
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........          31          29          29
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          31          29          29
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................           2          15          16
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           2          15          16
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1           1
    3590  Outlays from new authority........           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.

    [[Page 458]]

             Community Development Loan Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                       2          18
    22.00 New financing authority (gross)...           2          16          18
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2          18          36
    24.40 Unobligated balance available, end
            of year: Uninvested.............           2          18          36
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           2          16          18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2         -15         -16
    88.25     Interest on uninvested funds..                      -1          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2         -16         -18
    ----------------------------------------------------------------------------

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       1,389       1,261       1,261
    2112  Uncommitted loan guarantee
            limitation......................      -1,111
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         278       1,261       1,261
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         633         775       1,640
    2231  Disbursements of new guaranteed
            loans...........................         189       1,000       1,000
    2251  Repayments and prepayments........         -47        -135        -200
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         775       1,640       2,440
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         775       1,640       2,440
    ---------------------------------------------------------------------------

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

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of loan guaran- 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. As required by the Federal Credit Reform
    Act of 1990, no administrative expenses can be recorded in the financing
    account.

            Community Development Loan Guarantees Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           3           4           4
    22.60 Redemption of debt................          -3          -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)..............           3           4           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         147         147         147
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         147         147         147
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -3          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -3          -4          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          39          36          32
    1251  Repayments: Repayments and
            prepayments.....................          -3          -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          36          32          28
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         243         198         175
    2231  Disbursements of new guaranteed
            loans...........................                      10          10
    2251  Repayments and prepayments........         -45         -33         -30
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         198         175         155
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         198         175         155
    ---------------------------------------------------------------------------

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

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

    [[Page 459]]

                       Home Loan Guarantee Program Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0175-2-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing loan credit subsidy.......                                  11
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              33.0).........................                                  11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  11
    23.95 New obligations...................                                 -11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                  11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  11
    73.20 Total outlays (gross).............                                  -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                   8
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                  11
    90.00 Outlays...........................                                   3
    ---------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 86-0175-2-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............                                 100
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....                                 100
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................                               11.00
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...                               11.00
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........                                  11
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..                                  11
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................                                   3
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                                   3
    ---------------------------------------------------------------------------

                      Home Loan Guarantee Financing Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4245-2-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                   3
    24.40 Unobligated balance available, end
            of year: Uninvested.............                                   3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                   3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                                  -3
    ----------------------------------------------------------------------------

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4245-2-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                                 100
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                                 100
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........
    2231  Disbursements of new guaranteed
            loans...........................                                  27
    2251  Repayments and prepayments........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                                  27
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                                  27
    ---------------------------------------------------------------------------

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

                                HOUSING PROGRAMS

                                  Federal Funds

    General and special funds:

                Development of Additional New Subsidized Housing

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0310-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         190
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................         190
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                     849
    22.00 New budget authority (gross)......       1,039
    22.21 Unobligated balance transferred to
            other accounts..................                    -849
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,039
    23.95 New obligations...................        -190
    24.40 Unobligated balance available, end
            of year: Uninvested.............         849
    ----------------------------------------------------------------------------

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

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

    [[Page 460]]

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

        Net budget authority and outlays:
    89.00 Budget authority..................       1,039
    90.00 Outlays...........................           2
    ---------------------------------------------------------------------------

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

                         Housing for Special Populations

                         (including transfers of funds)

        [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
    (42 U.S.C. 1437), not otherwise provided for, $839,000,000, to remain
    available until expended: Provided, That of the total amount provided
    under this heading, $645,000,000 shall be for capital advances,
    including amendments to capital advance contracts, for housing for the
    elderly, as authorized by section 202 of the Housing Act of 1959, as
    amended, and for project rental assistance, and amendments to contracts
    for project rental assistance, for the elderly under section 202(c)(2)
    of the Housing Act of 1959, and for supportive services associated with
    the housing; and $194,000,000 shall be for capital advances, including
    amendments to capital advance contracts, for supportive housing for
    persons with disabilities, as authorized by section 811 of the Cranston-
    Gonzalez National Affordable Housing Act, for project rental assistance,
    for amendments to contracts for project rental assistance, and
    supportive services associated with the housing for persons with
    disabilities as authorized by section 811 of such Act: Provided further,
    That the Secretary may designate up to 25 percent of the amounts
    earmarked under this paragraph for section 811 of such Act for tenant-
    based assistance, as authorized under that section, including such
    authority as may be waived under the next proviso, which assistance is
    five years in duration: Provided further, That the Secretary may waive
    any provision of section 202 of the Housing Act of 1959 and section 811
    of the Cranston-Gonzalez National Affordable Housing Act (including the
    provisions governing the terms and conditions of project rental
    assistance and 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 all
    balances, as of September 30, 1997, remaining in either the ``Annual
    Contributions for Assisted Housing'' account or the ``Development of
    Additional New Subsidized Housing'' account for capital advances,
    including amendments to capital advances, for housing for the elderly,
    as authorized by section 202 of the Housing Act of 1959, as amended, and
    for project rental assistance, and amendments to contracts for project
    rental assistance, for supportive housing for the elderly, under section
    202(c)(2) of such Act, shall be transferred to and merged with the
    amounts for those purposes under this heading; and, all balances, as of
    September 30, 1997, remaining in either the ``Annual Contributions for
    Assisted Housing'' account or the ``Development of Additional New
    Subsidized Housing'' account for capital advances, including amendments
    to capital advances, for supportive housing for persons with
    disabilities, as authorized by section 811 of the Cranston-Gonzalez
    National Affordable Housing Act, and for project rental assistance, and
    amendments to contracts for project rental assistance, for supportive
    housing for persons with disabilities, as authorized under section 811
    of such Act, shall be transferred to and merged with the amounts for
    those purposes under this heading.] (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0320-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................                   1,640
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                   1,640
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     839
    22.22 Unobligated balance transferred
            from other accounts.............                     801
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                   1,640
    23.95 New obligations...................                  -1,640
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                     839
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                               6,498
    73.10 New obligations...................                   1,640
    73.20 Total outlays (gross).............                    -650        -759
    73.32 Obligated balance transferred from
            other accounts..................                   5,508
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                   6,498       5,739
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....                     650         759
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     839
    90.00 Outlays...........................                     650         759
    ---------------------------------------------------------------------------

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

        For 1999, funding is being requested for assistance on behalf of the
    elderly and disabled as a new component of the HOME Investment
    Partnerships Program. Language is being proposed to transfer the
    obligated and unobligated balances from Housing for Special Populations
    to the HOME Investment Partnerships account.

                         Other Assisted Housing Programs

                            Rental Housing Assistance

                                 [(rescission)]

        [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.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rent supplement...................          14           9           7
    00.02 Homeownership and rental housing
            assistance (Sections 235 and
            236)............................          19          70          60
    00.03 College housing debt service......           2
    00.04 IRP Rehab Grants..................                      26         727
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................          35         105         794
    ----------------------------------------------------------------------------

    [[Page 461]]

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

    21.40   Uninvested......................          15           8           9
    21.49   Contract authority (available)..         978         970       1,250
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............         993         978       1,259
    22.00 New budget authority (gross)......        -152        -125
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       8,642         512       1,018
    22.75 Balance of contract authority
            withdrawn.......................      -8,472
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,011       1,365       2,277
    23.95 New obligations...................         -35        -105        -794
          Unobligated balance available, end of year:

    24.40   Uninvested......................           8           9           9
    24.49   Contract authority (available)..         970       1,250       1,474
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................         978       1,259       1,483
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

            Unobligated balance rescinded:
    40.36     Preservation prepayment
                rescission..................        -150
    40.36     Multifamily enforcement
                rescission..................                    -125
    40.36     Other unobligated balances
                rescinded...................          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........        -152        -125
          Permanent:

    60.05   Appropriation (indefinite)......         741          18          18
    60.49   Portion applied to liquidate
              contract authority............        -741         -18         -18
                                               ---------   ---------  ----------
    63.00     Appropriation (total).........
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................        -152        -125
    ----------------------------------------------------------------------------

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

            Obligated balance:
    72.40     Administrative commitment
                (reserved)..................         140         127         129
    72.49     Contract authority............      21,687      12,338      11,176
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............      21,827      12,465      11,305
    73.10 New obligations...................          35         105         794
    73.20 Total outlays (gross).............        -755        -754        -676
    73.45 Adjustments in unexpired accounts.      -8,642        -512      -1,018
          Unpaid obligations, end of year:

            Obligated balance:
    74.40     Administrative commitment
                reserved....................         127         129         130
    74.49     Contract authority............      12,338      11,176      10,275
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................      12,465      11,305      10,405
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         755         754         676
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -152        -125
    90.00 Outlays...........................         755         754         676
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............      22,665      13,308      12,426
        Contract authority:
    0200  Contract authority................        -152        -125
    0400  Appropriation to liquidate
            contract authority..............        -741         -18         -18
    0600  Balance of contract authority
            withdrawn.......................      -8,472
    0700  Balance, end of year..............      13,308      12,426      11,749
    ---------------------------------------------------------------------------

                             OTHER ASSISTED HOUSING

                      Summary of Administrative Commitments

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
      Assistance contracts:
        Rent supplement.................          14           9           7
        Homeownership and rental housing
          assistance (sections 235 and
          236)..........................          19          70          60
      College Housing...................           2
      IRP Rehab Grants..................                      26         727
      Administrative commitments, start
        of year.........................          16          16          16
      Administrative commitments, end of
        year............................         -16         -16         -16
                                        ------------------------------------
          Total obligations.............          35         105         794
                                        ====================================

        The Other Assisted Housing Account contains the programs listed
    below:

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

        Section 235.--The Housing and Urban-Rural Recovery Act of 1983
    (Public Law 98-181) authorized a restructured section 235 (Homeownership
    Assistance) program based on a 10-year interest reduction subsidy. This
    replaced earlier versions of the program, the original and the revised
    versions. All were below interest rate mortgages for single family
    homes.

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

        IRP Rehab Grants.--Title V of the 1998 Appropriations Act (P.L. 105-
    65) establishes a program of rehabilitation grants for owners of
    projects eligible for the program of multifamily portfolio re-
    engineering. An estimated $727 millon of such grants are expected in
    1999.

        The table below reflects the consolidated outlay total for: the
    Annual Contributions for Assisted Housing account; the Housing
    Certificate Fund; the Public Housing Capital Fund; the Section 8 Reserve
    Preservation account; and the Other Assisted Housing account, for 1997,
    1998, and 1999.

                             SUMMARY OF OUTLAYS \1\

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
    Subsidized housing programs, total..      21,323      21,213      21,066
    Low-income housing assistance (sec.
    8)..................................      20,568      16,649      16,881
    Public housing capital fund.........                   3,810       3,509
    Rent supplement.....................          56          58          59
    Homeownership assistance (sec. 235).          79          79          70
    Rental housing assistance (sec. 236)         604         601         531
    College housing grants..............          16          16          16
        \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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Hope 1............................           1           3
    00.02 Hope 2............................                       5
    00.03 Hope 3............................           1           3
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................           2          11
    ----------------------------------------------------------------------------

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

            Uninvested:
    21.40     Uncommitted...................          34          10
    21.40     Administratively committed....           4           1
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............          38          11
    22.00 New budget authority (gross)......         -30
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13          11
    23.95 New obligations...................          -2         -11
          Unobligated balance available, end of year:

            Uninvested:
    24.40     Uncommitted...................          10
    24.40     Administratively committed....           1
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    41.00 Transferred to other accounts.....         -30
    ----------------------------------------------------------------------------

    [[Page 462]]

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         185         132          92
    73.10 New obligations...................           2          11
    73.20 Total outlays (gross).............         -49         -51         -42
    73.45 Adjustments in unexpired accounts.          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         132          92          50
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          49          51          42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -30
    90.00 Outlays...........................          49          51          42
    ---------------------------------------------------------------------------

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

                               Congregate Services

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0178-0-1-604      1997 actual   1998 est.   1999 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: Uninvested...          30          22          15
    73.10 New obligations...................           1
    73.20 Total outlays (gross).............          -7          -7          -7
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          22          15           7
    ----------------------------------------------------------------------------

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

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

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

                          Housing Counseling Assistance

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0156-0-1-506      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           6           2
    73.20 Total outlays (gross).............          -3          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           3           2
    ----------------------------------------------------------------------------

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

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

        In 1997, housing counseling was appropriated as a $15 million set-
    aside in the HOME Investment Partnerships Program. The program was
    funded at $20 million in 1998. The Budget proposes Housing Counseling as
    a $25 million HOME set-aside for 1999.

                        Section 8 Moderate Rehabilitation

                              single room occupancy

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0195-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Homelessness prevention...........          20          86
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................          20          86
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         106          86
    23.95 New obligations...................         -20         -86
    24.40 Unobligated balance available, end
            of year: Uninvested.............          86
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         382         376         404
    73.10 New obligations...................          20          86
    73.20 Total outlays (gross).............         -25         -58         -56
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         376         404         348
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          25          58          56
    ----------------------------------------------------------------------------

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

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

                Capital Grants/Capital Loans Preservation Account

        [At the discretion of the Secretary, to reimburse owners,
    nonprofits, and tenant groups for which plans of action were submitted
    with regard to eligible properties under the Low-Income Housing
    Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the

    [[Page 463]]

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0231-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            25.2)...........................                      10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      10
    23.95 New obligations...................                     -10
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                                   6
    73.10 New obligations...................                      10
    73.20 Total outlays (gross).............                      -4          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                       6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                       4
    86.93 Outlays from current balances.....                                   6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       4           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      10
    90.00 Outlays...........................                       4           6
    ---------------------------------------------------------------------------

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

                   Manufactured Home Inspection and Monitoring

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Manufactured home inspection and
            monitoring......................          14          16          17
        Appropriation:
    05.01 Manufactured home inspection and
            monitoring......................         -14         -16         -17
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Transfer to salaries and expenses.           1           1           1
    00.02 Other program costs...............          13          14          15
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................          14          15          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           9           9          10
    22.00 New budget authority (gross)......          14          16          17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          23          25          27
    23.95 New obligations...................         -14         -15         -16
    24.40 Unobligated balance available, end
            of year: Uninvested.............           9          10          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................          14          16          17
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           2           3           3
    73.10 New obligations...................          14          15          16
    73.20 Total outlays (gross).............         -13         -13         -15
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           3           3           3
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................          14          16          17
    90.00 Outlays...........................          13          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. In 1997, an estimated 403,000
    manufactured homes and 600,000 transportable sections were produced.

                              Interstate Land Sales

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5270-0-2-376      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           1
        Receipts:
    02.01 Interstate land sales.............                       1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           1           1           1
        Appropriation:
    05.01 Interstate land sales.............          -1          -1          -1
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5270-0-2-376      1997 actual   1998 est.   1999 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           1
    23.95 New obligations...................                      -1          -1
    ----------------------------------------------------------------------------

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

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

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

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

    [[Page 464]]

        The Interstate Land Sales Full Disclosure Act provides protection to
    the public with respect to purchases or leases of subdivision lots.
    Statements of record must be filed with the Secretary before
    subdivisions with 100 or more lots may be sold in interstate commerce,
    except when the subdivision is eligible for exemption.

        The Secretary is authorized to charge a fee, to be paid by the
    developer when filing a statement of record. The fee receipts are
    permanently appropriated and have helped finance a portion of the direct
    administrative expenses incurred in program operations.

        The estimated annual program activity level will continue at 1,700
    filings, approximately the same level as in recent years.

    Public enterprise funds:

                         Rental Housing Assistance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4041-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          52          47          42
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................          52          47          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           1           1           1
    22.00 New budget authority (gross)......          52          47          42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          48          43
    23.95 New obligations...................         -52         -47         -42
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          52          47          42
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           8          22
    73.10 New obligations...................          52          47          42
    73.20 Total outlays (gross).............         -37         -69         -42
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          37          47          42
    86.98 Outlays from permanent balances...                      22
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          37          69          42
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -52         -47         -42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -14          22
    ---------------------------------------------------------------------------

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

        The Housing and Community Development Amendment of 1978 authorized
    the Secretary, subject to approval in appropriation acts, to transfer
    excess rent collections received after 1978 to the Troubled Projects
    Operating Subsidy program, renamed the Flexible Subsidy Fund. Prior to
    that time, collections were used for paying tax and utility increases in
    section 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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          53             55            47             42
    0102  Expense...........................         -53            -53           -47            -42
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............                          2
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4041-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           8             22             1              1
    1206  Non-Federal assets: Receivables,
            net.............................           7              9
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          15             31             1              1
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           4             17
    2105    Other...........................           3              5
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           7             22
        NET POSITION:
    3300  Cumulative results of operations..           7              9             1              1
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           7              9             1              1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          14             31             1              1
    -----------------------------------------------------------------------------------------------

                              Flexible Subsidy Fund

                               (transfer of funds)

        From the Rental Housing Assistance Fund, all uncommitted balances of
    excess rental charges as of September 30, [1997] 1998, and any
    collections made during fiscal year [1998] 1999, shall be transferred to
    the Flexible Subsidy Fund, as authorized by section 236(g) of the
    National Housing Act, as amended. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          14          19          43
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................          14          19          43
    ----------------------------------------------------------------------------

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

    21.40   Uninvested......................         103          73         114
    21.41   U.S. Securities: Par value......          39         106         106
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............         142         179         220
    22.00 New budget authority (gross)......          52          60          21
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         195         239         241
    23.95 New obligations...................         -14         -19         -43
          Unobligated balance available, end of year:

    24.40   Uninvested......................          73         114          90
    24.41   U.S. Securities: Par value......         106         106         106
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................         179         220         196
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          52          60          21
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.41 Unpaid obligations, start of year:
            Obligated balance: U.S.
            Securities: Par value...........         101          44           1

    [[Page 465]]

    73.10 New obligations...................          14          19          43
    73.20 Total outlays (gross).............         -71         -62         -33
    73.45 Adjustments in unexpired accounts.          -1
    74.41 Unpaid obligations, end of year:
            Obligated balance: U.S.
            Securities: Par value...........          44           1          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...          71          62          33
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -38         -47          -7
    88.20     Interest on U.S. securities...          -9          -9         -10
    88.40     Non-Federal sources...........          -5          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -52         -60         -21
    88.95 Change in orders on hand from
            Federal sources.................
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          18           2          12
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         676         744         802
    1231  Disbursements: Direct loan
            disbursements...................          71          62          33
    1251  Repayments: Repayments and
            prepayments.....................          -3          -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         744         802         831
    ---------------------------------------------------------------------------

        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. Since 1996, these resources have not been used for new
    reservations but they continue to offset Flexible Subsidy outlays and
    other discretionary expenditures.

                      Summary of Administrative Commitments

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
    Program by activities:
      Capital investments:
        Flexible subsidy reservations...          19          43
        Administrative commitments,
          start of year.................          15          19          43
        Administrative commitments, end
          of year.......................         -19         -43
                                        ------------------------------------
          Capital investment--
            obligations.................          15          19          43
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          66             65            60             55
    0102  Expense...........................         -64            -81           -62             -6
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............           2            -16            -2             49
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         120             92            88            111
            Investments in US securities:
    1102      Treasury securities, par......         140            150           150            150
    1106      Receivables, net..............           4              9
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         676            743           802            831
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -536           -607          -654           -678
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         140            136           148            153
    1901  Other Federal assets: Other assets           4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         408            387           386            414
        LIABILITIES:
    2201  Non-Federal liabilities: Accounts
            payable.........................           1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1
        NET POSITION:
    3100  Appropriated capital..............         217            217           217            217
    3300  Cumulative results of operations..         191            169           168            196
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         408            386           385            413
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         409            386           385            413
    -----------------------------------------------------------------------------------------------

                          Homeownership Assistance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

    21.40   Uninvested......................           1           3           3
    21.41   U.S. Securities: Par value......          18          18          18
    21.49   Contract authority..............          60          61          61
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............          79          82          82
    22.00 New budget authority (gross)......           2           2           2
    22.22 Unobligated balance transferred
            from other accounts.............           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          83          84          84
          Unobligated balance available, end of year:

    24.40   Uninvested......................           3           3           3
    24.41   U.S. Securities: Par value......          18          18          18
    24.49   Contract authority..............          61          61          61
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................          82          82          82
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           2           2           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          -1          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          -1          -1          -1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Interest on
                U.S. securities.............
    88.40     Non-Federal sources...........          -2          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -2          -2
    ----------------------------------------------------------------------------

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

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............          60          61          61
    0700  Balance, end of year..............          61          61          61
    ---------------------------------------------------------------------------

        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,

    [[Page 466]]

    and interest earnings under the restructured section 235 program. The
    funds were authorized to be used, to the extent approved in
    Appropriation Acts, by the Secretary to provide additional section 235
    assistance payments for mortgagors who are unable to assume the full
    payment due under the mortgage after the termination of the original 10-
    year assistance payments contract.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4043-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           2              1             1              1
    0102  Expense...........................
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............           2              1             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4043-0-3-604    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           1              3             3              3
            Investments in US securities:
    1102      Treasury securities, par......          18             18            18             18
    1106      Receivables, net..............                          1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          19             22            22             22
        NET POSITION:
    3100  Appropriated capital..............                         12            12             12
    3300  Cumulative results of operations..          19              9             9              9
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          19             21            21             21
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          19             21            21             21
    -----------------------------------------------------------------------------------------------

                        Nehemiah Housing Opportunity Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4071-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          21          21
    23.95 New obligations...................                     -21
    24.40 Unobligated balance available, end
            of year: Uninvested.............          21
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          10           7          20
    73.10 New obligations...................                      21
    73.20 Total outlays (gross).............          -3          -8          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           7          20          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           3           8           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           3           8           4
    ---------------------------------------------------------------------------

        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.

    Credit accounts:

                 FHA--Mutual Mortgage Insurance Program Account

                         (including transfers of funds)

        During fiscal year [1998] 1999, commitments to guarantee loans to
    carry out the purposes of section 203(b) of the National Housing Act, as
    amended, shall not exceed a loan principal of $110,000,000,000.
         During fiscal year [1998] 1999, obligations to make direct loans to
    carry out the purposes of section 204(g) of the National Housing Act, as
    amended, shall not exceed [$200,000,000] $50,000,000: Provided, That the
    foregoing amount shall be for loans to nonprofit and governmental
    entities in connection with sales of single family real properties owned
    by the Secretary and formerly insured under the Mutual Mortgage
    Insurance Fund.
         For administrative expenses necessary to carry out the guaranteed
    and direct loan program, [$338,421,000] $328,888,000, to be derived from
    the FHA-mutual mortgage insurance guaranteed loans receipt account, of
    which not to exceed [$326,309,000] $324,866,000 shall be transferred to
    the appropriation for departmental salaries and expenses; and of which
    not to exceed [$12,112,000] $4,022,000 shall be transferred to the
    appropriation for the Office of Inspector General.
        In addition, for non-overhead administrative expenses necessary to
    carry out the Mutual Mortgage Insurance guaranteed and direct loan
    program, $200,000,000, to be derived from the FHA-mutual mortgage
    insurance guaranteed loan receipt account. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 FHA Mutual Mortgage Insurance
            Guaranteed Loan, negative
            subsidies.......................         351         338         529
        Appropriation:
    05.01 FHA mutual mortgage insurance
            program account.................        -351        -338        -529
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.09 Other administrative expenses, FHA                                 200
    00.10 Administrative expenses, salaries
            & expenses transfer.............         351         338         329
                                               ---------   ---------  ----------
    10.00   Total obligations...............         351         338         529
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         351         338         529
    23.95 New obligations...................        -351        -338        -529
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.25 Appropriation (special fund,
            definite).......................         351         338         529
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................         351         338         529
    73.20 Total outlays (gross).............        -351        -338        -529
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         351         338         529
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         351         338         529
    90.00 Outlays...........................         351         338         529
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................         200         200          50
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         200         200          50
    ----------------------------------------------------------------------------

    [[Page 467]]

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  MMI Fund, Section 203(b)..........      75,432      82,260      83,494
    2150  Standby commitment authority......      34,568      27,740      26,506
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....     110,000     110,000     110,000
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       -2.88       -2.99       -2.62
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       -2.88       -2.99       -2.62
        Guaranteed loan subsidy budget authority:
    2330  MMI Section 203(b) negative
            subsidy.........................      -1,392      -1,653      -1,594
    2330  Subsidy budget authority--
            reestimate......................        -340
    2330  Subsidy--Note Sales...............        -448        -128
    2330  Indirect modification Assignment
            Reform..........................         -56
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..      -2,236      -1,781      -1,594
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................      -2,236      -1,781      -1,594
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........      -2,236      -1,781      -1,594
    ---------------------------------------------------------------------------

        The Federal Housing Administration provides mortgage insurance to
    encourage lenders to make credit available to expand homeownership, and
    to predominantly serve borrowers that the conventional market does not
    adequately provide for including: first-time homebuyers; minorities;
    lower-income families; and, residents of underserved areas (central
    cities and rural areas). Currently, the maximum mortgage amount for FHA-
    insured one-family loans is set at 95 percent of area median house
    price, provided that the amount is never less than 38 percent of the
    conforming loan limit--the maximum mortgage amount for loans purchased
    by the housing secondary market Government-Sponsored Enterprises, Fannie
    Mae and Freddie Mac--and never more than 75 percent of the conforming
    loan limit. The Administration proposes to increase the maximum mortgage
    amount for FHA-insured loans in all areas to equal the conforming loan
    limit. FHA has also proposed new legislation to allow greater
    flexibility in single family property disposition.

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

        Beginning in 1999, an appropriation of $200,000,000 is requested, to
    be derived from the negative subsidy account, for certain administrative
    expenses. All administrative expenses will be recorded in the program
    account. The transfer is derived from negative credit subsidy amounts
    associated with guaranteed loan activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                 200
    25.3  Purchases of goods and services
            from Government accounts........         351         338         329
                                               ---------   ---------  ----------
    99.9    Total obligations...............         351         338         529
    ---------------------------------------------------------------------------

          FHA--Mutual Mortgage Insurance Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           3          25          50
    00.02 Interest paid to Treasury.........                       2           6
    00.03 Claims & other....................                                   2
                                               ---------   ---------  ----------
    10.00   Total obligations...............           3          27          58
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           1           1           3
    22.00 New financing authority (gross)...           3          29          60
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4          30          63
    23.95 New obligations...................          -3         -27         -58
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1           3           5
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..           1          25          50
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           4          10
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           3          29          60
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                       2           2
    73.10 New obligations...................           3          27          58
    73.20 Total financing disbursements
            (gross).........................          -1         -27         -55
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           2           2           5
    87.00 Total financing disbursements
            (gross).........................           1          27          55
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -1          -3          -7
    88.40     Other collections from non-
                Federal sources.............          -1          -1          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -4         -10
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           1          25          50
    90.00 Financing disbursements...........          -1          23          45
    ---------------------------------------------------------------------------

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

        The $50 million in 1999 direct loan limitation in the MMI Fund would
    permit the Department to use Purchase Money Mortgages (PMMs) to help
    finance the sale of acquired single family properties. HUD would extend
    credit for these 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 enhanced homeownership
    opportunities for low- and moderate-income families.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         200         200          50
    1112  Unobligated direct loan limitation        -197        -175
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           3          25          50
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           2           2          28
    1231  Disbursements: Direct loan
            disbursements...................           1          27          50
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1          -2
    1263  Write-offs for default: Direct
            loans...........................                                  -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           2          28          75
    ---------------------------------------------------------------------------

    [[Page 468]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4242-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..           2              2            28             75
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....           2              2            28             75
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           2              2            28             75
        LIABILITIES:
    2103  Federal liabilities: Treasury
            borrowing.......................                          2            28             75
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                          2            28             75
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                          2            28             75
    -----------------------------------------------------------------------------------------------

        FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims and other..........       2,951       2,785       2,927
    00.05 Payment of negative subsidy to
            receipt account.................         351         338         529
    00.06 Payment of negative subsidy to
            liquidating account.............       1,392       1,315       1,066
    00.07 Subsidy reestimate paid to
            liquidating account.............         340
    00.08 Interest payments to Treasury.....         207         404         429
    00.09 Payment to liquidating account of
            value of assets sold............         918         200
    00.10 Negative subsidy from asset sales
            paid to liquidating account.....         449         111
    00.11 Indirect modification savings paid
            to liquidating account..........          56
    00.12 Negative subsidy to liquidating
            account for new legislation--FHA
            loan limit increase.............                                 228
    00.14 Negative subsidy to liquidating
            account, new legislation........                                 527
                                               ---------   ---------  ----------
    10.00   Total obligations...............       6,664       5,153       5,706
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         907         182         288
    22.00 New financing authority (gross)...       5,939       5,259       5,719
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       6,846       5,441       6,007
    23.95 New obligations...................      -6,664      -5,153      -5,706
    24.40 Unobligated balance available, end
            of year: Uninvested.............         182         288         301
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         364         400         700
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       5,484       4,950       5,019
    68.10   Change in receivables (Interest
              from Treasury)................          91         -91
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................       5,575       4,859       5,019
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       5,939       5,259       5,719
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          47         -23          68
    72.95   Receivables from Treasury
              (interest)....................                      91
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          47          68          68
    73.10 New obligations...................       6,664       5,153       5,706
    73.20 Total financing disbursements
            (gross).........................      -6,643      -5,153      -5,706
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...         -23          68          68
    74.95   EOY Receivables from Treasury
              (interest)....................          91
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          68          68          68
    87.00 Total financing disbursements
            (gross).........................       6,643       5,153       5,706
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..                     -98         -11
              Non-Federal sources:
    88.40       Fees and premiums...........      -2,253      -2,612      -3,057
    88.40       Recoveries on defaults......      -2,013      -1,842      -1,951
    88.40       Gross proceeds from asset
                  sales.....................      -1,218        -398
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -5,484      -4,950      -5,019
    88.95 Change in receivables from program
            accounts........................         -91          91
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         364         400         700
    90.00 Financing disbursements...........       1,159         203         687
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     110,000     110,000     110,000
    2112  Uncommitted loan guarantee
            limitation......................     -34,568     -27,740     -11,969
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      75,432      82,260      98,031
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     235,291     272,750     318,818
    2231  Disbursements of new guaranteed
            loans...........................      61,175      58,613      67,222
    2251  Repayments and prepayments........     -20,882     -10,014     -16,719
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -354          -7         -12
    2262    Terminations for default that
              result in acquisition of
              property......................      -2,404      -2,436      -2,619
    2263    Terminations for default that
              result in claim payments......         -76         -88        -126
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     272,750     318,818     366,564
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     272,750     318,818     366,564
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         866         285          54
    2331    Disbursements for guaranteed
              loan claims...................         354           7          12
    2351    Repayments of loans receivable..         -10          -4          -1
    2364    Other adjustments, net..........        -925        -234          -3
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         285          54          62
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loans insured in 1992 and thereafter. The amounts in this
    account are considered a means of financing and are not included in the
    budget totals. As required by the Credit Reform Act of 1990, no
    administrative expenses can be recorded in the financing account.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4587-0-3-371          1996
                                               actual\1\    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         954            159           355            353
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         866            285            53             60
    1504    Foreclosed property.............         521          1,104         1,114          1,164
    1505    Allowance for subsidy cost......        -405           -443          -447           -467
                                            ------------ --------------  ------------  -------------
    1599      Net value of assets related to
                defaulted guaranteed loan...         982            946           720            757
    1901  Other Federal assets: Other assets                          3             3              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,936          1,108         1,078          1,113

    [[Page 469]]

        LIABILITIES:
    2103  Federal liabilities: Federal
            liabilities, Debt...............       2,698          3,062         3,462          3,662
          Non-Federal liabilities:

    2204    Liabilities for loan guarantees.        -762         -1,978        -2,539         -2,823
    2207    Other...........................                         24           156            274
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,936          1,108         1,079          1,113
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,936          1,108         1,079          1,113
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 1998 Budget. Subsidy reestimates for fiscal
    year 1997 disbursements will be performed for the mid-session review of
    the Budget.

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

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
                                               ---------   ---------  ----------
    03.00 Offsetting collections............                                 527
    07.99 Total balance, end of year........                                 527
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.03   Other operating costs...........          93         189          49
    00.05   Participation payments..........           1           1           1
                                               ---------   ---------  ----------
    00.91     Total operating expenses......          94         190          50
          Capital investment:

    01.02   Assignment of defaulted
              mortgages.....................          82           4           6
    01.03   Acquisition of real properties..       1,552       1,513       1,072
    01.05   Acquisition of other assets.....          13          13          13
    01.07   Capitalized property expenses...         229         161         136
    01.08   Loss on defaulted guaranteed
              loans.........................           1          16          13
    01.09   Preforeclosure sale claims......          19          43          47
                                               ---------   ---------  ----------
    01.91     Total capital investment......       1,896       1,750       1,288
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,990       1,940       1,337
    ----------------------------------------------------------------------------

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

    21.40   Uninvested......................       2,219          -8         233
            U.S. Securities:
    21.41     Par value.....................       7,730      13,467      15,567
    21.42     Unrealized discounts..........         -86        -238        -284
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............       9,863      13,221      15,516
    22.00 New budget authority (gross)......       5,348       4,236       3,716
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      15,211      17,457      19,232
    23.95 New obligations...................      -1,990      -1,940      -1,337
          Unobligated balance available, end of year:

    24.40   Uninvested......................          -8         233          75
            U.S. Securities:
    24.41     Par value.....................      13,467      15,567      18,131
    24.42     Unrealized discounts..........        -238        -284        -312
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................      13,221      15,516      17,894
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............       5,348       4,236       3,716
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         685         325         325
    73.10 New obligations...................       1,990       1,940       1,337
    73.20 Total outlays (gross).............      -2,346      -1,941      -1,338
    73.31 Obligated balance transferred to
            other accounts..................          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         325         325         325
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       1,661       1,467         864
    86.98 Outlays from permanent balances...         685         474         474
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,346       1,941       1,338
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on U.S. securities...        -721      -1,260      -1,383
              Non-Federal sources:
    88.40       Fees and premiums...........         -90         -84         -78
    88.40       Rebate of unearned prepaid
                  premiums collected........         220          24           8
    88.40       Proceeds from sale of real
                  property..................      -1,427      -1,366        -969
    88.40       Proceeds from sale of
                  mortgage notes............        -926        -200
    88.40       Repayment of mortgage notes
                  and sales contracts.......          -1          -1          -1
    88.40       Interest and operating
                  income....................          -7          -2          -1
    88.40       Recoveries on defaulted
                  mortgages.................         -27          -9          -2
    88.40       Payment from financing
                  account...................      -2,237      -1,315      -1,266
    88.40       Miscellaneous collections...         -47
    88.40       Other income................         -85         -23         -24
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -5,348      -4,236      -3,716
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -3,002      -2,295      -2,378
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................
      Outlays...........................      -3,002      -2,295      -2,378
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                -527
      Outlays...........................                                -527
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................                                -228
                                        ------------------------------------
    Total:
      Budget Authority..................                                -527
      Outlays...........................      -3,002      -2,295      -3,133
                                        ====================================

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           7           5           3
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1          -1
    1264  Write-offs for default: Other
            adjustments, net................          -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           5           3           2
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     102,159      87,755      81,393
    2251  Repayments and prepayments........     -12,750      -4,785      -4,517
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -82          -5          -6
    2262    Terminations for default that
              result in acquisition of
              property......................      -1,552      -1,513      -1,072
    2263    Terminations for default that
              result in claim payments......         -20         -59         -60
    2264    Other adjustments, net..........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      87,755      81,393      75,738
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      87,755      81,393      75,738
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,862         287          57
    2331    Disbursements for guaranteed
              loan claims...................          82           5           6
    2351    Repayments of loans receivable..        -953        -209          -2
    2361    Write-offs of loans receivable..        -550         -26          -1
    2364    Other adjustments, net..........        -154
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         287          57          60
    ---------------------------------------------------------------------------

    [[Page 470]]

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

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

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

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

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

                               PROGRAM HIGHLIGHTS

                            [In millions of dollars]

                                        1997 actual
                                             \1\      1998 est.   1999 est.
    Insurance initiation:
      Mortgage insurance commitments
        (units).........................     852,546     960,240   1,037,380
                                        ====================================
    Mortgage insurance written (in
        fiscal year):
      Units.............................     740,320     697,094     744,445
      Amount............................      61,175      58,613      67,222
                                        ====================================
    Insurance maintenance: Outstanding
        balance of insurance in force,
        end of year:
      Mortgage insurance................     360,505     400,211     442,301
                                        ====================================
        \1\ Unaudited preliminary results.

        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          1996
                                               actual\1\ 1997 actual\2\     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       2,103          1,854         2,636          1,455
    0102  Expense...........................      -1,097           -577          -688           -437
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............       1,006          1,277         1,948          1,018
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 1998 Budget.
        \2\ Estimated result on GAAP basis pending final audit.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4070-0-3-371          1996
                                               actual\1\    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       2,905            318           512            325
            Investments in US securities:
              Treasury securities, par:
    1102        Treasury securities, par....       7,729         13,467        15,567         16,867
    1102        Unamortized net premium/
                  discount..................         -87           -246          -284           -308
    1106      Receivables, net..............         106              1             1              1
    1107      Advances and prepayments......
          Non-Federal assets:

    1206    Receivables, net................         207             61            61             61
    1207    Advances and prepayments........         -62             32            32             32
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............           7              5             3              2
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -1             -2            -1             -1
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           6              3             2              1
    1701    Defaulted guaranteed loans,
              gross.........................       1,862            287            58             62
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -495            -39            -8             -8
    1704    Defaulted guaranteed loans and
              interest receivable, net......       1,367            248            50             54
    1705    Allowance for uncollectables
              from foreclosed property......        -354           -370          -263           -186
    1706    Foreclosed property.............         872            946           672            473
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............       1,885            824           459            341
    1901  Other Federal assets: Other assets          18             20             9              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      12,707         14,480        16,359         17,321
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................
          Non-Federal liabilities:

    2201    Accounts payable................         676          1,600         2,688          2,623
    2206    Pension and other actuarial
              liabilities...................       2,175            549           549            549
    2207    Unearned revenue and advances...       1,061              7            17             25
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       3,912          2,156         3,254          3,197
        NET POSITION:
    3100  Appropriated capital..............          19             18            18             18
    3300  Cumulative results of operations..       8,776         12,306        13,087         14,106
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       8,795         12,324        13,105         14,124
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      12,707         14,480        16,359         17,321
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 1998 Budget.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          93         189          49
    32.0  Land and structures...............       1,782       1,673       1,208
    33.0  Investments and loans.............          94          18          19
    42.0  Insurance claims and indemnities..          20          59          60
    44.0  Refunds...........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............       1,990       1,940       1,337
    ---------------------------------------------------------------------------

       FHA--Mutual Mortgage Insurance and Cooperative Housing Liquidating
                                     Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-2-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...                                 527
    68.45   Portion applied to capital
              reserve (limitation on
              obligations)..................                                -527
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Payment from financing
              account.......................                                -527
    ----------------------------------------------------------------------------

    [[Page 471]]

        Net budget authority and outlays:
    89.00 Budget authority..................                                -527
    90.00 Outlays...........................                                -527
    ---------------------------------------------------------------------------

    Single Family Claims Reform and Sale of Property

        This proposal would provide HUD with additional flexibility to
    choose the most cost-effective methods of paying insurance claims and
    disposing of acquired notes or homes.

        Currently, section 204(a) of the National Housing Act sets forth the
    conditions under which HUD pays insurance benefits for defaulted single
    family mortgages and details the manner of calculating the amount of
    insurance benefits. This provision updates the current section 204(a)
    and adds authority for HUD to take assignment of mortgages.

        Under this proposal the Department would be able to take assignment
    of mortgage notes (instead of taking properties into inventory) and then
    sell or transfer them to a third party for servicing, loss mitigation,
    foreclosure, and disposition of the property, depending upon the
    circumstances. It is expected that savings will result from a higher
    return on sales and expected property disposition.

        The proposal would also provide flexible authority for HUD to
    participate in joint venture arrangements in the sale of single family
    properties.

       FHA--Mutual Mortgage Insurance and Cooperative Housing Liquidating
                                     Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-4-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 228
    24.40 Unobligated balance available, end
            of year: Uninvested.............                                 228
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                 228
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on U.S. securities...
    88.40     Payment from financing account                                -228
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                -228
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                                -228
    ---------------------------------------------------------------------------

        This proposal will permit the Federal Housing Administration (FHA)
    to insure a single family mortgage with a principal amount not exceeding
    the average of the conforming mortgage loan limits established by
    Freddie Mac and Fannie Mae ($227,150 for a one-family residence in
    1998). Under current law, FHA cannot insure a mortgage with a principal
    amount that exceeds 75% of the conforming mortgage limit established by
    Freddie Mac.

        The proposal also would eliminate other dollar limitations on
    mortgage amounts that are in the current law. These include ``floor''
    limits for certain areas and limits based upon 95% of median home price
    for others. Currently, the maximum amount for an FHA-insured mortgage
    varies from the ``floor'' of $86,317 to higher amounts up to $170,363
    which are determined on a county or metropolitan statistical area (MSA)
    basis.

        The proposal would increase and standardize the maximum insurable
    mortgage amount throughout the country. FHA-insured financing carries
    favorable terms which may not be available to many working families in
    high cost areas, who may be constrained from entering the homeownership
    market because of a lack of downpayment. The proposal reflects the
    Administration's National Homeownership Strategy, which continue to be
    successful in raising the national homeownership rate.

                  FHA--General and Special Risk Program Account

                         (including transfers of funds)

        For the cost of guaranteed loans, as authorized by sections 238 and
    519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including
    the cost of loan guarantee modifications (as that term is defined in
    section 502 of the Congressional Budget Act of 1974, as amended),
    $81,000,000, to remain available until expended: Provided, That these
    funds are available to subsidize total loan principal, any part of which
    is to be guaranteed, of up to [$17,400,000,000: Provided further, That
    any amounts made available in any prior appropriations Act for the cost
    (as such term is defined in section 502 of the Congressional Budget Act
    of 1974) of guaranteed loans that are obligations of the funds
    established under section 238 or 519 of the National Housing Act that
    have not been obligated or that are deobligated shall be available to
    the Secretary of Housing and Urban Development in connection with the
    making of such guarantees and shall remain available until expended,
    notwithstanding the expiration of any period of availability otherwise
    applicable to such amounts] $18,100,000,000.
         Gross obligations for the principal amount of direct loans, as
    authorized by sections 204(g), 207(l), 238(a), and 519(a) of the
    National Housing Act, shall not exceed [$120,000,000] $50,000,000; of
    which not to exceed [$100,000,000] $30,000,000 shall be for bridge
    financing in connection with the sale of multifamily real properties
    owned by the Secretary and formerly insured under such Act; and of which
    not to exceed $20,000,000 shall be for loans to nonprofit and
    governmental entities in connection with the sale of single-family real
    properties owned by the Secretary and formerly insured under such Act.
         In addition, for administrative expenses necessary to carry out the
    guaranteed and direct loan programs, [$222,305,000] $211,455,000, of
    which [$218,134,000, including $25,000,000 for the enforcement of
    housing standards on FHA-insured multifamily projects,] $193,134,000
    shall be transferred to the appropriation for departmental salaries and
    expenses; and of which [$4,171,000] $18,321,000 shall be transferred to
    the appropriation for the Office of Inspector General.
        In addition, for non-overhead administrative expenses necessary to
    carry out the guaranteed and direct loan programs, $104,000,000.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, subsidy downward
            reestimate, start of year.......       1,506       2,138       2,840
        Receipts:
    02.01 Negative Subsidies................         607         702         243
    02.02 Negative Subsidies, legislative
            proposal not subject to PAYGO...                                  50
    02.03 Downward reestimates of subsidies.          25
                                               ---------   ---------  ----------
    02.99   Total receipts..................         632         702         293
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       2,138       2,840       3,133
    07.99 Total balance, end of year........       2,138       2,840       3,133
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Guaranteed loan subsidy...........         138         151         134
    00.02 Prior year adjustment.............          22         -22
    00.04 FHA multi-family demonstration....          22
    00.09 Administrative expenses, salaries
            & expenses transfer.............         207         222         211
    00.10 Administrative expenses, FHA......                     104         104
                                               ---------   ---------  ----------
    10.00   Total obligations...............         389         455         449
    ----------------------------------------------------------------------------

    [[Page 472]]

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

            Uninvested:
    21.40     Uncommitted...................         534         449         314
    21.40     Administratively committed....          56          49          38
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............         590         498         352
    22.00 New budget authority (gross)......         305         319         396
    22.30 Unobligated balance expiring......          -8         -10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         887         807         748
    23.95 New obligations...................        -389        -455        -449
          Unobligated balance available, end of year:

            Uninvested:
    24.40     Uncommitted...................         449         314         266
    24.40     Administratively committed....          49          38          33
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................         498         352         299
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Appropriation:

    40.00   Appropriation...................         292         303         396
    40.00   FHA multi-family demonstration..          10
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........         302         303         396
    50.05 Reappropriation (indefinite)......           3          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         305         319         396
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          46          55          28
    73.10 New obligations...................         389         455         449
    73.20 Total outlays (gross).............        -378        -466        -451
    73.40 Adjustments in expired accounts...          -2         -16
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          55          28          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         207         295         350
    86.93 Outlays from current balances.....         171         171         101
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         378         466         451
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         305         319         396
    90.00 Outlays...........................         378         466         451
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Single-family PMMs................                      20          20
    1150  Multifamily bridge loans..........                     100          30
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                     120          50
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Multifamily development...........       1,609       1,585       1,344
    2150  Refinance of FHA-insured mortgages       1,485       1,973       2,100
    2150  Risk sharing programs.............         222         913         708
    2150  Section 221(d)(3).................          25          19          27
    2150  Section 223(d)....................           9           8          10
    2150  Mixed Income......................           9           4           5
    2150  Hospitals.........................         137         450         600
    2150  Nursing homes.....................         564         649         600
    2150  Very small projects...............                     113         204
    2150  Tax credit new construction.......                                  75
    2150  Section 241 supplemental loans....          92          24         100
    2150  Neighborhood improvements.........                      10          10
    2150  Mobile home parks.................                                  10
    2150  Single family.....................       7,690       8,500       9,120
    2150  Title I guarantees................       1,476       2,400       2,187
    2150  Standby authority.................                     752       1,000
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....      13,318      17,400      18,100
        Guaranteed loan subsidy (in percent):
    2320  Multifamily development...........        8.78        8.51        6.95
    2320  Refinance of multifamily mortgages       -0.79       -0.75       -0.78
    2320  Multifamily risk sharing programs.       -0.34       -0.52       -0.57
    2320  Section 221(d)(3).................       30.47       29.21       17.27
    2320  Section 223(d)....................       30.47       29.21       24.18
    2320  Mixed income......................       12.26       12.13       12.13
    2320  Nursing Homes.....................        0.00       -0.70       -0.70
    2320  Hospitals.........................        0.00        1.49        1.53
    2320  Section 241 supplemental..........        0.00        0.00       17.06
    2320  Mobile home parks.................        0.00        0.00        6.95
    2320  Very small projects...............        0.00       -0.48       -0.63
    2320  Tax credit new construction.......        0.00        0.00       -0.88
    2320  Neighborhood improvements.........        0.00       17.04       17.06
    2320  Single family programs............       -1.55       -1.32       -1.32
    2320  Title I...........................       -1.59       -1.50       -1.35
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       -0.02       -0.13       -0.27
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........          98          97          81
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          98          97          81
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................         171         166         136
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........         171         166         136
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority, S&E Transfer....         207         222         211
    3510  Budget authority, FHA.............                                 104
    3580  Outlays from balances.............                                  26
    3590  Outlays from new authority........         207         222         289
    ---------------------------------------------------------------------------

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

        The credit subsidy appropriation of $81 million requested for 1999
    will be used in conjunction with $49 million of carryover budget
    authority to provide a total program level of $130 million.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the single family, multifamily, hospital, and Title I
    insurance programs of FHA's General Insurance and Special Risk Insurance
    Funds, the subsidy costs associated with the loan guarantees committed
    or direct loans obligated in 1992 and thereafter (including
    modifications of loan guarantees or direct loans that resulted from
    obligations or commitments in any year), as well as administrative
    expenses of these programs. The subsidy amounts are estimated on a
    present value basis; the administrative expenses are accounted for on a
    cash basis.

        FHA has corrected the allocation of administrative expenses among
    its budgetary accounts. Beginning in 1998, all administrative expenses
    are recorded in the program account. In 1999, $104 million in
    appropriations has been requested to provide consistency with this
    approach.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                     104         104
    25.3  Purchases of goods and services
            from Government accounts........         207         222         211
    41.0  Grants, subsidies, and
            contributions...................         182         129         134
                                               ---------   ---------  ----------
    99.9    Total obligations...............         389         455         449
    ---------------------------------------------------------------------------

    [[Page 473]]

         FHA--General and Special Risk Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

    00.01   Default claims and other........         702         986       1,221
    00.02   Loan asset sale contracts.......                                   8
    00.03   PD related contracts............                       4           8
    00.04   Payment of negative subsidy to
              receipt account...............         142         140         143
    00.05   Interest paid to Treasury.......          42          82         118
    00.06   Downward subsidy rate reestimate          25
    00.08   Asset sale negative subsidy
              payment to receipt account....         384                     100
    00.09   Asset sale payment to
              liquidating account...........         536                     285
    00.10   Value paid to liquidating
              account for guarantees
              refinanced under 223(a)(7)....           2
    00.11   Mark-to-market portfolio
              reengineering legislative
              savings.......................                     562          50
    00.12   Waiver of PD/mortgage sale law,
              savings.......................          80
    00.13   Modification of pre-1992
              guarantees, costs.............           7
                                               ---------   ---------  ----------
    10.00     Total obligations.............       1,920       1,774       1,933
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         275         414         642
    22.00 New financing authority (gross)...       2,135       2,137       2,323
    22.60 Redemption of debt................         -77        -135        -135
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,333       2,416       2,830
    23.95 New obligations...................      -1,920      -1,774      -1,933
    24.40 Unobligated balance available, end
            of year: Uninvested.............         414         642         897
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         227       1,260         750
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,777       1,008       1,573
    68.10   Change in receivables...........         131        -131
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................       1,908         877       1,573
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,135       2,137       2,323
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          42         -82          49
    72.95   Receivables from program account                     131
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          42          49          49
    73.10 New obligations...................       1,920       1,774       1,933
    73.20 Total financing disbursements
            (gross).........................      -1,913      -1,774      -1,933
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...         -82          49          49
    74.95   Receivables from federal
              accounts......................         131
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          49          49          49
    87.00 Total financing disbursements
            (gross).........................       1,913       1,774       1,933
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................        -157        -166        -136
    88.00       Repayment of principal and
                  interest from liquidating
                  account...................         -97        -117        -217
    88.25     Interest on uninvested funds..                     -23         -23
              Non-Federal sources:
    88.40       Fees and premiums...........        -277        -486        -574
    88.40       Recoveries on defaulted
                  mortgages.................         -60         -55         -49
    88.40       Single family property
                  recoveries................        -246        -153        -168
    88.40       Title I recoveries..........          -6          -8         -13
    88.40       Proceeds from sale of
                  mortgage notes............        -934                    -393
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,777      -1,008      -1,573
    88.95 Change in receivables from program
            accounts........................        -131         131
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         227       1,260         750
    90.00 Financing disbursements...........         136         766         360
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      17,400      17,400      18,100
    2112  Uncommitted loan guarantee
            limitation......................      -4,082        -752      -1,000
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      13,318      16,648      17,100
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      40,319      45,663      55,662
    2231  Disbursements of new guaranteed
            loans...........................      12,677      14,323      14,416
    2251  Repayments and prepayments........      -6,144      -3,594      -2,973
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -167        -333        -512
    2262    Terminations for default that
              result in acquisition of
              property......................        -227        -285        -310
    2263    Terminations for default that
              result in claim payments......        -100        -112        -126
    2264    Other adjustments, net..........        -695
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      45,663      55,662      66,157
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      45,663      55,662      66,157
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         159         210         518
    2331    Disbursements for guaranteed
              loan claims...................         167         333         512
    2351    Repayments of loans receivable..         -67         -25         -39
    2361    Write-offs of loans receivable..         -49
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         210         518         991
    ---------------------------------------------------------------------------

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

                               Balance Sheet\1\ (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4077-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         589            333           152            152
            Investments in US securities:
    1107      Borrowings receivable from
                liquidating account.........         336                          622            405
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         159            210           518            991
    1504    Foreclosed property.............         118            195           271            311
    1505    Allowance for subsidy cost......        -164           -235          -457           -732
                                            ------------ --------------  ------------  -------------
    1599      Net value of assets related to
                defaulted guaranteed loan...         113            170           332            570
    1901  Other Federal assets: Other assets                          1                           97
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,038            504         1,106          1,224
        LIABILITIES:
    2103  Federal liabilities: Debt.........         421            572         1,195          1,336
          Non-Federal liabilities:

    2204    Liabilities for loan guarantees.         617            -72           -89           -112
    2207    Other...........................                          4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,038            504         1,106          1,224
        NET POSITION:
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------

    [[Page 474]]

    4999  Total liabilities and net position       1,038            504         1,106          1,224
    -----------------------------------------------------------------------------------------------
        \1\ Preliminary results pending final audit. Subsidy reestimates for
    fiscal year 1997 disbursements will be performed for the Mid-Session
    review of the Budget.

           FHA--General and Special Risk Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           1          20          50
    00.02 Interest paid to Treasury.........                       2           7
                                               ---------   ---------  ----------
    10.00   Total obligations...............           1          22          57
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                                   1
    22.00 New financing authority (gross)...           1          23          60
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1          23          61
    23.95 New obligations...................          -1         -22         -57
    24.40 Unobligated balance available, end
            of year: Uninvested.............                       1           4
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                      20          50
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           3          10
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           1          23          60
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           1          22          57
    73.20 Total financing disbursements
            (gross).........................          -1         -22         -57
    87.00 Total financing disbursements
            (gross).........................           1          22          57
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Interest received on
              loans.........................          -1          -3         -10
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      20          50
    90.00 Financing disbursements...........                      19          47
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         120         120         120
    1112  Unobligated direct loan limitation        -119        -100         -70
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           1          20          50
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                       1          21
    1231  Disbursements: Direct loan
            disbursements...................           1          20          50
    1251  Repayments: Repayments and
            prepayments.....................                                  -5
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1          21          66
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and thereafter (including
    loan modifications) for FHA's General Insurance and Special Risk
    Insurance Fund programs. The amounts in this account are a means of
    financing and are not included in the budget totals. As required by the
    Federal Reform Act of 1990, no administrative expenses can be recorded
    in the financing account.

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4105-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                        1              4
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                          1            21             66
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                          1            21             66
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                          1            22             70
        LIABILITIES:
          Federal liabilities:

    2103    Treasury borrowing..............                          1            21             66
    2104    Resources payable to Treasury...                                        1              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                          1            22             70
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                          1            22             70
    -----------------------------------------------------------------------------------------------

              FHA--Loan Guarantee Recovery Fund--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                                   3
    22.00 New financing authority (gross)...                       3           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       3           5
    24.40 Unobligated balance available, end
            of year: Uninvested.............                       3           5
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          10          10
    2113  Uncommitted limitation carried
            forward.........................         -10
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                      10
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                   3
    2231  Disbursements of new guaranteed
            loans...........................                       3           3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                       3           6
    ----------------------------------------------------------------------------

    [[Page 475]]

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                       3           6
    ---------------------------------------------------------------------------

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

        FHA--General and Special Risk Insurance Funds Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Interest on debentures..........           5           5           5
    00.03   Other operating costs...........          50           8           8
    00.04   Property disposition related
              contracts.....................                       4           8
    00.05   Legislative savings repayments..         109         117         217
    00.06   PAE & 3rd party restructuring
              fees..........................                       6          69
                                               ---------   ---------  ----------
    00.91     Total operating expenses......         164         140         307
          Capital investment: Claims and other:

    01.01   Acquisition of defaulted Title I
              notes.........................          37          33          30
    01.02   Assignment of mortgages.........         333         428         544
    01.03   Acquisition of real properties..         215         199         152
    01.04   Rehabilitation of real
              properties....................          54          34          44
    01.05   Mark-to-Market Restructures.....                     102       1,603
    01.07   Capitalized property expenses...         112         147         147
    01.08   Loss on defaulted guaranteed
              loans.........................          14
    01.10   Tax advances on held mortgages..          65          33          33
    01.11   SF partial claims...............                       4           3
                                               ---------   ---------  ----------
    01.91     Total capital investment......         829         980       2,556
                                               ---------   ---------  ----------
    10.00   Total obligations...............         994       1,120       2,863
    ----------------------------------------------------------------------------

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

    21.40   Uninvested......................       2,089       2,420
    21.41   U.S. Securities: Par value......           7           8
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............       2,096       2,428
    22.00 New budget authority (gross)......       1,386         713       2,929
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.40 Capital transfer to general fund..                  -1,955
    22.60 Redemption of debt................         -61         -66         -66
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,422       1,120       2,863
    23.95 New obligations...................        -994      -1,120      -2,863
          Unobligated balance available, end of year:

    24.40   Uninvested......................       2,420
    24.41   U.S. Securities: Par value......           8
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................       2,428
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........                               1,873
    67.15 Authority to borrow (indefinite)..          47          66          66
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............       1,339         647         990
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,386         713       2,929
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         279         423         423
    73.10 New obligations...................         994       1,120       2,863
    73.20 Total outlays (gross).............        -853      -1,120      -2,863
    73.32 Obligated balance transferred from
            other accounts..................           4
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         423         423         423
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          47         713       2,863
    86.98 Outlays from permanent balances...         806         407
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         853       1,120       2,863
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Fees and premiums...........        -232        -201        -194
    88.40       Rebates of insurance
                  premiums..................           7           7           7
    88.40       Multifamily foreclosure
                  sales.....................          -3        -108        -147
    88.40       Proceeds from sale of real
                  property..................        -186        -158        -184
    88.40       Proceeds from sale of
                  mortgage notes............        -560                    -285
    88.40       MTM second mortgage
                  repayments................                      -1          -7
    88.40       Prior year adjustment.......           3
    88.40       Recoveries on defaulted
                  mortgages.................        -131         -53         -52
    88.40       Interest and operating
                  income....................        -206        -105        -110
    88.40       Recoveries on defaulted
                  Title I mortgages.........         -15         -12         -10
    88.40       Other interest, dividends
                  and revenue...............          -8          -9          -8
    88.40       Modification subsidy &
                  transfers from financing
                  acct......................          -8          -7
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,339        -647        -990
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          47          66       1,939
    90.00 Outlays...........................        -486         473       1,873
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................          47          66       1,939
      Outlays...........................        -486         473       1,873
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  23
      Outlays...........................                                  -2
                                        ------------------------------------
    Total:
      Budget Authority..................          47          66       1,962
      Outlays...........................        -486         473       1,871
                                        ====================================

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          97          78          65
    1251  Repayments: Repayments and
            prepayments.....................         -13         -10          -8
    1264  Write-offs for default: Other
            adjustments, net................          -6          -3          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          78          65          55
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      48,423      42,405      39,690
    2251  Repayments and prepayments........      -3,422      -1,949      -1,756
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -369        -465        -577
    2262    Terminations for default that
              result in acquisition of
              property......................        -215        -199        -152
    2263    Terminations for default that
              result in claim payments......         -14        -102      -1,603
    2264    Other adjustments, net..........      -1,998
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      42,405      39,690      35,602
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      42,405      39,690      35,602
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       2,941       2,210       2,388
    2331    Disbursements for guaranteed
              loan claims...................         369         465         577
    2351    Repayments of loans receivable..      -1,050        -121        -445
    2361    Write-offs of loans receivable..         -93        -232        -545
    2364    Other adjustments, net..........          43          66
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       2,210       2,388       1,975
    ---------------------------------------------------------------------------

        The General Insurance fund provides for a large number of
    specialized mortgage insurance programs, including the in-

    [[Page 476]]

    surance of loans for property improvements as well as for cooperatives,
    condominiums, housing for the elderly, rental housing and nonprofit
    hospitals.

        The Special Risk Insurance fund provides insurance on behalf of
    mortgagors who otherwise would not be eligible for mortgage insurance.
    In addition, the fund provides insurance on mortgages covering
    experimental housing where strict adherence to State or local building
    regulations was not observed.

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

        Section 571 of the Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 1998
    established the Office of Multifamily Housing Assistance Restructuring
    within HUD to administer the program of mortgage and rental assistance
    restructuring. Included in the budget estimates for this account are
    projections for the financial operations of the office. More detailed
    information will be provided to Congress at a later date.

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

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4072-0-3-371          1996
                                               actual\1\ 1997 actual\2\     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         370            520           299            299
    0102  Expense...........................        -167            -55          -368         -2,083
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............         203            465           -69         -1,784
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 1998 Budget.
        \2\ Preliminary results pending final audit.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4072-0-3-371          1996
                                               actual\1\ 1997 actual\2\     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       2,092          2,842           423            423
            Investments in US securities:
    1102      Treasury securities, par......           7              7
    1106      Receivables, net..............          16              3             3              3
    1107      Advances and prepayments......
          Non-Federal assets:

    1206    Receivables, net................         175             86            86             86
    1207    Advances and prepayments........
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          97             78            65             55
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -21            -59           -49            -41
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          76             19            16             14
    1701    Defaulted guaranteed loans,
              gross.........................       2,940          2,210         2,388          1,975
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,957         -1,801        -1,946         -1,609
    1704    Defaulted guaranteed loans and
              interest receivable, net......         983            409           442            366
    1705    Allowance for uncollectables
              from foreclosed property......        -479           -182          -160           -150
    1706    Foreclosed property.............         632            295           260            244
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............       1,136            522           542            460
    1901  Other Federal assets: Other assets                        330           330            330
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,502          3,809         1,400          1,316
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         373            363           363            363
    2102    Interest payable................
    2104    Resources payable to Treasury...
          Non-Federal liabilities:

    2201    Accounts payable................         131            443           443            443
    2202    Interest payable................
    2203    Debt............................          82
    2206    Pension and other actuarial
              liabilities...................       8,890          6,685         6,300          6,000
            Other:
    2207      Unearned revenue and advances.         111            124           124            124
    2207      Other.........................         209
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       9,796          7,615         7,230          6,930
        NET POSITION:
    3100  Appropriated capital..............       5,350          5,290         5,290          7,290
    3300  Cumulative results of operations..     -19,115        -16,567       -16,636        -18,420
          Other:

    3600    Debt Forgiveness................       7,471          7,471         7,471          7,471
    3600    Balances transfered.............                                   -1,955         -1,955
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -6,294         -3,806        -5,830         -5,614
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,502          3,809         1,400          1,316
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in 1998 Budget.
        \2\ Preliminary pending final audit.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                       4           8
    25.2  Other services....................          50          14          77
    32.0  Land and structures...............         269         233         196
    33.0  Investments and loans.............         370         567       2,180
    42.0  Insurance claims and indemnities..         191         180         180
    43.0  Interest and dividends............           5           5           5
    44.0  Repayments to financing account...         109         117         217
                                               ---------   ---------  ----------
    99.9    Total obligations...............         994       1,120       2,863
    ---------------------------------------------------------------------------

            FHA--General and Special Risk Insurance Funds Liquidating

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-2-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Increase in 3rd party fees........                                   5
          Capital investment: Claims and other:

    01.01   Change to baseline project
              restructuring costs...........                                 -25
    01.03   Legislative savings repayment to
              financing account.............                                  18
                                               ---------   ---------  ----------
    01.91     Total capital investment......                                  -7
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                  -2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  23
    22.40 Capital transfer to general fund..                                 -25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  -2
    23.95 New obligations...................                                   2
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    73.10 New obligations...................                                  -2
    73.20 Total outlays (gross).............                                   2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                  23
    86.98 Outlays from permanent balances...                                 -25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                  -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  23
    90.00 Outlays...........................                                  -2
    ---------------------------------------------------------------------------

    [[Page 477]]

        This adjustment reflects the effect of repealing sections
    513(b)(7)(g) and 517(d) of the Multifamily Assisted Housing Reform and
    Affordability Act of 1997. Section 513(b)(7)(g) of the Act prohibits any
    private entity from sharing, participating in, or otherwise benefiting
    from any equity created, received, or restructured as a result of a
    portfolio restructuring agreement. Section 517(d) of the Act prohibits
    the Secretary of HUD from participating in any equity sharing or profit
    sharing arrangement.

        The Department will be reporting in February, 1998, on possible ways
    that equity sharing might be developed in connection with portfolio
    restructuring. Currently, HUD is using joint venture arrangements with
    non-profit partners under the multifamily demonstration as a mechanism
    to achieve savings.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-2-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                                   5
    33.0  Investments and loans.............                                 -25
    44.0  Repayments to financing account...                                  18
                                               ---------   ---------  ----------
    99.9    Total obligations...............                                  -2
    ---------------------------------------------------------------------------

         Housing for the Elderly or Handicapped Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.01   Housing for the elderly or
              handicapped loans.............           2          13
    00.02   Maintenance security and
              collateral....................           2           4           4
                                               ---------   ---------  ----------
    00.91     Subtotal, capital investment..           4          17           4
    01.01 Operating expenses: Interest on
            borrowings......................         436         361         309
                                               ---------   ---------  ----------
    10.00   Total obligations...............         440         378         313
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         462         920
    22.00 New budget authority (gross)......         786         751         751
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         112
    22.60 Redemption of debt................                  -1,293        -438
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,360         378         313
    23.95 New obligations...................        -440        -378        -313
    24.40 Unobligated balance available, end
            of year: Uninvested.............         920
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........         735         881
    60.47 Portion applied to debt reduction.        -735        -881
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         786         751         751
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         786         751         751
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         425         107         123
    73.10 New obligations...................         440         378         313
    73.20 Total outlays (gross).............        -646        -362        -325
    73.45 Adjustments in unexpired accounts.        -112
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         107         123         110
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         646         362         202
    86.98 Outlays from permanent balances...                                 123
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         646         362         325
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -786        -751        -751
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -141        -389        -426
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       8,306       8,228       8,342
    1231  Disbursements: Direct loan
            disbursements...................           6         184
    1251  Repayments: Repayments and
            prepayments.....................         -84         -70         -71
          Write-offs for default:

    1263    Direct loans....................
    1264    Other adjustments, net..........
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       8,228       8,342       8,271
    ---------------------------------------------------------------------------
        Note.--Amounts for direct loan obligations reflect reservations of
    section 202 funds. Loan obligations shown under the program and
    financing schedule reflect loans that have reached the initial closing
    stage of processing.

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

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

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

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

        For 1999, funding is being requested for assistance on behalf of the
    elderly and disabled under the HOME Investment Partnerships Program.

        The program and financing schedule for this account summarizes the
    Federal government's obligations for this loan program.

        Financing.--Repayments and interest income from loans continue to be
    available to pay for commitments of the fund.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         700            699           681            680
    0102  Expense...........................        -573           -440          -364           -313
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............         127            259           317            367
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         887          1,027         1,417          1,177
    1206  Non-Federal assets: Receivables,
            net.............................          83             81            81             81
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       8,306          8,228         8,343          8,272
    1602    Interest receivable.............

    [[Page 478]]

    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -20            -21           -21            -21
    1604    Direct loans and interest
              receivable, net...............       8,286          8,207         8,322          8,251
    1606    Acquired Real Property..........                          1             1              1
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       8,286          8,208         8,323          8,252
    1901  Other Federal assets: Other assets           1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       9,257          9,316         9,821          9,510
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         291             90           184            157
    2104    Resources payable to Treasury...           8              9             9              9
    2207  Non-Federal liabilities: Other....       6,909          6,174         5,293          4,628
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       7,208          6,273         5,486          4,794
        NET POSITION:
    3100  Appropriated capital..............       2,021          2,784         2,784          2,784
    3300  Cumulative results of operations..          28            259         1,551          1,932
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       2,049          3,043         4,335          4,716
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       9,257          9,316         9,821          9,510
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    32.0  Land and structures...............           2           4           4
    33.0  Investments and loans.............           2          13
    43.0  Interest and dividends............         436         361         309
                                               ---------   ---------  ----------
    99.9    Total obligations...............         440         378         313
    ---------------------------------------------------------------------------

                Nonprofit Sponsor Assistance Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4042-0-3-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           6           6
    22.40 Capital transfer to general fund..                      -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6
    24.40 Unobligated balance available, end
            of year: Uninvested.............           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      1997 actual   1998 est.   1999 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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           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
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           6              6
        NET POSITION:
    3300  Cumulative results of operations..           6              6
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           6              6
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           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 $329 million and $402 million in 1998 and
    1999 respectively.

    Credit accounts:

     Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

                          (including transfer of funds)

        During fiscal year [1998] 1999, new commitments to issue guarantees
    to carry out the purposes of section 306 of the National Housing Act, as
    amended (12 U.S.C. 1721(g)), shall not exceed [$130,000,000,000]
    $150,000,000,000.
         For administrative expenses necessary to carry out the guaranteed
    mortgage-backed securities program, $9,383,000, to be derived from the
    GNMA-guarantees of mortgage-backed securities guaranteed loan receipt
    account, of which not to exceed $9,383,000 shall be transferred to the
    appropriation for departmental salaries and expenses. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                 382
        Receipts:
    02.01 Guarantees of mortgage backed
            securities guarantee loans,
            negative subsidies..............           9         391       5,715
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           9         391       6,097
        Appropriation:
    05.01 Guarantees of mortgage-backed
            securities loan guarantee
            program account.................          -9          -9          -9

    [[Page 479]]

    07.99 Total balance, end of year........                     382       6,088
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative expenses...........           9           9           9
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................           9           9           9
    ----------------------------------------------------------------------------

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

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............     110,000     130,000     150,000
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....     110,000     130,000     150,000
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................        0.00       -0.32       -0.42
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        0.00       -0.32       -0.42
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........          -9          -9          -9
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          -9          -9          -9
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................          -9          -9          -9
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........          -9          -9          -9
    ---------------------------------------------------------------------------

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

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

           Guarantees of Mortgage-Backed Securities Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      1997 actual   1998 est.   1999 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         286
    00.03 Payment to receipt account for
            multi-class savings proposals...                      27
    00.04 Operating expenses................                      38          43
    00.05 Capital investment................                      82          80
                                               ---------   ---------  ----------
    10.00   Total obligations...............           9         201         418
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         127         155         407
    22.00 New financing authority (gross)...          37         453         505
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         164         608         912
    23.95 New obligations...................          -9        -201        -418
    24.40 Unobligated balance available, end
            of year: Uninvested.............         155         407         494
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          37         453         505
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                                  -9
    73.10 New obligations...................           9         201         418
    73.20 Total financing disbursements
            (gross).........................          -9        -211        -413
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                      -9          -4
    87.00 Total financing disbursements
            (gross).........................           9         211         413
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..         -10         -12         -24
              Non-Federal sources:
    88.40       Non-Federal sources:
                  Commitment and other fees.                    -286        -351
    88.40       Non-Federal sources.........                     -81         -55
    88.40       Non-Federal sources.........         -27         -63         -64
    88.40       Non-Federal sources.........                     -11         -11
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -37        -453        -505
    88.95 Change in receivables from program
            accounts........................
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         -28        -242         -92
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                                 255
          Disbursements:

    1232    Purchase of loans assets from
              the public....................                      74          71
    1233    Purchase of loans assets from a
              liquidating account...........                     265
    1252  Repayments: Proceeds from loan
            asset sales to the public or
            discounted......................                     -84         -58
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                     255         268
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     110,000     130,000     150,000
    2112  Uncommitted loan guarantee
            limitation......................
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................     110,000     130,000     150,000
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                             468,737
    2231  Disbursements of new guaranteed
            loans...........................                 107,472     108,658
    2251  Repayments and prepayments........                    -200        -289
    2264  Adjustments: Other adjustments,
            net.............................                 361,465
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                 468,737     577,106
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                 468,737     577,106
    ---------------------------------------------------------------------------

    [[Page 480]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4240-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         127            155           397            495
    1206  Non-Federal assets: Receivables,
            net.............................                                       23             30
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............                                      274            380
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................                                     -159           -217
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................                                      115            163
    1801  Other Federal assets: Cash and
            other monetary assets...........                                        8             10
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         127            155           543            698
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................                                       19             40
    2207    Other...........................                                      402            453
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                      421            493
        NET POSITION:
    3300  Cumulative results of operations..         127            155           120            206
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         127            155           120            206
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         127            155           541            699
    -----------------------------------------------------------------------------------------------
        Note.--Ginnie Mae guarantees the timely payment of principal and
    interest installments on securities which are backed by FHA-insured,
    Rural Housing Service-insured, and VA-guaranteed mortgages. Such
    guarantees are excluded from the Government total of guaranteed
    obligations duplicating FHA, Rural Housing Service, and VA guarantees.

          Guarantees of Mortgage-Backed Securities Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Functional services...............          13           3           1
          Operating expenses:

    00.02   Default expenses................          10           2           1
    00.03   Servicing expenses..............           6           1           1
    00.04   Other expenses..................          16           3           2
    00.05   REMIC expenses..................           4
                                               ---------   ---------  ----------
    00.91     Total operating expenses......          49           9           5
          Capital investment:

    01.01   Advances of guaranty payments...          94          18           8
    01.02   Real estate owned properties....          15           3           1
                                               ---------   ---------  ----------
    01.91     Total capital investment......         109          21           9
          Other:

    02.01   Transfer to Receipt Account.....                     310       5,420
                                               ---------   ---------  ----------
    10.00   Total obligations...............         158         340       5,434
    ----------------------------------------------------------------------------

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

    21.40   Uninvested......................          82          85          61
            U.S. Securities:
    21.41     Par value.....................       4,772       5,382       5,368
    21.42     Unrealized discounts..........         -10         -15
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............       4,844       5,452       5,429
    22.00 New budget authority (gross)......         766         317           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,610       5,769       5,434
    23.95 New obligations...................        -158        -340      -5,434
          Unobligated balance available, end of year:

    24.40   Uninvested......................          85          61
            U.S. Securities:
    24.41     Par value.....................       5,382       5,368
    24.42     Unrealized discounts..........         -15
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................       5,452       5,429
    ----------------------------------------------------------------------------

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

            Offsetting collections (cash):
    68.00     Offsetting collections (cash).         754         317           5
    68.00     Spending authority from
                offsetting collections
                (REMICs)....................          12
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         766         317           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         766         317           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested\1\         -78         -85         -62
    73.10 New obligations...................         158         340       5,434
    73.20 Total outlays (gross).............        -164        -627      -5,372
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         -85         -62
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...         164         627       5,372
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on U.S. securities...        -306        -259
    88.25     Interest on uninvested funds..                      -3
              Non-Federal sources:
    88.40       Guarantee fees..............        -326         -55          -5
    88.40       Repayments of guaranteed
                  payments..................         -84
    88.40       Commitment and other fees...         -22
    88.40       Servicing income............         -11
    88.40       Receipts from sale of REO
                  properties and mobile home
                  units.....................         -16
    88.40       Repayments on mortgages.....          -1
    88.40       Sale of servicing rights....
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -766        -317          -5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -602         310       5,367
    ---------------------------------------------------------------------------
        \1\ This line nets unpaid obligations and offsetting collections
    from new Federal sources.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         321         332          85
    1232  Disbursements: Purchase of loans
            assets from the public..........          98          19           8
    1252  Repayments: Proceeds from loan
            asset sales to the public or
            discounted......................         -87          -1
    1264  Write-offs for default: Other
            adjustments, net................                    -265
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         332          85          93
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     497,433     530,042      90,317
    2231  Disbursements of new guaranteed
            loans...........................      97,569
    2251  Repayments and prepayments........     -64,960     -78,260     -82,607
    2264  Adjustments: Other adjustments,
            net.............................                -361,465
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     530,042      90,317       7,710
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     530,041      90,316       7,709
    ---------------------------------------------------------------------------

        Budget Program.--Program activity is summarized below:

                           Mortgage-backed Securities*

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
    Commitment limitation...............     110,000     130,000     150,000
    Commitments issued..................      98,869     130,000     150,000
    Guarantees issued...................      97,569     107,472     108,000
    Securities outstanding..............     530,041     649,369     592,525

        * Includes both financing and liquidating account activity.

    [[Page 481]]

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $573 million in 1997, $309 million in
    1998, and $1 million in 1999. These amounts will be retained to cover
    future year expenses and as a reserve against losses that may be
    incurred on guarantees.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        Revenue:
    0101  Revenue...........................         576            641           317              5
    0101  Revenue (REMICs)..................          11             12
        Expense:
    0102  Expense...........................         -96            -76            -8             -4
    0102  Expense (REMICs)..................          -4             -4
        Net income or loss (-):
                                            ------------ --------------  ------------  -------------
    0109    Net income or loss (-)..........         480            565           309              1
                                            ------------ --------------  ------------  -------------
    0109    Net income or loss (-) (REMICs).           7              8
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................         487            573           309              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           4              1             1
            Investments in US securities:
    1102      Treasury securities, par......       4,785          5,382         5,368
    1104      Agency securities, par........
    1106      Receivables, net..............          60             73            61
    1206  Non-Federal assets: Receivables,
            net.............................          28             33             8              4
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         321            332            85             93
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -288           -303           -52            -86
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          33             29            33              7
    1801  Other Federal assets: Cash and
            other monetary assets...........           5             10             2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,915          5,528         5,473             11
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................          36             39             7              4
    2207    Other...........................         473            509           101             50
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         509            548           108             54
        NET POSITION:
    3300  Cumulative results of operations..       4,406          4,979         5,365            -43
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       4,406          4,979         5,365            -43
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,915          5,527         5,473             11
    -----------------------------------------------------------------------------------------------
        Note.--Ginnie Mae guarantees the timely payment of principal and
    interest installments on securities which are backed by FHA-insured,
    Rural Housing Service, and VA-guaranteed mortgages. Such guarantees are
    excluded from the Government total of guaranteed obligations duplicating
    FHA, Rural Housing Service, and VA guarantees.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          45           9           5
    33.0  Investments and loans.............         113          21           9
    92.0  Undistributed.....................                     310       5,420
                                               ---------   ---------  ----------
    99.9    Total obligations...............         158         340       5,434
    ---------------------------------------------------------------------------

                         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, [$36,500,000]
    $50,000,000, to remain available until September 30, [1999] 2000, of
    which $10,000,000 shall be for activities to support the Partnership for
    Advanced Technologies in Housing.
        [Of the amount made available under this heading, $500,000 shall be
    made available for a contract with the National Academy of Public
    Administration to evaluate the Secretary's efforts to implement needed
    management systems and processes.] (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing Research..................          35          40          40
    00.02 Research Fund for America.........                                  10
                                               ---------   ---------  ----------
    10.00   Total obligations...............          35          40          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           2           3
    22.00 New budget authority (gross)......          36          37          50
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          38          40          50
    23.95 New obligations...................         -35         -40         -50
    24.40 Unobligated balance available, end
            of year: Uninvested.............           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

            Appropriation:
    40.00     Appropriation.................          34          37          40
    40.00     Appropriation.................                                  10
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........          34          37          50
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          36          37          50
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          25          26          26
    73.10 New obligations...................          35          40          50
    73.20 Total outlays (gross).............         -33         -40         -41
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          26          26          35
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          14          15          20
    86.93 Outlays from current balances.....          19          25          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          40          41
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          34          37          50
    90.00 Outlays...........................          31          40          41
    ---------------------------------------------------------------------------

        The Housing and Urban Development Act of 1970 directs the Secretary
    to undertake programs of research, studies, testing, and demonstrations
    related to the HUD mission. These functions are carried out internally
    and through con-

    [[Page 482]]

    tracts with industry, nonprofit research organizations, and educational
    institutions, and through agreements with State and local governments
    and other Federal agencies.

        In 1999, the research program will focus on activities to support
    research examining the implications of significant changes in public and
    assisted housing policy, the impacts of welfare reform on HUD-assisted
    households and HUD-subsidized developments, the success of instituting a
    continuum of care approach to help the homeless and other areas.
    National Housing Surveys will continue in 1999.

        The 1999 request includes $10 million to support an initiative known
    as the Partnership for Advancing Technologies in Housing (PATH). PATH is
    a key component of the President's Climate Change Technology Initiative
    (CCTI). Energy use in buildings accounts for more than one-third of air
    emissions, producing more than 350 million metric tons of carbon
    emissions. PATH will help to significantly reduce: housing utility
    costs; carbon emissions; construction injuries; losses due to fire and
    disasters. The funds will be used for PATH-related housing technology
    research, field demonstrations of promising new technologies,
    information dissemination, and the development of product evaluation
    systems.

        Funding for PATH is proposed as part of the Research Fund for
    America. This proposal highlights the Administration's priority to
    providing needed and sustained investments in important Federal research
    programs on a deficit neutral basis. A discussion of the Research Fund
    for America, and two other funds for the environment and transportation,
    can be found in Section II of the Budget volume.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          31          35          45
    41.0  Grants, subsidies, and
            contributions...................           4           5           5
                                               ---------   ---------  ----------
    99.9    Total obligations...............          35          40          50
    ---------------------------------------------------------------------------

                       FAIR HOUSING AND EQUAL OPPORTUNITY

                                  Federal Funds

    General and special funds:

                             Fair Housing Activities

        For contracts, grants, and other assistance, not otherwise provided
    for, as authorized by title VIII of the Civil Rights Act of 1968, as
    amended by the Fair Housing Amendments Act of 1988, and section 561 of
    the Housing and Community Development Act of 1987, as amended,
    [$30,000,000] $52,000,000, to remain available until September 30,
    [1999] 2000, of which [$15,000,000] $29,000,000 shall be to carry out
    activities pursuant to such section 561. No funds made available under
    this heading shall be used to lobby the executive or legislative
    branches of the Federal Government in connection with a specific
    contract, grant or loan. (Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act,
    1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0144-0-1-751      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fair housing assistance...........          11          23          23
    00.02 Fair housing initiatives..........          24          15          29
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................          35          38          52
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          13           8
    22.00 New budget authority (gross)......          30          30          52
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          42          38          52
    23.95 New obligations...................         -35         -38         -52
    24.40 Unobligated balance available, end
            of year: Uninvested.............           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          30          30          52
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          32          39          55
    73.10 New obligations...................          35          38          52
    73.20 Total outlays (gross).............         -28         -22         -29
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          39          55          78
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          28          22          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          30          52
    90.00 Outlays...........................          28          22          29
    ---------------------------------------------------------------------------

        The Budget proposes an appropriation of $52 million in 1999 for fair
    housing activities to fund programs, consistent with the President's
    ``One America'' policy, which will support new efforts to end housing
    discrimination, including a commitment to double the number of housing
    discrimination enforcement actions over the next 4 years. Of the amount
    requested, $23 million is for the Fair Housing Assistance Program and
    $29 million is for the Fair Housing Initiatives Program.

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

        The additional $8 million in funding requested for FHAP will support
    the President's fair housing enforcement initiative by increasing
    funding to support additional State and local fair housing organizations
    to meet the needs of currently underserved populations. These funds will
    be used for joint investigations and enforcement activities with State
    and local fair housing agencies to address housing discrimination. It is
    estimated that the number of new State and local agencies with laws
    equivalent to the Fair Housing Act will increase to 85 in 1999 from 78
    in 1997.

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

        Of the $29 million requested, $10 million will be used to fund an
    audit-based enforcement initiative which will address the continued
    existence of a high level of both blatant and subtle forms of housing
    discrimination confirmed through testing experience. Additional FHIP
    funding will support extended testing and other anti-discrimination
    activities by private fair housing groups.

                          OFFICE OF LEAD HAZARD CONTROL

                                  Federal Funds

    General and Special Funds:

                              Lead Hazard Reduction

        For the Lead Hazard Reduction Program, as authorized by sections
    1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of
    1992, $85,000,000 to remain available until expended, of which
    $25,000,000 shall be for a Healthy Homes Initiative, which shall be a
    program pursuant to sections 501 and 502 of the Housing and

    [[Page 483]]

    Urban Development Act of 1970 that shall include research, studies,
    testing, and demonstration efforts, including education and outreach
    concerning lead-based paint poisoning and other housing-related
    environmental diseases and hazards.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0174-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  85
    23.95 New obligations...................                                 -85
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                  85
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  85
    73.20 Total outlays (gross).............                                  -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                  84
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                  85
    90.00 Outlays...........................                                   1
    ---------------------------------------------------------------------------

        Title X of the Housing and Community Development Act of 1992 (Public
    Law 102-550), known as the Residential Lead-Based Paint Hazard Reduction
    Act, authorized the Secretary to establish the Lead-Based Paint Hazard
    Control Grant Program. The primary purpose of the program is to reduce
    the exposure of young children to lead-based paint hazards in their
    homes.

        To accomplish this, two major activities are being conducted within
    the Department's Office of Lead Hazard Control. The first is the Healthy
    Homes Initiative, which will include a program to conduct lead-based
    paint compliance checks. The Healthy Homes Initiative will also enable
    the Department to control additional childhood diseases and injuries
    that are caused by housing related factors. The initiative will allow
    for a demonstration that evaluates methods of controlling two or more
    housing related diseases through a single intervention. A public
    education/outreach effort, to enable the public to act effectively to
    protect their children, will also be conducted.

        The second activity is the continuation of the Lead Hazard Control
    Grant Program, which provides grants of $1 to $4 million to State and
    local governments for control of lead-based paint hazards in privately
    owned, low-income owner-occupied and rental housing. The grants are also
    designed to stimulate the development of a trained and certified hazard
    evaluation and control industry by requiring all contractors to be
    certified and all workers to be trained through a State-accredited
    program. In awarding grants, HUD promotes the use of cost-effective
    approaches to hazard control that can be replicated across the nation.

        Prior to 1997, funding for the lead hazard control grant program was
    provided under the Annual Contributions for Assisted Housing Account. In
    1997 and 1998, the program was funded as a set-aside under the Community
    Development Block Grant (CDBG) account. In 1999 the program is being
    proposed as a separate, stand-alone program.

                          MANAGEMENT AND ADMINISTRATION

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                          (including transfer of funds)

        For necessary administrative and nonadministrative expenses of the
    Department of Housing and Urban Development not otherwise provided for,
    including not to exceed $7,000 for official reception and representation
    expenses, $1,000,826,000, of which [$544,443,000] $518,000,000 shall be
    provided from the various funds of the Federal Housing Administration,
    $9,383,000 shall be provided from funds of the Government National
    Mortgage Association, [and] $1,000,000 shall be provided from the
    ``Community Development Grants Program'' account, $200,000 shall be
    provided from the ``Title VI Indian Federal Guarantees Program
    Account,'' and $400,000 shall be provided from the ``Indian Housing Loan
    Guarantee Fund Program Account''. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Housing, mortgage credit,
              regulatory and energy
              conservation..................         146         134         129
    00.02   Community planning and
              development programs..........          60          61          60
    00.03   Equal opportunity and research
              programs......................          62          61          60
    00.04   Departmental management, legal
              and audit services............          52          52          55
    00.05   Field direction and
              administration................          97         138         168
                                               ---------   ---------  ----------
    00.91     Total direct program..........         417         446         472
    09.01 Reimbursable program..............         561         555         529
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......         561         555         529
                                               ---------   ---------  ----------
    10.00   Total obligations...............         978       1,001       1,001
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         981       1,001       1,001
    22.30 Unobligated balance expiring......          -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         978       1,001       1,001
    23.95 New obligations...................        -978      -1,001      -1,001
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         420         446         472
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         561         555         529
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         981       1,001       1,001
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         136         126         126
    73.10 New obligations...................         978       1,001       1,001
    73.20 Total outlays (gross).............        -981        -995        -995
    73.40 Adjustments in expired accounts...          -7          -6          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         126         126         126
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         324         343         363
    86.93 Outlays from current balances.....          96          97         103
    86.97 Outlays from new permanent
            authority.......................         561         555         529
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         981         995         995
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -561        -555        -529
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         420         446         472
    90.00 Outlays...........................         419         440         466
    ---------------------------------------------------------------------------

    [[Page 484]]

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         221         228         228
    11.3      Other than full-time permanent           7           7           7
    11.5      Other personnel compensation..           5           5           5
    11.8      Special personal services
                payments....................           3           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         236         241         240
    12.1    Civilian personnel benefits.....          48          48          47
    13.0    Benefits for former personnel...           9           3
    21.0    Travel and transportation of
              persons.......................           6          11          13
    22.0    Transportation of things........                       1           1
    23.1    Rental payments to GSA..........          32          35          38
    23.3    Communications, utilities, and
              miscellaneous charges.........          11          12           9
    24.0    Printing and reproduction.......           3           3           3
    25.1    Advisory and assistance services          13          12          35
    25.2    Other services..................           1           1           3
    25.3    Purchases of goods and services
              from Government accounts......          46          65          69
    25.4    Operation and maintenance of
              facilities....................           6           6           6
    26.0    Supplies and materials..........           3           3           3
    31.0    Equipment.......................           3           5           5
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         417         446         472
    99.0  Reimbursable obligations..........         561         555         529
                                               ---------   ---------  ----------
    99.9    Total obligations...............         978       1,001       1,001
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       4,332       4,207       4,231
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       5,787       5,235       4,724
    ---------------------------------------------------------------------------

                           Office of Inspector General

                          (including transfer of funds)

        For necessary expenses of the Office of Inspector General in
    carrying out the Inspector General Act of 1978, as amended, $66,850,000,
    of which [$16,283,000] $22,343,000 shall be provided from the various
    funds of the Federal Housing Administration and $10,000,000 shall be
    transferred from the amount earmarked for Operation Safe Home in the
    ``Drug Elimination Grants for Low-Income Housing'' account. (Departments
    of Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          36          41          35
    09.01 Reimbursable program..............          17          26          32
                                               ---------   ---------  ----------
    10.00   Total obligations...............          53          67          67
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          53          67          67
    23.95 New obligations...................         -53         -67         -67
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          36          41          35
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          17          26          32
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          53          67          67
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          18          11          11
    73.10 New obligations...................          53          67          67
    73.20 Total outlays (gross).............         -58         -67         -67
    73.40 Adjustments in expired accounts...          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          11          11          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          36          32          27
    86.93 Outlays from current balances.....           5           9           9
    86.97 Outlays from new permanent
            authority.......................          17          26          32
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          58          67          67
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -17         -26         -32
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          36          41          35
    90.00 Outlays...........................          41          41          35
    ---------------------------------------------------------------------------

        This appropriation provides agencywide audit and investigative
    functions to identify and correct management and administrative
    deficiencies that create conditions for existing or potential instances
    of fraud, waste and mismanagement. The audit function provides internal
    audit, contract audit, and inspection services. Contract audits provide
    professional advice to agency contracting officials on accounting and
    financial matters relative to negotiation, award, administration,
    repricing, and settlement of contracts. Internal audits review and
    evaluate all facets of agency operations. Inspection services provide
    detailed technical evaluations of agency operations. The investigative
    function provides for the detection and investigation of improper and
    illegal activities involving programs, personnel, and operations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          19          22          19
    11.5      Other personnel compensation..           1           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          20          24          21
    12.1    Civilian personnel benefits.....           5           6           5
    21.0    Travel and transportation of
              persons.......................           3           3           3
    23.1    Rental payments to GSA..........           3           3           3
    25.1    Advisory and assistance services           1           3           1
    25.2    Other services..................           1           1           1
    25.3    Purchases of goods and services
              from Government accounts......           2           1           1
    31.0    Equipment.......................           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          36          41          35
    99.0  Reimbursable obligations..........          17          26          32
                                               ---------   ---------  ----------
    99.9    Total obligations...............          53          67          67
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         339         363         319
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         160         230         292
    ---------------------------------------------------------------------------

    [[Page 485]]

                 Office of Federal Housing Enterprise Oversight

                              salaries and expenses

                          (including transfer of funds)

        For carrying out the Federal Housing Enterprise Financial Safety and
    Soundness Act of 1992, [$16,000,000] $16,551,000, to remain available
    until expended, to be derived from the Federal Housing Enterprise
    Oversight Fund: Provided, That not to exceed such amount shall be
    available from the General Fund of the Treasury to the extent necessary
    to incur obligations and make expenditures pending the receipt of
    collections to the Fund: Provided further, That the General Fund amount
    shall be reduced as collections are received during the fiscal year so
    as to result in a final appropriation from the General Fund estimated at
    not more than $0. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           1
        Receipts:
    02.01 Office of federal housing
            enterprise oversight............          15          16          17
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          16          16          17
        Appropriation:
    05.01 Office of federal housing
            enterprise oversight............         -16         -16         -17
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          15          16          17
                                               ---------   ---------  ----------
    10.00   Total obligations...............          15          16          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          16          16          17
    23.95 New obligations...................         -15         -16         -17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.20 Appropriation (special fund,
            definite).......................          16          16          17
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           7           5           5
    73.10 New obligations...................          15          16          17
    73.20 Total outlays (gross).............         -17         -16         -17
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           5           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          12          12          13
    86.93 Outlays from current balances.....           5           4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          17          16          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          16          17
    90.00 Outlays...........................          17          16          17
    ---------------------------------------------------------------------------

        This appropriation funds the Office of Federal Housing Enterprise
    Oversight (the Office), which was established in 1992 to regulate the
    financial safety and soundness of the two housing Government Sponsored
    Enterprises (GSEs)--the Federal National Mortgage Association and the
    Federal Home Loan Mortgage Corporation. The Office was authorized in the
    Federal Housing Enterprise Safety and Soundness Act of 1992, which also
    instituted a risk-based capital standard for the GSEs, and gave the
    regulator enhanced authority to enforce those standards. The office is
    also required by statute to conduct on-site annual examinations at the
    GSEs to determine the condition of each enterprise for the purpose of
    ensuring their financial safety and soundness.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Personnel
            Compensation....................           7           8           8
    12.1  Civilian personnel benefits.......           1           1           2
    23.1  Rental payments to GSA............           2           2           2
    25.2  Other services....................           5           4           4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          15          15          16
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          15          16          17
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          69          78          78
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............         220         259         262
                                               ---------   ---------  ----------
    10.00   Total obligations...............         220         259         262
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          30           6           6
    22.00 New budget authority (gross)......         195         259         262
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         226         265         268
    23.95 New obligations...................        -220        -259        -262
    24.40 Unobligated balance available, end
            of year: Uninvested.............           6           6           6
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...         228         259         262
    68.10   Change in orders on hand from
              Federal sources...............         -32
    68.15   Adjustment to orders on hand
              from Federal sources..........          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         195         259         262
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         195         259         262
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          -3          25          25
    72.95   Orders on hand from Federal
              sources.......................          55          23          23
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          52          48          48
    73.10 New obligations...................         220         259         262
    73.20 Total outlays (gross).............        -224        -259        -262
    73.45 Adjustments in unexpired accounts.          -1
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...          25          25          25
    74.95   Orders on hand from Federal
              sources.......................          23          23          23
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          48          48          48
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         195         259         262
    86.98 Outlays from permanent balances...          29
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         224         259         262
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -228        -259        -262
    88.95 Change in orders on hand from
            Federal sources.................          32
    88.96 Adjustment to orders on hand from
            Federal sources.................           1
    ----------------------------------------------------------------------------

    [[Page 486]]

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

        The Working Capital Fund, authorized by the Department of Housing
    and Urban Development Act of 1965, finances information technology and
    office automation initiatives which can be performed more efficiently on
    a centralized basis. The fund is financed from fees charged for services
    performed.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          17          19          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...........          50          50          51
    25.1  Advisory and assistance services..         122         169         170
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................          26          15          16
                                               ---------   ---------  ----------
    99.9    Total obligations...............         220         259         262
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         279         330         330
    ---------------------------------------------------------------------------

                            Administrative Provisions

        Sec. 201. Extenders. (a) One-For-One Replacement of Public
    Housing.--Section 1002(d) of Public Law 104-19 is amended by striking
    [``1997''] ``1998'' and inserting [``1998''] ``1999''.
         (b) Streamlining Section 8 Tenant-Based Assistance.--Section 203(d)
    of the Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1996, is
    amended by striking ``fiscal years 1996, [and] 1997, and 1998'' and
    inserting ``fiscal years 1996, 1997, [and] 1998, and 1999''.
        [(c) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United
    States Housing Act of 1937 is amended--
             (1) in the third sentence, by striking ``fiscal year 1997'' and
        inserting ``fiscal years 1997 and 1998''; and
             (2) in the last sentence, by striking ``fiscal year 1997'' and
        inserting ``fiscal years 1997 and 1998''.]
        [(d)] (c) Public and Assisted Housing Rents, Income Adjustments and
    Preferences.--
             (1) Section 402(a) of The Balanced Budget Downpayment Act, I is
        amended by striking ``fiscal [year] years 1997 and 1998'' and
        inserting ``fiscal years 1997, [and] 1998, and 1999''.
             (2) Section 402(f) of The Balanced Budget Downpayment Act, I is
        amended by striking ``fiscal years 1996, [and] 1997, and 1998'' and
        inserting ``fiscal years 1996, 1997, [and] 1998, and 1999''.
            (3) Section 16 of the United States Housing Act of 1937 is
        amended by revising the heading and subsections (a) through (c) to
        read as follows:
        ``Sec. 16. Eligibility for Public and Assisted Housing.
        ``(a) Public Housing.
            ``(1) Program requirement.--Of the public housing units of a
        public housing agency that are made available for occupancy by
        eligible families in any fiscal year of the agency--
                ``(A) at least 40 percent shall be occupied by families
            whose incomes do not exceed 30 percent of the median income for
            the area; and
                ``(B) at least 90 percent shall be occupied by families
            whose incomes do not exceed 60 percent of the median income for
            the area.
            ``(2) Development requirement.--At least 40 percent of the units
        in each public housing development shall be occupied by families
        with incomes which are less than 30 percent of the median income for
        the area, except that no family may be required to move to achieve
        compliance with this requirement.
        ``(b) Section 8 Assistance.
            ``(1) Tenant-based, moderate rehabilitation, and project-based
        certificate assistance.--In any fiscal year of a public housing
        agency, at least 75 percent of all families who initially receive
        tenant-based assistance from the agency, assistance under the
        moderate rehabilitation program of the agency, or assistance under
        the project-based certificate program of the agency shall be
        families whose incomes do not exceed 30 percent of the median income
        for the area.
            ``(2) Project-based assistance.--Of the dwelling units in a
        project receiving section 8 assistance, other than assistance
        described in paragraph (1), that are made available for occupancy by
        eligible families in any year (as determined by the Secretary)--
                ``(A) At least 40 percent shall be occupied by families
            whose incomes do not exceed 30 percent of the median income for
            the area; and
                ``(B) at least 90 percent shall be occupied by families
            whose incomes do not exceed 60 percent of the median income for
            the area.
        ``(c) Definition of Area Median Income.--The term ``area median
    income'', as used in subsections (a) and (b), refers to the median
    income of an area, as determined by the Secretary, with adjustments for
    smaller and larger families, except that the Secretary may establish
    income ceilings higher or lower than the percentages specified in
    subsections (a) and (b) if the Secretary determines that such variations
    are necessary because of unusually high or low family incomes.''.
        ``(ii) Section 16 of the United States Housing Act of 1937, as
    amended by this section, is further amended by inserting the following
    new heading after subsection designation (d): ``Applicability.--''.
        ``(iii) This paragraph shall be effective initially for fiscal year
    1999. For future fiscal years, this paragraph shall be effective only to
    the extent provided by section 402(f) of The Balanced Budget Downpayment
    Act, I.''.
        [Sec. 202. Delay Reissuance of Vouchers and Certificates.--Section
    403(c) of The Balanced Budget Downpayment Act, I is amended--
             (1) by striking ``fiscal years 1996 and 1997'' and inserting
        ``fiscal years 1996, 1997, and 1998'';
             (2) by striking ``1996 and October'' and inserting ``1996,
        October''; and
             (3) by inserting before the semicolon the following: ``and
        October 1, 1998 for assistance made available during fiscal year
        1998''.]
        [Sec. 203. Waiver.--The part of the HUD 1996 Community Development
    Block Grant to the State of Illinois which is administered by the State
    of Illinois Department of Commerce and Community Affairs (grant number
    B-96-DC-170001) and which, in turn, was granted by the Illinois
    Department of Commerce and Community Affairs to the city of Oglesby,
    Illinois, located in LaSalle County, Illinois (State of Illinois
    Department of Commerce and Community Affairs grant number 96-24104), for
    the purpose of providing infrastructure for a warehouse in Oglesby,
    Illinois, is exempt from the provisions of section 104(g)(2), (g)(3),
    and (g)(4) of title I of the Housing and Community Development Act of
    1974, as amended.]
        Sec. [204] 202. Financing Adjustment Factors.--Fifty percent of the
    amounts of budget authority, or in lieu thereof 50 percent of the cash
    amounts associated with such budget authority, that are recaptured from
    projects described in section 1012(a) of the Stewart B. McKinney
    Homeless Assistance Amendments Act of 1988 (Public Law 100-628; 102
    Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be
    remitted to the Treasury, and such amounts of budget authority or cash
    recaptured and not rescinded or remitted to the Treasury shall be used
    by State housing finance agencies or local governments or local housing
    agencies with projects approved by the Secretary of Housing and Urban
    Development for which settlement occurred after January 1, 1992, in
    accordance with such section. Notwithstanding the previous sentence, the
    Secretary may award up to 15 percent of the budget authority or cash
    recaptured and not rescinded or remitted to the Treasury to provide
    project owners with incentives to refinance their project at a lower
    interest rate.
        Sec. [205] 203. [Annual Adjustment Factors.--Section 8(c)(2)(A) of
    the United States Housing Act of 1937, as amended by section 201 of this
    title, is further amended by inserting the following new sentences at
    the end: ``In establishing annual adjustment factors for units in new
    construction and substantial rehabilitation projects, the Secretary
    shall take into account the fact that

    [[Page 487]]

    debt service is a fixed expense. The immediately foregoing sentence
    shall be effective only during fiscal year 1998.''.] State CDBG IDIS
    Funding.--During fiscal year 1999, from amounts received by a State
    under section 106(d)(1) of the Housing and Community Development Act of
    1974 for distribution in nonentitlement areas, the State may deduct an
    amount, not to exceed the greater of 0.25 percent of the amount so
    received or $50,000, to administer the integrated disbursement and
    information system established by the Secretary, in addition to any
    amounts used for this purpose from amounts retained by the State for
    administrative expenses under section 106(d)(3)(A).
        [Sec. 206. Community Development Block Grant.--Notwithstanding any
    other provision of law, the $7,100,000 appropriated for an industrial
    park at 18th Street and Indiana Avenue shall be made available by the
    Secretary instead to 18th and Vine for rehabilitation and infrastructure
    development associated with the ``Negro Leagues Baseball Museum'' and
    the jazz museum.]
        [Sec. 207. Fair Housing and Free Speech.--None of the amounts made
    available under this Act may be used during fiscal year 1998 to
    investigate or prosecute under the Fair Housing Act any otherwise lawful
    activity engaged in by one or more persons, including the filing or
    maintaining of a nonfrivolous legal action, that is engaged in solely
    for the purpose of achieving or preventing action by a government
    official or entity, or a court of competent jurisdiction.]
        [Sec. 208. Requirement for HUD To Maintain Public Notice and Comment
    Rulemaking.--Notwithstanding any other provision of law, for fiscal year
    1998 and for all fiscal years thereafter, the Secretary of Housing and
    Urban Development shall maintain all current requirements under part 10
    of the Department of Housing and Urban Development regulations (24 CFR
    part 10) with respect to the Department's policies and procedures for
    the promulgation and issuance of rules, including the use of public
    participation in the rulemaking process.]
        Sec. [209] 204. Brownfields as Eligible CDBG Activity.--During
    fiscal [year] years 1998 and 1999, States and entitlement communities
    may use funds allocated under the community development block grants
    program under title I of the Housing and Community Development Act of
    1974 for environmental cleanup and economic development activities
    related to Brownfields projects in conjunction with the appropriate
    environmental regulatory agencies, as if such activities were eligible
    under section 105(a) of such Act.
        [Sec. 210. Partial Payment of Claims on Health Care Facilities.--
    Section 541(a) of the National Housing Act is amended--
             (1) in the section heading, by adding ``and health care
        facilities'' at the end; and
             (2) in subsection (a)--
                 (A) by inserting ``or a health care facility (including a
            nursing home, intermediate care facility, or board and care home
            (as those terms are defined in section 232 of this Act), a
            hospital (as that term is defined in section 242 of this Act),
            or a group practice facility (as that term is defined in section
            1106 of this Act))'' after ``1978''; and
                 (B) by inserting ``or for keeping the health care facility
            operational to serve community needs,'' after ``character of the
            project,''.]
        [Sec. 211. Calculation of Downpayment.--Section 203(b) of the
    National Housing Act is amended by striking ``fiscal year 1997'' in
    paragraph (10)(A) and inserting ``fiscal years 1997 and 1998''.]
        Sec. 205. Incentive To Reduce Poverty Concentrations of Certificate
    and Voucher Families.--(a) Section 202(b) of the Departments of Veterans
    Affairs and Housing Development, and Independent Agencies Appropriations
    Act, 1997 is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and
        inserting ``; and''; and
            (3) by inserting the following new paragraph at the end:
            ``(4) agencies that demonstrate to the satisfaction of the
        Secretary that the poverty concentration of families assisted under
        the certificate and voucher programs has been reduced.''.
        (b) Section 8(q) of the United States Housing Act of 1937 is hereby
    repealed.
        [Sec. 212. HOPE VI NOFA.--Notwithstanding any other provision of
    law, including the July 22, 1996 Notice of Funding Availability (61 Fed.
    Reg. 38024), the demolition of units at developments funded under the
    Notice of Funding Availability shall be at the option of the New York
    City Housing Authority and the assistance awarded shall be allocated by
    the public housing agency among other eligible activities under the HOPE
    VI program and without the development costs limitations of the Notice,
    provided that the public housing agency shall not exceed the total cost
    limitations for the public housing agency, as provided by the Department
    of Housing and Urban Development.]
        Sec. 206. Transfer for evaluation of hud programs.--(a) The
    Secretary may transfer to the departmental Salaries and Expenses account
    up to 1 percent of the amount appropriated in any account listed to
    which subsection (b) refers, for evaluation and monitoring of programs
    and collecting and maintaining data under section 7(r) of the Department
    of Housing and Urban Development Act as determined by the Secretary,
    including such activities as may be required under the Government
    Performance and Results Act of 1993 and 31 U.S.C. 1115, 1116 and 9703.
        (b) The accounts referred to in subsection (a) are those for the
    Housing Opportunities for Persons with AIDS program under subtitle D of
    title VIII of the Cranston-Gonzalez National Affordable Housing Act, and
    for programs the authorities for which are listed in section 7(r)(2) of
    the Department of Housing and Urban Development Act.
        (c) Any amounts transferred under this section shall be in addition
    to amounts appropriated for and otherwise transferred to the
    departmental Salaries and Expenses account. Any amounts transferred may
    be used for purposes that are also authorized under such account, and
    amounts otherwise in such account may continue to be used for the
    purposes for which the transfers authorized under this section may be
    used.
        Sec. [213] 207. Enhanced Disposition Authority.--Section 204 of the
    Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 1997, is amended by striking
    [inserting after ``owned by the Secretary'' the following: ``,
    including,] for ``fiscal years 1997 and 1998''[, the provision of grants
    and loans from the General Insurance Fund (12 U.S.C. 1735c) for the
    necessary costs of rehabilitation or demolition,''].
        Sec. 208. Transfer Limitation.--Not to exceed 2 percent of any
    appropriation or earmarked amount made available for the current fiscal
    year in this Act may be transferred between appropriations or earmarked
    amounts, respectively, but no appropriations or earmarked amounts shall
    be increased or decreased by more than 2 percent by any such transfer.
        [Sec. 214. Home Program Formula.--The first sentence of section
    217(b)(3) of the Cranston-Gonzalez National Affordable Housing Act is
    amended by striking ``only those jurisdictions that are allocated an
    amount of $500,000 or greater shall receive an allocation'' and
    inserting the following: ``jurisdictions that are allocated an amount of
    $500,000 or more, and participating jurisdictions (other than consortia
    that fail to renew the membership of all of their member jurisdictions)
    that are allocated an amount less than $500,000, shall receive an
    allocation''.]
        [Sec. 215. HUD Rent Reform.--Notwithstanding any other provision of
    law, the Secretary of Housing and Urban Development may provide tenant-
    based assistance to eligible tenants of a project insured under either
    section 221(d)(3) or 236 of the National Housing Act in the same manner
    as if the owner had prepaid the insured mortgage to the extent necessary
    to minimize any rent increases or to prevent displacement of low-income
    tenants in accordance with a transaction approved by the Secretary
    provided that the rents are no higher than the published section 8 fair
    market rents, as of the date of enactment, during the tenants' occupancy
    of the property.]
        [Sec. 216. Nursing Home Lease Terms.--Section 232(b)(4)(B) of the
    National Housing Act is amended by striking ``fifty years from the date
    the mortgage was executed'' and inserting ``ten years to run beyond the
    maturity date of the mortgage''.]
        Sec. [217] 209. Housing Opportunities for Persons With AIDS Grants.
    (a) Eligibility.--Notwithstanding section 854(c)(1)(A) of the AIDS
    Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts
    made available under this title for fiscal [year] years 1998 and 1999
    that are allocated under such section, the Secretary of Housing and
    Urban Development shall allocate and make a grant, in the amount
    determined under subsection (b), for any State that--
             (1) received an allocation [for] in a prior fiscal year [1997]
        under clause (ii) of such section; and
             (2) [is not otherwise eligible for an allocation for fiscal
        year 1998 under such clause (ii) because the State does not have the
        number of cases of acquired immunodeficiency syndrome required under
        such clause; and] is not otherwise eligible for an allocation for
        fiscal years 1998 or 1999 under such clause (ii) because the areas
        in the State outside of the metropolitan statistical areas that
        qualify under clause (i) in fiscal year 1999 do not have the number
        of cases of acquired immunodeficiency syndrome required under such
        clause.

    [[Page 488]]

            [(3) would meet such requirement if the cases in the
        metropolitan statistical area for any city within the State, which
        city was not eligible for an allocation for fiscal year 1997 under
        clause (i) of such section but is eligible for an allocation for
        fiscal year 1998 under such clause, were considered to be cases
        outside of metropolitan statistical areas described in clause (i) of
        such section.]
        [(b) Amount.--The amount of the allocation and grant for any State
    described in subsection (a) shall be the amount that is equal to the
    lesser of--
            (1) the difference between--
                (A) the total amount allocated for such State under section
            854(c)(1)(A)(ii) of the AIDS Housing Opportunity Act for fiscal
            year 1997; and
                (B) the total amount allocated for the city described in
            subsection (a)(3) of this section under section 854(c)(1)(A)(i)
            of such Act for fiscal year 1998 (from amounts made available
            under this title); and
            (2) $300,000.]
        (b) Amount.--The amount of the allocation and grant for any State
    described in subsection (a) shall be an amount based on the cumulative
    number of AIDS cases in the areas of that State that are outside of
    metropolitan statistical areas that qualify under clause (i) in fiscal
    year 1999 in proportion to AIDS cases among cities and States that
    qualify under clauses (i) and (ii) and States deemed eligible under
    subsection (a).
        (c) Environmental Review.--For purposes of environmental review,
    pursuant to the National Environmental Policy Act of 1969, a grant under
    the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.) from amounts
    provided under this or prior Acts shall be treated as assistance for a
    special project that is subject to section 305(c) of the Multifamily
    Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547), and
    shall be subject to the regulations issued by the Secretary to implement
    such section. Where the grantee under the AIDS Housing Opportunity Act
    is a nonprofit organization and the activity is proposed to be carried
    out within the jurisdiction of an Indian tribe or the community of an
    Alaska native village, the role of the State or unit of general local
    government under sections 305(c)(1)-(3) of such Act may be carried out
    by the Indian tribe or Alaska native village instead.
        [Sec. 218. Debt Forgiveness.--The Secretary of Housing and Urban
    Development shall cancel the indebtedness of the Village of Robbins,
    Illinois, relating to loans under the Reconstruction Finance Corporation
    and refinanced under the Public Facility Loan program (loan numbers ILL-
    11-RFC-0029 and ILL-11-PFL0111). The Village is hereby relieved of all
    liability to the Federal Government for the outstanding principal
    balance on such loans, for the amount of accrued interest on such loans,
    and for any fees and charges payable in connection with such loans.]
        Sec. 210. Drawdown of Funds.--Section 14(q)(1) of the United States
    Housing Act of 1937 (42 U.S.C. 1437(q)(1)) is amended by inserting after
    the first sentence the following sentence: ``Such assistance may involve
    the drawdown of funds on a schedule commensurate with construction draws
    for deposit into an interest earning escrow account to serve as
    collateral or credit enhancement for bonds issued by a public agency for
    the construction or rehabilitation of the development.''.
        Sec. 211. Multifamily Restructuring.--Sections 513(b)(7)(B) and
    517(d) of the Multifamily Assisted Housing Reform and Affordability Act
    of 1997 are hereby repealed.
        Sec. 212. Single Family Claims Reform and Sale of Property.
        (a) Revision of Claims Procedures.--Section 204(a) of the National
    Housing Act is amended to read as follows:
        ``(a)(1) Authorized Claims Procedures.--The Secretary is authorized,
    in accordance with this subsection and terms and conditions prescribed
    by the Secretary, to pay insurance benefits to the mortgagee for any
    mortgage insured under section 203 of this Act through any of the
    methods described in this paragraph.
        ``(A) Assignment of mortgage.--The Secretary may pay insurance
    benefits whenever a mortgage has been in a monetary default for at least
    three full monthly installments or whenever the mortgagee is entitled to
    foreclosure for a non-monetary default. Insurance benefits shall be paid
    only upon the assignment, transfer and delivery to the Secretary of--
            ``(i) all rights and interests arising under the mortgage;
            ``(ii) all claims of the mortgagee against the mortgagor or
        others arising out of the mortgage transaction;
            ``(iii) title evidence satisfactory to the Secretary; and
            ``(iv) such records relating to the mortgage transaction as the
        Secretary may require.
        ``(B) Conveyance of title to property.--The Secretary may pay
    insurance benefits if the mortgagee has acquired title to the mortgaged
    property through foreclosure or has otherwise acquired such property
    from the mortgagor after a default upon--
            ``(i) the prompt conveyance to the Secretary of title to the
        property which meets the standards of the Secretary in force at the
        time the mortgage was insured, and which is evidenced in the manner
        provided by such standards; and
            ``(ii) the assignment to the Secretary of all claims of the
        mortgagee against the mortgagor or others, arising out of the
        mortgage transaction or foreclosure proceedings, except such claims
        as may have been released with the consent of the Secretary.
    The Secretary is authorized to permit the mortgagee to tender to the
    Secretary a satisfactory conveyance of title and transfer of possession
    directly from the mortgagor or other appropriate grantor, and to pay to
    the mortgagee the insurance benefits to which it would otherwise be
    entitled if such conveyance had been made to the mortgagee and from the
    mortgagee to the Secretary.
        ``(C) Claim without conveyance of title.--The Secretary may pay
    insurance benefits upon sale of the mortgaged property at foreclosure
    where such sale is for at least the fair market value of the property
    (with appropriate adjustments), as determined by the Secretary, and upon
    assignment to the Secretary of all claims referred to in clause (ii) of
    subparagraph (B).
        ``(D) Pre-foreclosure sale.--The Secretary may pay insurance
    benefits upon the sale of the mortgaged property by the mortgagor after
    default and the assignment to the Secretary of all claims referred to in
    clause (ii) of subparagraph (B), if--
            ``(i) the sale of the mortgaged property has been approved by
        the Secretary;
            ``(ii) the mortgagee receives an amount at least equal to the
        fair market value of the property (with appropriate adjustments), as
        determined by the Secretary; and
            ``(iii) the mortgagor has received an appropriate disclosure, as
        determined by the Secretary.
        ``(2) Payment for Loss Mitigation.--The Secretary may pay insurance
    benefits to the mortgagee to recompense the mortgagee for its actions to
    provide an alternative to foreclosure of a mortgage that is in default,
    which actions may include such actions as special forbearance, loan
    modification, and deeds in lieu of foreclosure, all upon such terms and
    conditions as the mortgagee shall determine in the mortgagee's sole
    discretion within guidelines provided by the Secretary, but which may
    not include assignment of a mortgage to the Secretary. For purposes of
    the preceding sentence, no action authorized by the Secretary and no
    action taken, nor any failure to act, by the Secretary or the mortgagee
    shall be subject to judicial review.
        ``(3) Determining Claims Procedure.--The Secretary shall publish
    guidelines for determining which of the procedures for payment of
    insurance specified in paragraph (1) are available to a mortgagee when
    it claims insurance benefits. At least one of the procedures for payment
    of insurance benefits specified in paragraph (1)(A) or (1)(B) shall be
    available to a mortgagee with respect to a mortgage, but the same
    procedure is not required to be available for all of the mortgages held
    by a mortgagee.
        ``(4) Servicing Assigned Mortgage.--If a mortgage is assigned to the
    Secretary under paragraph (1)(A), the Secretary may permit the assigning
    mortgagee or its servicer to continue to service the mortgage for
    reasonable compensation and on terms and conditions determined by the
    Secretary. Neither the Secretary nor any servicer of the mortgage shall
    be required to forbear from collection of amounts due under the mortgage
    or otherwise pursue loss mitigation measures.
        ``(5) Calculating Insurance Benefits.--Insurance benefits shall be
    paid as provided in section 520 of this Act, and shall be equal to the
    original principal obligation of the mortgage which was unpaid on the
    date the mortgage was assigned to the Secretary, or on the date of the
    institution of foreclosure proceedings, or on the date of the
    acquisition of the property after default other than by foreclosure, or
    on the date of sale of the mortgaged property by the mortgagor, with
    such additions and deductions as the Secretary deems appropriate.
        ``(6) Forbearance and Recasting After Default.--The mortgagee may,
    upon such terms and conditions as the Secretary may prescribe--

    [[Page 489]]

            ``(A) extend the time for the curing of the default, and the
        time for commencing foreclosure proceedings or for otherwise
        acquiring title to the mortgaged property, to such time as the
        mortgagee determines is necessary and desirable to enable the
        mortgagor to complete the mortgage payments, including an extension
        of time beyond the stated maturity of the mortgage, and in the event
        of a subsequent foreclosure or acquisition of the property by other
        means the Secretary is authorized to include in the amount of
        insurance benefits an amount equal to any unpaid mortgage interest;
        or
            ``(B) provide for a modification of the terms of the mortgage
        for the purpose of recasting, over the remaining term of the
        mortgage or over such longer period pursuant to guidelines as may be
        prescribed by the Secretary, the total unpaid amount then due, with
        the modification to become effective currently or to become
        effective upon the termination of an agreed-upon extension of the
        period for curing the default; and the principal amount of the
        mortgage, as modified, shall be considered the `original principal
        obligation of the mortgage' as that term is used in this section for
        the purpose of paragraph (5).
        ``(7) Termination of Premium Obligation.--The obligation of the
    mortgagee to pay the premium charges for insurance shall cease upon
    fulfillment of the appropriate requirements under which the Secretary
    may pay insurance benefits, as described in paragraph (1). The Secretary
    may also terminate the mortgagee's obligation to pay mortgage insurance
    premiums upon receipt of an application filed by the mortgagee for
    insurance benefits under paragraph (1), or in the event the contract of
    insurance is terminated pursuant to section 229 of this Act.
        ``(8) Relationship to Section 230.--Nothing in this section shall
    limit the authority of the Secretary to pay insurance benefits under
    section 230 of this Act.''.
        (b) Effective Date.--The Secretary shall publish a notice in the
    Federal Register stating the effective date of the terms and conditions
    prescribed by the Secretary under section 204(a)(1) of the National
    Housing Act, as amended by this section. Sections 204 (a) and (k) of the
    National Housing Act as they existed immediately prior to the effective
    date of the terms and conditions implementing the amendment to section
    204(a) made by this Act shall continue to apply to any mortgage insured
    under section 203 of the National Housing Act prior to such date, except
    that the Secretary is authorized, at the request of the mortgagee, to
    pay insurance benefits as provided in sections 204(a)(1) (A) and (D) of
    such Act to calculate insurance benefits in accordance with section
    204(a)(5) of such Act.
        (c) Redundant Provision Repealed.--Section 204(k) of the National
    Housing Act is hereby repealed.
        (d) Authority To Sell.--Section 204(g) of the National Housing Act
    is amended by adding at the end the following: ``The Secretary may sell
    real and personal property on such terms and conditions as the Secretary
    may prescribe.''.
        (e) Authority to Insure Mortgage.--Section 223(c) of the National
    Housing Act is amended by--
            (1) striking ``him'' each place it appears and inserting ``the
        Secretary''; and
            (2) inserting after ``sale by the Secretary'', the following:
        ``, including a sale through another entity under authority of the
        fourth sentence of section 204(g),''.
        Sec. 213. Issuance of Certificates and Vouchers to Single Persons.
        (a) Certificate Program.--Section 8(c)(1) of the United States
    Housing Act of 1937 is amended by inserting after the third sentence the
    following new sentence:
    ``The maximum monthly rent for a single person (other than an elderly
    person or person with disabilities, if such elderly person or person
    with disabilities is living with one or more persons determined under
    the regulations of the Secretary to be essential to such person's care
    or well-being) receiving tenant-based rental assistance in the
    certificate program under subsection (b)(1) shall not exceed by more
    than the amount permitted under the second sentence of this paragraph
    the fair market rental for an efficiency unit, except that the
    Secretary, or the public housing agency in accordance with guidelines
    established by the Secretary, may determine not to apply the limitation
    in this sentence if there is an insufficient supply of efficiency units
    in the market area or if necessary to meet the needs of persons with
    disabilities.''.
        (b) Voucher Program.--Section 8(o) of such Act is amended by
    inserting the following at the end of paragraph (1):
    ``The payment standard for a single person (other than an elderly person
    or person with disabilities, if such elderly person or person with
    disabilities is living with one or more persons determined under the
    regulations of the Secretary to be essential to such person's care or
    well-being) shall be based on the fair market rental for an efficiency
    unit, except that the Secretary, or the public housing agency in
    accordance with guidelines established by the Secretary, may determine
    not to apply the limitation in this sentence if there is an insufficient
    supply of efficiency units in the market area or if necessary to meet
    the needs of persons with disabilities.''.
        (c) Applicability.--This section shall become effective 60 days
    after the later of October 1, 1998 or the date of enactment of this Act.
        Sec. 214. Elimination of Shopping Incentive for Voucher Families Who
    Remain in Same Unit Upon Initial Receipt of Assistance.
        (a) Section 8(o)(2) of the United States Housing Act of 1937 is
    amended by inserting the following new sentence at the end:
    ``Notwithstanding the preceding sentence, for families being admitted to
    the voucher program who remain in the same unit or complex, where the
    rent (including the amount allowed for utilities) does not exceed the
    payment standard, the monthly assistance payment for any family shall be
    the amount by which such rent exceeds the greater of 30 percent of the
    family's monthly adjusted income or 10 percent of the family's monthly
    income.''.
        (b) This section shall become effective 60 days after the later of
    October 1, 1998 or the date of enactment of this Act.
        Sec. 215. Enforcement of Rent Reasonableness Requirements.--The
    Secretary of Housing and Urban Development shall take steps to assure
    that public housing agencies administering tenant-based assistance under
    section 8 of the United States Housing Act of 1937 comply with
    applicable rent reasonableness requirements, to assure that assistance
    provided on behalf of eligible families is not excessive.
        Sec. 216. Technical Correction to Nursing Home Lease Terms
    Provision.
        (a) Technical Correction.--Section 216 of the Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 1998, is amended by striking ``fifty years
    from the date'' and inserting ``fifty years to run from the date''.
        (b) Effective Date.--The amendment made by subsection (a) shall be
    construed to have taken effect on October 27, 1997.