Appendix - Department of Housing and Urban Development

[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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

[[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)

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)

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)

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)

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)

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)

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
---------------------------------------------------------------------------

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

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

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

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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.