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]

[[Page 471]]

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 2 years, the Department has been engaged in a
comprehensive reform effort--HUD 2020--to create a streamlined
organization ready to meet the challenges of the new century. HUD is now
back in business and fully equipped to pursue its fundamental missions:
improving the economic vitality and livability of communities through
locally driven initiatives and programs; addressing homelessness through
comprehensive continuum of care strategies; transforming public and
assisted housing and expanding housing assistance to alleviate severe
housing needs; enhancing homeownership opportunities, especially for
minorities and first-time buyers; and ensuring equal housing
opportunity.

The 2000 Budget request would maintain the Community Development
Block Grant and HOME programs at slightly increased levels. To access
these formula grants and other HUD funds, communities develop
consolidated plans that identify local needs and priorities. A Community
Empowerment Fund (CEF) is proposed to finance economic development
efforts that help families move from welfare to work or link city and
suburban businesses. By integrating Economic Development Initiative
competitive grants with Section 108, the CEF also will expand and
improve operation of the Section 108 program, which enables communities
to borrow in the private market with a Federal guarantee. Grants for
urban empowerment zones will allow the 15 new zones to stimulate job
creation and other community revitalization strategies.

The HOME program, which provides funding for states and local
jurisdictions to expand the supply of affordable housing, will include a
new Regional Affordable Housing Initiative to encourage multi-
jurisdictional cooperation to build affordable housing in areas of job
growth. The 2000 Budget also includes a proposed new Regional
Connections program that will support locally driven strategies for
smart growth and livable communities. A Metro Job Links program, funded
as a small set-aside from CDBG, will help community-based institutions
serving Federally assisted housing in distressed neighborhoods prepare
families making the transition from welfare to work and link them to
jobs across the region.

The 2000 Budget includes 100,000 incremental vouchers that will help
address the severe housing needs of low-income households. Of these
additional vouchers, 25,000 will be used to expand the Welfare to Work
Voucher program for families for whom housing assistance is essential to
getting or keeping a job; 18,000 will be part of the continuum of care
for the homeless; 15,000 will be allocated to elderly households who
find housing in low income housing tax credit project; and 42,000 will
be used for other low-income households with severe housing needs.

In addition to vouchers needed to move the homeless to permanent
housing, the Homeless Assistance Grants program will be funded at
slightly increased levels to enable communities to continue their
development and implementation of comprehensive, coordinated continuum
of care systems to address the needs of homeless people and families.

The 2000 Budget includes a new continuum of care approach to
addressing the housing needs of the elderly. Proposed at the same level
enacted in 1999, the elderly program includes both budgetary and non-
budgetary initiatives to enable low-income elders to remain in their
homes; to be housed by their families; to live in both newly developed
and well-maintained elderly housing developments; to access the services
increasingly needed by an aging older population; and to live in
assisted living facilities when that is the type of housing they need.
An additional part of this elderly initiative is mandatory funding for
15,000 vouchers to be used initially by extremely low-income elders who
rent apartments in projects developed using the Low Income Housing Tax
Credit.

The 2000 budget proposes to extend the principles of HUD's 2020
reform to HUD's major contract relationships for the administration of
assisted and public housing. The transformation of public and assisted
housing must not result in a decline in housing assistance resources for
any community. It is the Administration's policy to renew all expiring
subsidies and to protect income-eligible tenants when units are retired
from the housing stock or converted to market-rate housing. The Housing
Certificate Fund includes funding adequate for these purposes.

The 2000 Budget maintains the Federal commitment to the
transformation of the public housing stock and supports the reforms
enacted by the Quality Housing and Work Responsibility Act of 1998.
Pursuant to this Act, during 1999, the Department will modify its
approach to the operating and capital subsidies formulas through
negotiated rule-making with public housing authority representatives,
public housing tenants, local officials and other stakeholders. The new
formulas will be based on principles similar to the Administration's
principles for performance-based service contracting (PBSC) and HUD's
2020 reforms. The HOPE VI program will be maintained at the funding
level enacted in 1999. The 2000 Budget provides full funding for the
Public Housing Operating Fund and maintains the Public Housing Capital
Fund at a level that will continue to support the renovations needed by
an aging public housing stock, including housing quality problems
identified by HUD's new Assessment Center.

The increase in the FHA guarantee limitation recently enacted will
make it possible for thousands of additional Americans to become
homeowners, especially first-time buyers, minorities, and other
underserved populations. Homeownership Zones, a successful program that
revitalizes neighborhoods as well as creating homeownership
opportunities, is proposed as a modest set-aside from CDBG.

Increased funding for the Fair Housing Assistance and Fair Housing
Initiatives programs (FHAP and FHIP) will strengthen the ability of
public and private fair housing groups, and partnerships between them,
to enforce the laws protecting all Americans against illegal housing
discrimination. Additional funding for the Regional Opportunity
Counseling program will help low-income families who have housing
vouchers, including minorities, use their assistance to make informed
housing choices in a broad range of neighborhoods.

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

[[Page 472]]

heading in this Act) or expiration of use restrictions, or other changes
in housing assistance arrangements, and for other purposes,
[$10,326,542,030] $11,522,095,215, to remain available until expended:
Provided, That of the total amount provided under this heading,
[$9,600,000,000] $10,640,135,215, of which $6,440,135,215 shall be
available on October 1, 1999 and $4,200,000,000 shall be available on
October 1, 2000, shall be for assistance under the United States Housing
Act of 1937 (``The Act'' herein) (42 U.S.C. 1437) for use in connection
with expiring or terminating section 8 subsidy contracts[, for enhanced
vouchers (including renewals) 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 in the case of enhanced vouchers
provided under this heading, if the income of a family receiving
assistance declines to a significant extent, the percentage of income
paid by the family for rent shall not exceed the greater of 30 percent
or the percentage of income paid at the time of mortgage prepayment:
Provided further, That the Secretary may determine not to apply section
8(o)(6)(B) of the Act to housing vouchers during fiscal year 1999:]
Provided further, That of the total amount provided under this heading,
$209,000,000 shall be for administration of project-based section 8
rental assistance contracts, including $42,000,000 for performance-based
contracting, notwithstanding the limitation on eligible vendors under
section 8 of the Act: Provided further, That of the total amount
provided under this heading, [$433,542,030] $156,000,000 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 relocation and
replacement housing for units that are demolished or disposed of from
the public housing inventory (in addition to amounts that may be
available for such purposes under this and other headings); 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 families] or (3) for
enhanced vouchers as provided under the ``Preserving Existing Housing
Investment'' account in the Department of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations Act, 1997
(P.L. 104-204), for families eligible for assistance under such Act:
Provided further, That in the case of enhanced vouchers under the prior
proviso, if the income of a family receiving assistance declines to a
significant extent, the percentage of income paid by the family for rent
shall not exceed the greater of 30 percent or the percentage of income
paid at the time of mortgage prepayment: Provided further, That of the
total amount provided under this heading, $346,560,000, shall be for
section 8 rental assistance under the United States Housing Act,
authorized by section 558 of the Quality Housing and Work Responsibility
Act of 1998, including $103,968,000 for section 8 rental assistance for
the homeless: Provided further, That of the total amount provided under
this heading, [$10,000,000] $20,000,000 shall be for Regional
Opportunity Counseling: Provided further, That [all balances, as of
September 30, 1998, remaining in the ``Prevention of Resident
Displacement'' account shall be transferred to and merged with the
amounts provided for those purposes under this heading] of the total
provided under this heading for section 8 tenant-based rental
assistance, up to $1,100,000,000 shall be available for administrative
fees to cover the cost of administering that program.
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] $144,400,000 from the total amount provided under
this heading, to be administered by public housing agencies (including
Indian tribes and their tribally designated housing entities, 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 paragraph: (1) shall be eligible to
receive, shall be currently receiving, or shall have received within the
preceding two years, 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; (2) shall be
determined by the agency to be families for which tenant-based housing
assistance is critical to successfully obtaining or retaining
employment; and (3) shall not already be receiving tenant-based
assistance under the United States Housing Act [of 1937]: Provided
further, That each application shall: (1) 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; (2) demonstrate
that tenant-based housing assistance is critical to the success of
assisting eligible families to obtain or retain employment; (3) specify
the criteria for selecting among eligible families to receive housing
assistance under this paragraph; (4) describe the proposed strategy for
tenant counseling and housing search assistance and landlord outreach;
(5) 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 paragraph; (6) 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 (7) 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 paragraph on [a competitive basis] the basis of a
national competition, 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 Act if the Secretary determines that the waiver would substantially
further the objective of the assistance under this proviso and P.L. 105-
276, and in the event of any waiver, may make provision for alternative
conditions or terms where appropriate, and approval shall not occur
until 30 days after notification of each such waiver to the Committees
on Ap

[[Page 473]]

propriations: Provided further, That the Secretary may use up to one
percent of the amount available under this paragraph, directly or
indirectly, to conduct detailed evaluations of the effect of providing
assistance under this paragraph: [Provided further, That of the amount
made available under this paragraph, at least $4,000,000 each shall be
made available for local self-sufficiency/welfare-to-work initiatives in
San Bernardino County, California; Cleveland, Ohio; Kansas City,
Missouri; Charlotte, North Carolina; Miami/Dade County, Florida; Prince
Georges County, Maryland; New York City, New York; and Anchorage,
Alaska]: Provided further, That all balances for the section 8 rental
assistance, section 8 counseling, new construction sub-rehabilitation,
relocation/replacement/demolition, section 23 conversions, rental and
disaster vouchers, loan management set-aside, section 514 technical
assistance, and programs previously funded within the ``Annual
Contributions'' account shall be transferred to this account, to be
available for the purposes for which they were originally appropriated:
Provided further, That all balances previously recaptured in the
``Section 8 Reserve Preservation'' account shall be transferred to this
account, to be available for the purposes for which they were originally
appropriated: Provided further, That the unexpended amounts previously
appropriated for special purpose grants within the ``Annual
Contributions for Assisted Housing'' account shall be recaptured and
transferred to this account, to be available for assistance under the
Act for use in connection with expiring or terminating section 8 subsidy
contracts: Provided further, That of the amounts previously appropriated
for property disposition within the ``Annual Contributions for Assisted
Housing'' account, up to $79,000,000 shall be transferred to this
account, to be available for assistance under the Act for use in
connection with expiring or terminating section 8 subsidy contracts:
Provided further, That of the unexpended amounts previously appropriated
for carrying out the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 and the Emergency Low-Income Housing
Preservation Act of 1987, other than amounts made available for rental
assistance, within the ``Annual Contributions for Assisted Housing'' and
``Preserving Existing Housing Investments'' accounts, shall be
recaptured and transferred to this account, to be available for
assistance under the Act for use in connection with expiring or
terminating section 8 subsidy contracts.
[From the sources and in the order hereinafter specified,
$1,650,000,000 is rescinded: Provided, That the first source shall be
amounts that are available or may be recaptured from project-based
contracts for section 8 assistance that expired or were terminated
during fiscal year 1999 or any prior year: Provided further, That after
all amounts that are available or may be recaptured from the first
source have been exhausted, the second source shall be unobligated
amounts from amendments to contracts for project-based section 8
assistance, other than contracts for projects developed under section
202 of the Housing Act of 1959, other than amounts described as the
fourth source, in the fourth proviso in this paragraph, that are carried
over into 1999: Provided further, That after all amounts that are
available from the second source are exhausted, the third source shall
be amounts recaptured from section 8 reserves in the section 8 moderate
rehabilitation program: Provided further, That after all amounts that
are available or may be recaptured from the third source have been
exhausted, the fourth source shall be all unobligated amounts for
project-based assistance that are earmarked under the third proviso
under this heading in Public Law 105-65, 111 Stat. 1351 (approved
October 27, 1997): Provided further, That any amounts that are available
or recaptured in connection with the first or third provisos of this
paragraph that are in the Annual Contributions for Assisted Housing
account, and are required to be rescinded by this paragraph, shall be
rescinded from the Annual Contributions for Assisted Housing account.]
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0319-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Contract renewals................. 9,708 11,238 8,790
00.02 Section 8 amendments.............. 724 467
00.03 Relocation & other................ 133 671 156
00.04 Preservation...................... 12
00.05 Section 514 Technical Assistance.. 1 3
00.06 Non-Elderly Disabled.............. 16 40
00.07 Welfare to Work................... 283 144
00.08 Regional Opportunity Counseling... 10 20
00.09 Contract Administrators........... 209
00.10 Increase in Administrative Fee.... 6
00.11 Homeless Vouchers................. 104
00.12 Incremental Rental Assistance..... 243
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 10,594 12,712 9,672
----------------------------------------------------------------------------

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

21.40 Unobligated balance available,
start of year................. 2,306 1,807 986
21.40 Unobligated balance available,
start of year................. 1,180 1,670
--------- --------- ----------
21.99 Total unobligated balance, start
of year....................... 3,486 3,477 986
22.00 New budget authority (gross)...... 9,373 9,491 7,426
22.10 Resources available from
recoveries of prior year
obligations..................... 664 730 1,181
22.22 Unobligated balance transferred
from other accounts............. 548 79
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,071 13,698 9,672
23.95 Total new obligations............. -10,594 -12,712 -9,672
Unobligated balance available, end of year:

24.40 Unobligated balance available,
end of year................... 1,807 986
24.40 Unobligated balance available,
end of year................... 1,670
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 3,477 986
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 9,373 10,327 7,322
40.36 Unobligated balance rescinded..... -836
42.00 Transferred from other accounts... 104
--------- --------- ----------
43.00 Appropriation (total)........... 9,373 9,491 7,426
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1,011 10,330 14,948
73.10 Total new obligations............. 10,594 12,712 9,672
73.20 Total outlays (gross)............. -6,871 -7,364 -9,868
73.32 Obligated balance transferred from
other accounts.................. 6,260 934
73.45 Adjustments in unexpired accounts. -664 -730 -1,181
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 10,330 14,948 14,505
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 687 9 10
86.93 Outlays from current balances..... 6,183 7,355 9,858
--------- --------- ----------
87.00 Total outlays (gross)........... 6,871 7,364 9,868
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 9,373 9,491 7,426
90.00 Outlays........................... 6,870 7,364 9,868
---------------------------------------------------------------------------

The funds requested will support the following activities for 2000:

A. 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 2000, $10.8 billion is
requested to support 2.4 million units.

B. Incremental Rental Assistance. For 2000, the Department is
requesting $346,560,000 in budget authority to support a total of 60,000
incremental certificates and vouchers, including 18,000 specifically
earmarked for the homeless. A portion of the total assistance may be
used for family unification, witness relocation, settlement of
litigation, section 23 conversions, and for families exercising
portability.

C. Welfare to Work.--The lack of affordable, stable housing, or
housing located close to employment, impedes the efforts of families
moving from welfare to work. To help families who need housing
assistance in order to achieve self-sufficiency, the Department is
requesting $144 million to fund 25,000 Welfare to Work Housing Vouchers
to supplement the program enacted in 1999. Additionally, waiver
authority is requested to allow applicants to receive waivers of
administrative provisions or statutory provisions of the United States

[[Page 474]]

Housing Act of 1937 that are needed to substantially further the
objectives of the program.

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 530 Public
Housing Authorities each year. The PHAs that receive the special funding
for FSS service coordinators were the smallest agencies that
administered less than 1,500 rental vouchers and certificates.

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 $25.1 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 $156 million requested for 2000 Housing tenant protections will
be used to provide funding for an estimated 12,000 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, $22 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.

Verifying the right person gets the right benefit.--In 2000, HUD
will begin verifying tenant reported income against other Federal income
and other wage data, as authorized under existing statutes. This will
help ensure that housing assistance is only provided to the extent
entitled. It will improve the public's confidence in HUD stewardship of
appropriated funds by providing greater assurance that tenants pay the
proper amount of rent as provided under law.

While tenant income is a major factor affecting eligibility and the
amount of federal rental subsidies, admission and subsidy determinations
are almost entirely dependent on self-reporting. HUD research has
determined that there is a significant level of under-reporting. HUD
statistically sampled tenants from its automated data bases and matched
their reported income with federal tax data in Social Security
Administration (SSA) and Internal Revenue Service (IRS) data bases in CY
1995 and CY 1996. Based on the result of this computer income matching
project, HUD statistically projected that the amount of excess rental
subsidies when projected to the entire universe would total as much as
hundreds of millions of dollars. HUD projects an estimated savings of
$15 million from this matching effort in 2000 and substantially larger
savings in subsequent years.

The verification program will reinforce incentives for voluntary
reporting of income and the corresponding determination of the rent
payment. Actions will include interest charges on under-payment of rent,
additional financial penalties for very large amounts of under-payments,
and routine notification to credit bureaus when amounts remain unpaid.
HUD will amend its administrative procedures to standardized interim
reporting policies for when a tenant must report increases and decreases
in income. HUD will also streamline its procedures to easily reconcile
these mismatches to actual income. When new verification procedures are
fully implemented, HUD will reduce the existing administrative burden of
paper verification of employment with employers to a sampling basis.

Tenants assessed back rent will be asked to repay the amount over a
reasonable period of time in order to ease the burden of reimbursement.
In subsequent years, HUD envisions a system of reconciliation where
tenant reporting would be routinely reconciled with actual income. Any
significant overpayment or underpayment of rent would be adjusted in the
tenant's future rental payment over the following year. In 2000, HUD
will focus primarily on tenants with the very large discrepancies
between income reported to HUD and income reported to other sources.

Current statutes facilitate the verification program in public
housing and Section 8 tenant-based rental assistance by requiring a
subsidized tenant to turn over any letter regarding mis-matches in
reported income to HUD agents for resolution. Similar statutory
authority is sought for the Section 8 project-based rental assistance
program.

Pursuant to P.L. 105-276, the $1.65 billion rescission of recaptures
from project-based contracts is shown in two accounts, $836 million in
this account, and $814 million in the Annual Contributions for Assisted
Housing account.

[[Page 475]]

Section 8 Reserve Preservation Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0316-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Contract Renewals................. 289 995
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 289 995
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 4,202 995
22.00 New budget authority (gross)...... -2,897
22.21 Unobligated balance transferred to
other accounts.................. -21
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,284 995
23.95 Total new obligations............. -289 -995
24.40 Unobligated balance available, end
of year......................... 995
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.36 Unobligated balance rescinded..... -2,897
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 289 934
73.10 Total new obligations............. 289 995
73.20 Total outlays (gross)............. -350
73.31 Obligated balance transferred to
other accounts.................. -934
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 289 934
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. -2,897
90.00 Outlays........................... 350
---------------------------------------------------------------------------

The Section 8 Reserve Preservation Account was authorized by P.L.
105-18. 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 and 2000 to
reduce the requirements for new contract renewal funding in the Housing
Certificate Fund.

All balances in this account are proposed to be transferred to the
Housing Certificate Fund in 2000.

Annual Contributions For Assisted Housing

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Lower income housing.............. 332 313
00.04 Other programs.................... 6 160
00.05 Contract renewals................. 257
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 338 730
----------------------------------------------------------------------------

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

21.40 Unobligated balance available,
start of year................. 495 391 79
21.40 Unobligated balance available,
start of year................. 4,090 712
Unobligated balance available, start of year:
Contract authority:

21.49 Unobligated balance available,
start of year: Contract
authority..................... 16
21.49 Unobligated balance available,
start of year: Contract
authority..................... 73
--------- --------- ----------
21.99 Total unobligated balance, start
of year....................... 4,658 1,119 79
22.00 New budget authority (gross)...... -819 -104
22.10 Resources available from
recoveries of prior year
obligations..................... 1,025 509 104
22.21 Unobligated balance transferred to
other accounts.................. -3,285 -79
22.22 Unobligated balance transferred
from other accounts............. 38
22.75 Balance of contract authority
withdrawn....................... -979
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,457 809
23.95 Total new obligations............. -338 -730
Unobligated balance available, end of year:

24.40 Unobligated balance available,
end of year................... 391 79
24.40 Unobligated balance available,
end of year................... 712
24.49 Unobligated balance, end of year:
Administrative commitments...... 16
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 1,119 79
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.36 Unobligated balance rescinded... -814
41.00 Transferred to other accounts... -5 -104
--------- --------- ----------
43.00 Appropriation (total)......... -819 -104
Permanent:

60.05 Appropriation (indefinite)...... 8,101 8,459 6,635
60.49 Portion applied to liquidate
contract authority............ -8,101 -8,459 -6,635
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -819 -104
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 29,723 12,342 12,549
72.49 Obligated balance, start of
year: Contract authority...... 55,249 46,226 37,783
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 84,972 58,568 50,332
73.10 Total new obligations............. 338 730
73.20 Total outlays (gross)............. -9,822 -8,459 -6,576
73.31 Obligated balance transferred to
other accounts.................. -16,043 -24,000
73.32 Obligated balance transferred from
other accounts.................. 150
73.40 Adjustments in expired accounts... -2
73.45 Adjustments in unexpired accounts. -1,025 -509 -104
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 12,342 12,549
74.49 Obligated balance, end of year:
Contract authority............ 46,226 37,783 19,652
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 58,568 50,332 19,652
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 9,822 8,459 6,576
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -819 -104
90.00 Outlays........................... 9,822 8,459 6,576
---------------------------------------------------------------------------

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0164-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 55,322 46,242 37,783
0340 Unobligated balance transferred... -11,496
0400 Appropriation to liquidate
contract authority.............. -8,101 -8,459 -6,635
0600 Balance of contract authority
withdrawn....................... -979
0700 Balance, end of year.............. 46,242 37,783 19,652
---------------------------------------------------------------------------

The Annual Contributions for Assisted Housing account provides
assistance for low-income housing and various other programs.

The 2000 Budget proposes to complete the redistribution of remaining
balances to other HUD accounts.

At the end of 2000, no further expenditures will appear in this
account.

In 1998, pursuant to P.L. 105-65, the following transfers to other
accounts were enacted: (1) all balances for Public Housing Development,
Modernization, Family Investment Centers, Public Housing Amendments, and
Lease 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 enacted in the 1998 Appropriations Act
of recaptured 1998 and prior years section 8 reserves, and the $2.3
billion rescission enacted in P.L. 105-174 are shown under the Section 8
Reserve Preservation Account. Pursuant to P.L. 105-276, $5 million of
prior year

[[Page 476]]

recaptures will be transferred to National Cities in School Community
Development Program account in 1999. Also pursuant to P.L. 105-276, the
$1.65 billion rescission of recaptures from project-based contracts is
shown in two accounts, $814 million in this account and $836 million in
the Housing Certificate Fund account.

In 2000, all remaining balances are proposed to transfer to other
HUD accounts. These include: (1) all balances for Section 8 Rental
Assistance, Section 8 Counseling, relocation/replacement/demolition,
preservation, Section 23 conversions, rental and disaster vouchers,
Section 514 technical assistance, and property disposition transferred
to the Housing Certificate Fund and available for those purposes; (2)
all balances for debt service for Public and Indian Housing and Public
and Indian Housing Grants transferred to the Public Housing Capital
Fund; (3) all balances for lead-based paint transferred to the Lead
Hazard Reduction program; (4) all balances for Capacity Building
transferred to Capacity Building for Community Development Program; and
(5) all balances for Economic Development Initiative grants, John Heinz
Neighborhood Development program, Self Help Housing Opportunity program,
and Moving to Work Demonstration program transferred to Community
Development Block Grants.

Preserving Existing-Housing Investment

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0312-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1,445
22.21 Unobligated balance transferred to
other accounts.................. -1,445
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 2,825
73.31 Obligated balance transferred to
other accounts.................. -2,825
----------------------------------------------------------------------------

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

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) 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] to carry out capital and management
activities for public housing agencies, as authorized under section [14]
9 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437),
[$3,000,000,000] $2,555,000,000, to remain available until expended:
Provided, That of the total amount, up to $100,000,000 shall be for
carrying out activities under section [6( j)] 9(d) of such Act, and
[technical assistance for the inspection of public housing units,
contract expertise, and training and technical assistance directly or
indirectly, under grants, contracts, or cooperative agreements, to
assist in the oversight and management of public housing (whether or not
the housing is being modernized with assistance under this proviso) or
tenant-based assistance, including, but 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 programs and] for lease adjustments to section 23 projects,
including up to $2,500,000 for related travel: 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, 1998, of funds heretofore provided for section 673
public housing service coordinators shall be transferred to and merged
with amounts made available under this heading] all balances for debt
service for Public and Indian Housing and Public and Indian Housing
Grants previously funded within the ``Annual Contributions for Assisted
Housing'' account shall be transferred to this account, to be available
for the purposes for which they were originally appropriated.
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0304-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 2,512 4,610 2,555
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 2,512 4,610 2,555
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1,611 1
22.00 New budget authority (gross)...... 2,500 3,000 2,555
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.22 Unobligated balance transferred
from other accounts............. 1,615
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4,123 4,611 2,556
23.95 Total new obligations............. -2,512 -4,610 -2,555
24.40 Unobligated balance available, end
of year......................... 1,611 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 2,500 3,000 2,555
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 6,105 8,012
73.10 Total new obligations............. 2,512 4,610 2,555
73.20 Total outlays (gross)............. -3,321 -2,703 -3,151
73.32 Obligated balance transferred from
other accounts.................. 6,922 24,000
73.45 Adjustments in unexpired accounts. -8
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 6,105 8,012 31,416
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 58
86.93 Outlays from current balances..... 3,321 2,703 3,093
--------- --------- ----------
87.00 Total outlays (gross)........... 3,321 2,703 3,151
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,500 3,000 2,555
90.00 Outlays........................... 3,321 2,703 3,151
---------------------------------------------------------------------------

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 is a
consolidation of the following programs: public housing modernization;
public housing development; Major Reconstruction of Obsolete Public
Housing Projects (MROP); public housing amendments; lease adjustments;
and Family Investment Centers.

Of the $2.555 billion requested for the Public Housing Capital Fund,
$2.15 billion will assist housing authorities in carrying out capital
and management activities and is sufficient to cover the accrual of
additional capital needs which has been estimated at $2.1 billion
annually. In addition, of the requested amount, up to $100 million is
set aside for technical assistance including the inspection of public
housing units. The 2000 Budget also projects that housing authorities
will use the authority to flex capital subsidies for operating purposes.

[[Page 477]]

During 1999, the Department will modify its formula for allocating
capital subsidies to housing authorities through negotiated rulemaking
with representatives of public housing authorities, public housing
tenants, local officials, and other stakeholders. The negotiated
rulemaking on a new capital subsidies formula will be based on the
principles set forth under the Public Housing Operating Fund program.

Pursuant to P.L. 105-276, all balances for the Public Housing
Service Coordinators Program previously funded under the Annual
Contributions for Assisted Housing account were transferred to the
Public Housing Capital Fund in 1999.

The 2000 Budget proposes to transfer all balances reflected in the
Annual Contributions for Assisted Housing account for debt service for
Public and Indian Housing and Public and Indian Housing Grants 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] the operation and management of public
housing, as authorized by section [9] 9(e) of the United States Housing
Act of 1937, as amended (42 U.S.C. 1437g), [$2,818,000,000]
$3,003,000,000, to remain available until expended. (Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0163-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Operating subsidies............... 2,974 2,859 3,003
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 2,974 2,859 3,003
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 41
22.00 New budget authority (gross)...... 2,900 2,818 3,003
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 114
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,015 2,859 3,003
23.95 Total new obligations............. -2,974 -2,859 -3,003
24.40 Unobligated balance available, end
of year......................... 41
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 2,900 2,818 3,003
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 74 1,441 1,494
73.10 Total new obligations............. 2,974 2,859 3,003
73.20 Total outlays (gross)............. -3,116 -2,806 -2,908
73.32 Obligated balance transferred from
other accounts.................. 1,510
73.40 Adjustments in expired accounts... 1
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1,441 1,494 1,589
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1,418 1,353 1,441
86.93 Outlays from current balances..... 1,698 1,453 1,466
--------- --------- ----------
87.00 Total outlays (gross)........... 3,116 2,806 2,908
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,900 2,818 3,003
90.00 Outlays........................... 3,116 2,806 2,908
---------------------------------------------------------------------------

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(e) of the United
States Housing Act of 1937, as amended. The annual subsidy requirements
shown were calculated on the basis of the Performance Funding System
(PFS) formula. It is anticipated that sufficient finds will be available
to provide 100 percent of PFS requirements in 2000. The 2000 Budget
proposes to fund the Public Housing Operating Fund at $3.003 billion.

The following tables display the sources of housing authorities'
expected income and expenditures by category for 2000. The distribution
is based on actual housing authorities' income and expenses as reported
to HUD on the Statement of Operating Receipts and Expenditures.

Table 1. Sources of Housing Authorities' Operating Income (in millions
of dollars)

Category Annual income Percent of
total
Operating Subsidies..................... $3,003 51
Dwelling Rental......................... 2,534 44
Investment.............................. 92 2
Other Income............................ 154 3
-------------

Total, Operating Income.............. 5,783

Operating Subsidies.--Represent HUD's contributions to housing
authorities estimated as the difference between a housing authority's
operating requirements and income from tenant rents and other income.

Dwelling Rental.--Income derived from tenants' rents.

Investment Income.--Income from interest earned on general fund
investments.

Other Income.--Includes income from other sources such as renting
rooftop space for signs or broadcasting and from operating services for
tenants, such as laundromats or day care centers.

Table 2. Housing Authorities' Operating Expenditures (in millions of
dollars)

Category Annual
expenditures Percent of
total
Utilities............................... $1,471 25
Administration.......................... 1,092 19
General Operating Expenses.............. 1.025 18
Maintenance............................. 1,781 30
Tenant Services......................... 79 1
Protective Services..................... 150 3
Capital Expenditures.................... 88 2
Operating Reserve....................... 98 2
-------------

Total, Operating Expenses............ 5,783

Utilities.--Includes water, electricity, gas, fuel, and related
labor expenses.

Administration.--Includes administrative salaries, legal expenses,
staff training, travel, accounting fees, auditing fees, sundry, and
outside management costs.

General Operating Expenses.--Includes insurance, payments made to
local governments in lieu of taxes, terminal leave payments, employees
benefit contributions, collection losses, interest on administrative and
sundry notes, and other general expenses.

Ordinary Maintenance and Operations.--Consists of expenses for
labor, materials, contracts and garbage fees associated with the day-to-
day operation of the public housing authority.

Tenant Services.--Cover salaries, recreation, publication, contract
costs, training, and other expenses.

Protective Services.--Includes expenses for labor, materials, and
contract costs.

Capital Expenditures.--Includes transitional funding for public
housing units approved for demolition.

Operating reserves.--HUD requires each housing agency to maintain an
operating reserve equal to 3 percent of its operating budget to cover
emergency expenses and deficits in their operating budgets.

The Budget also projects that additional funds for operating
subsidies will be available to housing authorities from the flexing of
capital funds for operating purposes and increased rend collections from
improved income matching.

Pursuant to the requirements of the Quality Housing and Work
Responsibility Act of 1998, during 1999, the Department

[[Page 478]]

will modify its approach to the operating subsidy calculation through
negotiated rulemaking with public housing authority representatives,
public housing tenants, local officials, and other stakeholders. The
negotiated rulemaking on a new operating and capital subsidies formula
will be based on the following four principles:
Provide incentives for good management and rewards for
performance.
Reward cost-effective use of resources to improve
housing services, housing quality, and mobility.
Be administratively simple.
Result in increased accountability for delivering
quality housing services at reasonable cost.

These principles build on the Secretary's existing management
proposals to restore the public trust in HUD's programs and the
Administration's principles for performance-based service contracting
(PBSC). The PBSC guidelines have been demonstrated to significantly save
money and result in improved performance.

Drug Elimination Grants for Low-Income Housing

[(including transfer of funds)]

For grants to public housing agencies and Indian tribes and their
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.
11921-11925, $310,000,000, to remain available until expended, of which
up to $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
up to $250,000 for the cost of necessary travel for participants in such
training)[,]; $100,000,000 for a Youth Anti-Drug Diversion program to
provide competitive grants to public housing agencies (including Indian
housing authorities, as defined by the Secretary), and to non-profit
organizations who design effective, community-based strategies to combat
drug use and other anti-social behavior targeted to youths living in and
around public and Federally assisted housing: Provided, That the
services permitted may include funding for mentoring, youth employment
and after school programs; Provided further, That the Secretary may use
up to $1,000,000 of these funds to conduct a detailed impact evaluation
of the Youth Anti-Drug Diversion program; $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[,];
and $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, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0197-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 214 580 174
00.02 Federally Assisted Housing........ 16 16 16
00.03 Operation Safe Home............... 17 20 20
00.04 New Approach Anti-Drug Program.... 40
00.05 Youth Anti-Drug Diversion......... 100
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 247 656 310
----------------------------------------------------------------------------

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

21.40 Unobligated balance available,
start of year................. 272 336
21.40 Administrative Authority........ 9 10
--------- --------- ----------
21.99 Total unobligated balance, start
of year....................... 281 346
22.00 New budget authority (gross)...... 310 310 310
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 593 656 310
23.95 Total new obligations............. -247 -656 -310
Unobligated balance available, end of year:

24.40 Unobligated balance available,
end of year................... 336
24.40 Administrative Commitments...... 10
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 346
----------------------------------------------------------------------------

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

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 302 266 648
73.10 Total new obligations............. 247 656 310
73.20 Total outlays (gross)............. -281 -274 -326
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 266 648 632
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 21
86.93 Outlays from current balances..... 281 274 305
--------- --------- ----------
87.00 Total outlays (gross)........... 281 274 326
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 310 310 310
90.00 Outlays........................... 281 274 326
---------------------------------------------------------------------------

The $310 million requested for this program in 2000 includes funding
for technical assistance for drug elimination, a Youth Anti-Drug
Diversion program, and operation safe home activities.

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 housing authorities, 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.
The 1998 Amendments 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.
The new Youth Anti-Drug Diversion program builds on these changes to
eligible activities by inviting applicants to design community-based
anti-drug and anti-crime approaches targeted to youths living in and
around public and Federally assisted housing. $25 million in Youthbuild
funds

[[Page 479]]

will be awarded in conjunction with the Youth Anti-Drug Diversion
program to neighborhoods with concentrations of public and Federally
assisted housing.

The budget proposes to allocate the $310 million requested in 2000
as follows: (1) $163.8 million for Drug Elimination Grants and
clearinghouse information services; (2) $100 million for the Youth Anti-
Drug Diversion program; (3) $20 million for Operation Safe Home; (4)
$16.2 million for other Federally assisted low-income housing grants;
and (5) $10 million for technical assistance, training, and information
dissemination.

Revitalization of Severely Distressed Public Housing (Hope VI)

For grants to public housing agencies for [assisting in the]
demolition, site revitalization, replacement housing, and tenant-based
assistance grants to projects as authorized by section 24 of the United
States Housing Act of 1937, $625,000,000 to remain available until
expended: Provided, [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
(including appropriate homeownership down payment assistance for
displaced tenants), $625,000,000, to remain available until expended, of
which the Secretary may use up to $15,000,000 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 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, 1997, and
1998, and the Omnibus Consolidated Rescissions and Appropriations Act of
1996: Provided further,] That for purposes of environmental review
pursuant to the National Environmental Policy Act of 1969, a grant under
this heading or under prior appropriations Acts for use for the purposes
under this heading 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, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0218-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 617 655 625
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 617 655 625
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 698 630 600
22.00 New budget authority (gross)...... 550 625 625
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,248 1,255 1,225
23.95 Total new obligations............. -617 -655 -625
24.40 Unobligated balance available, end
of year......................... 630 600 600
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 550 625 625
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1,563 1,943 2,081
73.10 Total new obligations............. 617 655 625
73.20 Total outlays (gross)............. -237 -517 -588
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1,943 2,081 2,118
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 237 517 588
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 550 625 625
90.00 Outlays........................... 237 517 588
---------------------------------------------------------------------------

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] Grant

[(including transfer of funds)]

For the [Native American] Indian Housing Block [Grants] Grant
program, as authorized under title I of the Native American Housing
Assistance and Self-Determination Act of 1996 (NAHASDA) (Public Law 104-
330), $620,000,000, to remain available until expended, of which 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, [$6,000,000] $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] NAHASDA: 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 [$54,600,000. In addition,] $45,167,000: Provided further,
That for administrative expenses to carry out the guaranteed loan
program, up to $200,000 from amounts in the first proviso, 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, That the funds made available in the first
proviso in the preceding paragraph 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]. (Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Indian Housing Block Grants....... 592 745 620
00.02 Title VI Indian Federal Guarantees 11
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 592 756 620
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 136
22.00 New budget authority (gross)...... 600 620 620
22.22 Unobligated balance transferred
from other accounts............. 127
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 727 756 620
23.95 Total new obligations............. -592 -756 -620
24.40 Unobligated balance, end of year.. 136
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 600 620 620
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1,121 1,176
73.10 Total new obligations............. 592 756 620
73.20 Total outlays (gross)............. -453 -701 -665
73.32 Obligated balance transferred from
other accounts.................. 982

[[Page 480]]

74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1,121 1,176 1,131
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 24 196 309
86.93 Outlays from current balances..... 429 505 356
--------- --------- ----------
87.00 Total outlays (gross)........... 453 701 665
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 600 620 620
90.00 Outlays........................... 453 701 665
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 54 45
--------- --------- ----------
2159 Total loan guarantee levels..... 54 45
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 11.07 11.07 11.07
--------- --------- ----------
2329 Weighted average subsidy rate... 11.07 11.07 11.07
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 11 5
--------- --------- ----------
2339 Total subsidy budget authority.. 11 5
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 3 6
--------- --------- ----------
2349 Total subsidy outlays........... 3 6
---------------------------------------------------------------------------

Title I of the Native American Housing Assistance and Self-
Determination Act (NAHASDA) of 1996 (P.L. 104-330) authorized the Indian
Housing Block Grant 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.

The Indian Housing Block Grant program includes a guaranteed loan
provision (Title VI). A guarantee level of $45 million is proposed for
this loan guarantee program for 2000. The subsidy rate for this program
is set at 11.07 percent with a federal guarantee of 80 percent. A
primary goal of the Title VI program is to encourage private lenders to
provide financing in Indian country. Therefore, the program provides for
the federal guarantee of notes or other obligations issued by Indian
tribes or tribally designated housing entities for the purpose of
financing affordable housing activities described in section 202 of the
Act. A tribe or its tribally designated housing entity can pledge up to
five times its future IHBG funds to collaterize the loan.

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 given 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.

Public enterprise funds:

Low-Rent Public Housing--Loans and Other Expenses

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Reimbursable program: Capital
investment loans to PHAs........ 22 50 40
--------- --------- ----------
10.00 Total new obligations (object
class 33.0)................... 22 50 40
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 3 17 5
22.00 New budget authority (gross)...... 120 109 80
22.60 Redemption of debt................ -84 -71 -45
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 39 55 40
23.95 Total new obligations............. -22 -50 -40
24.40 Unobligated balance available, end
of year......................... 17 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
67.15 Authority to borrow (indefinite).. 37 50 40
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 83 59 40
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 120 109 80
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1,068 965 878
73.10 Total new obligations............. 22 50 40
73.20 Total outlays (gross)............. -125 -137 -85
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 965 878 833
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 22 50 40
86.98 Outlays from permanent balances... 103 87 45
--------- --------- ----------
87.00 Total outlays (gross)........... 125 137 85
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -70 -59 -40
88.40 Non-Federal sources........... -13
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -83 -59 -40
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 37 50 40
90.00 Outlays........................... 42 78 45
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,562 1,492 1,433
1251 Repayments: Repayments and
prepayments..................... -70 -59 -45
--------- --------- ----------
1290 Outstanding, end of year........ 1,492 1,433 1,388
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 3,586 3,307 3,028
2251 Repayments and prepayments........ -279 -279 -279
--------- --------- ----------
2290 Outstanding, end of year........ 3,307 3,028 2,749
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 3,306 3,026 2,746
---------------------------------------------------------------------------

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

[[Page 481]]

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, $37 million of borrowings from the
Treasury were forgiven in 1998, an estimated $40 million will be
borrowed from the Treasury and forgiven in 1999, and an estimated $40
million will be borrowed from the Treasury and forgiven in 2000.

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 1997, 1998, 1999, and 2000 follows:

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4098-0-3-604 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 108 104 100 100
0102 Expense........................... -99 -95 -91 -91
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 9 9 9 9
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

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

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

2102 Interest payable................ 189 181 173 173
2104 Resources payable to Treasury... 1,561 1,491 1,420 1,420
2207 Non-Federal liabilities: Other.... 1 1 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,751 1,673 1,594 1,594
NET POSITION:
3100 Appropriated capital.............. 972 866 757 757
3300 Cumulative results of operations.. 43 40 31 31
------------ -------------- ------------ -------------
3999 Total net position.............. 1,015 906 788 788
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,766 2,579 2,382 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),
$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
[$68,881,000] $71,956,000.
In addition, for administrative expenses to carry out the guaranteed
loan program, up to [$400,000] $150,000 from amounts in the first
paragraph, 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, 1999.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 12 6
00.02 Guaranteed loan subsidy........... 2
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 2 12 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 4
22.00 New budget authority (gross)...... 5 6 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6 10 6
23.95 Total new obligations............. -2 -12 -6
24.40 Unobligated balance available, end
of year......................... 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 5 6 6
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 6 6 14
73.10 Total new obligations............. 2 12 6
73.20 Total outlays (gross)............. -2 -4 -6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 6 14 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1 1 1
86.93 Outlays from current balances..... 2 3 6
--------- --------- ----------
87.00 Total outlays (gross)........... 2 4 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5 6 6
90.00 Outlays........................... 2 4 6
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 22 69 72
--------- --------- ----------
2159 Total loan guarantee levels..... 22 69 72
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.......... 2 6 6
--------- --------- ----------
2339 Total subsidy budget authority.. 2 6 6
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 2 3 4
--------- --------- ----------
2349 Total subsidy outlays........... 2 3 4
---------------------------------------------------------------------------

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 2000 will support
325 loans.

[[Page 482]]

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................... 2 4 8
22.00 New financing authority (gross)... 3 3 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 7 11
24.40 Unobligated balance available, end
of year......................... 4 8 11
----------------------------------------------------------------------------

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

Offsets:
Against gross financing authority and
financing disbursements:

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

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 67 69 72
2112 Uncommitted loan guarantee
limitation...................... -45
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 22 69 72
2199 Guaranteed amount of guaranteed
loan commitments................ 22 69 72
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 17 38 69
2231 Disbursements of new guaranteed
loans........................... 24 34 40
2251 Repayments and prepayments........ -3 -3 -3
--------- --------- ----------
2290 Outstanding, end of year........ 38 69 106
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 38 69 106
---------------------------------------------------------------------------

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 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 86-4104-0-3-604 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 2 4 4 4
------------ -------------- ------------ -------------
1999 Total assets.................... 2 4 4 4
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 2 4 3 3
------------ -------------- ------------ -------------
2999 Total liabilities............... 2 4 3 3
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2 4 3 3
-----------------------------------------------------------------------------------------------

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................... 3
22.00 New financing authority (gross)... 3 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 6
24.40 Unobligated balance available, end
of year......................... 3 6
----------------------------------------------------------------------------

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

Offsets:
Against gross financing authority and
financing disbursements:

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

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4244-0-3-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 45 54 45
2112 Uncommitted loan guarantee
limitation...................... -45
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 54 45
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 51
2231 Disbursements of new guaranteed
loans........................... 54 45
2251 Repayments and prepayments........ -3 -3
--------- --------- ----------
2290 Outstanding, end of year........ 51 93
---------------------------------------------------------------------------

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.

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), [$215,000,000] $240,000,000, to remain available until expended:
Provided, That the Secretary may use up to 1 percent of the funds under
this heading for technical assistance: [Provided further, That within 30
days of the close of fiscal year 1999, the Secretary shall submit a
report to the Congress summarizing all technical assistance provided
during the fiscal year]. (Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations Act,
1999.)

Note.--Additional funding is provided in P.L. 105-277 the Omnibus
Consolidated and Emergency Supplemental Appropriations Act, 1999,
Division A, Section 121.

[[Page 483]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0308-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Housing for AIDs victims.......... 200 265 240
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 200 265 240
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 36 40
22.00 New budget authority (gross)...... 204 225 240
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 240 265 240
23.95 Total new obligations............. -200 -265 -240
24.40 Unobligated balance available, end
of year......................... 40
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 204 225 240
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 439 439 540
73.10 Total new obligations............. 200 265 240
73.20 Total outlays (gross)............. -200 -164 -191
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 439 540 589
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 4 5 5
86.93 Outlays from current balances..... 196 160 186
--------- --------- ----------
87.00 Total outlays (gross)........... 200 164 191
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 204 225 240
90.00 Outlays........................... 199 164 191
---------------------------------------------------------------------------

The Housing Opportunities for Persons with AIDS program provides
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.

One percent of funds are used for technical assistance to grantees.
States and metropolitan areas receive 90 percent of the remaining funds
by formula based on the incidence of HIV/AIDS in their jurisdictions.
The final 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.
The requested funding for 2000 will support approximately 44,000 housing
units for persons with HIV/AIDS and their families.

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), [$4,750,000,000] $4,725,000,000, to remain available until
September 30, [2001] 2002: Provided, That $67,000,000 shall be for
grants to Indian tribes notwithstanding section 106(a)(1) of such Act,
[$3,000,000 shall be available as a grant to the Housing Assistance
Council, $3,000,000 shall be available for the Organizing Committee for
the 1999 Special Olympics Summer Games to be used in support of related
activities in the Triangle Area of North Carolina, $1,800,000 shall be
available as a grant to the National American Indian Housing Council,
$50,000,000] and $45,500,000 shall be for grants pursuant to section 107
of the Act: [Provided further, That all funding decisions under section
107 except as specified herein shall be subject to a reprogramming
request unless otherwise specified in accordance with the terms and
conditions specified in the joint explanatory statement of the committee
of conference accompanying this Act (H.R. 4194): Provided further, That
$27,500,000 shall be for grants pursuant to the Self Help Housing
Opportunity program, subject to authorization, of which $7,500,000 shall
be for capacity building efforts:] ; and $10,000,000 shall be for
technical assistance, contracts and other assistance, and training in
connection with the 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: Provided further, That not to exceed 20 percent
of any grant made with funds appropriated herein (other than [a grant
made available in this paragraph to the Housing Assistance Council or
the National American Indian Housing Council, or] a grant using funds
under section 107(b)(3) of the [Housing and Community Development] Act
[of 1974, as amended)] shall be expended for ``Planning and Management
Development'' and ``Administration'' as defined in regulations
promulgated by the Department. Provided further, That all balances for
the Economic Development Initiative grants program, the John Heinz
Neighborhood Development program, grants to Self Help Housing
Opportunity program, and the Moving to Work Demonstration program
previously funded within the ``Annual Contributions for Assisted
Housing'' account shall be transferred to this account, to be available
for the purposes for which they were originally appropriated.
[Of the amount made available under this heading, $15,000,000 shall
be made available for ``Capacity Building for Community Development and
Affordable Housing,'' for LISC and the Enterprise Foundation for
activities 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 made available under this heading, $12,000,000 is for
the City of Oklahoma City, Oklahoma, for a revolving loan pool that
shall be subject to the following requirements and conditions: (1)
amounts in the pool shall be available only for the purposes of making
loans to carry out economic development activities that primarily
benefit the area in Oklahoma City bounded on the south by Robert S. Kerr
Avenue, on the north by North 13th Street, on the east by Oklahoma
Avenue, and on the west by Shartel Avenue, and covering costs involved
in administering the loan pool; (2) amounts provided under this
paragraph shall be available for use from the loan pool only to the
extent that the amounts contributed to the loan pool (or committed to be
contributed) from non-Federal sources equal or exceed two times the
amounts provided under this paragraph; (3) any repayments of principal
and interest from loans made by the pool shall be deposited in the pool
and available for use for loans in accordance with this paragraph; (4)
amounts in the pool may not be used to provide loans to any agency or
entity of the Federal Government or any State government or unit of
general local government; (5) amounts provided under this paragraph
shall be available for use from the loan pool only if the City of
Oklahoma City, Oklahoma agrees (to the satisfaction of the Secretary of
Housing and Urban Development) to deposit in the pool (for use for loans
in accordance with this paragraph) the net proceeds from any amounts
that are repaid to the City under loans made by the City using amounts
provided under this same heading under chapter III of title III of
Public Law 104-19 (109 Stat. 253).]
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 $20,000,000
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, 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 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 Sec

[[Page 484]]

retary 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).] $45,000,000 for supportive
services for public housing residents, as authorized by section 34 of
the United States Housing Act of 1937, as amended, and not less than
$10,000,000 for grants for service coordinators and congregate services
for the elderly and disabled residents of public and assisted housing.
Of the amount made available under this heading, notwithstanding any
other provision of law, [$42,500,000] $75,000,000 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 [: Provided, That local YouthBuild
programs that demonstrate an ability to leverage private and nonprofit
funding shall be given a priority for YouthBuild funding: Provided
further, That up to $2,500,000 may be used for capacity buildings
efforts].
Of the amount made available under this heading, [$225,000,000]
$125,000,000 shall be available for grants for the Economic Development
Initiative (EDI) as authorized by section 108(q) of the Act to finance a
variety of economic development efforts[, including $190,000,000 for
making grants for targeted economic investments in accordance with the
terms and conditions specified for such grants in the joint explanatory
statement of the committee of conference accompanying this Act].
[Of the amount made available under this heading, $25,000,000 shall
be available 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.]
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: Provided further, That 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.
[For any fiscal year, of the amounts made available as emergency
funds under the heading ``Community Development Block Grants Fund'' and
notwithstanding any other provision of law, not more than $250,000 may
be used for the non-Federal cost-share of any project 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, 1999.)
[For an additional amount for ``Community development block
grants'', as authorized under title I of the Housing and Community
Development Act of 1974, $250,000,000, which shall remain available
until September 30, 2002, for use only for disaster relief, long-term
recovery, and mitigation in communities affected by Presidentially-
declared natural disasters designated during fiscal years 1998 and 1999,
except for those activities reimbursable by or for which funds are made
available by the Federal Emergency Management Agency, the Small Business
Administration, or the Army Corps of Engineers: Provided, That in
administering these amounts and except as provided in the next proviso,
the Secretary of Housing and Urban Development (the Secretary) may waive
or specify alternative requirements for any provision of any statute or
regulation that the Secretary administers in connection with the
obligation by the Secretary or the use by the recipient of these funds,
except for statutory requirements related to civil rights, fair housing
and nondiscrimination, the environment, and labor standards, upon a
finding that such waiver is required to facilitate the use of such funds
and would not be inconsistent with the overall purpose of the statute:
Provided further, That the Secretary may waive the requirements that
activities benefit persons of low and moderate income, except that at
least 50 percent of the funds under this heading must benefit primarily
persons of low and moderate income unless the Secretary makes a finding
of compelling need: Provided further, That, upon a finding of compelling
need, the Secretary must provide an explanation of the finding to the
Committees on Appropriations: Provided further, That all funds under
this heading shall be allocated by the Secretary to states (including
Indian tribes for all purposes under this heading) to be administered by
each state in conjunction with its Federal Emergency Management Agency
program or its community development block grants program or by the
entity designated by its Chief Executive Officer to administer the HOME
Investment Partnerships Program: Provided further, That each state shall
provide not less than 25 percent in non-Federal public matching funds or
its equivalent value (other than administrative costs) for any funds
allocated to the state under this heading: Provided further, That, in
conjunction with the Director of the Federal Emergency Management Agency
(the Director), the Secretary shall allocate funds based on the unmet
needs identified by the Director as those which have not or will not be
addressed by other federal disaster assistance programs: Provided
further, That, in conjunction with the Director, the Secretary shall
utilize annual disaster cost estimates in order that the funds under
this heading shall be available, to the maximum extent feasible, to
assist states with all Presidentially declared disasters designated
during these fiscal years: Provided further, That the Secretary shall
publish a notice in the Federal Register governing the allocation and
use of the community development block grants funds made available under
this heading for disaster areas: Provided further, That any project or
activity underway prior to a Presidentially declared disaster may not
receive funds under this heading unless the disaster directly impacted
the project: Provided further, That 10 days prior to distribution of
funds, the Secretary and the Director shall submit a list to the
Committees on Appropriations, setting forth the proposed uses of funds,
including an explanation of why other Federal disaster assistance
programs do not cover the costs of unmet needs identified by the
Director, the most recent estimates of unmet needs (including all uses
of waivers and the reasons therefore), and an explanation of how the
disaster impacted the proposed project: Provided further, That the
Secretary and the Director shall submit quarterly reports to the
Committees on Appropriations regarding the actual projects, localities
and needs for which funds have been provided: Provided further, That
these reports shall be based upon quarterly reports submitted to the
Secretary and the Director by each state receiving funds under this
heading: Provided further, That the entire amount shall be available
only to the extent an official budget request, that includes designation
of the entire amount of the request as an emergency requirement as
defined by the Balanced Budget and Emergency Deficit Control Act of
1985, as amended, is transmitted by the President to the Congress:
Provided further, That the entire amount is designated by the Congress
as an emergency requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as amended.]
(Omnibus Consolidated and Emergency Supplemental Appropriations Act,
1999, Public Law 105-277, Division B, Title IV, Chapter 7.)
[Sec. 124. Notwithstanding the third undesignated paragraph under
the heading ``Community development block grants'' under title II of the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999, of the amount made
available under such heading for the city of Oklahoma City, Oklahoma, up
to 50 percent of such amount shall be available to such city for payment
of claims for bomb damage and repairs for infrastructure located in the
area described in clause (1) of such undesignated paragraph. Any amounts
available for use under such undesignated paragraph that are not
expended to pay such claims or for such repairs shall be utilized for
the revolving loan pool described in such undesignated paragraph.]
[Sec. 125. Of the amounts earmarked in the Joint Explanatory
Statement of the Committee of Conference accompanying H.R. 4194 for
grants targeted for economic investments, $2,000,000 made available to
the Hawaii Housing Authority for work associated with the

[[Page 485]]

construction of the Community Resource Center at Kuhio Homes/Kuhio Park
Terrace in Honolulu, Hawaii shall instead be made available to the
Housing and Community Development Corporation of Hawaii for the same
purpose.] (Omnibus Consolidated and Emergency Supplemental
Appropriations Act, 1999, Public Law 105-277, Division A, Sections 124-
125.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Community development............. 4,863 5,705 4,725
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 4,863 5,705 4,725
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 777 832
22.00 New budget authority (gross)...... 4,925 4,873 4,725
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,703 5,705 4,725
23.95 Total new obligations............. -4,863 -5,705 -4,725
23.98 Unobligated balance expiring...... -8
24.40 Unobligated balance available, end
of year......................... 832
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 4,675 4,750 4,725
40.15 Appropriation (emergency)......... 250 130
41.00 Transferred to other accounts..... -7
--------- --------- ----------
43.00 Appropriation (total)........... 4,925 4,873 4,725
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 8,793 9,031 9,772
73.10 Total new obligations............. 4,863 5,705 4,725
73.20 Total outlays (gross)............. -4,621 -4,964 -4,855
73.31 Obligated balance transferred to
other accounts.................. -99
73.40 Adjustments in expired accounts... -3
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 9,031 9,772 9,543
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 98 97 95
86.93 Outlays from current balances..... 4,523 4,867 4,760
--------- --------- ----------
87.00 Total outlays (gross)........... 4,621 4,964 4,855
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4,925 4,873 4,725
90.00 Outlays........................... 4,621 4,964 4,855
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1998 actual 1999 est. 2000 est.
Enacted/requested:
Budget Authority.................. 4,925 4,873 4,725
Outlays........................... 4,621 4,964 4,855
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 50
Outlays........................... 1
------------------------------------
Total:
Budget Authority.................. 4,925 4,873 4,775
Outlays........................... 4,621 4,964 4,856
====================================

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 as authorized by Section
106(a)(1) of the Housing and Community Development Act of 1974. Seventy
percent of available funds are allocated to metropolitan cities and
urban counties which receive their grants using the higher of two
objective formulas. States and small cities receive 30 percent of the
available funds. The proposed level of funding for CDBG and the Section
108 Loan Guarantee Program will support an estimated 283,000 jobs. These
funds will also help to rehabilitate 204,000 housing units.

Section 107 Grants include funding for Insular Areas, technical
assistance, Historically Black Colleges and Universities, and the
Community Development Work Study and Community Outreach Partnership
Centers (COPC) programs.

The 2000 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 Youthbuild 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 expands the supply of
affordable housing and, at the same time, enables high school drop-outs
to obtain the education and employment skills necessary to achieve self-
sufficiency. The 2000 request for $75 million will provide more than
9,000 young people with skills they need to obtain jobs and will provide
approximately 1,300 families in distressed communities with homes. This
expanded Youthbuild program is linked to the $100 million earmark for a
new Youth Drug Diversion Grant program in public and assisted housing.

The 2000 Budget proposes $125 million for the Economic Development
Initiative (EDI) program within the new Community Empowerment Fund to
support an estimated 100,000 jobs in distressed areas. CEF will support
the financing of critical economic development efforts, in tandem with
the existing Section 108 guaranteed loan program. EDI funds provide
enhanced security for Section 108 loans, and improve the viability of
projects financed with these loans. The CEF, including a new trust
mechanism that is being piloted in 1999, will facilitate and encourage
the use of the Section 108 program by State and local governments.

HUD's Section 108 guaranteed loan program, when combined with EDI
grants, supports jobs in distressed communities. Over the past six
years, we have committed to 556 projects and completed the financing on
332 of those for a total of $1.1 billion--projects such as supermarkets
in Washington, DC, and Houston, TX, industrial parks, and other business
ventures. When all 556 projects are completed, an estimated 300,000 jobs
will have been created or retained.

The 2000 proposal for CEF seeks to target assistance in two ways:
Welfare to Work; and ``City-Suburb Business Connections.'' Each of these
is discussed in greater detail in the Budget Justifications. The CEF
trust will help establish a secondary market for expanded and improved
operation of the Section 108 Loan Guarantee Program. It is anticipated
that approximately one-fourth of all loans would participate in the
Trust.

[[Page 486]]

Community Development Block Grants

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-2-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Homeownership Zones............... 25
00.02 Metro Jobs Links.................. 10
00.03 Citizens Volunteer Housing Corps.. 5
00.04 Planning/Implementation Grants.... 10
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 50
----------------------------------------------------------------------------

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

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

Change in unpaid obligations:
73.10 Total new obligations............. 50
73.20 Total outlays (gross)............. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 49
----------------------------------------------------------------------------

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

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

The 2000 request includes $25 million for the Homeownership program
and $10 million for a new Metro Job Links program, both as set-asides
within Community Development Block Grants (CDBG).

Proposed funding of $25 million for Homeownership Zones would
support approximately five zones at an average of $5 million each and
would support 1,500 new homeowners. The Homeownership Zone program would
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 would be evaluated
on specific criteria, such as the degree to which the proposed
activities meet the goals 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 their proposal. Funds would be used
to create new housing opportunities in distressed areas. Eligible
activities would 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.

The $10 million Metro Job Links program will build upon the lessons
of Jobs Plus and the Neighborhood Jobs Initiative (NJI) demonstration
programs to provide comprehensive services necessary to help residents
of HUD-assisted housing developments operated by for-profit and non-
profit housing managers, including community development corporations
(CDCs), find and retain employment. The participating developments will
be ones that house high concentrations of families who are welfare-
dependent or have left welfare within the past year, but need support to
retain jobs, gain skills and remain welfare free. Managers of the
housing developments chosen to participate in the Metro Job Links will
be permitted to serve others in the neighborhood as well. Grantees will
be expected to focus on the regional job market, rather than their
specific neighborhood or locality when attempting to find jobs for
program participants.

The goal of Metro Job Links is to apply the concentrated,
coordinated support service delivery techniques used in Jobs Plus and
the NJI to populations in assisted housing run by CDCs in order to
improve the ability of residents to obtain and retain jobs throughout
the metropolitan region. Housing providers will have the resources
needed to create a ``continuum of care'' in work force development for
their residents--complementing, not duplicating, Health and Human
Services and Labor Department activities. Metro Job Links fills a gap
that becomes obvious when you look at Jobs Plus, NJI, and HUD's other
employment and training programs. We have invested most of our
employment and training resources to date to serve public housing
residents, and to a smaller extent to help recipients of tenant-based
Section 8. However, despite the approximately 250,000 assisted housing
households also struggling with the transition to work, we have no
program that attempts to use the Jobs Plus saturation technique in an
assisted housing setting. Metro Job Links does that.

The $5 million Citizens Volunteer Housing Corps initiative will
mobilize a corps of citizens to help reclaim and rebuild abandoned and
dilapidated housing in eighty cities across the country. The Citizens
Volunteer Housing Corps will help expand the supply of affordable
housing while tapping into the spirit of civic renewal and
volunteerism--themes that have been a hallmark of President Clinton's
administration. HUD will work through the Nation's mayors and community
groups, especially faith-based organizations, to bring together housing
rehabilitation experts, drawn from the private and non-profit sectors,
to train local citizen teams to do housing reconstruction. Building
materials and expertise will be provided in large part by the leading
organizations in the President's homeownership coalition--the National
Partners in Homeownership.

The Budget proposes $10 million for Round II Planning/Implementation
Grants for approximately 15 communities that applied for Round II
Empowerment Zone (EZ) designation, but were not chosen. Many of these
communities had well-conceived, competitive strategic plans and, while
they did not rank high enough to earn an EZ designation, these efforts
should be recognized and encouraged. The overall framework of the EZ
program is embodied in four key principles: The Strategic Vision for
Change; Community-Based Partnerships; Economic Opportunity; and
Sustainable Community Development. These principles are drawn from the
experiences of communities around the Nation that have used them
successfully to develop holistic approaches to community revitalization.
These grants will provide needed funding to the non-designated
communities to enable them to maintain momentum and remain engaged while
providing resources to assist them in planning and implementing portions
of their strategic plans.

Regional Connections

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0325-2-1-452 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Grants for Regional Activities.... 50
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 50
----------------------------------------------------------------------------

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

[[Page 487]]

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

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

Regional Connections will provide $50 million to fund local
partnerships to design and implement smarter growth strategies across
jurisdictional lines. Such strategies will include: (a) compact
development rules and incentives for new growth areas; and (b)
coordinated reinvestment in already built-up and infrastruture-rich
areas of participating regions. Participating regions will also be asked
to outline strategies for managing economic and workforce development in
ways that reinforce the overall development strategy. Eligible lead
applicants will include states and groups of localities (cities,
counties, towns), but these will demonstrate active partnerships with
private and nonprofit stakeholders. Where formally designated by states
or eligible local governments, existing regional institutions, such as
Councils of Government (COGs), regional councils, and Metropolitan
Planning Organizations (MPOs), will also be eligible as lead applicants.

The solutions to challenges produced by new development patterns
extend far beyond individual jurisdictional boundaries. Cities and
suburbs are increasingly inter-connected. Many communities recognize
this and are developing strategies to improve cooperation to make
communities more livable. Civic, business and government leaders are
forging partnerships that transcend jurisdicitonal and sectoral
boundaries to address the critical issues; yet, many of these strategies
require assistance to move them to implementation.

Regional Connection will complement existing Federal programs that
direct growth and investment patterns. Competing localities will be
asked to demonstrate how Regional Connections activities will build on:
Transportation Department (DOT)-funded TEA21 transportation planning and
investment; HUD/EPA Brownfields; HUD-required Consolidated Plans for
CDBG, HOME and other funds; Empowerment Zones/Enterprise Communities
(EZs/ECs); and other inter-jurisdictional strategies developed with
Federal funds.

Redevelopment of Abandoned Buildings

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0328-2-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Building Redevelopment............ 50
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 50
----------------------------------------------------------------------------

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

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

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

The 2000 request includes $50 million for this initiative to address
one of the primary causes of blight in urban neighborhoods: abandoned
apartment buildings, single family homes, warehouses, office buildings
and commercial centers. Through the Redevelopment of Abandoned Buildings
Intitiative, HUD would provide $50 million in competitive grants to
local governments to demolish blighted, abandoned buildings as part of a
development plan--with significant private-sector participation--and to
redevelop properties for commercial or residential use.

This program would provide an average of $30,000 per building to pay
for demolition; debris removal; environmental remediation; and site
preparation. This estimate assumes a mix of single family housing and
larger buildings. To ensure proper incentives for investment, no
building abandoned after October 1, 1999 would be eligible for
redevelopment and preference would be given to buildings abandoned for
longer periods of time. Applicants would be required to demonstrate that
rehabilitation is not feasible or effective and that historic buildings
would be protected. Also, the program would be sunsetted after three
years. The application would require local governments to demonstrate a
redevelopment plan with significant private-sector and local government
commitment. Preference would be given to those applicants that linked
the property's redevelopment to existing youth training programs.

Urban Empowerment Zones

Note.--Additional funding is provided in P.L. 105-277, the Omnibus
Consolidated and Emergency Supplemental Appropriations Act, 1999,
Division A, Section 121.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0315-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Develop urban sites............... 2 49
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 2 49
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 4
22.00 New budget authority (gross)...... 5 45
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 49
23.95 Total new obligations............. -2 -49
24.40 Unobligated balance available, end
of year......................... 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 5 45
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1 46
73.10 Total new obligations............. 2 49
73.20 Total outlays (gross)............. -1 -4 -17
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1 46 29
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1 1
86.93 Outlays from current balances..... 3 16
--------- --------- ----------
87.00 Total outlays (gross)........... 1 4 17
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5 45
90.00 Outlays........................... 1 4 17
---------------------------------------------------------------------------

[[Page 488]]

Summary of Budget Authority and Outlays

(in millions of dollars)

1998 actual 1999 est. 2000 est.
Enacted/requested:
Budget Authority.................. 5 45
Outlays........................... 1 4 16
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 150
Outlays........................... 3
------------------------------------
Total:
Budget Authority.................. 5 45 150
Outlays........................... 1 4 19
====================================

Urban Empowerment Zones

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0315-4-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

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

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

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

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

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 3
----------------------------------------------------------------------------

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

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.

Thirty applicants were chosen as Round II finalists based on the
strength of their strategic plans. Fifteen of the finalists were chosen
for EZ designation and will receive $100 million each over a 10-year
period. The fifteen finalists that did not win EZ designations will be
known as Strategic Planning Communities and will each receive a $3
million grant to further the implementation of their strategic plans.

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.

Round I EZs are helping to stimulate 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.

Regional Empowerment Zone Initiative

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0329-2-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Empowerment Zones................. 50
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 50
----------------------------------------------------------------------------

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

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

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

The 2000 request includes $50 million for the new Regional
Empowerment Zone Initiative to help urban Empowerment Zones and
Enterprise Communities (EZ/ECs) link their economic development
strategies to their broader metropolitan regional economies to increase
youth employment. Under this initiative, HUD would award competitive
grants to current and future EZ/ECs to finance regional strategies for
addressing youth employment. In preparing their regional strategy, EZ/EC
communities would be required to include input from a variety of
stakeholders within the EZ and surrounding region, including the private
sector, non-profits, job-training providers, and metropolitan planning
organizations or coordinating councils where they exist. In particular,
actual commitments from regional private employers to hire EZ residents
would strengthen the application. Special consideration would be given
to those strategies that target EZ residents aged 16-21 and incorporate
transportation linkage methods. Second Round EZs, where relevant, would
be encouraged to link EZ residents with developable sites designated by
the EZs. This level of funding would support 10 Empowerment Zones and
Enhanced Enterprise Communities grants of $4 million each and 10
Enterprise Communities grants of $1 million each.

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

[[Page 489]]

of 1989. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0314-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

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

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 25
22.00 New budget authority (gross)...... 25 25 50
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 25 50 50
23.95 Total new obligations............. -50 -50
24.40 Unobligated balance available, end
of year......................... 25
----------------------------------------------------------------------------

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

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 40
73.10 Total new obligations............. 50 50
73.20 Total outlays (gross)............. -10 -20
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 40 70
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1 1
86.93 Outlays from current balances..... 9 19
--------- --------- ----------
87.00 Total outlays (gross)........... 10 20
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25 25 50
90.00 Outlays........................... 10 20
---------------------------------------------------------------------------

The Brownfields Redevelopment program provides competitive economic
development grants in conjunction with Section 108 loan guarantees for
qualified brownfield projects. Eligible communities are 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 are 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.

The Administration's initiative is further bolstered by the proposal
for State and local Better America Bonds, which can be used for a
variety of land and environmental preservation strategies, including
brownfields clean-up. The use of Better America Bonds for conversion of
brownfields to open space will complement HUD's Brownfields
Redevelopment Program, which focuses on reuse of brownfields for
economic and housing development.

The Brownfields Redevelopment program was funded at $25 million in
1998 and 1999. The 2000 request of $50 million 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 the creation of more
than 28,000 jobs.

Youthbuild Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0219-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

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

Budgetary resources available for obligation:
22.10 Resources available from
recoveries of prior year
obligations..................... 1
23.95 Total new obligations............. -1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 13 4
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -9 -4
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 9 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 9 4
---------------------------------------------------------------------------

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 expands the supply of
affordable housing and, at the same time, enables high school dropouts
to obtain the education and employment skills necessary to achieve self-
sufficiency. The 2000 request of $75 million will provide more than
9,000 young people with skills they need to get jobs and will provide
1,300 families with homes in distressed communities with homes. The 2000
request is reflected in the CDBG account.

For 1996 through 1999, funding for the Youthbuild program was
included in the Community Development Block Grants account.

HOME Investment Partnerships Program

For the HOME investment partnerships program, as authorized under
title II of the Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625), as amended, [$1,600,000,000] $1,585,000,000, to
remain available until expended: Provided, That up to $7,000,000 of
these funds shall be available for the development and operation of
integrated community development management information systems:
Provided further, That up to [$17,500,000] $20,000,000 of these funds
shall be available for Housing Counseling under section 106 of the
Housing and Urban Development Act of 1968: Provided further, That all
Housing Counseling program balances previously appropriated in the
``Housing Counseling Assistance'' account shall be transferred to this
account, to be available for the purposes for which they were originally
appropriated. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0205-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 HOME grants....................... 1,461 1,836 1,585
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 1,461 1,836 1,585
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 210 236

[[Page 490]]

22.00 New budget authority (gross)...... 1,500 1,600 1,585
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...... 1,698 1,836 1,585
23.95 Total new obligations............. -1,461 -1,836 -1,585
24.40 Unobligated balance available, end
of year......................... 236
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 1,500 1,600 1,585
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 3,511 3,650 3,986
73.10 Total new obligations............. 1,461 1,836 1,585
73.20 Total outlays (gross)............. -1,286 -1,500 -1,655
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, end of year.. 3,650 3,986 3,916
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 23 32 32
86.93 Outlays from current balances..... 1,263 1,468 1,624
--------- --------- ----------
87.00 Total outlays (gross)........... 1,286 1,500 1,655
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,500 1,600 1,585
90.00 Outlays........................... 1,286 1,500 1,655
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1998 actual 1999 est. 2000 est.
Enacted/requested:
Budget Authority.................. 1,500 1,600 1,585
Outlays........................... 1,286 1,500 1,656
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 25
Outlays........................... 1
------------------------------------
Total:
Budget Authority.................. 1,500 1,600 1,610
Outlays........................... 1,286 1,500 1,657
====================================

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 2000
request will result in the production of 84,400 units of affordable
housing through new construction, rehabilitation, or acquisition. In
addition, tenant-based rental assistance will be provided for 10,600
units.

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.

Funding of $20 million for the Housing Counseling Assistance program
is also included in this account. This program provides comprehensive
housing counseling services, including pre-purchase, default, and renter
counseling, to eligible homeowners and tenants. The Housing Counseling
program was funded at $20 million in 1998, and at $17.5 million in 1999,
both as set-asides in the HOME account.

Home Investment Partnership Program

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0205-2-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Regional Affordable Housing
Initiative...................... 25
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 25
----------------------------------------------------------------------------

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

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

Change in unpaid obligations:
73.10 Total new obligations............. 25
73.20 Total outlays (gross)............. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 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 Regional Affordable Housing Initiative (RAHI) requested at $25
million, is a competitive pilot program designed to result in a more
balanced distribution of affordable housing across jurisdictions within
the participating metropolitan regions. In particular, the program seeks
to increase the availability of affordable housing in areas with high
job growth and inadequate supplies of affordable housing for low-wage
workers. RAHI pursues this goal by promoting the creation and
implementation of regional, as opposed to jurisdiction-by-jurisdiction,
affordable housing strategies. It provides technical assistance and
project planning and implementation funding to partnerships of public
and private sector participants that have agreed to create and adhere to
an affordable housing plan, including regulatory streamlining where
appropriate, that integrates job and housing development across local
jurisdictions.

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), [$975,000,000] $1,020,000,000, to
remain available until expended: Provided, That [not less than 30
percent of these funds shall be used for permanent housing, and] all
funding for services must be matched by 25 percent in funding by each
grantee: [Provided further, That the Secretary of Housing and Urban
Development shall conduct a review of any balances of amounts provided
under this heading in this or any previous appropriations Act that have
been obligated but remain unexpended and shall deobligate any such
amounts that the Secretary determines were obligated for contracts that
are unlikely to be performed and award such amounts during this fiscal
year:] Provided further, That up to 1 percent of the funds appropriated
under this heading may be used for technical assistance[ and tracking
systems needed to carry out the directives provided in House Report 105-
610]: Provided further, that all balances previously appropriated in the
``Emergency Shelter Grants,'' ``Supportive Housing,'' ``Supplemental
Assistance for Facilities to Assist the Homeless,'' ``Shelter Plus
Care,'' ``Section 8 Moderate Rehabilitation Single Room Occupancy,''

[[Page 491]]

and ``Innovative Homeless Initiatives Demonstration'' accounts shall be
transferred to and merged with this account, to be available for any
authorized purpose under this heading. (Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0192-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Homeless assistance grants........ 763 1,994 1,020
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 763 1,994 1,020
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 955 1,019
22.00 New budget authority (gross)...... 823 975 1,020
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,782 1,994 1,020
23.95 Total new obligations............. -763 -1,994 -1,020
24.40 Unobligated balance available, end
of year......................... 1,019
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 823 975 1,020
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1,294 1,588 2,894
73.10 Total new obligations............. 763 1,994 1,020
73.20 Total outlays (gross)............. -463 -688 -961
73.31 Obligated balance transferred to
other accounts.................. -2
73.32 Obligated balance transferred from
other accounts.................. 720
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1,588 2,894 3,673
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 7 29 31
86.93 Outlays from current balances..... 456 659 930
--------- --------- ----------
87.00 Total outlays (gross)........... 463 688 961
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 823 975 1,020
90.00 Outlays........................... 463 688 961
---------------------------------------------------------------------------

The Homeless Assistance Grants program funds the Shelter Plus Care,
Supportive Housing, Emergency Shelter Grants, and Section 8 Single Room
Occupancy programs. These funds will enable localities to continue to
shape and implement comprehensive, flexible, coordinated ``continuum of
care'' approaches to solving rather than institutionalizing
homelessness. In fact, in recent 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 2000 request will fund 10,000
transitional beds and 7,500 permanent beds, all linked to supportive
services.

Funding is also requested for technical assistance to provide needed
assistance to grantees to resolve problems that hinder successful
project completion and implementation, and for management information
systems support, including the continuing operation of tracking systems
required by House Report 105-610.

Finally, $104 million is requested in the Housing Certificate Fund
for 18,000 housing vouchers for homeless 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.

Homeless Assistance Demonstration Program

For a homeless assistance demonstration program to investigate and
test models to link Stewart B. McKinney Homeless Assistance Act
programs, including but not limited to permanent housing under the
Shelter Plus Care program (as authorized under subtitle F of title IV of
such Act) and Supportive Services (as authorized under subtitle C of
title IV of such Act), to Federal entitlement programs, State programs,
and other supportive services, $5,000,000, to remain available until
expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0327-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Homeless Demonstration............ 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5
----------------------------------------------------------------------------

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

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

Change in unpaid obligations:
73.10 Total new obligations............. 5
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 5
----------------------------------------------------------------------------

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

HUD is the primary provider of permanent housing to reduce
homelessness. However, to the extent that homeless persons and families
are eligible for entitlement programs but are not using the programs, a
strategy is needed to make this happen. The demonstration would
investigate and test the most promising models for moving the homeless,
specifically the chronically homeless, to self-sufficiency using a
combination of permanent housing and links to mainstream services. The
demonstration will be a collaborative effort between Federal agencies,
assisted by homeless assistance providers, to investigate ways in which
these dollars can be most efficiently and effectively used at the local
level to support transitions to stable permanent housing dollars.

Rural Housing and Economic Development

[(including transfer of funds)]

[For an Office of Rural Housing and Economic Development to be
established in the Department of Housing and Urban Development,
$25,000,000, to remain available until expended: Provided, That of the
amount under this heading, $4,000,000 shall be used to develop capacity
at the State and local level for developing rural housing and for
economic development, of which $1,000,000 shall be used to develop a
clearinghouse of ideas for innovative strategies for rural housing and
economic development and revitalization and of which $3,000,000 shall be
awarded by June 1, 1999 directly to local rural nonprofits, community
development corporations and Indian tribes to support capacity building
and technical assistance: Provided further, That of the amount under
this heading, $21,000,000 which amount shall be awarded by June 1, 1999
to Indian tribes,

[[Page 492]]

State housing finance agencies, State community and/or economic
development agencies, local rural nonprofits and community development
corporations to support innovative housing and economic development
activities in rural areas, of which $5,000,000 shall be awarded as seed
support for Indian tribes, nonprofits and community development
corporations that are located in areas that have limited capacity for
the development of rural housing and for economic development: Provided
further, That all grants shall be awarded on a competitive basis as
specified in section 102 of the HUD Reform Act: Provided further, That
all funds unobligated as of October 1, 1998 under the fifth paragraph of
the Community Development Block Grants account in the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriation Act, 1998 (Public Law 105-65; October 27, 1997)
shall be transferred to this account to be awarded to Indian tribes,
State housing finance agencies, State community and/or economic
development agencies, local rural nonprofits and community development
corporations for activities under this heading with any outstanding
earmarks for a State to be awarded to that State's housing finance
agency.] (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0324-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Rural Housing..................... 32
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 32
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 32
23.95 Total new obligations............. -32
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 25
42.00 Transferred from other accounts... 7
--------- --------- ----------
43.00 Appropriation (total)........... 32
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 31
73.10 Total new obligations............. 32
73.20 Total outlays (gross)............. -1 -10
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 31 21
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 32
90.00 Outlays........................... 1 10
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1998 actual 1999 est. 2000 est.
Enacted/requested:
Budget Authority.................. 32
Outlays........................... 1 10
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 20
Outlays...........................
------------------------------------
Total:
Budget Authority.................. 32 20
Outlays........................... 1 10
====================================

The 1999 VA-HUD and Independent Agencies Appropriations Act (P.L.
105-276) provided $25 million to the Rural Housing and Economic
Development program. This program is located in the Office of Community
Planning and Development and will address rural housing and economic
development needs.

Rural Housing and Economic Development

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0324-2-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Rural Housing..................... 20
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 20
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 20
23.95 Total new obligations............. -20
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 20
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 20
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 20
----------------------------------------------------------------------------

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

These funds will be used to encourage new and innovative approaches
to serving the housing and economic development needs of the Nation's
rural populations. This will include assessing existing programs to
determine if legislative and/or regulatory changes may be necessary to
make them more responsive to rural needs. There is a great need to
expand the supply of housing in rural America, particularly affordable
housing for low-income families and individuals. In addition, because of
out-migration from rural areas and other factors causing economic
dislocation, many rural areas suffer from severe economic distress.
There has been a growing national recognition of the need to enhance the
capacity of State and local governments and Indian tribes to expand the
supply of affordable housing and to provide economic development
opportunities in rural areas.

Urban Development Action Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0170-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 102 96 87
73.20 Total outlays (gross)............. -6 -9 -10
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 96 87 77
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 6 9 10
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 6 9 10
---------------------------------------------------------------------------

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.

[[Page 493]]

Capacity Building for Community Development and Affordable Housing

From amounts previously funded in the ``Annual Contributions for
Assisted Housing'' account, all balances for the Capacity Building for
the Community Development program shall be transferred into this
account, to be available for the purposes for which they were originally
appropriated.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0222-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Build capacity of community
development organizations....... 23 8
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 23 8
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 30 8
23.95 Total new obligations............. -23 -8
24.40 Unobligated balance available, end
of year......................... 8
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 5 21 13
73.10 Total new obligations............. 23 8
73.20 Total outlays (gross)............. -7 -16 -5
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 21 13 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 7 16 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 7 16 5
---------------------------------------------------------------------------

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.
P.L. 105-276 provided $15 million for this program in 1999 for the two
organizations eligible prior to the enactment of P.L. 105-18. No funding
is being requested for 2000.

Emergency Shelter Grants Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0181-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

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

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

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

Title IV, subtitle B, of the Stewart B. McKinney Homeless Assistance
Act (Public Law 100-77) authorizes the Secretary to make Emergency
Shelter Grants to States 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.
The 2000 Budget proposes to transfer all balances in this account to the
Homeless Assistance Grants account.

Supportive Housing Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0188-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Homelessness prevention........... 2 17
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 2 17
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 19 17
22.00 New budget authority (gross)...... -6
22.10 Resources available from
recoveries of prior year
obligations..................... 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 19 17
23.95 Total new obligations............. -2 -17
24.40 Unobligated balance available, end
of year......................... 17
----------------------------------------------------------------------------

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

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 314 177 73
73.10 Total new obligations............. 2 17
73.20 Total outlays (gross)............. -133 -121
73.31 Obligated balance transferred to
other accounts.................. -73
73.45 Adjustments in unexpired accounts. -6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 177 73
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 133 121
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -6
90.00 Outlays........................... 133 121
---------------------------------------------------------------------------

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. The 2000 Budget proposes to transfer
all balances in this account to the Homeless Assistance Grants account.

Supplemental Assistance for Facilities To Assist the Homeless

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0187-0-1-451 1998 actual 1999 est. 2000 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................... 1 1
23.95 Total new obligations............. -1

[[Page 494]]

24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

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

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

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 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. The 2000 Budget proposes to transfer
all balances in this account to the Homeless Assistance Grants account.

Shelter Plus Care

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0204-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

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

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 10 6
23.95 Total new obligations............. -4 -6
24.40 Unobligated balance available, end
of year......................... 6
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 367 300 256
73.10 Total new obligations............. 4 6
73.20 Total outlays (gross)............. -71 -50
73.31 Obligated balance transferred to
other accounts.................. -256
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 300 256
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 71 50
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 71 50
---------------------------------------------------------------------------

Title IV, subtitle F, of the Stewart B. McKinney Homeless Assistance
Act authorizes the Secretary to provide rental assistance to persons
with disabilities. Supportive services at least equal in value to the
aggregate rental assistance must also be provided by grant recipients
using other Federal, State, local and private resources. Eligible
recipients include States 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. The 2000 Budget proposes to transfer all balances in this
account to the Homeless Assistance Grants account.

Innovative Homeless Initiatives Demonstration Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0221-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 37 18 4
73.20 Total outlays (gross)............. -19 -14
73.31 Obligated balance transferred to
other accounts.................. -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 18 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 19 14
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 19 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. The 2000 Budget proposes to transfer all balances in
this account to the Homeless Assistance Grants account.

National Cities in Schools Community Development Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0220-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Grants for Schools................ 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
42.00 Transferred from other accounts... 5
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 4
73.10 Total new obligations............. 5
73.20 Total outlays (gross)............. -1 -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1
86.93 Outlays from current balances..... 4
--------- --------- ----------
87.00 Total outlays (gross)........... 1 4
----------------------------------------------------------------------------

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

The National Cities in Schools program, also known as Communities in
Schools, provides funding to empower local communities to work through
collaborative public/private partnerships involving schools, public
housing communities,

[[Page 495]]

and community organizations to prevent youngsters from dropping out of
school, while involving youth in local community building, job training
and neighborhood revitalization projects. P.L. 105-276 authorized the
transfer of $5,000,000 in Annual Contributions for Assisted Housing
recaptures to this account in 1999. No funds are requested for 2000.

Public enterprise funds:

Revolving Fund (Liquidating Programs)

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Loan servicing.................... 10 13 10
09.03 Administrative expenses........... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 11 14 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 103 95 81
22.00 New budget authority (gross)...... 60 55 42
22.10 Resources available from
recoveries of prior year
obligations..................... 4
22.40 Capital transfer to general fund.. -60 -55 -45
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 107 95 78
23.95 Total new obligations............. -11 -14 -11
24.40 Unobligated balance available, end
of year......................... 95 81 67
----------------------------------------------------------------------------

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 60 55 42
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 19 17 8
73.10 Total new obligations............. 11 14 11
73.20 Total outlays (gross)............. -9 -23 -11
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 17 8 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from permanent balances... 9 23 11
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -60 -55 -42
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -51 -32 -31
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 271 220 180
1251 Repayments: Repayments and
prepayments..................... -46 -40 -35
1263 Write-offs for default: Direct
loans........................... -5
--------- --------- ----------
1290 Outstanding, end of year........ 220 180 145
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2 2 1
2251 Repayments and prepayments........ -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 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 15 11 12 13
0102 Expense........................... -12 -4 -5 -5
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 3 7 7 8
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1206 Receivables, net................ 3 10 8 6
1207 Advances and prepayments........ 1 2
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 274 220 189 155
1602 Interest receivable............. 18 17 16 15
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -24 -20 -18 -18
1604 Direct loans and interest
receivable, net............... 268 217 187 152
1606 Foreclosed property............. 1
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 269 217 187 152
1801 Other Federal assets: Cash and
other monetary assets........... 1
------------ -------------- ------------ -------------
1999 Total assets.................... 394 342 305 268
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 1
2207 Other........................... 8 7 6 5
------------ -------------- ------------ -------------
2999 Total liabilities............... 8 8 6 5
NET POSITION:
3100 Appropriated capital.............. 25 25 25 25
3200 Invested capital.................. 172 172 83 83
3300 Cumulative results of operations.. 189 138 191 155
------------ -------------- ------------ -------------
3999 Total net position.............. 386 335 299 263
------------ -------------- ------------ -------------
4999 Total liabilities and net position 394 343 305 268
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
25.2 Other services.................... 8 6 6
32.0 Land and structures............... 3 8 5
--------- --------- ----------
99.9 Total new obligations........... 11 14 11
---------------------------------------------------------------------------

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........ 9 29 29
00.09 Administrative expense............ 1 1 1
--------- --------- ----------
10.00 Total obligations (object class
33.0)......................... 10 30 30
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 30 30 30
23.95 Total new obligations............. -10 -30 -30
23.98 Unobligated balance expiring...... -20
----------------------------------------------------------------------------

[[Page 496]]

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

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 13 18 32
73.10 Total new obligations............. 10 30 30
73.20 Total outlays (gross)............. -6 -16 -23
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 18 32 39
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 3 5 5
86.93 Outlays from current balances..... 3 11 18
--------- --------- ----------
87.00 Total outlays (gross)........... 6 16 23
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 30 30 30
90.00 Outlays........................... 6 16 23
---------------------------------------------------------------------------

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 2000. The credit subsidy/
administrative cost estimate for the guaranteed loan program is $30
million in 2000.

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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 382 1,261 1,261
--------- --------- ----------
2159 Total loan guarantee levels..... 382 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.......... 9 29 29
--------- --------- ----------
2339 Total subsidy budget authority.. 9 29 29
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 5 15 22
--------- --------- ----------
2349 Total subsidy outlays........... 5 15 22
----------------------------------------------------------------------------

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.

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................... 2 7 25
22.00 New financing authority (gross)... 5 17 25
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7 24 50
24.40 Unobligated balance available, end
of year......................... 7 25 50
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 5 17 25
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -5 -16 -23
88.25 Interest on uninvested funds.. -1 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -5 -17 -25
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -5 -17 -25
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 1,261 1,261 1,261
2112 Uncommitted loan guarantee
limitation...................... -879
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 382 1,261 1,261
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 775 1,190 1,990
2231 Disbursements of new guaranteed
loans........................... 547 1,000 1,000
2251 Repayments and prepayments........ -132 -200 -200
--------- --------- ----------
2290 Outstanding, end of year........ 1,190 1,990 2,790
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1,190 1,990 2,790
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4096-0-3-451 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 7 25 50
------------ -------------- ------------ -------------
1999 Total assets.................... 7 25 50
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 8 25 50
------------ -------------- ------------ -------------
2999 Total liabilities............... 8 25 50
------------ -------------- ------------ -------------
4999 Total liabilities and net position 8 25 50
-----------------------------------------------------------------------------------------------

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.

[[Page 497]]

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)...... 6 4 4
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.60 Redemption of debt................ -6 -4 -4
22.70 Balance of authority to borrow
withdrawn....................... -3
----------------------------------------------------------------------------

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

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

72.40 Obligated balance, start of year 147 138 138
72.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 8 8 8
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 155 146 146
73.20 Total outlays (gross)............. -6
73.45 Adjustments in unexpired accounts. -3
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 138 138 138
74.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 8 8 8
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 146 146 146
----------------------------------------------------------------------------

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

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -6 -4 -4
----------------------------------------------------------------------------

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

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 36 30 26
1251 Repayments: Repayments and
prepayments..................... -6 -4 -4
--------- --------- ----------
1290 Outstanding, end of year........ 30 26 22
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 198 165 135
2251 Repayments and prepayments........ -33 -30 -25
--------- --------- ----------
2290 Outstanding, end of year........ 165 135 110
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 165 135 110
---------------------------------------------------------------------------

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4097-0-3-451 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 8 6 6
0102 Expense........................... -8 -6 -6
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... -8 -7 -6
Investments in US securities:
1106 Receivables, net.............. 9 8 7
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1701 Defaulted guaranteed loans,
gross......................... 31 31 31
1702 Interest receivable............. 4 4 4
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 35 35 35
1901 Other Federal assets: Other assets 149 145 140
------------ -------------- ------------ -------------
1999 Total assets.................... 185 181 176
LIABILITIES:
2105 Federal liabilities: Other........ 155 151 146
2201 Non-Federal liabilities: Accounts
payable......................... 30 30 30
------------ -------------- ------------ -------------
2999 Total liabilities............... 185 181 176
------------ -------------- ------------ -------------
4999 Total liabilities and net position 185 181 176
-----------------------------------------------------------------------------------------------

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.

America's Private Investment Companies Program Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 American Private Investment
Corporation Credit Subsidy...... 36
00.09 Administrative Expenses........... 1
--------- --------- ----------
10.00 Total new obligations (object
class 33.0)................... 37
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 37
23.95 Total new obligations............. -37
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 37
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 37
73.20 Total outlays (gross)............. -27
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 10
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 37

[[Page 498]]

90.00 Outlays........................... 27
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0326-2-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 1,000
--------- --------- ----------
2159 Total loan guarantee levels..... 1,000
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 3.60
--------- --------- ----------
2329 Weighted average subsidy rate... 3.60
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 36
--------- --------- ----------
2339 Total subsidy budget authority.. 36
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 26
--------- --------- ----------
2349 Total subsidy outlays........... 26
----------------------------------------------------------------------------

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

The America's Private Investment Companies (APIC) is a vehicle for
increasing the private equity capital invested in distressed urban and
rural areas. The difficulty in obtaining equity-type financing, which is
harder to come by than debt financing, worsens the overall shortage of
investment capital in distressed inner city and rural areas. This credit
subsidy would result in the leveraging of an estimated $1 billion in
private capital.

APIC would be administered jointly by the Department of Housing and
Urban Development (HUD) and the Small Business Administration (SBA),
drawing on the dual expertise of these two agencies. The SBA's Small
Business Investment Companies (SBIC) program supports the effective
investment of private equity and can be targeted to distressed areas.
However, SBICs are capped in size of companies eligible for investment
and therefore may not be able to serve large projects such as
manufacturing facilities that can have significant impact on distressed
areas. APIC would provide a financing mechanism for venture capital
funds that would be able to invest in larger businesses which could
relocate or expand into distressed areas. An APIC venture fund would
issue debentures and take equity positions in businesses needing equity-
type capital of $10 million or more.

America's Private Investment Companies 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)... 28
24.40 Unobligated balance available, end
of year......................... 27
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 28
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -27
88.25 Interest on uninvested funds.. -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -28
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -28
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4102-2-3-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 1,000
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 1,000
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2231 Disbursements of new guaranteed
loans........................... 730
2251 Repayments and prepayments........
--------- --------- ----------
2290 Outstanding, end of year........ 730
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 730
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4102-2-3-451 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 28
------------ -------------- ------------ -------------
1999 Total assets.................... 28
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 28
------------ -------------- ------------ -------------
2999 Total liabilities............... 28
------------ -------------- ------------ -------------
4999 Total liabilities and net position 28
-----------------------------------------------------------------------------------------------

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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 849
22.21 Unobligated balance transferred to
other accounts.................. -849
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 188
73.31 Obligated balance transferred to
other accounts.................. -188
----------------------------------------------------------------------------

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

Prior to 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

[[Page 499]]

all balances for Indian housing development were transferred to the
Indian Housing Block Grant Program.

Housing for Special Populations

For assistance for the purchase, construction, acquisition, or
development of additional public and subsidized housing units for low
income families not otherwise provided for, $854,000,000, to remain
available until expended[: Provided, That of the total amount provided
under this heading,]; of which $660,000,000 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 such
section 202(c)(2), [of the Housing Act of 1959, and for supportive
services associated with the housing; and] of which amount $50,000,000
shall be for service coordinators and continuation of existing
congregate services grants for residents of assisted housing projects,
and for other eligible elderly persons residing in the neighborhood in
which such projects are located on an exception basis, and $100,000,000
shall be for grants for conversion of existing section 202 projects, or
portions thereof, to assisted living or related use, subject to the
provision that the Secretary shall select existing section 202 projects
to receive such assistance on a competitive basis based on a set of
conditions that take into account the need for and quality of the
proposed alterations, the extent to which the application demonstrates
the ability to complete the alterations promptly and successfully, past
history of successful deliverance of services to the elderly, and such
other factors as the Secretary deems appropriate: Provided, That up to
$5,000,000 of these funds may be used to establish intergenerational
learning centers; and of which $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 at least 25 percent
and up to [25] 50 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. (Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0320-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 1,149 1,487 1,542
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 1,149 1,487 1,542
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 2,864 2,231
22.00 New budget authority (gross)...... 839 854 854
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.22 Unobligated balance transferred
from other accounts............. 3,171
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4,013 3,718 3,085
23.95 Total new obligations............. -1,149 -1,487 -1,542
24.40 Unobligated balance available, end
of year......................... 2,864 2,231 1,543
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 839 854 854
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 3,591 4,270
73.10 Total new obligations............. 1,149 1,487 1,542
73.20 Total outlays (gross)............. -824 -809 -946
73.32 Obligated balance transferred from
other accounts.................. 3,269
73.45 Adjustments in unexpired accounts. -3
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 3,591 4,270 4,866
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 824 809 946
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 839 854 854
90.00 Outlays........................... 824 809 946
---------------------------------------------------------------------------

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. In fiscal year
2000, a total of $854 million is requested for the Housing for Special
Populations account.

Housing for the Disabled.--$194 million is proposed for housing for
persons with disabilities, including language to permit at least 25
percent and up to 50 percent of these funds to be earmarked for tenant-
based assistance which increases the number of persons that can be
assisted by maximizing the use of the private market.

Housing for the Elderly.--A total of $660 million is proposed for
housing for the elderly. Of this amount $100 million is for a capital
grant program to convert existing 202 properties to assisted living
under appropriate conditions. These funds for capital grants will be
available to existing HUD elderly subsidized (Section 202) projects that
convert some or all units to Assisted Living. These competitive grants
would be available to current project owners who agree to several
specified conditions. These conditions would include: (1) a tight cap on
operating expenses and HUD subsidy; (2) Medicaid home and community-
based services or personal care services for Medicaid-eligible
residents; and accessible services for non-Medicaid eligible residents
through local and community service providers; (3) two meals per day;
and (4) 24-hour staff. Preference will be given to grant applicants who
demostrate a strong commitment to (1) serve extremely low income frail,
disabled elderly residents, (2) promote resident autonomy, independence
choice and control.

Up to five percent of these funds may be used to provide space
within elderly housing projects for Intergenerational Learning Centers
where the skills and experience of seniors will be harnessed to meet the
need for affordable child care and allow seniors and children to learn
new skills together.

This initiative will make available to low-income elderly, a new
type of housing that Americans with higher incomes already benefit from
in increasing numbers. Converting some Section 202 projects to assisted
living brings this successful innovation to a population that includes a
much higher proportion of frail elderly than when subsidized apartment
projects were first constructed. These elderly need additional help with
various tasks in order to continue living as independently as possible.
Projects need to be reconfigured to provide more congregate areas and
room for additional services. As a result of this investment, people who
otherwise would be confined to nursing homes and receive a higher level
of care can enjoy a much greater degree of independence.

$50 million is provided for an expanded service coordinator program
that will serve both residents of HUD-assisted elderly housing and other
eligible elderly residing in the neighborhood in which such projects are
located on an exception basis. These new grants and an expanded 202
program are part of a new initiative to address the growing housing
needs of the nation's elderly.

[[Page 500]]

The new initiative will begin to address in a more comprehensive way
the changing and expanding long-term care needs of the elderly
population including: the lack of decent affordable housing for low-
income elderly people. The Administration proposes to expand assistance
to low income elderly people by providing more accessible decent
affordable housing, and by coordinating and ensuring the existence and
accessibility of supportive services provided by the community, non-
profits, and through the Federal health programs to residents of the
projects. Together these efforts will establish a Continuum of Care for
the elderly.

(1) Helping Seniors Stay in Their Own Homes: The first part of the
Continuum of Care is to enable elderly people to remain in their own
homes for as long as possible. HUD will expand its healthy homes
initiative to focus on the needs of older homeowners, in cooperation
with appropriate agencies of HHS. This effort will provide seniors with
information on how they can convert the equity in their own homes into
funds for needed health and safety home improvements, including home
rehabilitation loans, through HUD's reverse mortgage program.

(2) Ensuring the Availability and Quality of Senior Housing by
Expanding the Section 202 program: This program currently works with
local non-profits to build or renovate housing tailored to the unique
needs of seniors, offering rental assistance to a particularly
vulnerable group who cannot easily access tenant-based voucher programs
because of their special needs and limited mobility. The need for
senior-tailored complexes is increasing at a tremendous pace, as the
number of elders and the ``oldest old'' rapidly increases. To meet this
need, the 202 program will be expanded as described above.

(3) Community-Based Care: Many elderly people are capable of living
semi-independently but have greater needs for services. The
Administration proposes an expansion of the existing service coordinator
program, as described above, in order to better coordinate federal and
local health care and social sevices for the residents.

(4) Intergenerational Learning Centers: To strengthen the connection
of elderly people to their community, an eligible use for the competitve
capital grants pool will also be the physical establishment of
Intergenerational Learning Centers. These Centers will link two vital
needs: (A) affordable senior services, and (B) affordable child care.
These learning Centers will be owned and operated, at least in part, by
residents of existing Section 202 projects.

(5) Assisted Living: The Administration proposes that HUD partner
with HHS to better integrate housing assistance with Medicaid funding
for services.

In addition to the expansion of the 202 program the Administration
is drafting language to create a new elderly voucher program funded with
mandatory funds. This program will help to target units within Low
Income Housing Tax Credit projects to extremely low income elderly
people (below 30 percent of area medium income).

Elderly Vouchers

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0330-4-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Obligations by program activity... 87
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 87
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 87
23.95 Total new obligations............. -87
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.00 Appropriation..................... 87
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 87
73.20 Total outlays (gross)............. -8
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 79
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 87
90.00 Outlays........................... 8
---------------------------------------------------------------------------

This is a mandatory program for 15,000 tenant-based assistance units
to help eligible elderly persons find decent affordable housing within
Low Income Tax Credit funded projects, $89,000,000 to be awarded by
States who administer the Low Income Housing Tax Credit. Individuals and
their families who receive the assistance under this head (a) shall be
elderly (as defined by the Secretary of the Department of Housing and
Urban Development); (b) shall meet all eligibility requirements for
receipt of HUD elderly housing assistance; and (c) shall use the voucher
initially in a Low Income Housing Tax Credit project.

Other Assisted Housing Programs

Rental Housing Assistance

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Rent supplement................... 13 15 15
00.02 Homeownership and rental housing
assistance (Sections 235 and
236)............................ 22 32 25
00.04 IRP Rehab Grants.................. 200 190
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 35 247 230
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 8 8 8
21.49 Unobligated balance available,
start of year: Contract
authority....................... 970 950 903
--------- --------- ----------
21.99 Total unobligated balance, start
of year....................... 978 958 911
22.00 New budget authority (gross)...... -125
22.10 Resources available from
recoveries of prior year
obligations..................... 308 200 190
22.75 Balance of contract authority
withdrawn....................... -168
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 993 1,158 1,101
23.95 Total new obligations............. -35 -247 -230
24.40 Unobligated balance available, end
of year......................... 8 8 8
24.49 Unobligated balance, end of year:
Contract authority.............. 950 903 863
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 958 911 871
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.36 Preservation prepayment
rescission.................... -125
Permanent:

60.05 Appropriation (indefinite)...... 733 770 764
60.49 Portion applied to liquidate
contract authority............ -733 -770 -764
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -125
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 127 127 127
72.49 Obligated balance, start of
year: Contract authority...... 12,338 11,332 10,609
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 12,465 11,459 10,736

[[Page 501]]

73.10 Total new obligations............. 35 247 230
73.20 Total outlays (gross)............. -734 -771 -765
73.45 Adjustments in unexpired accounts. -308 -200 -190
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 127 127 127
74.49 Obligated balance, end of year:
Contract authority............ 11,332 10,609 9,885
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 11,459 10,736 10,012
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 734 771 765
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -125
90.00 Outlays........................... 734 771 765
---------------------------------------------------------------------------

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0206-0-1-999 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 13,308 12,282 11,512
Contract authority:
0200 Contract authority................ -125
0400 Appropriation to liquidate
contract authority.............. -733 -770 -764
0600 Balance of contract authority
withdrawn....................... -168
0700 Balance, end of year.............. 12,282 11,512 10,748
---------------------------------------------------------------------------

OTHER ASSISTED HOUSING

Summary of Administrative Commitments

[In millions of dollars]

1998 actual 1999 est. 2000 est.
Assistance contracts:
Rent supplement................... 13 15 15
Homeownership and rental housing
assistance (sections 235 and
236)............................ 22 32 25
IRP Rehab Grants.................... 200 190
Administrative commitments, start of
year................................ -16 16 16
Administrative commitments, end of
year................................ -16 -16 -16
------------------------------------
Total obligations............. 35 247 230
====================================

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
eligible projects. An estimated $190 million of such grants are expected
in 2000.

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 1998,
1999, and 2000.

SUMMARY OF OUTLAYS \1\

[In millions of dollars]

1998 actual 1999 est. 2000 est.
Subsidized housing programs, total.. 20,747 19,647 20,360
Low-income housing assistance (sec.
8).................................. 16,114 15,594 16,444
Public housing capital fund......... 3,899 3,282 3,151
Rent supplement..................... 55 54 54
Homeownership assistance (sec. 235). 45 84 77
Rental housing assistance (sec. 236) 617 617 618
College housing grants.............. 17 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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 11 11 11
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12 11 11
24.40 Unobligated balance available, end
of year......................... 11 11 11
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 132 102 71
73.20 Total outlays (gross)............. -29 -30 -30
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 102 71 41
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 29 30 30
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 29 30 30
---------------------------------------------------------------------------

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 2000. 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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 22 9 2
73.20 Total outlays (gross)............. -7 -7 -2
73.40 Adjustments in expired accounts... -6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 9 2
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 8 7 2
---------------------------------------------------------------------------

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

[[Page 502]]

2000. 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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

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

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

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

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

In 1998, housing counseling was appropriated as a $20 million set-
aside in the HOME Investment Partnerships Program. The program was
funded at $17.5 million as a HOME set-aside in 1999. The Budget proposes
Housing Counseling as a $20 million HOME set-aside for 2000. The 2000
Budget proposes to transfer all balances in this account, as of
September 30, 1999, to the HOME Investment Partnership account.

Section 8 Moderate Rehabilitation

single room occupancy

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0195-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Homelessness prevention........... 1 85
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 1 85
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 86 85
23.95 Total new obligations............. -1 -85
24.40 Unobligated balance available, end
of year......................... 85
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 376 348 387
73.10 Total new obligations............. 1 85
73.20 Total outlays (gross)............. -29 -46
73.31 Obligated balance transferred to
other accounts.................. -387
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 348 387
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 29 46
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 29 46
---------------------------------------------------------------------------

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. The 2000 Budget proposes to transfer all
balances in this account to the Homeless Assistance Grants account.

Capital Grants/Capital Loans Preservation Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0318-0-1-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 10
23.98 Unobligated balance expiring...... -10
----------------------------------------------------------------------------

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

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

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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Receipts:
02.01 Manufactured home inspection and
monitoring...................... 14 15 16
Appropriation:
05.01 Manufactured home inspection and
monitoring...................... -14 -15 -16
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............... 16 16 17
--------- --------- ----------
10.00 Total obligations (object class
25.2)......................... 17 17 18
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 9 8 6
22.00 New budget authority (gross)...... 14 15 16
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 24 23 22
23.95 Total new obligations............. -17 -17 -18
24.40 Unobligated balance available, end
of year......................... 8 6 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.25 Appropriation (special fund,
indefinite)..................... 14 15 16
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 3 2 2
73.10 Total new obligations............. 17 17 18
73.20 Total outlays (gross)............. -16 -17 -17
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 2 2 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 14 15 16
86.98 Outlays from permanent balances... 2 2 1
--------- --------- ----------
87.00 Total outlays (gross)........... 16 17 17
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 14 15 16

[[Page 503]]

90.00 Outlays........................... 16 17 17
---------------------------------------------------------------------------

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 of $24 per transportable section is charged to the
manufacturers for each manufactured home produced. The fee is used 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 1998, an estimated 439,000 manufactured
homes and 603,383 transportable sections were produced.

Interstate Land Sales

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5270-0-2-376 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Receipts:
02.01 Interstate land sales............. 1 1
Appropriation:
05.01 Interstate land sales............. -1 -1
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

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

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

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

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

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

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

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

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

The estimated annual program activity level will continue at 1,700
filings, approximately the same estimated 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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
09.00 Reimbursable program.............. 44 39 35
--------- --------- ----------
10.00 Total obligations (object class
25.2)......................... 44 39 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 1 1
22.00 New budget authority (gross)...... 44 39 35
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 45 40 36
23.95 Total new obligations............. -44 -39 -35
24.40 Unobligated balance available, end
of year......................... 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 44 39 35
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 22 7
73.10 Total new obligations............. 44 39 35
73.20 Total outlays (gross)............. -59 -46 -35
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 44 39 35
86.98 Outlays from permanent balances... 15 7
--------- --------- ----------
87.00 Total outlays (gross)........... 59 46 35
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -44 -39 -35
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 15 7
---------------------------------------------------------------------------

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.

Flexible Subsidy Fund

(transfer of funds)

From the Rental Housing Assistance Fund, all uncommitted balances of
excess rental charges as of September 30, [1998] 1999, and any
collections made during fiscal year [1999] 2000, 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, 1999.)

[[Page 504]]

Program and Financing (in millions of dollars)

Obligations by program activity:
09.00 Reimbursable program.............. 15 13 35
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 15 13 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 179 235 276
22.00 New budget authority (gross)...... 71 54 50
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 250 289 326
23.95 Total new obligations............. -15 -13 -35
24.40 Unobligated balance available, end
of year......................... 235 276 292
----------------------------------------------------------------------------

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

68.00 Offsetting collections (cash)... 74 54 50
68.10 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... -3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 71 54 50
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 44 27 20
72.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 3
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 47 27 20
73.10 Total new obligations............. 15 13 35
73.20 Total outlays (gross)............. -35 -21 -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 27 20 48
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from permanent balances... 35 21 7
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -61 -39 -35
88.20 Interest on U.S. securities... -8 -9 -9
88.40 Non-Federal sources........... -5 -6 -6
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -74 -54 -50
88.95 From Federal sources: Change in
receivables and unpaid, unfilled
orders.......................... 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -39 -33 -43
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
U.S. securities: Par value...... 150 150 150
92.02 Total investments, end of year:
U.S. securities: Par value...... 150 150 150
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 743 769 786
1231 Disbursements: Direct loan
disbursements................... 35 21 7
1251 Repayments: Repayments and
prepayments..................... -4 -4 -4
1264 Write-offs for default: Other
adjustments, net................ -5
--------- --------- ----------
1290 Outstanding, end of year........ 769 786 789
---------------------------------------------------------------------------

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.

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.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4044-0-3-604 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 65 66 55 50
0102 Expense........................... -81 -90 -6
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ -16 -24 49 50
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 92 131 162 206
Investments in US securities:
1102 Treasury securities, par...... 150 150 150 150
1106 Receivables, net.............. 9 4
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 743 769 786 789
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -607 -692 -708 -710
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 136 77 78 79
------------ -------------- ------------ -------------
1999 Total assets.................... 387 362 390 435
NET POSITION:
3100 Appropriated capital.............. 217 217 217 217
3300 Cumulative results of operations.. 169 145 174 218
------------ -------------- ------------ -------------
3999 Total net position.............. 386 362 391 435
------------ -------------- ------------ -------------
4999 Total liabilities and net position 386 362 391 435
-----------------------------------------------------------------------------------------------

Homeownership Assistance Fund

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 21 23 25
21.49 Unobligated balance available,
start of year: Contract
authority....................... 61 61 61
--------- --------- ----------
21.99 Total unobligated balance, start
of year....................... 82 84 86
22.00 New budget authority (gross)...... 2 2 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 84 86 88
24.40 Unobligated balance available, end
of year......................... 23 25 27
24.49 Unobligated balance, end of year:
Contract authority.............. 61 61 61
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 84 86 88
----------------------------------------------------------------------------

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, start of year -1 -1 -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -1 -1 -1
----------------------------------------------------------------------------

[[Page 505]]

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -2 -2 -2
----------------------------------------------------------------------------

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

Memorandum (non-add) entries:
92.01 Total investments, start of year:
U.S. securities: Par value...... 18 18 18
92.02 Total investments, end of year:
U.S. securities: Par value...... 18 18 18
---------------------------------------------------------------------------

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4043-0-3-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 61 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, 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.

Nehemiah Housing Opportunity Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4071-0-3-604 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
09.00 Reimbursable program.............. 20 1
--------- --------- ----------
10.00 Total obligations (object class
33.0)......................... 20 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 21 1
23.95 Total new obligations............. -20 -1
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 7 26 22
73.10 Total new obligations............. 20 1
73.20 Total outlays (gross)............. -1 -5 -8
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 26 22 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 1 5 8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 5 8
---------------------------------------------------------------------------

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 [1999] 2000, 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]
$120,000,000,000.
During fiscal year [1999] 2000, obligations to make direct loans to
carry out the purposes of section 204(g) of the National Housing Act, as
amended, shall not exceed [$100,000,000] $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, [$328,888,000, to be derived from the FHA-
mutual mortgage insurance guaranteed loans receipt account]
$330,888,000, of which not to exceed $324,866,000 shall be transferred
to the appropriation for departmental salaries and expenses; [and of
which] not to exceed $4,022,000 shall be transferred to the
appropriation for the Office of Inspector General; and not to exceed
$2,000,000 shall be to support a data warehouse operated by the Federal
Housing Credit Consortium. In addition, for administrative contract
expenses, $160,000,000: Provided, That to the extent guaranteed loan
commitments exceed $49,664,000,000 on or before April 1, 2000, an
additional $1,400 for administrative contract expenses shall be
available for each $1,000,000 in additional quaranteed loan commitments
(including a pro-rata amount for any amount below $1,000,000), but in no
case shall funds made available by this proviso exceed $16,000,000.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 1,264
Receipts:
02.01 FHA Mutual Mortgage Insurance
Guaranteed Loan, negative
subsidies....................... 1,602 329
--------- --------- ----------
04.00 Total: Balances and collections... 1,602 1,593
Appropriation:
05.01 FHA mutual mortgage insurance
program account................. -338 -1,593
--------- --------- ----------
05.99 Subtotal appropriation............ -338 -1,593
07.99 Total balance, end of year........ 1,264
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.09 Transfer to Federal Housing Credit
Consortium...................... 2
00.10 Administrative expenses, salaries
& expenses transfer............. 338 329 329
00.11 Subsidy rate reestimate........... 1,264
00.12 Non-overhead administrative
expenses for FHA contracts...... 160
--------- --------- ----------
10.00 Total new obligations........... 338 1,593 491
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 338 1,593 491
23.95 Total new obligations............. -338 -1,593 -491
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 491
40.25 Appropriation (special fund,
definite)..................... 338 329
--------- --------- ----------
43.00 Appropriation (total)......... 338 329 491
Permanent:

60.25 Appropriation (special fund,
indefinite)................... 1,264
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 338 1,593 491
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 338 1,593 491
73.20 Total outlays (gross)............. -338 -1,593 -451
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 40
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 338 329 451
Outlays from permanent authority:

86.97 Outlays from new permanent
authority..................... 1,264
--------- --------- ----------
87.00 Total outlays (gross)........... 338 1,593 451
----------------------------------------------------------------------------

[[Page 506]]

Net budget authority and outlays:
89.00 Budget authority.................. 338 1,593 491
90.00 Outlays........................... 338 1,593 451
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 200 100 50
--------- --------- ----------
1159 Total direct loan levels........ 200 100 50
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 MMI Fund, Section 203(b).......... 100,245 96,218 112,873
2150 Standby commitment authority...... 9,755 13,782 7,127
--------- --------- ----------
2159 Total loan guarantee levels..... 110,000 110,000 120,000
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... -2.99 -2.62 -1.99
--------- --------- ----------
2329 Weighted average subsidy rate... -2.99 -2.62 -1.99
Guaranteed loan subsidy budget authority:
2330 MMI Section 203(b) negative
subsidy......................... -2,549 -2,346 -2,048
2330 Indirect modification repayment
from Liquidating Account of
borrowing....................... -205
2330 Subsidy budget authority--
reestimate...................... 1,264
2330 Subsidy--Note Sales............... -120
--------- --------- ----------
2339 Total subsidy budget authority.. -2,754 -1,202 -2,048
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... -2,344 -1,082 -2,048
--------- --------- ----------
2349 Total subsidy outlays........... -2,344 -1,082 -2,048
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 338 329 491
3590 Outlays from new authority........ 338 329 451
---------------------------------------------------------------------------

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 48 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 87 percent of the conforming
loan limit.

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.

FHA will contribute $2,000,000 from the FHA-MMI fund to fund efforts
by the Federal Housing Credit Consortium to develop a pilot data
warehouse for use by the four major housing credit agencies.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
25.2 Other services.................... 160
25.3 Purchases of goods and services
from Government accounts........ 338 1,593 331
--------- --------- ----------
99.9 Total new obligations........... 338 1,593 491
---------------------------------------------------------------------------

FHA--Mutual Mortgage Insurance Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 5 50 50
00.02 Interest paid to Treasury......... 1 3 3
00.03 Claims & other.................... 2 2
--------- --------- ----------
10.00 Total new obligations........... 6 55 55
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 3 68
22.00 New financing authority (gross)... 8 120 77
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9 123 145
23.95 Total new obligations............. -6 -55 -55
24.40 Unobligated balance available, end
of year......................... 3 68 90
----------------------------------------------------------------------------

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 3 100 50
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 5 20 27
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 8 120 77
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 2 3 5
73.10 Total new obligations............. 6 55 55
73.20 Total financing disbursements
(gross)......................... -4 -55 -55
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 3 5 5
87.00 Total financing disbursements
(gross)......................... 4 55 55
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -1 -1
88.40 Other collections from non-
Federal sources............. -5 -19 -26
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -5 -20 -27
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 3 100 50
90.00 Financing disbursements........... -1 35 28
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and thereafter (including
modifications of direct loans that resulted from obligations in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

The $50 million in 2000 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.

[[Page 507]]

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 200 100 50
1112 Unobligated direct loan limitation -195 -50
--------- --------- ----------
1150 Total direct loan obligations... 5 50 50
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2 1 23
1231 Disbursements: Direct loan
disbursements................... 4 40 40
1251 Repayments: Repayments and
prepayments..................... -5 -17 -23
1263 Write-offs for default: Direct
loans........................... -1 -2
--------- --------- ----------
1290 Outstanding, end of year........ 1 23 38
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4242-0-3-371 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 2 1 23 38
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 2 1 23 38
------------ -------------- ------------ -------------
1999 Total assets.................... 2 1 23 38
LIABILITIES:
2103 Federal liabilities: Treasury
borrowing....................... 2 3 30 38
------------ -------------- ------------ -------------
2999 Total liabilities............... 2 3 30 38
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2 3 30 38
-----------------------------------------------------------------------------------------------

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.......... 4,004 2,616 3,112
00.05 Payment of negative subsidy to
receipt account................. 338 329
00.06 Payment of negative subsidy to
liquidating account............. 2,344 2,017 2,048
00.07 Non-overhead administrative costs
(contracts)..................... 85
00.08 Interest payments to Treasury..... 384 398 412
00.09 Payment to liquidating account of
value of assets sold............ 244
00.14 Negative subsidy to liquidating
account, new legislation........ 400
--------- --------- ----------
10.00 Total new obligations........... 7,155 6,004 5,572
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 330 541 701
22.00 New financing authority (gross)... 7,570 6,363 5,864
22.60 Redemption of debt................ -205 -200 -200
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7,695 6,704 6,365
23.95 Total new obligations............. -7,155 -6,004 -5,572
24.40 Unobligated balance available, end
of year......................... 541 701 793
----------------------------------------------------------------------------

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 2,625 200 200
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 4,945 6,163 5,664
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 7,570 6,363 5,864
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year -171 -127 -127
73.10 Total new obligations............. 7,155 6,004 5,572
73.20 Total financing disbursements
(gross)......................... -7,111 -6,004 -5,572
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -127 -127 -127
87.00 Total financing disbursements
(gross)......................... 7,111 6,004 5,572
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -127 -38 -35
Non-Federal sources:
88.40 Fees and premiums........... -2,605 -3,352 -3,558
88.40 Recoveries on defaults...... -1,995 -2,242 -2,071
88.40 Gross proceeds from asset
sales..................... -531
88.45 Offsetting governmental
collections................. -218
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4,945 -6,163 -5,664
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 2,625 200 200
90.00 Financing disbursements........... 2,166 -159 -92
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 110,000 110,000 120,000
2112 Uncommitted loan guarantee
limitation...................... -9,755 -13,782 -7,127
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 100,245 96,218 112,873
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 272,750 309,309 372,217
2231 Disbursements of new guaranteed
loans........................... 90,518 86,398 96,162
2251 Repayments and prepayments........ -50,074 -20,672 -29,602
Adjustments:

2261 Terminations for default that
result in loans receivable.... -30 -3 -6
2262 Terminations for default that
result in acquisition of
property...................... -3,766 -2,731 -2,731
2263 Terminations for default that
result in claim payments...... -89 -84 -84
--------- --------- ----------
2290 Outstanding, end of year........ 309,309 372,217 435,956
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 309,309 372,217 435,956
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 285 347 9
2331 Disbursements for guaranteed
loan claims................... 30 6 11
2351 Repayments of loans receivable.. -5
2364 Other adjustments, net.......... 37 -344 -1
--------- --------- ----------
2390 Outstanding, end of year...... 347 9 19
---------------------------------------------------------------------------

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

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4587-0-3-371 1997
actual\1\ 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 159 413 701 693
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501 Defaulted guaranteed loans
receivable, gross............. 285 347 8 19
1504 Foreclosed property............. 1,104 2,045 1,245 1,154
1505 Allowance for subsidy cost...... -443 -833 -829 -829
------------ -------------- ------------ -------------
1599 Net value of assets related to
defaulted guaranteed loan... 946 1,559 424 344
1901 Other Federal assets: Other assets 3
------------ -------------- ------------ -------------
1999 Total assets.................... 1,108 1,972 1,125 1,037
LIABILITIES:
2103 Federal liabilities: Federal
liabilities, Debt............... 3,062 5,482 5,482 5,382

[[Page 508]]

Non-Federal liabilities:

2204 Liabilities for loan guarantees. -1,978 -3,510 -4,539 -4,760
2207 Other........................... 24 182 415
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,108 1,972 1,125 1,037
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,108 1,972 1,125 1,037
-----------------------------------------------------------------------------------------------
\1\ As reflected in the 1999 Budget.

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

Unavailable Collections (in millions of dollars)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Transfer of Reestimates amount.... 1,264
Operating expenses:

00.03 Other operating costs........... 9 9 9
00.04 Administrative contract expenses 18 160
--------- --------- ----------
00.91 Total operating expenses...... 1,291 169 9
Capital investment:

01.02 Assignment of defaulted
mortgages..................... -22
01.03 Acquisition of real properties.. 1,416 3,657 2,717
01.05 Acquisition of other assets..... 4 4 4
01.07 Capitalized property expenses... 186 116 117
01.08 Loss mitigation activities...... 2 4 3
01.09 Preforeclosure sale claims...... 9 47 39
01.10 Indirect modification (repayment
of borrowing to Financing
Account) and interest......... 219
--------- --------- ----------
01.91 Total capital investment...... 1,814 3,828 2,880
--------- --------- ----------
10.00 Total new obligations........... 3,105 3,997 2,889
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 13,072 14,392 16,530
22.00 New budget authority (gross)...... 4,425 6,135 5,039
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 17,497 20,527 21,569
23.95 Total new obligations............. -3,105 -3,997 -2,889
24.40 Unobligated balance available, end
of year......................... 14,392 16,530 18,680
----------------------------------------------------------------------------

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

68.00 Offsetting collections (cash)... 4,425 6,135 5,207
68.45 Portion not available for
obligation (limitation on
obligations).................. -168
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 4,425 6,135 5,039
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 474 706 706
73.10 Total new obligations............. 3,105 3,997 2,889
73.20 Total outlays (gross)............. -2,872 -3,997 -2,729
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 706 706 866
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 2,398 3,292 2,023
86.98 Outlays from permanent balances... 474 706 706
--------- --------- ----------
87.00 Total outlays (gross)........... 2,872 3,997 2,729
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.20 Interest on U.S. securities... -921 -1,031 -1,125
Non-Federal sources:
88.40 Fees and premiums........... -77 -71 -66
88.40 Rebate of unearned prepaid
premiums collected........ 14 20 6
88.40 Proceeds from sale of real
property.................. -1,063 -2,367 -1,971
88.40 Proceeds from sale of
mortgage notes............ -244
88.40 Repayment of mortgage notes
and sales contracts....... -1 -5
88.40 Interest and operating
income.................... 5 -2
88.40 Recoveries on defaulted
mortgages................. -16 -15
88.40 Payment from financing
account................... -2,344 -2,417 -2,048
88.40 Miscellaneous collections... -21
88.40 Other income................ -1 -3 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4,425 -6,135 -5,207
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -168
90.00 Outlays........................... -1,552 -2,138 -2,478
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
U.S. securities: Par value...... 13,467 14,344 16,144
92.02 Total investments, end of year:
U.S. securities: Par value...... 14,344 16,144 18,644
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 5 5
1251 Repayments: Repayments and
prepayments..................... -1 -5
1264 Write-offs for default: Other
adjustments, net................ 1
--------- --------- ----------
1290 Outstanding, end of year........ 5
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

2261 Terminations for default that
result in loans receivable.... -3 -2
2262 Terminations for default that
result in acquisition of
property...................... -1,415 -3,657 -2,717
2263 Terminations for default that
result in claim payments...... -10 -49 -41
2264 Other adjustments, net.......... 20
--------- --------- ----------
2290 Outstanding, end of year........ 71,030 65,880 61,301
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 71,030 65,880 61,301
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 288 294 4
2331 Disbursements for guaranteed
loan claims................... 3 2
2351 Repayments of loans receivable.. -16 -259
2361 Write-offs of loans receivable.. -53 -34 -1
2364 Other adjustments, net.......... 75
--------- --------- ----------
2390 Outstanding, end of year...... 294 4 5
---------------------------------------------------------------------------

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 Insur

[[Page 509]]

ance 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]

1998 actual
\1\ 1999 est. 2000 est.
Insurance initiation:
Mortgage insurance commitments
(units)......................... 1,025,569 940,005 1,075,893
====================================
Mortgage insurance written (in
fiscal year):
Units............................. 1,025,124 854,225 925,539
Amount............................ 90,518 86,398 96,162
====================================
Insurance maintenance: Outstanding
balance of insurance in force,
end of year:
Mortgage insurance................ 380,338 438,097 497,257
====================================
\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 1997
actual\1\ 1998 actual\2\ 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 1,854 3,424 3,502 3,233
0102 Expense........................... -577 -685 -1,406 -978
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 1,277 2,739 2,096 2,255
-----------------------------------------------------------------------------------------------
\1\ As reflected in the 1999 Budget.
\2\ Estimated result on GAAP basis pending final audit.

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 318 1,015 646 503
Investments in US securities:
Treasury securities, par:
1102 Treasury securities, par.... 13,467 14,344 16,144 18,644
1102 Unamortized net premium/
discount.................. -246 -234 -263 -304
1106 Receivables, net.............. 1 1 1
Non-Federal assets:

1206 Receivables, net................ 61 1 1 1
1207 Advances and prepayments........ 32 29 29 29
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 5 5
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -2 -1
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 3 4
1701 Defaulted guaranteed loans,
gross......................... 287 296 4 5
1703 Allowance for estimated
uncollectible loans and
interest (-).................. -39 -59 -1 -1
1704 Defaulted guaranteed loans and
interest receivable, net...... 248 237 3 4
1705 Allowance for uncollectables
from foreclosed property...... -370 -292 -370 -308
1706 Foreclosed property............. 946 756 958 798
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 824 701 591 494
1901 Other Federal assets: Other assets 20 -294 -292 -291
------------ -------------- ------------ -------------
1999 Total assets.................... 14,480 15,566 16,857 19,077
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 1,600 1,424 1,424 1,424
2206 Pension and other actuarial
liabilities................... 549 1,030 996 964
2207 Unearned revenue and advances... 7 1,246 1,226 1,220
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,156 3,700 3,646 3,608
NET POSITION:
3100 Appropriated capital.............. 18 18 18 18
3300 Cumulative results of operations.. 12,306 11,848 13,193 15,451
------------ -------------- ------------ -------------
3999 Total net position.............. 12,324 11,866 13,211 15,469
------------ -------------- ------------ -------------
4999 Total liabilities and net position 14,480 15,566 16,857 19,077
-----------------------------------------------------------------------------------------------
\1\ As reflected in the 1999 Budget.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
25.2 Other services.................... 1,493 169 8
32.0 Land and structures............... 1,602 3,773 2,834
33.0 Investments and loans............. 7 6
42.0 Insurance claims and indemnities.. 10 48 41
--------- --------- ----------
99.9 Total new obligations........... 3,105 3,997 2,889
---------------------------------------------------------------------------

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] $153,000,000, including not to exceed $153,000,000 from
unobligated balances previously appropriated under this heading, 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 $18,100,000,000[: 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.]
Gross obligations for the principal amount of direct loans, as
authorized by sections 204(g), 207(l), 238, and 519(a) of the National
Housing Act, shall not exceed $50,000,000; of which not to exceed
$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, $211,455,000 (including not to
exceed $147,000,000 from unobligated balances previously appropriated
under this heading), of which $193,134,000, shall be transferred to the
appropriation for departmental salaries and expenses; and of which
$18,321,000 shall be transferred to the appropriation for the Office of
Inspector General. In addition, for administrative contract expenses
necessary to carry out the guaranteed and direct loan programs,
$144,000,000: Provided, That to the extent guaranteed loan commitments
exceed $7,263,000,000 on or before April 1, 2000,

[[Page 510]]

an additional $19,800 for administrative contract expenses shall be
available for each $1,000,000 in additional guaranteed loan commitments
over $7,263,000,000 (including a pro rata amount for any increment below
$1,000,000), but in no case shall funds made available by this proviso
exceed $14,400,000. (Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1999.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
0101 FHA-General and special risk,
negative subsidies.............. 730 171 160
0102 FHA-General and special risk,
downward reestimates of
subsidies....................... 333
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Guaranteed loan subsidy........... 179 152 153
00.02 Prior year adjustment............. -34 34
00.04 FHA multi-family demonstration.... 5
00.09 Administrative expenses, salaries
& expenses transfer............. 222 211 211
00.10 Administrative contract expenses.. 144
00.11 Reestimate of credit subsidy...... 1,076
--------- --------- ----------
10.00 Total new obligations........... 1,448 397 508
----------------------------------------------------------------------------

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

21.40 Unobligated balance available,
start of year................. 449 404 300
21.40 Administrative Commitments...... 49 39 38
--------- --------- ----------
21.99 Total unobligated balance, start
of year....................... 498 443 338
22.00 New budget authority (gross)...... 1,395 292 208
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,896 735 546
23.95 Total new obligations............. -1,448 -397 -508
23.98 Unobligated balance expiring...... -5
Unobligated balance available, end of year:

24.40 Unobligated balance available,
end of year................... 404 300
24.40 Administrative Commitments...... 39 38 38
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 443 338 38
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 303 292 208
50.05 Reappropriation (indefinite).... 16
Permanent:

60.05 Appropriation (indefinite)...... 1,076
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,395 292 208
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 55 -15 58
73.10 Total new obligations............. 1,448 397 508
73.20 Total outlays (gross)............. -1,500 -364 -472
73.40 Adjustments in expired accounts... -16 40
73.45 Adjustments in unexpired accounts. -3
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -15 58 94
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 283 272 172
86.93 Outlays from current balances..... 141 92 300
86.97 Outlays from new permanent
authority....................... 1,076
--------- --------- ----------
87.00 Total outlays (gross)........... 1,500 364 472
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,395 292 208
90.00 Outlays........................... 1,500 364 472
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Single-family PMMs................ 20 20 20
1150 Multifamily bridge loans.......... 100 30 30
--------- --------- ----------
1159 Total direct loan levels........ 120 50 50
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 Multifamily development........... 1,981 1,682 1,878
2150 Health care refinance............. 309
2150 Multifamily refinance............. 1,040 860 886
2150 HFA risk sharing.................. 428 486 660
2150 GSE risk sharing.................. 34 416 883
2150 Section 221(d)(3): cooperatives... 42 60 82
2150 Multifamily operating loss loans.. 1 7 1
2150 Mixed income...................... 7 10 10
2150 Hospitals......................... 107 1,000 1,030
2150 Health care and nursing homes..... 900 600 409
2150 Tax credit new construction....... 99 102
2150 Section 232 operating loss loans.. 5
2150 Section 241 supplemental loans.... 24 20 21
2150 Single Family Programs............ 9,915
2150 Section 234: condominiums......... 10,474 7,900
2150 Section 203(k): rehabilitation
mortgages....................... 1,300 1,300
2150 Section 221(d)(2): low income
housing......................... 50
2150 Title 1: property improvements.... 1,011 1,015 1,015
2150 Manufactured housing.............. 23 21 15
2150 Standby authority................. 1,887 1,594
--------- --------- ----------
2159 Total loan guarantee levels..... 17,400 18,100 18,100
Guaranteed loan subsidy (in percent):
2320 Multifamily development........... 8.51 7.09 7.12
2320 Health care refinance............. 0.00 0.00 -1.90
2320 Multifamily refinance............. -0.21 -0.78 -1.34
2320 HFA risk sharing.................. -0.32 -0.32 -0.56
2320 GSE risk sharing.................. -1.01 -0.97 -1.88
2320 Section 221(d)(3): cooperatives... 29.21 17.99 15.44
2320 Multifamily operating loss loans.. 29.21 25.15 25.10
2320 Mixed income...................... 12.13 12.13 11.81
2320 Hospitals......................... 1.49 1.53 -1.60
2320 Health care and nursing homes..... -0.70 -0.70 -2.79
2320 Tax credit new construction....... 0.00 -0.88 -0.57
2320 Section 232 operating Loss Loans.. 0.00 0.00 -25.10
2320 Section 241 supplemental loans.... 0.00 17.06 13.88
2320 Single family programs............ -1.32 -1.32 0.00
2320 Section 234: condominiums......... 0.00 -1.32 -0.07
2320 Section 203(k): rehabilitation
mortgages....................... 0.00 -1.32 -0.08
2320 Section 221(d)(2): low income
housing......................... 0.00 -1.32 0.00
2320 Title 1: property improvements.... -1.39 -1.22 -0.06
2320 Manufactured housing.............. -3.12 -3.13 0.75
--------- --------- ----------
2329 Weighted average subsidy rate... 0.14 -0.19 0.48
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 97 81
2330 Subsidy rate reestimate........... 1,076
--------- --------- ----------
2339 Total subsidy budget authority.. 1,173 81
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 166 152 153
2340 Subsidy reestimate outlays........ 1,076
--------- --------- ----------
2349 Total subsidy outlays........... 1,242 152 153
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority, S&E Transfer.... 222 211 64
3510 Budget authority, FHA............. 144
3590 Outlays from new authority........ 222 211 172
---------------------------------------------------------------------------

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.

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

[[Page 511]]

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.

A gross program total of $508 million in budget authority is
requested for fiscal year: $153 million for credit subsidy; $211 million
for administrative expenses; and $144 administrative contract expenses.
This amount is offset by $444 million in budget authority for a net
budget authority of only $64 million. These offsets are comprised of
$300 million from the use of unobligated balances and $144 million from
prohibiting spending for program administration in the liquidating or
financing accounts (this is reflected in the liquidating account but is
treated as discretionary due to its inclusion in appropriations
language).

The latter offset covers the cost of the new appropriations
requested for administrative contract expenses. The proposal
consolidates all administrative spending in the program account and does
not increase overall discretionary spending as it merely replaces
spending in the liquidating account with the request in the program
account. These amounts are summarized below:
(In millions of dollars)
Budget
Authority Outlays
Credit Subsidy.......................... $153 $153
Administrative Expenses................. $211 $211
Administrative Contract Expenses........ $144 $108
------------- --------------

Total................................ $508 $472
------------- --------------

Offsets:
Unobligated Balances................... -$300 $0
Prohibition on Administrative Spending
in Liquidating and Financing Accounts
(reflected in Liquidating Account).... -$144 -$108
------------- --------------

Net Amounts.......................... $64 $364
------------- -------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 144
25.3 Purchases of goods and services
from Government accounts........ 222 211 211
41.0 Grants, subsidies, and
contributions................... 1,226 186 153
--------- --------- ----------
99.9 Total new obligations........... 1,448 397 508
---------------------------------------------------------------------------

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........ 785 751 898
00.05 Interest paid to Treasury....... 81 76 67
00.08 Asset sale negative subsidy
payment to receipt account.... 11 83
00.09 Asset sale payment to
liquidating account........... 33 112
00.10 Value paid to liquidating
account for guarantees
refinanced under 223(a)(7).... 3 3 3
00.11 Mark-to-market portfolio
reengineering legislative
savings....................... 562
00.12 Payment of negative subsidy to
receipt account............... 157 160 77
00.14 Contract costs.................. 30
00.15 Downward subsidy rate reestimate 333
--------- --------- ----------
10.00 Total new obligations......... 1,951 1,034 1,240
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 414 1,095 1,353
22.00 New financing authority (gross)... 2,851 1,525 1,702
22.60 Redemption of debt................ -220 -233 -246
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,045 2,387 2,809
23.95 Total new obligations............. -1,951 -1,034 -1,240
24.40 Unobligated balance available, end
of year......................... 1,095 1,353 1,569
----------------------------------------------------------------------------

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 737 200 200
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 2,114 1,325 1,502
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 2,851 1,525 1,702
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year -82 -15 -15
73.10 Total new obligations............. 1,951 1,034 1,240
73.20 Total financing disbursements
(gross)......................... -1,884 -1,034 -1,240
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -15 -15 -15
87.00 Total financing disbursements
(gross)......................... 1,884 1,034 1,240
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
Federal sources:
88.00 Payments from program
account................... -204 -152 -153
88.00 Repayment of principal and
interest from liquidating
account................... -193 -273 -273
88.00 Subsidy reestimate from
program account........... -1,076
88.25 Interest on uninvested funds.. -58 -73 -81
Non-Federal sources:
88.40 Fees and premiums........... -274 -409 -458
88.40 Recoveries on defaulted
mortgages................. -17 -7 -10
88.40 Title I recoveries.......... -9 -12 -12
88.40 Single family property
recoveries................ -265 -286 -220
88.40 Other recoveries............ -13 -64
88.40 Proceeds from sale of
mortgage notes............ -45 -287
88.40 Multifamily property
recoveries................ -5 -4 -8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2,114 -1,325 -1,502
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 737 200 200
90.00 Financing disbursements........... -231 -291 -262
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 17,400 18,100 18,100
2112 Uncommitted loan guarantee
limitation...................... -1,887 -1,593
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 15,513 18,100 16,507
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 45,663 52,697 64,848
2231 Disbursements of new guaranteed
loans........................... 15,074 17,153 16,118
2251 Repayments and prepayments........ -7,281 -4,251 -4,652
Adjustments:

2261 Terminations for default that
result in loans receivable.... -197 -381 -472
2262 Terminations for default that
result in acquisition of
property...................... -541 -370 -426
2263 Terminations for default that
result in claim payments...... -21
--------- --------- ----------
2290 Outstanding, end of year........ 52,697 64,848 75,416
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 52,697 64,848 75,416
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 210 381 691
2331 Disbursements for guaranteed
loan claims................... 197 381 472
2351 Repayments of loans receivable.. -26 -71 -103
--------- --------- ----------
2390 Outstanding, end of year...... 381 691 1,060
---------------------------------------------------------------------------

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

[[Page 512]]

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 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 333 1,080 1,371 1,633
Investments in US securities:
1107 Borrowings receivable from
liquidating account......... 449 202
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501 Defaulted guaranteed loans
receivable, gross............. 210 381 691 1,060
1504 Foreclosed property............. 195 308 393 598
1505 Allowance for subsidy cost...... -235 -443 -694 -1,061
------------ -------------- ------------ -------------
1599 Net value of assets related to
defaulted guaranteed loan... 170 246 390 597
1901 Other Federal assets: Other assets 1
------------ -------------- ------------ -------------
1999 Total assets.................... 504 1,326 2,210 2,432
LIABILITIES:
2103 Federal liabilities: Debt......... 572 1,089 1,057 1,010
Non-Federal liabilities:

2204 Liabilities for loan guarantees. -72 237 1,153 1,422
2207 Other........................... 4
------------ -------------- ------------ -------------
2999 Total liabilities............... 504 1,326 2,210 2,432
------------ -------------- ------------ -------------
4999 Total liabilities and net position 504 1,326 2,210 2,432
-----------------------------------------------------------------------------------------------
\1\ Preliminary results pending final audit. Subsidy reestimates for
fiscal year 1998 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......... 3 5
--------- --------- ----------
10.00 Total new obligations........... 1 23 55
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1 23 55
23.95 Total new obligations............. -1 -23 -55
----------------------------------------------------------------------------

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 1 20 50
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 5 10
68.47 Portion applied to debt
reduction..................... -2 -5
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 3 5
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1 23 55
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 1 23 55
73.20 Total financing disbursements
(gross)......................... -1 -23 -55
87.00 Total financing disbursements
(gross)......................... 1 23 55
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.40 Offsetting collections (cash)
from: Interest received on
loans......................... -5 -10
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 1 18 45
90.00 Financing disbursements........... 18 45
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 120 120 50
1112 Unobligated direct loan limitation -119 -100
--------- --------- ----------
1150 Total direct loan obligations... 1 20 50
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1 19
1231 Disbursements: Direct loan
disbursements................... 1 20 50
1251 Repayments: Repayments and
prepayments..................... -2 -5
--------- --------- ----------
1290 Outstanding, end of year........ 1 19 64
---------------------------------------------------------------------------

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 Credit 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 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 1 1 19 64
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 1 19 64
------------ -------------- ------------ -------------
1999 Total assets.................... 1 1 19 64
LIABILITIES:
Federal liabilities:

2103 Treasury borrowing.............. 1 1 17 59
2104 Resources payable to Treasury... 2 5
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 1 19 64
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 1 19 64
-----------------------------------------------------------------------------------------------

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................... 1 5
22.00 New financing authority (gross)... 1 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1 5 5
24.40 Unobligated balance available, end
of year......................... 1 5 5
----------------------------------------------------------------------------

[[Page 513]]

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

Offsets:
Against gross financing authority and
financing disbursements:

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

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 10 8
2113 Uncommitted limitation carried
forward......................... -8
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 2 8
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1 6
2231 Disbursements of new guaranteed
loans........................... 1 5 4
--------- --------- ----------
2290 Outstanding, end of year........ 1 6 10
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1 6 10
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4106-0-3-371 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:

1102 Federal assets: Treasury
securities, par............... 1 5 5
------------ -------------- ------------ -------------
1999 Total assets.................... 1 5 5
NET POSITION:
3100 Appropriated capital.............. 1 5 5
------------ -------------- ------------ -------------
3999 Total net position.............. 1 5 5
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 5 5
-----------------------------------------------------------------------------------------------

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

Unavailable Collections (in millions of dollars)

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

00.02 Interest on debentures.......... 23 12 12
00.03 Other operating costs........... 20 8 8
00.04 Administrative Contract Expenses 181 144
00.05 Legislative savings repayments.. 273 273 273
00.06 PAE & 3rd party restructuring
fees.......................... 1 13 25
--------- --------- ----------
00.91 Total operating expenses...... 498 450 318
Capital investment: Claims and other:

01.01 Acquisition of defaulted Title I
notes......................... 18 16 14
01.02 Assignment of mortgages......... 229 297 310
01.03 Acquisition of real properties.. 181 154 125
01.04 Rehabilitation of real
properties.................... 53 48 66
01.05 Rehabitation Grants............. 56 49 65
01.07 Capitalized property expenses... 90 70 55
01.08 Loss on defaulted guaranteed
loans......................... 21 7 7
01.10 Tax advances on held mortgages.. 72 73 73
01.11 Mark-To-Market Restructures..... 21 336 667
01.12 Mark-to-market rehabilitation... 12 18
--------- --------- ----------
01.91 Total capital investment...... 741 1,062 1,400
--------- --------- ----------
10.00 Total new obligations........... 1,239 1,512 1,718
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 2,428 2,029
22.00 New budget authority (gross)...... 868 623 1,764
22.40 Capital transfer to general fund.. -1,094
22.60 Redemption of debt................ -28 -46 -46
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,268 1,512 1,718
23.95 Total new obligations............. -1,239 -1,512 -1,718
24.40 Unobligated balance available, end
of year......................... 2,029
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ 1,269
67.15 Authority to borrow (indefinite).. 134 46 46
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 734 577 600
68.45 Portion not available for
obligation (limitation on
obligations).................. -151
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 734 577 449
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 868 623 1,764
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 423 523 523
73.10 Total new obligations............. 1,239 1,512 1,718
73.20 Total outlays (gross)............. -1,139 -1,512 -1,754
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 523 523 487
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 868 587 1,718
86.98 Outlays from permanent balances... 271 925 36
--------- --------- ----------
87.00 Total outlays (gross)........... 1,139 1,512 1,754
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Fees and premiums........... -218 -176 -160
88.40 Rebates of insurance
premiums.................. 10 10 10
88.40 Multifamily foreclosure
sales..................... -53 -85
88.40 Proceeds from sale of real
property.................. -138 -154 -120
88.40 Proceeds from sale of
mortgage notes............ -43 -33 -112
88.40 MTM second mortgage
repayments................ -5 -9
88.40 Prior year adjustment....... -50
88.40 Recoveries on defaulted
mortgages................. -185 -99 -58
88.40 Interest and operating
income.................... -75 -55 -54
88.40 Other interest, dividends
and revenue............... -32 -9 -9
88.40 Modification subsidy &
transfers from financing
acct...................... -3 -3 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -734 -577 -600
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 134 46 1,164
90.00 Outlays........................... 405 935 1,154
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
U.S. securities: Par value...... 8 6 6
92.02 Total investments, end of year:
U.S. securities: Par value...... 6 6 6
---------------------------------------------------------------------------

[[Page 514]]

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 78 72 65
1251 Repayments: Repayments and
prepayments..................... -4 -5 -5
1264 Write-offs for default: Other
adjustments, net................ -2 -2 -2
--------- --------- ----------
1290 Outstanding, end of year........ 72 65 58
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

2261 Terminations for default that
result in loans receivable.... -268 -313 -324
2262 Terminations for default that
result in acquisition of
property...................... -181 -154 -125
2263 Terminations for default that
result in claim payments...... -21 -343 -673
2264 Other adjustments, net.......... -15 -14
--------- --------- ----------
2290 Outstanding, end of year........ 36,590 34,803 32,267
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 36,590 34,803 32,267
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 2,210 2,044 1,999
2331 Disbursements for guaranteed
loan claims................... 268 313 324
2351 Repayments of loans receivable.. -210 -225 -303
2361 Write-offs of loans receivable.. -224 -133 -319
--------- --------- ----------
2390 Outstanding, end of year...... 2,044 1,999 1,701
---------------------------------------------------------------------------

The General Insurance fund provides for a large number of
specialized mortgage insurance programs, including the in- 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 1997
actual\1\ 1998 actual\2\ 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 520 1,393 640 556
0102 Expense........................... -55 -1,649 -1,143 -1,321
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 465 -256 -503 -765
-----------------------------------------------------------------------------------------------
\1\ As reflected in the 1998 Budget.
\2\ Preliminary results pending final audit.

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 2,842 2,545
Investments in US securities:
1102 Treasury securities, par...... 7
1106 Receivables, net.............. 3 3 3 3
1206 Non-Federal assets: Receivables,
net............................. 86 51 86 86
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 78 72 65 58
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -59 -56 -51 -45
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 19 16 14 13
1701 Defaulted guaranteed loans,
gross......................... 2,210 2,044 1,999 1,701
1703 Allowance for estimated
uncollectible loans and
interest (-).................. -1,801 -1,464 -1,432 -1,208
1704 Defaulted guaranteed loans and
interest receivable, net...... 409 580 567 493
1705 Allowance for uncollectables
from foreclosed property...... -182 -384 -150 -150
1706 Foreclosed property............. 295 255 244 244
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 522 451 661 587
1901 Other Federal assets: Other assets 330 270 330 330
------------ -------------- ------------ -------------
1999 Total assets.................... 3,809 3,336 1,094 1,019
LIABILITIES:
2101 Federal liabilities: Accounts
payable......................... 363 136 363 363
Non-Federal liabilities:

2201 Accounts payable................ 443 561 443 443
2206 Pension and other actuarial
liabilities................... 6,685 6,810 6,000 6,000
2207 Unearned revenue and advances... 124 123 124 124
------------ -------------- ------------ -------------
2999 Total liabilities............... 7,615 7,630 6,930 6,930
NET POSITION:
3100 Appropriated capital.............. 5,290 7,264 7,290 8,532
3300 Cumulative results of operations.. -16,567 -19,029 -19,503 -21,914
Other:

3600 Debt Forgiveness................ 7,471 7,471 7,471 7,471
3600 Balances transfered............. -1,094
------------ -------------- ------------ -------------
3999 Total net position.............. -3,806 -4,294 -5,836 -5,911
------------ -------------- ------------ -------------
4999 Total liabilities and net position 3,809 3,336 1,094 1,019
-----------------------------------------------------------------------------------------------
\1\ As reflected in 1998 Budget.
\2\ Preliminary pending final audit.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 182 144
25.2 Other services.................... 20 22 34
32.0 Land and structures............... 380 321 311
33.0 Investments and loans............. 268 660 1,008
42.0 Insurance claims and indemnities.. 93 80 80
43.0 Interest and dividends............ 23 12 12
44.0 Repayments to financing account... 273 273 273
--------- --------- ----------
99.9 Total new obligations........... 1,239 1,512 1,718
---------------------------------------------------------------------------

[[Page 515]]

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............. 8 5
00.02 Maintenance security and
collateral.................... 3 4
--------- --------- ----------
00.91 Subtotal, capital investment.. 8 8 4
01.01 Operating expenses: Interest on
borrowings...................... 502 309 274
--------- --------- ----------
10.00 Total new obligations........... 510 317 278
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 920 1,189
22.00 New budget authority (gross)...... 779 751 751
22.60 Redemption of debt................ -1,623 -473
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,699 317 278
23.95 Total new obligations............. -510 -317 -278
24.40 Unobligated balance available, end
of year......................... 1,189
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ 881
60.47 Portion applied to debt reduction. -881
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 779 751 751
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 779 751 751
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 107 200 131
73.10 Total new obligations............. 510 317 278
73.20 Total outlays (gross)............. -417 -387 -305
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 200 131 103
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 779 751 751
86.98 Outlays from permanent balances... -362 -364 -446
--------- --------- ----------
87.00 Total outlays (gross)........... 417 387 305
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -779 -751 -751
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -362 -364 -446
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 8,228 8,144 8,056
1231 Disbursements: Direct loan
disbursements................... 5
1251 Repayments: Repayments and
prepayments..................... -89 -88 -87
--------- --------- ----------
1290 Outstanding, end of year........ 8,144 8,056 7,969
---------------------------------------------------------------------------
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.

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 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 699 691 663 664
0102 Expense........................... -440 -489 -312 -278
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 259 202 351 386
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4115-0-3-371 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1,027 1,389 1,315 1,288
1206 Non-Federal assets: Receivables,
net............................. 81 82 82 82
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 8,228 8,143 8,055 7,969
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -21 -20 -20 -20
1604 Direct loans and interest
receivable, net............... 8,207 8,123 8,035 7,949
1606 Acquired Real Property.......... 1 1 1 1
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 8,208 8,124 8,036 7,950
------------ -------------- ------------ -------------
1999 Total assets.................... 9,316 9,595 9,433 9,320
LIABILITIES:
Federal liabilities:

2102 Interest payable................ 90 166 102 91
2103 Debt............................ 6,174 5,293 4,628 4,203
2104 Resources payable to Treasury... 4,126 4,694 5,017
2207 Non-Federal liabilities: Other.... 9 9 9 9
------------ -------------- ------------ -------------
2999 Total liabilities............... 6,273 9,594 9,433 9,320
NET POSITION:
3100 Appropriated capital.............. 2,784
3300 Cumulative results of operations.. 259
------------ -------------- ------------ -------------
3999 Total net position.............. 3,043
------------ -------------- ------------ -------------
4999 Total liabilities and net position 9,316 9,594 9,433 9,320
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
32.0 Land and structures............... 3 4
33.0 Investments and loans............. 8 5
43.0 Interest and dividends............ 502 309 274
--------- --------- ----------
99.9 Total new obligations........... 510 317 278
---------------------------------------------------------------------------

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................... 6 6
22.40 Capital transfer to general fund.. -6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6

[[Page 516]]

24.40 Unobligated balance available, end
of year......................... 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 1998 actual 1999 est. 2000 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 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 6
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 1 1 1 1
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -1 -1 -1 -1
------------ -------------- ------------ -------------
1999 Total assets.................... 6
NET POSITION:
3300 Cumulative results of operations.. 6
------------ -------------- ------------ -------------
3999 Total net position.............. 6
------------ -------------- ------------ -------------
4999 Total liabilities and net position 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 $706 million in 1999 and $701 million in
2000.

Credit accounts:

Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

(including transfer of funds)

During fiscal year [1999] 2000, 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 [$150,000,000,000]
$200,000,000,000.
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] $15,383,000, of which not to exceed $9,383,000 shall be
transferred to the appropriation for departmental salaries and expenses,
and of which not to exceed $6,000,000 is for development of a data
warehouse under the direction of the Federal Housing Credit Consortium.
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 355 6,478
Receipts:
02.01 Guarantees of mortgage backed
securities guarantee loans,
negative subsidies.............. 364 6,132 727
--------- --------- ----------
04.00 Total: Balances and collections... 364 6,487 7,205
Appropriation:
05.01 Guarantees of mortgage-backed
securities loan guarantee
program account................. -9 -9
07.99 Total balance, end of year........ 355 6,478 7,205
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Administrative expenses, salaries
and expenses.................... 9 9 15
--------- --------- ----------
10.00 Total obligations (object class
25.2)......................... 9 9 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 9 9 15
23.95 Total new obligations............. -9 -9 -15
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 15
40.25 Appropriation (special fund,
indefinite)..................... 9 9
--------- --------- ----------
43.00 Appropriation (total)........... 9 9 15
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 9 9 15
73.20 Total outlays (gross)............. -9 -9 -15
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 9 9 15
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 9 9 15
90.00 Outlays........................... 9 9 15
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 130,000 150,000 200,000
--------- --------- ----------
2159 Total loan guarantee levels..... 130,000 150,000 200,000
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... -0.32 -0.42 -0.33
--------- --------- ----------
2329 Weighted average subsidy rate... -0.32 -0.42 -0.33
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 9 9 15

[[Page 517]]

3590 Outlays from new authority........ 9 9 15
---------------------------------------------------------------------------

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 Operating expenses................ 31 50 56
00.02 Capital investment................ 12 46
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 31 62 102
08.01 Payment to receipt account for
negative subsidy................ 54 355 422
--------- --------- ----------
10.00 Total new obligations........... 85 417 524
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 155 415 436
22.00 New financing authority (gross)... 345 438 482
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 500 853 918
23.95 Total new obligations............. -85 -417 -524
24.40 Unobligated balance available, end
of year......................... 415 436 394
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 345 438 482
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 8
73.10 Total new obligations............. 85 417 524
73.20 Total financing disbursements
(gross)......................... -77 -425 -482
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 8 11
87.00 Total financing disbursements
(gross)......................... 77 425 482
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -11 -25 -22
Non-Federal sources:
88.40 Guarantee Fees.............. -273 -337 -347
88.40 Commitment and other fees... -47 -46 -49
88.40 Multiclass fees............. -14 -21 -23
88.40 Repayment of advances....... -9 -41
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -345 -438 -482
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -268 -13
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 130,000 150,000 200,000
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 130,000 150,000 200,000
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 445,615 538,406
2231 Disbursements of new guaranteed
loans........................... 138,450 119,390 127,884
2251 Repayments and prepayments........ -116,868 -26,599 -109,475
2264 Adjustments: Other adjustments,
net............................. 424,033
--------- --------- ----------
2290 Outstanding, end of year........ 445,615 538,406 556,815
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 445,615 538,406 547,416
---------------------------------------------------------------------------

Operating Results.--Fee collections, interest, and other income are
expected to exceed expenses by $260 million in 1998, $370 million in
1999, and $396 million in 2000. These amounts will be retained against
losses that may be incurred on guarantees.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4240-0-3-371 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 155 423 420 419
1206 Non-Federal assets: Receivables,
net............................. 2 39 42
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 3 9
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -1 -4
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 2 5
1801 Other Federal assets: Cash and
other monetary assets........... 1
------------ -------------- ------------ -------------
1999 Total assets.................... 155 425 461 467
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 10 40 46
2207 Other........................... 417 417
------------ -------------- ------------ -------------
2999 Total liabilities............... 10 457 463
NET POSITION:
3300 Cumulative results of operations.. 155 415 4 4
------------ -------------- ------------ -------------
3999 Total net position.............. 155 415 4 4
------------ -------------- ------------ -------------
4999 Total liabilities and net position 155 425 461 467
-----------------------------------------------------------------------------------------------
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............... 3
Operating expenses:

00.02 Default expenses................ 7 7 7
00.03 Servicing expenses.............. 5 4 4
00.04 Other expenses.................. 3
--------- --------- ----------
00.91 Total operating expenses...... 18 11 11
Capital investment:

01.01 Advances of guaranty payments... 129 126 107
Other:

02.01 Transfer to Receipt Account..... 310 5,777
--------- --------- ----------
10.00 Total new obligations........... 457 5,914 118
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 5,452 5,508
22.00 New budget authority (gross)...... 513 406 118
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,965 5,914 118
23.95 Total new obligations............. -457 -5,914 -118
24.40 Unobligated balance available, end
of year......................... 5,508
----------------------------------------------------------------------------

[[Page 518]]

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 513 406 118
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of
year\1\......................... -85 -74 -33
73.10 Total new obligations............. 457 5,914 118
73.20 Total outlays (gross)............. -447 -5,873 -114
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -74 -33 -29
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 365 114
86.98 Outlays from permanent balances... 447 5,508
--------- --------- ----------
87.00 Total outlays (gross)........... 447 5,873 114
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.20 Interest on U.S. securities... -337 -335
88.25 Interest on uninvested funds.. -48
Non-Federal sources:
88.40 Guarantee fees.............. -68 -5
88.40 Repayments of guaranteed
payments.................. -98 -57 -61
88.40 Servicing income............ -9 -8 -8
88.40 Repayments on mortgages..... -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -513 -406 -118
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -66 5,467 -4
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
U.S. securities: Par value...... 5,382 5,449
92.02 Total investments, end of year:
U.S. securities: Par value...... 5,449
---------------------------------------------------------------------------
\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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 332 358 423
1232 Disbursements: Purchase of loans
assets from the public.......... 129 127 106
1252 Repayments: Proceeds from loan
asset sales to the public or
discounted...................... -99 -58 -61
1264 Write-offs for default: Other
adjustments, net................ -4 -4 -3
--------- --------- ----------
1290 Outstanding, end of year........ 358 423 465
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 530,042 96,009 7,565
2251 Repayments and prepayments........ -10,000 -88,444 -6,954
2264 Adjustments: Other adjustments,
net............................. -424,033
--------- --------- ----------
2290 Outstanding, end of year........ 96,009 7,565 611
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 96,008 7,564 610
---------------------------------------------------------------------------

Operating results.--Fee collections, interest, and other income are
expected to exceed expenses by $60 million in 1998, $336 million in
1999, and $1 million in 2000. 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 1997 actual 1998 actual 1999 est. 2000 est.
-----------------------------------------------------------------------------------------------
Revenue:
0101 Revenue........................... 641 112 348 12
0101 Revenue (REMICs).................. 12
Expense:
0102 Expense........................... -76 -52 -12 -11
0102 Expense (REMICs).................. -4
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 573 60 336 1
------------ -------------- ------------ -------------
0199 Net income or loss................ 573 60 336 1
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 1 1
Investments in US securities:
1102 Treasury securities, par...... 5,382 5,449
1106 Receivables, net.............. 73 73
1206 Non-Federal assets: Receivables,
net............................. 33 31 4 4
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 332 358 423 466
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -303 -325 -235 -254
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 29 33 188 212
1801 Other Federal assets: Cash and
other monetary assets........... 10
------------ -------------- ------------ -------------
1999 Total assets.................... 5,528 5,587 192 216
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 39 35 4 4
2207 Other........................... 509 512 89 90
------------ -------------- ------------ -------------
2999 Total liabilities............... 548 547 93 94
NET POSITION:
3300 Cumulative results of operations.. 4,979 5,039 100 121
------------ -------------- ------------ -------------
3999 Total net position.............. 4,979 5,039 100 121
------------ -------------- ------------ -------------
4999 Total liabilities and net position 5,527 5,586 193 215
-----------------------------------------------------------------------------------------------
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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
25.2 Other services.................... 18 11 11
33.0 Investments and loans............. 129 126 107
92.0 Undistributed..................... 310 5,777
--------- --------- ----------
99.9 Total new obligations........... 457 5,914 118
---------------------------------------------------------------------------

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, [$47,500,000]
$50,000,000, to remain available until September 30, [2000] 2001.
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999.)

[[Page 519]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Housing Research.................. 28 49 40
00.02 PATH.............................. 10 10
--------- --------- ----------
10.00 Total new obligations........... 28 59 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 3 11
22.00 New budget authority (gross)...... 37 48 50
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 40 59 50
23.95 Total new obligations............. -28 -59 -50
24.40 Unobligated balance available, end
of year......................... 11
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 37 48 50
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 26 22 39
73.10 Total new obligations............. 28 59 50
73.20 Total outlays (gross)............. -31 -42 -52
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 22 39 37
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 15 19 20
86.93 Outlays from current balances..... 16 23 32
--------- --------- ----------
87.00 Total outlays (gross)........... 31 42 52
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 37 48 50
90.00 Outlays........................... 31 42 52
---------------------------------------------------------------------------

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- tracts with industry, nonprofit research organizations,
and educational institutions, and through agreements with State and
local governments and other Federal agencies.

In 2000, 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. National Housing Surveys
will continue in 2000.

The 2000 request includes $10 million to continue the Partnership
for Advancing Technologies in Housing (PATH). Launched by President
Clinton on May 4, 1998, PATH is a key component of the President's
program to improve the technology infrastructure of the United States
and to reduce carbon emissions. A public/private partnership, PATH joins
together key agencies in the Federal sector, with leaders from the home
building, product manufacturing, insurance and financial industries to
develop and deploy the technologies for the next generation of American
housing.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
25.2 Other services.................... 23 54 45
41.0 Grants, subsidies, and
contributions................... 5 5 5
--------- --------- ----------
99.9 Total new obligations........... 28 59 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,
[$40,000,000] $47,000,000, to remain available until September 30,
[2000] 2001, of which [$23,500,000] $27,000,000 shall be to carry out
activities pursuant to such section 561: Provided, That 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, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0144-0-1-751 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Fair housing assistance........... 15 24 20
00.02 Fair housing initiatives.......... 39 27
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 15 63 47
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 8 22
22.00 New budget authority (gross)...... 30 40 47
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 38 62 47
23.95 Total new obligations............. -15 -63 -47
24.40 Unobligated balance available, end
of year......................... 22
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 30 40 47
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 39 30 66
73.10 Total new obligations............. 15 63 47
73.20 Total outlays (gross)............. -24 -27 -34
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 30 66 79
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 24 27 34
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 30 40 47
90.00 Outlays........................... 24 27 34
---------------------------------------------------------------------------

The Budget proposes an appropriation of $47 million in 2000 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 2 years. Of the amount
requested, $20 million is for the Fair Housing Assistance Program and
$27 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 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 that will contribute to the Department's goal of
doubling enforcement actions and will result in other enforcement
outcomes that are a critical component of the Administration's

[[Page 520]]

attack on discrimination. It is estimated that the number of new State
and local agencies with laws equivalent to the Fair Housing Act will
increase to 90 in 2000 from 85 in 1999. Of the $20 million requested for
FHAP, $3.5 million will be used to fund an innovative Fair Housing
Partnership between State and local fair housing enforcement agencies
and private fair housing groups. The partnership will require its
participants to focus their fair housing activities to foster
substantial and new fair housing results that individual organizations
could not achieve alone.

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 $27 million requested, $7.5 million will be used to fund the
second year of 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. Funding for
FHIP will also include $3.5 million for the Fair Housing Partnership, as
discussed above.

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, $80,000,000 to remain available until expended, of which
[$2,500,000 shall be for CLEARCorps and] $10,000,000 shall be for a
Healthy Homes Initiative, which shall be a program pursuant to sections
501 and 502 of the Housing and 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: Provided, That all
balances for the Lead Hazard Reduction Programs previously funded in the
Annual Contributions for Assisted Housing and Community Development
Block Grant accounts shall be transferred to this account, to be
available for the purposes for which they were originally appropriated.
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0174-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Lead abatement.................... 80 80
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 80 80
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 80 80
23.95 Total new obligations............. -80 -80
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 80 80
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 79
73.10 Total new obligations............. 80 80
73.20 Total outlays (gross)............. -1 -27
73.32 Obligated balance transferred from
other accounts.................. 99
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 79 231
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1 1
86.93 Outlays from current balances..... 26
--------- --------- ----------
87.00 Total outlays (gross)........... 1 27
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 80 80
90.00 Outlays........................... 1 27
---------------------------------------------------------------------------

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. 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.

In addition to these two major activities the Office of Lead Hazard
Control will continue its Technical Assistance Program which will
include a program to conduct lead-based paint compliance checks, provide
technical assistance for State and local agencies, private property
owners, HUD programs and field offices, and professional organizations;
provide quality control to ensure that the evaluation and control of
lead-based paint hazards is done properly in HUD associated housing;
provide for the development of standards, technical guidance material
and regulations; and provide for the development of streamlined measures
of testing, hazard control, cleanup, clearance, and public education.

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 funded as
a separate, stand-alone program and is proposed as a separate program
for 2000.

MANAGEMENT AND ADMINISTRATION

Federal Funds

General and special funds:

Salaries and Expenses

(including transfer of funds)

For necessary administrative and non-administrative expenses of the
Department of Housing and Urban Development, not otherwise provided for,
including not to exceed $7,000 for official reception and representation
expenses, [$985,826,000] $1,031,000,000, of which $518,000,000 shall be
provided from the various funds of the Federal Housing Administration,
$9,383,000 shall be provided from funds of

[[Page 521]]

the Government National Mortgage Association, $1,000,000 shall be
provided from the ``Community Development Grants Program'' account,
[$200,000] $150,000 shall be provided by transfer from the ``Title VI
Indian Federal Guarantees Program'' account, and [$400,000] $200,000
shall be provided by transfer from the ``Indian Housing Loan Guarantee
Fund Program'' account[: Provided, That the Department is prohibited
from employing more than 77 schedule C and 20 noncareer Senior Executive
Service employees]. (Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Housing, mortgage credit,
regulatory and energy
conservation.................. 134 138 138
00.02 Community planning and
development programs.......... 56 59 59
00.03 Equal opportunity and research
programs...................... 63 65 66
00.04 Departmental management, legal
and audit services............ 52 52 52
00.05 Field direction and
administration................ 140 155 187
09.01 Reimbursable program.............. 559 529 529
--------- --------- ----------
09.99 Total reimbursable program...... 559 529 529
--------- --------- ----------
10.00 Total new obligations........... 1,004 998 1,031
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,005 998 1,031
23.95 Total new obligations............. -1,004 -998 -1,031
23.98 Unobligated balance expiring...... -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 446 457 502
42.00 Transferred from other accounts. 12
--------- --------- ----------
43.00 Appropriation (total)......... 446 469 502
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 559 529 529
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,005 998 1,031
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 126 185 140
73.10 Total new obligations............. 1,004 998 1,031
73.20 Total outlays (gross)............. -943 -1,044 -1,022
73.40 Adjustments in expired accounts... -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 185 140 149
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 281 362 386
86.93 Outlays from current balances..... 103 153 107
86.97 Outlays from new permanent
authority....................... 559 529 529
--------- --------- ----------
87.00 Total outlays (gross)........... 943 1,044 1,022
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -559 -529 -529
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 446 469 502
90.00 Outlays........................... 384 515 493
---------------------------------------------------------------------------

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........... 215 241 264
11.3 Other than full-time permanent 6 6 7
11.5 Other personnel compensation.. 4 5 5
--------- --------- ----------
11.9 Total personnel compensation 225 252 276
12.1 Civilian personnel benefits..... 57 64 70
21.0 Travel and transportation of
persons....................... 8 9 9
22.0 Transportation of things........ 1 1 1
23.1 Rental payments to GSA.......... 34 40 42
23.3 Communications, utilities, and
miscellaneous charges......... 12 11 12
24.0 Printing and reproduction....... 2 2 2
25.1 Advisory and assistance services 19 21 21
25.2 Other services.................. 2 3 2
25.3 Purchases of goods and services
from Government accounts...... 66 58 57
25.4 Operation and maintenance of
facilities.................... 7 5 7
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 10 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 445 469 502
99.0 Reimbursable obligations.......... 559 529 529
--------- --------- ----------
99.9 Total new obligations........... 1,004 998 1,031
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 3,994 4,350 4,569
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 5,006 5,036 4,814
---------------------------------------------------------------------------

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,
[$81,910,000] $70,343,000, of which $22,343,000 shall be provided from
the various funds of the Federal Housing Administration and $10,000,000
shall be provided from the amount earmarked for Operation Safe Home in
the ``Drug Elimination Grants for Low-Income Housing'' account[:
Provided, That the Inspector General shall have independent authority
over all personnel issues within the Office of Inspector General].
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 40 50 38
09.01 Reimbursable program.............. 27 32 32
--------- --------- ----------
10.00 Total new obligations........... 67 82 70
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 67 82 70
23.95 Total new obligations............. -67 -82 -70
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 40 50 38
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 27 32 32
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 67 82 70
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 11 24 12
73.10 Total new obligations............. 67 82 70

[[Page 522]]

73.20 Total outlays (gross)............. -54 -95 -73
73.40 Adjustments in expired accounts... -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 24 12 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 18 39 29
86.93 Outlays from current balances..... 9 24 12
86.97 Outlays from new permanent
authority....................... 27 32 32
--------- --------- ----------
87.00 Total outlays (gross)........... 54 95 73
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -27 -32 -32
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 40 50 38
90.00 Outlays........................... 27 63 41
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1998 actual 1999 est. 2000 est.
Enacted/requested:
Budget Authority.................. 40 50 38
Outlays........................... 27 63 41
Supplemental proposal:
Budget Authority..................
Outlays........................... -5 3
------------------------------------
Total:
Budget Authority.................. 40 50 38
Outlays........................... 27 58 44
====================================

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 and contract audit. Internal audits review and evaluate all facets
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........... 18 30 20
11.5 Other personnel compensation.. 2 2 2
--------- --------- ----------
11.9 Total personnel compensation 20 32 22
12.1 Civilian personnel benefits..... 4 7 5
21.0 Travel and transportation of
persons....................... 2 4 3
23.1 Rental payments to GSA.......... 2 3 2
23.3 Communications, utilities, and
miscellaneous charges......... 1 1
25.1 Advisory and assistance services 3 1 4
25.3 Purchases of goods and services
from Government accounts...... 7 1 1
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 40 50 38
99.0 Reimbursable obligations.......... 27 32 32
--------- --------- ----------
99.9 Total new obligations........... 67 82 70
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 313 421 249
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 206 284 322
---------------------------------------------------------------------------

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] $19,493,000, 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, 1999.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Receipts:
02.01 Office of federal housing
enterprise oversight............ 16 16 19
Appropriation:
05.01 Office of federal housing
enterprise oversight............ -16 -16 -19
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 17 16 19
--------- --------- ----------
10.00 Total new obligations........... 17 16 19
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 16 16 19
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 17 16 19
23.95 Total new obligations............. -17 -16 -19
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.20 Appropriation (special fund,
definite)....................... 16 16 19
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 5 5 5
73.10 Total new obligations............. 17 16 19
73.20 Total outlays (gross)............. -16 -16 -19
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 5 5 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 13 12 14
86.93 Outlays from current balances..... 3 4 5
--------- --------- ----------
87.00 Total outlays (gross)........... 16 16 19
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 16 16 19
90.00 Outlays........................... 16 16 19
---------------------------------------------------------------------------

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

[[Page 523]]

housing Government Sponsored Enterprises (GSEs)--Fannie Mae and Freddie
Mac. 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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Personnel
Compensation.................... 7 8 9
12.1 Civilian personnel benefits....... 1 1 2
23.2 Rental payments to others......... 2 2 2
25.2 Other services.................... 6 4 5
--------- --------- ----------
99.0 Subtotal, direct obligations.. 16 15 18
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 17 16 19
---------------------------------------------------------------------------

Personnel Summary

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Reimbursable program.............. 232 323 266
--------- --------- ----------
10.00 Total new obligations........... 232 323 266
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 6 57
22.00 New budget authority (gross)...... 276 266 266
22.10 Resources available from
recoveries of prior year
obligations..................... 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 288 323 266
23.95 Total new obligations............. -232 -323 -266
24.40 Unobligated balance available, end
of year......................... 57
----------------------------------------------------------------------------

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

68.00 Offsetting collections (cash)... 244 266 266
68.10 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... 32
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 276 266 266
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 25 -13 44
72.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... -23 9 9
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 2 -4 53
73.10 Total new obligations............. 232 323 266
73.20 Total outlays (gross)............. -232 -266 -266
73.45 Adjustments in unexpired accounts. -6
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. -13 44 44
74.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 9 9 9
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... -4 53 53
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 232 266 266
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -244 -266 -266
88.95 From Federal sources: Change in
receivables and unpaid, unfilled
orders.......................... -32
----------------------------------------------------------------------------

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

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 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 17 33 35
12.1 Civilian personnel benefits....... 3 6 7
21.0 Travel and transportation of
persons......................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 46 52 53
25.1 Advisory and assistance services.. 144 205 153
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 20 25 16
--------- --------- ----------
99.9 Total new obligations........... 232 323 266
---------------------------------------------------------------------------

Personnel Summary

Administrative Provisions

[public and assisted housing rents, preferences, and flexibility]

[Sec. 201. Section 201(a)(2) of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437l note), is amended to read as
follows:
``(2) Applicability.--Section 14(q) of the United States Housing
Act of 1937 shall be effective only with respect to assistance
provided from funds made available for fiscal year 1999 or any
preceding fiscal year, except that the authority in the first
sentence of section 14(q)(1) to use up to 10 percent of the
allocation of certain funds for any operating subsidy purpose shall
not apply to amounts made available for fiscal years 1998 and
1999.''.]

[gse default loss protection]

[Sec. 202. (a) Section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act is amended in the first sentence by--
(1) striking ``or'' at the end of clause (B);
(2) striking the period at the end of the first sentence and
inserting: ``; or (D) the mortgage is subject to default loss
protection that the Corporation determines is financially equal or
superior, on an individual or pooled basis, to the protection
provided by clause (C) of this sentence: Provided, That if the
Director of the Office of Federal Housing Enterprise Oversight
subsequently finds that such default loss protection determined by
the Corporation does not provide such equal or superior protection,
the Corporation shall provide such additional default loss
protection for such mortgage, as approved by the Director of the
Office of Federal Housing Enterprise Oversight, necessary to provide
such equal or superior protection.''.]
[(b) Section 1313(b) of the Federal Housing Enterprises Financial
Housing Safety and Soundness Act of 1992 is amended by redesignating
paragraphs (9), (10), and (11) as paragraphs (10), (11), and (12),
respectively, and inserting the following new paragraph (9):
``(9) default loss protection levels under section 305(a)(2)(D)
of the Federal Home Loan Mortgage Corporation Act;''.]

[[Page 524]]

Financing Adjustment Factors

Sec. [203] 201. 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.

Fair Housing and Free Speech

Sec. [204] 202. None of the amounts made available under this Act
may be used during fiscal year [1999] 2000 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.

[Brownfields as Eligible CDBG Activity]

[Sec. 205. For fiscal years 1998, 1999, and all fiscal years
thereafter, 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.]

Enhanced Disposition Authority

Sec. [206] 203. Section 204 of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997, is amended by striking ``fiscal years 1997,
[and] 1998, and 1999'' and inserting ``fiscal years 1997, 1998, [and]
1999, and 2000''.

Housing Opportunities for Persons With AIDS Grants

Sec. [207] 204. (a) Eligibility.--[Notwithstanding section] Section
854(c)(1)(A) (ii) 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 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 in a prior fiscal year under clause
(ii) of such section; and
(2) is not otherwise eligible for an allocation for fiscal year
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.] (ii), is
amended by inserting after ``clause (i)'' a comma and ``or States
that received an allocation under this clause in a prior fiscal
year''.
(b) Minimum Grant Repealer.--Section 854(c)(2) of such Act is
repealed. [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) of such
section 854(c)(1)(A) in fiscal year 1999 in proportion to AIDS cases
among cities and States that qualify under clauses (i) and (ii) of such
section and States deemed eligible under subsection (a).]
(c) Environmental Review.--Section 856 of such Act is amended by
adding the following new subsection at the end: ``(h) Environmental
Review.--For purposes of environmental review, decisionmaking, and
action pursuant to the National Environmental Policy Act of 1969 and
other provisions of law that further the purposes of such Act, a grant
under [the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.) from
amounts provided under this or prior Acts] this subtitle 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.]

[Drawdown of Funds]

[Sec. 208. Section 14(q)(1) of the United States Housing Act of 1937
(42 U.S.C. 1437l(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.''.]

[Elimination of Shopping Incentive for Voucher Families Who Remain in
Same Unit Upon Initial Receipt of Assistance]

[Sec. 209. (a) Section 8(o)(2) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(2)) 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 take effect 60 days after the later of
October 1, 1998 or the date of the enactment of this Act.]

[renegotiation of performance funding system]

[Sec. 210. Section 9(a)(3)(A) of the United States Housing Act of
1937 (42 U.S.C. 1437g(a)(3)(A)) is amended--
(1) by inserting after the third sentence the following new
sentence to read as follows:
``Notwithstanding the preceding sentences, the Secretary may revise
the performance funding system in a manner that takes into account
equity among public housing agencies and that includes appropriate
incentives for sound management.''; and
(2) in the last sentence, by inserting after ``vacant public
housing units'' the following: ``, or any substantial change under
the preceding sentence,''.]

FHA Multifamily Mortgage Credit Demonstrations

Sec. [211] 205. Section 542 of the Housing and Community Development
Act of 1992 is amended--
(1) in subsection (b)(5) by [adding before the period at the end
of the first sentence ``, and not more than an additional 25,000
units] striking ``during fiscal year 1999'', and inserting ``in each
of fiscal years 1999 and 2000'', and
(2) in the first sentence of subsection (c)(4) by striking
[``1996 and'' and inserting ``1996,'' and by inserting after
``fiscal year 1997'' the following: ``and not more than an
additional 25,000 units] ``during fiscal year 1999'' and inserting
``in each of fiscal years 1999 and 2000''.

[Calculation of Downpayment]

[Sec. 212. Section 203(b)(10) of the National Housing Act is amended
by--
(1) striking out ``Alaska and Hawaii'' and inserting in lieu
thereof ``Calculation of Downpayment''; and
(2) striking out in subparagraph (A) ``originated in the State
of Alaska or the State of Hawaii and endorsed for insurance in
fiscal years 1997 and 1998,'' and inserting in lieu thereof
``executed for insurance in fiscal years 1998, 1999, and 2000''.]

State CDBG IDIS Funding

Sec. [213] 206. During fiscal year [1999] 2000, 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, for implementa

[[Page 525]]

tion of 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).

[Nursing Home Lease Terms]

[Sec. 214. (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 out ``fifty
years from the date'' and inserting in lieu thereof ``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.]

[Technical for Emergency CDBG Program]

[Sec. 215. For purposes of eligibility for funding under the heading
``Community Development Block Grants'' in the 1998 Supplemental
Appropriations and Rescissions Act (Public Law 105-174; May 1, 1998) the
term ``States'' shall be deemed to include ``Indian tribes'' as defined
under section 102(a)(17) of the Housing and Community Development Act of
1974 and Guam, the Northern Mariana Islands, the Virgin Islands, and
American Samoa: Provided, That amounts made available by this section
are designated by the Congress as an emergency requirement pursuant to
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended.]

[Use of Home Funds for Public Housing Modernization]

[Sec. 216. Notwithstanding section 212(d)(5) of the Cranston-
Gonzalez National Affordable Housing Act, amounts made available to the
City of Bismarck, North Dakota, under subtitle A of title II of the
Cranston-Gonzalez National Affordable Housing Act for fiscal years 1998,
1999, 2000, 2001 or 2002, may be used to carry out activities authorized
under section 14 of the United States Housing Act of 1937 (42 U.S.C.
14371) for the purpose of modernizing the Crescent Manor public housing
project located at 107 East Bowen Avenue, in Bismarck, North Dakota,
if--
(1) the Burleigh County Housing Authority (or any successor
public housing agency that owns or operates the Crescent Manor
public housing project) has obligated all other Federal assistance
made available to that public housing agency for that fiscal year;
or
(2) the Secretary of Housing and Urban Development authorizes
the use of those amounts for the purpose of modernizing that public
housing project, which authorization may be made with respect to one
or more of those fiscal years.]

[cdbg and home exemption]

[Sec. 217. The City of Oxnard, California may use amounts available
to the City under title I of the Housing and Community Development Act
of 1974 and under subtitle A of title II of the Cranston-Gonzalez
National Affordable Housing Act to reimburse the city for its cost in
purchasing 19.89 acres of land, more or less, located at the northwest
corner of Lombard Street and Camino del Sol in the city, on the north
side of the 2100 block of Camino del Sol, for the purpose of providing
affordable housing. The procedures set forth in sections 104(g)(2) and
(3) of the Housing and Community Development Act of 1974 and sections
288(b) and (c) of the Cranston-Gonzalez National Affordable Housing Act
shall not apply to any release of funds for such reimbursement.]

[CDBG PUBLIC SERVICES CAP]

[Sec. 218. Section 105(a)(8) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking
``1998'' and inserting ``1999''].

[Clarification of Owner's Right to Prepay]

[Sec. 219. (a) Prepayment Right.--Notwithstanding section 211 of the
Housing and Community Development Act of 1987 or section 221 of the
Housing and Community Development Act of 1987 (as in effect pursuant to
section 604(c) of the Cranston-Gonzalez National Affordable Housing
Act), subject to subsection (b), with respect to any project that is
eligible low-income housing (as that term is defined in section 229 of
the Housing and Community Development Act of 1987)--
(1) the owner of the project may prepay, and the mortgagee may
accept prepayment of, the mortgage on the project, and
(2) the owner may request voluntary termination of a mortgage
insurance contract with respect to such project and the contract may
be terminated notwithstanding any requirements under sections 229
and 250 of the National Housing Act.
(b) Conditions.--Any prepayment of a mortgage or termination of an
insurance contract authorized under subsection (a) may be made--
(1) only to the extent that such prepayment or termination is
consistent with the terms and conditions of the mortgage on or
mortgage insurance contract for the project;
(2) only if the owner of the project involved agrees not to
increase the rent charges for any dwelling unit in the project
during the 60-day period beginning upon such prepayment or
termination; and
(3) only if the owner of the project provides notice of intent
to prepay or terminate, in such form as the Secretary of Housing and
Urban Development may prescribe, to each tenant of the housing, the
Secretary, and the chief executive officer of the appropriate State
or local government for the jurisdiction within which the housing is
located, not less than 150 days, but not more than 270 days, before
such prepayment or termination, except that such requirement shall
not apply to a prepayment or termination that--
(A) occurs during the 150-day period immediately
following the date of the enactment of this Act;
(B) is necessary to effect conversion to ownership by a
priority purchaser (as defined in section 231(a) of the Low-
Income Housing Preservation and Resident Ownership Act of
1990 (12 U.S.C. 4120(a)), or
(C) will otherwise ensure that the project will continue
to operate, at least until the maturity date of the loan or
mortgage, in a manner that will provide rental housing on
terms at least as advantageous to existing and future
tenants as the terms required by the program under which the
loan or mortgage was made or insured prior to the proposed
prepayment or termination.]

[Public and Assisted Housing Drug Elimination Act]

[Sec. 220. The Public and Assisted Housing Drug Elimination Act of
1990 is amended--
(1) in section 5123, by inserting ``Indian tribes'' before ``and
private'';
(2) in section 5124(a)(7), by inserting ``, an Indian tribe,''
before ``or tribally designated'';
(3) in section 5125, by inserting ``an Indian tribe'' before ``a
tribally designated''; and
(4) in section 5126, by adding at the end the following new
paragraph:
``(6) Indian tribe.--The term ``Indian tribe'' has the meaning
given the term in section 4(12) of the Native American Housing
Assistance and Self Determination Act of 1996, 25 U.S.C.
4103(12).''.]

[Multifamily Housing Institute]

[Sec. 221. Notwithstanding any other provision of law, the Secretary
may, from time to time, as determined necessary to assist the Department
in managing its multifamily assets including analyzing, tracking and
evaluating its portfolio of FHA-insured and other mortgages and
properties and assisting the Department in understanding and reducing
the risk involved in its mortgage restructuring, insuring and
guaranteeing activities, provide data to, and purchase data from, any
nonprofit, industry supported, on-line provider of nationwide,
multifamily housing loan and property data services.]

[Multifamily Mortgage Auctions]

[Sec. 222. Section 221(g)(4)(C) of the National Housing Act is
amended--
(1) in the first sentence of clause (viii), by striking
``September 30, 1996'' and inserting ``December 31, 2002''; and
(2) by adding at the end the following:
``(ix) The authority of the Secretary to conduct multifamily
auctions under this paragraph shall be effective for any fiscal year
only to the extent and in such amounts as are approved in
appropriations Acts for the costs of loan guarantees (as defined in
section 502 of the Congressional Budget Act of 1974), including the
cost of modifying loans.''.]

[Funding Correction]

[Sec. 223. Notwithstanding any other provision of law, of the
$1,250,000 made available pursuant to Public Law 102-389 for economic
revitalization and infrastructure repair in Montpelier, Vermont,
$250,000 is available for the Central Vermont Revolving Loan

[[Page 526]]

Fund administered by the Central Vermont Community Action Council.]

[Annual Report on Management Deficiencies]

[Sec. 224.(a) In General.--Section 203 of the National Housing Act
(12 U.S.C. 1709) is amended by adding at the end the following:
``(x) Management Deficiencies Report.--
``(1) In general.--Not later than 60 days after the date of the
enactment of this subsection, and annually thereafter, the Secretary
shall submit to Congress a report on the plan of the Secretary to
address each material weakness, reportable condition, and
noncompliance with an applicable law or regulation (as defined by
the Director of the Office of Management and Budget) identified in
the most recent audited financial statement of the Federal Housing
Administration submitted under section 3515 of title 31, United
States Code.
``(2) Contents of annual report.--Each report submitted under
paragraph (1) shall include--
``(A) an estimate of the resources, including staff,
information systems, and contract assistance, required to
address each material weakness, reportable condition, and
noncompliance with an applicable law or regulation described
in paragraph (1), and the costs associated with those
resources;
``(B) an estimated timetable for addressing each
material weakness, reportable condition, and noncompliance
with an applicable law or regulation described in paragraph
(1); and
``(C) the progress of the Secretary in implementing the
plan of the Secretary included in the report submitted under
paragraph (1) for the preceding year, except that this
subparagraph does not apply to the initial report submitted
under paragraph (1).''.]
[Sec. 225. (a) Informed Consumer Choice.--Section 203(b)(2) of the
National Housing Act (12 U.S.C. 1709(b)(2)) is amended by adding at the
end the following:
``In conjunction with any loan insured under this section, an
original lender shall provide to each prospective borrower a
disclosure notice that provides a one page analysis of mortgage
products offered by that lender and for which the borrower would
qualify. This notice shall include: (i) a generic analysis comparing
the note rate (and associated interest payments), insurance
premiums, and other costs and fees that would be due over the life
of the loan for a loan insured by the Secretary under this
subsection with the note rates, insurance premiums (if applicable),
and other costs and fees that would be expected to be due if the
mortgagor obtained instead other mortgage products offered by the
lender and for which the borrower would qualify with a similar loan-
to-value ratio in connection with a conventional mortgage (as that
term is used in section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2)) or section 302(b)(2) of the
Federal National Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)), as applicable), assuming prevailing interest rates; and
(ii) a statement regarding when the mortgagor's requirement to pay
the mortgage insurance premiums for a mortgage insured under this
section would terminate or a statement that the requirement will
terminate only if the mortgage is refinanced, paid off, or otherwise
terminated.''.]
[(b) Regulation.--The Secretary of Housing and Urban Development
shall develop the disclosure notice under subsection (a) within 150 days
of the enactment through notice and comment rulemaking.]
Sec. [226] 207. Funding of Certain Public Housing.--[Notwithstanding
any other provision of law, no] No funds in this Act or any other Act
may hereafter be used by the Secretary of Housing and Urban Development
to determine allocations or provide assistance for operating subsidies
or modernization for certain State and city funded and locally developed
public housing units, as [defined for purposes of a statutory paragraph,
notwithstanding the deeming by statute of such units to be public
housing units developed under] described in section 9(n)(1)(B) of the
United States Housing Act of 1937, unless such unit was so assisted
before October 1, 1998.

[Section 236 Program Reform]

[Sec. 227. Section 236(g) of the National Housing Act, as amended by
section 221(c) of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1997, is
amended to read as follows:
``(g) The project owner shall, as required by the Secretary,
accumulate, safeguard, and periodically pay the Secretary or such other
entity as determined by the Secretary and upon such terms and conditions
as the Secretary deems appropriate, all rental charges collected on a
unit-by-unit basis in excess of the basic rental charges. Unless
otherwise directed by the Secretary, such excess charges shall be
credited to a reserve used by the Secretary to make additional
assistance payments as provided in paragraph (3) of subsection (f ).
Notwithstanding any other requirements of this subsection, an owner of a
project with a mortgage insured under this section, or a project
previously assisted under subsection (b) but without a mortgage insured
under this section if the project mortgage was insured under section 207
of this Act before July 30, 1998 pursuant to section 223(f ) of this Act
and assisted under subsection (b), may retain some or all of such excess
charges for project use if authorized by the Secretary and upon such
terms and conditions as established by the Secretary.''.]

[fha mortgage insurance increase]

[Sec. 228. (a) Subparagraph (A) of section 203(b)(2) of the National
Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking clause (ii)
and all that follows through the end of the subparagraph and inserting
the following:
``(ii) 87 percent of the dollar amount limitation determined
under section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act for a residence of the applicable size; except that
the dollar amount limitation in effect for any area under this
subparagraph may not be less than 48 percent of the dollar
limitation determined under section 305(a)(2) of the Federal Home
Loan Mortgage Corporation Act for a residence of the applicable
size; and''.]
[(b) The first sentence in the matter following section
203(b)(2)(B)(iii) of the National Housing Act (12 U.S.C.
1709(b)(2)(B)(iii) is amended to read as follows: ``For purposes of the
preceding sentence, the term `area' means a metropolitan statistical
area as established by the Office of Management and Budget; and the
median 1-family house price for an area shall be equal to the median 1-
family house price of the county within the area that has the highest
such median price.''.]

[HOPE VI Grant for Hollander Ridge]

[Sec. 229. If the Secretary rescinds the grant award of $20,000,000
made to the Housing Authority of Baltimore City for development efforts
at Hollander Ridge in Baltimore, Maryland, involving funds appropriated
for fiscal year 1996 under the heading ``Public Housing Demolition, Site
Revitalization, and Replacement Housing Grants'', all of the rescinded
grant amount shall be recaptured by the Secretary and added to the
amounts otherwise available under this heading. If, after the date of
any such recapture, the Housing Authority of Baltimore City applies in
response to a Notice of Funding Availability issued by the Secretary for
a grant from funds available under this heading (not to exceed the
amount recaptured) for development efforts at Hollander Ridge, then the
Secretary shall grant priority status to such application and approve
the grant award if the application meets the terms and criteria stated
in the Notice of Funding Availability.]

[Debt Forgiveness]

[Sec. 230. The Secretary of Housing and Urban Development shall
cancel the indebtedness of the Town of Hobson City, Alabama, relating to
a public facilities loan under title II of the Housing Amendments of
1955, issued July 1, 1969 (Project No. ALA-01-PFL0139). The Town of
Hobson City hereby is relieved of all liability to the Federal
Government for the outstanding principal balance on such loan, for the
amount of accrued interest on such loan, and for any other fees and
charges payable in connection with such loan.]

[Consideration of Homeless Grant Application]

[Sec. 231. The Secretary shall consider without prejudice the
application submitted August 5, 1998 by the City of Wichita and Sedgwick
County, Kansas for assistance under the Continuum of Care Homeless
Assistance program pursuant to the Notice at 63 Federal Register 23988,
23999 (April 30, 1998) notwithstanding the August 4, 1998 due date for
such application, notwithstanding any provision that may be to the
contrary in section 102 of the Department of Housing and Urban
Development Reform Act of 1989.]

[CDBG Service Cap for Miami]

[Sec. 232. Section 105(a)(8) of the Housing and Community
Development Act of 1974 is amended by striking ``fiscal year 1994'' and

[[Page 527]]

all that follows through the end of the paragraph and inserting the
following: ``each of fiscal years 1999, 2000, and 2001, to the City of
Miami, such city may use not more than 25 percent in each fiscal year
for activities under this paragraph;''.] (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1999.)

[Joint Committee on Printing]

[Sec. 122. Upon enactment of H.R. 4194, the Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1999, section 202 of that Act is hereby repealed.]
(Omnibus Consolidated and Emergency Supplemental Appropriations Act,
1999, Public Law 105-277, Division A, Section 122.)

FHA Administrative Contract Expense Authority

Sec. 208. Section 1 of the National Housing Act (12 U.S.C. 1702) is
amended by inserting the following new sentence after the first proviso:
``For the purposes of this section, the term ``nonadministrative'' shall
not include contract expenses that are not capitalized or routinely
deducted from the proceeds of sales, and such expenses shall not be
payable from funds made available by this Act.''.
Sec. 209. Discretionary Authority to Regulate Rents.--(a) Section
207(b)(2) of the National Housing Act is amended by striking ``The'' the
first place it appears and inserting, ``For all projects with mortgages
insured under this section, including those insured before the date of
enactment of the Housing and Urban-Rural Recovery Act of 1983, the''.
(b) Section 223(f)(2) of such Act is amended by striking the second
sentence and inserting the following:
``The Secretary shall prescribe such terms and conditions as the
Secretary determines to assure that the refinancing is used to
reduce the amount of monthly debt service only to the extent
necessary to assure the continued economic viability of the project,
taking into account any rent reductions to be implemented by the
mortgagor. For all projects with mortgages insured, or to be
insured, pursuant to this section, the Secretary may, in the
Secretary's discretion, require any such mortgagor to be regulated
or restricted as to rents or sales, charges, capital structure, rate
of return, and methods of operation so as to provide reasonable
rentals to tenants and a reasonable return on investment. Any such
regulations or restrictions shall continue for such period or
periods as the Secretary, in the Secretary's discretion, may
require, including until the termination of all obligations of the
Secretary under the insurance and during such further period of time
as the Secretary shall be the owner, holder, or reinsurer of the
mortgage.''.
Sec. 210. Clarification of Rulemaking Authority for Renewals of
Project-Based Assistance Without Restructuring.--Section 522(a) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 is
amended by inserting the following new paragraph at the end:
``(4) Rulemaking After Initial Implementation.--After the
Director issues final regulations under paragraph (2), the Secretary
shall have the authority to issue regulations concerning contract
renewals under section 524 of this Act, including amendment,
revision and removal of such regulations previously issued by the
Director.''.
Sec. 211. Full Payment of Claims.--(a) Section 541 of the National
Housing Act is amended (1) by amending the heading to read as follows:
``PARTIAL PAYMENT OF CLAIMS ON DEFAULTED MORTGAGES AND IN CONNECTION
WITH MORTGAGE RESTRUCTURING''; and
(2) in subsection (b), by striking ``partial payment of claim
under the mortgage insurance contract'' and inserting, ``partial or
full payment of claim under one or more mortgage insurance
contracts''.
(b) Section 517 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 is amended by adding a new subsection (a)(6)
to read as follows: ``(6) The second mortgage under this section may be
a first mortgage if no restructured or new first mortgage will meet the
requirement of paragraph (1)(A).''.
Sec. 212. Section 236 Refinancing.--Section 236(c) of the National
Housing Act is amended--
(1) by striking ``(c) The'' and inserting ``(c)(1) The''; and
(2) by adding the following new paragraph at the end:
``(2) The Secretary shall notify any project owner who has a
mortgage, the interest rate of which the Secretary determines to be 2 or
more percent above the market interest rate. Not later than one year
after receiving notice under the preceding sentence, a project owner
shall refinance the project with a mortgage on such terms and conditions
as the Secretary may require: Provided, That the Secretary may approve
an extension of the foregoing time period for any owner that shows good
cause. The Secretary may pay costs for closing such refinancing, and
other costs, determined by the Secretary, for the refinancing, from
amounts that would otherwise be available to make payments under
contracts under this section, pursuant to section 1305(10) of title 31,
United States Code. If a project owner does not comply with the
requirement to refinance within the one year time period or any
extension of time that the Secretary approves, the Secretary,
notwithstanding paragraph (1) and any existing interest reduction
payment contracts entered into thereunder, shall make interest reduction
payments to the mortgagee in an amount not exceeding the difference
between (A) the monthly payments for principal, interest, and mortgage
insurance premium that an owner would be obligated to pay if the
mortgage were to have a market interest rate, as determined by the
Secretary, and (B) the monthly payment for principal and interest such
owner would be obligated to pay if the mortgage were to have an interest
rate of 1 percent. The Secretary's determination of an interest rate
under the immediately preceding sentence shall be made once and shall
run for the remaining period during which interest reduction payments
are made at the project. Neither a Secretary's notification nor a
refinancing is required more than once for a project refinanced in
accordance with the requirements of this paragraph.''.
Sec. 213. Housing GSE Oversight Assessment.--Subtitle A of the
Federal Housing Enterprise Financial Safety and Soundness Act of 1992 is
amended by inserting at the end of part 2, subpart A, the following new
section:

``SEC. 1329. FUNDING FOR THE OVERSIGHT OF THE ENTERPRISES BY THE
SECRETARY.

``(a) Annual Assessments.--(1) The Secretary shall annually
determine and collect the amounts for annual assessments of the
enterprises in addition to the amounts assessed under section 1316. The
amounts shall be equal to all the costs related to carrying out all of
the Secretary's regulatory and oversight responsibilities under this
Part, as determined by the Secretary. In no case shall these assessments
exceed $10 million in aggregate in any fiscal year.
``(b) Allocation of Annual Assessment to Enterprises.--
``(1) Amount of Payment.--Each enterprise shall pay a proportion
of the annual assessment made pursuant to subsection (a) that is the
same as the proportion that that enterprise's total assets bear to
the total assets of the enterprises.
``(2) Timing of Payment.--The annual assessment shall be payable
semiannually for each fiscal year, on October 1 and April 1.
``(3) Definition.--For the purpose of this section, the term
``total assets'' means, with respect to an enterprise, the sum of--
``(A) on-balance sheet assets of the enterprise, as
determined in accordance with generally accepted account
principles;
``(B) the unpaid principal balance of outstanding mortgage-
backed securities issued or guaranteed by the enterprise that
are not included in subparagraph (A);
``(C) other off-balance sheet obligations as determined by
the Secretary.
``(c) Surplus.--If actual obligations for the Secretary's regulatory
and oversight responsibilities under this Part are less than the annual
assessment for any fiscal year, such amount shall be credited, in
accordance with the same proportion as determined under subsection
(b)(1) for that fiscal year, to the assessment collected from the
enterprises the following fiscal year.''.
Sec. 214. Transfer for Evaluation of HUD Programs.--(a) During
fiscal year 2000, the Secretary may transfer no more than 0.50 percent
(in any proportions the Secretary shall determine) of any amount
appropriated in title II of this Act to (1) the ``Research and
Technology'' account of Policy Development and Research for program
evaluation and other research contributing to improvement in measures of
performance, or (2) the departmental ``Salaries and Expenses'' account
for information systems to support improved collection of performance
data and for collecting and maintaining data under section 7(r) of the
Department of Housing and Urban Development Act, in support of
activities required under the Government Performance and Results Act of
1993 and 31 U.S.C. 1115, 1116, and 9703.
(b) Any appropriations for the Office of Inspector General or the
Office of Federal Housing Enterprise Oversight shall be excluded from
the transfer authority in (a).
(c) Transfers under (a) shall not occur until 30 days after
notification of each transfer to the Committees on Appropriations.

[[Page 528]]

(d) The total of all transfers under (a) in fiscal year 2000 may not
exceed $40,000,000.
(e) Any amounts transferred under this section shall be merged with,
and subject to the terms and conditions of the accounts to which
transferred.
(f) Any amounts transferred under this section shall be in addition
to the amounts appropriated for and otherwise transferred to the
``Research and Technology'' or departmental ``Salaries and Expenses''
account, respectively.

SEC. 215. AVAILABILITY OF INCOME MATCHING INFORMATION.

(a) Section 3(f) of the United States Housing Act of 1937 (42 U.S.C.
1437a), as amended by section 508(d)(1) of the Quality Housing and Work
Responsibility Act of 1998, is further amended--
(1) in paragraph (1)--
(A) after the first appearance of ``public housing agency'',
by inserting ``, or the owner responsible for determining the
participant's eligibility or level of benefits,''; and
(B) after ``as applicable'', by inserting ``, or to the
owner responsible for determining the participant's eligibility
or level of benefits''; and
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``or'';
(B) in subparagraph (B), by striking the period and
inserting ``, or''; and
(C) by inserting at the end the following new subparagraph:
``(C) for which project-based assistance is provided under
section 8, section 202, or section 811.''.
(b) Section 904(b) of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 3544), as amended by section 508(d)(2)
of the Quality Housing and Work Responsibility Act of 1998, is further
amended in paragraph (4)--
(1) by inserting after ``public housing agency'' the first time
it appears the following: ``, or the owner responsible for
determining the participant's eligibility or level of benefits,'';
and
(2) by striking ``the public housing agency verifying income''
and inserting ``verifying income''.

SEC. 216. RENTAL ASSISTANCE FRAUD RECOVERIES.

Section 326(d) of the Housing and Community Development Amendments
of 1981 is repealed.

General Fund Receipt Accounts

(in millions of dollars)

----------------------------------------------------------------------------
1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
86-089800 GSE oversight assessment... 10
86-271910 FHA-General and Special
Risk, Negative Subsidies............ 730 171 160
86-271930 FHA-General and Special
Risk, Downward reestimates of
subsidies........................... 333
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 1,063 171 170
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