[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)

----------------------------------------------------------------------------
Identification code 86-0164-0-1-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

-----------------------------------------------------------------------------------------------
Identification code   86-4098-0-3-604    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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)

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4244-0-3-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

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

[[Page 487]]



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

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

    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 $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
----------------------------------------------------------------------------

    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 $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
----------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

-----------------------------------------------------------------------------------------------
Identification code   86-4015-0-3-451    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         121            112           110            110
      Non-Federal assets:

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)

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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.

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from loan guarantees committed in 1992 and beyond (including 
modifications of loan guaran- tees that resulted from commitments in any 
year). The amounts in this account are a means of financing and are

[[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)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

-----------------------------------------------------------------------------------------------
Identification code   86-4097-0-3-451    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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)

----------------------------------------------------------------------------
Identification code 86-0326-2-1-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4102-2-3-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-0206-0-1-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-5271-0-2-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-5270-0-2-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

-----------------------------------------------------------------------------------------------
Identification code   86-4044-0-3-604    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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)

----------------------------------------------------------------------------
Identification code 86-4043-0-3-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
03.00 Offsetting Collections............                                 168
07.99 Total balance, end of year........                                 168
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      87,755      71,030      65,880
2251  Repayments and prepayments........     -15,320      -1,441      -1,819
      Adjustments:

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)

-----------------------------------------------------------------------------------------------
Identification code   86-4070-0-3-371          1997 
                                           actual\1\    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
03.00 Offsetting Collections............                                 151
07.99 Total balance, end of year........                                 151
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      42,405      36,590      34,803
2251  Repayments and prepayments........      -5,345        -962      -1,400
      Adjustments:

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)

-----------------------------------------------------------------------------------------------
Identification code   86-4072-0-3-371          1997 
                                           actual\1\    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4042-0-3-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

-----------------------------------------------------------------------------------------------
Identification code   86-4238-0-3-371    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          72          82          95
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                          Working Capital Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         255         462         462
---------------------------------------------------------------------------

                                

  

                        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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