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

    [[Page 479]]

                   DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

        This chapter presents the budget estimates and program
    justifications for the Department of Housing and Urban Development
    (HUD). HUD's core mission is to promote adequate and affordable housing,
    economic opportunity and a suitable living environment free from
    discrimination. The 2001 Budget for HUD reflects the successful
    implementation of a multi-year comprehensive reform effort which has
    helped restore the effectiveness and financial integrity of the
    Department's critical affordable housing and economic development
    initiatives. Building on the success of these reforms, Congress and the
    Administration have provided significant increases in key HUD programs
    over the past two years. The 2001 Budget will continue these historic
    successes by providing the Department with the tools to fulfill its
    fundamental strategic goals: increasing the availability of decent, safe
    and affordable housing in American communities (including the
    enhancement of homeownership opportunities, especially for minorities
    and first-time homebuyers, the transformation of public housing and the
    expansion of housing assistance to alleviate severe housing needs);
    ensuring equal housing opportunity; promoting self-sufficiency and asset
    development of families and individuals (including moving homeless
    families to self-sufficiency through locally-developed continuum of care
    strategies and contributing to the success of welfare-to-work efforts);
    and improving community quality of life and economic vitality through
    locally-driven initiatives and programs.

        The 2001 budget provides increases for two successful block grant
    programs which serve HUD's fundamental affordable housing and economic
    development missions--the Community Development Block Grant (CDBG) and
    the HOME Investment Partnerships programs. These programs provide states
    and localities with formula funding pursuant to locally-developed
    consolidated plans for a wide variety of activities which benefit low
    and moderate-income families. The Community Development Loan Guarantee
    program (under Section 108 of the Housing and Community Development Act
    of 1974) will be continued with level funding and a slightly increased
    loan guarantee limitation. The Economic Development Initiative will also
    be maintained. Grants for Urban Empowerment Zones will continue support
    for ten-year plans to provide new job opportunities and community
    revitalization in 15 urban areas. The Rural Housing and Economic
    Development program will be continued at an increased level.

        HUD's Homeless Assistance programs will be funded at an increased
    level 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. This funding includes
    18,000 rental assistance vouchers designed to provide affordable
    permanent housing for formerly homeless individuals and families in
    order to provide a stable living environment, a critical necessity for
    maintaining access to needed services and providing access to employment
    opportunities. HUD's Continuum of Care approach recently received the
    prestigious 1999 Innovations in Government award from the Harvard
    University's John F. Kennedy School of Government and the Ford
    Foundation.

        The 2001 Budget maintains the Federal commitment to replacing
    distressed and obsolete public housing with attractive, mixed-income
    communities and creating new economic opportunities for residents.
    Consistent with this commitment and with a special focus on replacing
    projects that have been determined to be non-viable, the HOPE VI program
    will receive a significant increase from last year's enacted level. The
    2001 Budget provides $3,192 million for the Public Housing Operating
    Fund, which helps to maintain good quality housing, and provides a
    slight increase for the Public Housing Capital Fund, which helps
    modernize and improve the housing stock.

        The 2001 budget includes 120,000 incremental vouchers that will help
    address the severe housing needs of low-income households. These
    vouchers are necessary to address the continued increase in the number
    of families nationwide which have worst case needs for housing
    assistance, including extremely-low income families currently paying
    more than half their income for rent or living in severely inadequate
    living conditions. The Administration reaffirms its long-held commitment
    to renew all expiring Section 8 contracts, to protect residents from
    displacement by substantially increasing funding for Section 8 renewals,
    to provide Section 8 tenant-based assistance for displaced families, and
    for the replacement of affordable housing due to opt-outs from the
    project-based Section 8 program.

        The Administration also continues its support for the Department's
    successful Housing for Persons With HIV/AIDS program (HOPWA) by
    providing increased funding to prevent thousands of persons with HIV/
    AIDS from becoming homeless. This increase is necessary to continue to
    provide stable housing and services in existing local programs and fund
    new jurisdictions as they become eligible for formula funding due to the
    continued increase in the number of AIDS cases.

        Building on last year's successful adoption of the Housing Security
    Plan for Older Americans, the Housing for the Elderly program (under
    Section 202 of the Housing Act of 1959) will receive a substantial
    increase, including an increase in capital funding to convert existing
    housing to assisted living with services and an increase for
    construction of new affordable assisted living. The Housing for Persons
    with Disabilities (under Section 811 of the National Affordable Housing
    Act of 1990) will receive additional funding.

        In support of the Administration's strong commitment to increase
    homeownership opportunities, the 2001 budget includes major support to
    help low- and moderate-income American families become homebuyers. The
    budget will increase the Federal Housing Administration's (FHA) maximum
    mortgage loan limits, allowing Single Family insurance to cover loans up
    to the same level as the Fannie Mae and Freddie Mac (GSEs) limits.
    (Currently FHA can insure home mortgages only up to 87 percent of the
    GSE limits in high cost areas and only up to 48 percent in low-cost
    areas, including approximately 2,200 rural counties throughout the
    Nation). In addition, the budget authorizes FHA to develop new
    adjustable rate mortgage products. These provisions will provide much-
    needed assistance to first-time homebuyers, minorities, and other
    underserved populations.

        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.

        In order to ensure the effective implementation of its programs, the
    Department's Office of Policy Development and Research (PD&R) will be
    provided with a budget increase. These additional funds are necessary to
    ensure timely provision of data, research and analysis of national
    housing and economic conditions, and to measure the performance of pro

    [[Page 480]]

    grams consistent with the Government Performance and Results Act of
    1994. Also, an increase is included for the Partnerships for Advancing
    Technology in Housing (PATH) initiative, which is designed to develop
    and disseminate technologies that will result in housing that is more
    affordable, durable, disaster resistant, safer and energy/resource
    efficient.

                            PUBLIC AND INDIAN HOUSING

                                  Federal Funds

    General and special funds:

                            Housing Certificate Fund

                        [(including transfers of funds)]

        For activities and assistance to prevent the involuntary
    displacement of low-income families, the elderly and the disabled
    because of the loss of affordable housing stock, expiration of subsidy
    contracts (other than contracts for which amounts are provided under
    another heading in this Act) or expiration of use restrictions, or other
    changes in housing assistance arrangements, and for other purposes,
    [$11,376,695,000] $14,127,824,459 and amounts that are recaptured in
    this account, [and recaptured under the appropriation for ``Annual
    contributions for assisted housing'',] to remain available until
    expended: Provided, That of the total amount provided under this
    heading, [$10,990,135,000] $13,484,388,459, of which [$6,790,135,000]
    $9,284,388,459 shall be available on October 1, [1999] 2000 and
    $4,200,000,000 shall be available on October 1, [2000] 2001, 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 amendments to section 8
    subsidy contracts, for enhanced vouchers (including amendments and
    renewals) under any provision of law authorizing such assistance under
    section 8(t) of the [United States Housing] Act [of 1937] (47 U.S.C.
    1437f(t)), [as added by section 538 of title V of this Act,] and
    contracts entered into pursuant to section 441 and, for terms of one
    year, section 473 of the Stewart B. McKinney Homeless Assistance Act:
    Provided further, That amounts available under the first proviso under
    this heading may be available for section 8 rental assistance under the
    [United States Housing] Act [of 1937: (1) to relocate residents of
    properties: (A) that are owned by the Secretary and being disposed of;
    or (B) that are discontinuing section 8 project-based assistance; (2)
    for relocation and replacement housing for units that are demolished or
    disposed of: (A) from the public housing inventory (in addition to
    amounts that may be available for such purposes under this and other
    headings); or (B)]:(1) pursuant to section 24 of the [United States
    Housing] Act [of 1937] or to other authority for the revitalization of
    severely distressed public housing, as set forth in the Appropriations
    Acts for the Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies for fiscal years 1993, 1994, 1995,
    and 1997, and in the Omnibus Consolidated Rescissions and Appropriations
    Act of 1996; [(3)] (2) for the conversion of section 23 projects to
    assistance under section 8; [(4)] (3) for funds to carry out the family
    unification program; [(5)] (4) 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; and
    [(6)] (5) tenant protection assistance, including replacement and
    relocation assistance; (6) for the [1-year] renewal of section 8
    contracts for units in a project that is subject to an approved plan of
    action under the Emergency Low Income Housing Preservation Act of 1987
    or the Low-Income Housing Preservation and Resident Homeownership Act of
    1990: Provided further, That of the amounts provided under this heading,
    $50,000,000 shall be available for a Voucher Success Fund to improve the
    operation of the section 8 voucher program, to be administered by HUD
    and to remain available until expended: Provided further, That HUD shall
    use funding for communities experiencing problems in utilizing section 8
    vouchers, identified by criteria such as difficult market conditions,
    low rates of success for families attempting to use voucher assistance,
    concentrations of assisted families in high poverty neighborhoods, and
    other evidence of program difficulty determined by the Secretary:
    Provided further, That activities allowed under the Voucher Success Fund
    may include: (1) technical assistance to the local public housing
    authority or community to improve the success of the voucher program,
    (2) assistance for families in using vouchers, including mobility
    counseling, assistance with security deposits, transportation, and other
    activities intended to increase the likelihood that families will
    succeed in leasing units or leasing them outside areas of concentrated
    poverty, and (3) further outreach to landlords and community groups to
    encourage participation in the voucher program: Provided further, That
    the Secretary may use up to one percent of the amount available under
    this paragraph to establish monitoring systems for the Voucher Success
    Fund and to conduct detailed evaluations of the effect of providing
    assistance under such Fund: Provided further, That of the total amount
    provided under this heading, [$40,000,000] up to $25,000,000 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 amounts
    available under this heading may be made available for administrative
    fees and other expenses to cover the cost of administering rental
    assistance programs under section 8 of the [United States Housing] Act
    [of 1937: Provided further, That the fee otherwise authorized under
    section 8(q) of such Act shall be determined in accordance with section
    8(q), as in effect immediately before the enactment of the Quality
    Housing and Work Responsibility Act of 1998: Provided further, That all
    balances for the section 8 rental assistance, section 8 counseling,
    section 8 new construction, section 8 substantial rehabilitation,
    relocation/replacement/demolition, section 23 conversions, rental and
    disaster vouchers, loan management set-aside, section 514 technical
    assistance, and other 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 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]: Provided further, That of the
    total amount provided under this heading, [$346,560,000] $343,980,000
    shall be made available for incremental vouchers under section 8 of the
    [United States Housing] Act [of 1937 on a fair share basis and
    administered by public housing agencies]; and $66,000,000 shall be
    available for the Housing Production Program as authorized under this
    Act[: Provided further, That of the balances remaining from funds
    appropriated under this heading or the heading ``Annual Contributions
    for Assisted Housing'' during fiscal year 2000 and prior years,
    $2,243,000,000 is rescinded: Provided further, That of the amount
    rescinded under the previous proviso, $1,300,000,000 shall be from
    amounts recaptured and the Secretary shall have discretion to specify
    the amounts to be rescinded from each of the foregoing accounts,
    $505,000,000 shall be from unobligated balances, and $438,000,000 shall
    be from amounts that were appropriated in fiscal year 1999 and prior
    years for section 8 assistance including assistance to relocate
    residents of properties that are owned by the Secretary and being
    disposed of or 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, and for
    enhanced vouchers as provided under the ``Preserving Existing Housing
    Investment'' account in the Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act, 1997
    (Public Law 104-204)].

    [[Page 481]]

        For tenant-based assistance under the Act to help eligible families
    make the transition from welfare to work, $183,456,000 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 HUD), 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 Act:
    Provided further, That each application shall: (1) describe the proposed
    program, which shall be developed by the public housing agency and 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 Act, 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 has participated in
    developing 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; 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 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 seven Public Housing Agencies
    (PHAs) selected by the Secretary for the Jobs Plus Initiative of the
    Moving to Work (MTW) Demonstration (P.L. 104-134, sec. 204) may use up
    to $7,000,000 of their Section 8 project reserves, or funds which
    otherwise would be transferred to such reserves after year-end
    settlement, as reimbursement for the cost of providing rent incentives
    to families participating in MTW: Provided further, That any obligated
    balances of contract authority that have been terminated shall be
    canceled. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0319-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Contract renewals.................      10,830       9,889      14,513
    00.02 Section 8 amendments..............         454
    00.03 Relocation & other................         193         237         266
    00.04 Preservation Amendments...........          11          25
    00.05 Section 514 Technical Assistance..                       4
    00.06 Non-Elderly Disabled..............          74          80          25
    00.07 Welfare to Work...................           1         282         183
    00.08 Regional Opportunity Counseling...                      10
    00.09 Voucher Success Fund..............                                  50
    00.10 Preservation Prepayments..........          33           8
    00.11 Housing Production Program Premium                                   8
    00.12 Incremental vouchers..............                     352         377
    00.13 Section 8 Counseling..............                      11
    00.14 Section 8 Conversions.............                       2
    00.15 Property Disposition..............                     131
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................      11,596      11,031      15,422
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       3,477       3,185         103
    22.00 New budget authority (gross)......       9,411       4,963      14,128
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       1,894       2,345       1,295
    22.22 Unobligated balance transferred
            from other accounts.............                     641
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      14,782      11,134      15,526
    23.95 Total new obligations.............     -11,596     -11,031     -15,422
    24.40 Unobligated balance available, end
            of year.........................       3,185         103         103
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      10,327       7,177       9,928
    40.05   Appropriation (indefinite)......                               1,000
    40.36   Unobligated balance rescinded...        -916      -2,246
    40.49   Portion applied to liquidate
              contract authority............                              -1,000
    40.76   Reduction pursuant to P.L. 106-
              113...........................                     -72
    42.00   Transferred from other accounts.                     104
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       9,411       4,963       9,928
    55.00   Advance appropriation...........                               4,200
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       9,411       4,963      14,128
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year      10,330      12,174       5,615
    72.49   Obligated balance, start of
              year: Contract authority......                              43,430
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............      10,330      12,174      49,045
    73.10 Total new obligations.............      11,596      11,031      15,422
    73.20 Total outlays (gross).............      -7,858     -16,090     -16,579
    73.32 Obligated balance transferred from
            other accounts..................                  44,275
    73.45 Adjustments in unexpired accounts.      -1,894      -2,345      -1,295
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..      12,174       5,615       4,163
    74.49   Obligated balance, end of year:
              Contract authority............                  43,430      42,430
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................      12,174      49,045      46,593
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       2,953       2,107       6,889
    86.93 Outlays from discretionary
            balances........................       4,905      13,983       9,690
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,858      16,090      16,579
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       9,411       4,963      14,128
    90.00 Outlays...........................       7,858      16,090      16,579
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................       9,411       4,963      14,128
      Outlays...........................       7,858      16,090      16,579
    Rescission proposal:
      Budget Authority..................                    -103
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................       9,411       4,860      14,128
      Outlays...........................       7,858      16,090      16,579
                                        ====================================

        The funds requested will support the following activities for 2001,
    as shown in the below table.

                                        HOUSING CERTIFICATE FUND

                          [Budget Authority Request for Units01, $Per Unit ons]
                                                                    Cost      Contract
                                                                                Term         BA
    FY 2001:
      Incremental Rental Assistance.................      60,000       5,733      1 year 343,980,000
      Non-Elderly Disabled..........................     [5,000]       5,043      1 year[25,215,000]
      Family Unification............................     [2,000]       5,733      1 year[11,466,000]
      Tenant Protections--Housing...................      30,300          NA      1 year 198,671,611
      Tenant Protections--PIH.......................      10,000       6,733      1 year  67,330,000
      Contract Administrators.......................          NA          NA          NA 209,000,000
      Welfare-to-Work...............................      32,000       5,733      1 year 183,456,000
      Voucher Success Fund..........................          NA          NA          NA  50,000,000
      Housing Production Program....................      10,000                  1 year  58,000,000

    [[Page 482]]

      Housing Production Program Premium............          NA          NA          NA   8,000,000
    Contract Renewals:
        PIH.........................................   1,764,243       5,733      1 year10,089,530,96
                                                                                                   3
        HOPE VI and 202 Conversion..................      10,000       5,733      1 year  57,330,000
        Welfare-to-Work Vouchers....................      50,000       5,733      1 year 286,650,000
        CPD-Mod. Rehab. SRO.........................       1,702       4,427      1 year   7,534,754
        Shelter Plus Care...........................       6,454       5,733      1 year  37,000,782
        Housing.....................................     761,807          NA      1 year     3,781,
                                                                                             340,349
        Recaptures and Reuse........................          NA          NA          NA(1,295,000,00
                                                                                                  0)
        Family Self-Sufficiency Coordinators........          NA          NA          NA  45,000,000
                                                    ------------------------------------------------
        Subtotal, contract renewals.................   2,594,206                        13,009,386,84
                                                                                                   8
      Administrative Fees [non-add].................                             Approx.[1,100,000,00
                                                                                                  0]
      Advance Appropriation for FY 2002.............                                    (4,200,000,00
                                                                                                  0)
      Advance Appropriation Enacted in FY 2000......                                    4,200,000,000

          Total, FY 2001 Housing Certificate Fund...   2,736,506                        14,127,824,45
                                                                                                   9
                                                    ================================================

        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, and Shelter Plus Care contracts
    authorized under section 441 of the Stewart B. McKinney Homeless
    Assistance Act.

        Incremental Rental Assistance. For 2001, the Department is
    requesting 120,000 vouchers as follows: $585 million in budget authority
    for 60,000 incremental vouchers, 32,000 Welfare to Work vouchers, and
    10,000 vouchers for a Housing Production Program, along with an
    additional $105 million for 18,000 vouchers which are proposed within
    the Homeless Assistance Grants Program.

        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 $183 million
    to fund 32,000 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 Housing Act of 1937 that are
    needed to substantially further the objectives of the program.

        Housing Production Voucher Program. The Administration proposes a
    program that combines and strengthens a number of existing housing
    production tools to spur the production of housing affordable to the
    lowest income Americans in neighborhoods that will provide strong job
    opportunities and other benefits. 10,000 incremental vouchers would be
    linked to two existing multifamily housing productions tools: the Low-
    Income Housing Tax Credit (LIHTC) and FHA insurance. FHA multifamily
    insurance would be used to finance the properties through the 221(d)(4)
    or risk-sharing programs. Pending completion and occupancy of new
    projects, vouchers allocated to the local administering authority can be
    used for regular tenant-based assistance. Funding for 2001 is proposed
    at $58 million for vouchers and $8 million for one-time incentive
    payments to developers who build units for targeted needs, such as large
    families.

        Voucher Success Fund. This Fund provides a flexible tool for the
    Department to address situations in which difficult market conditions,
    concentrations of assisted families in high-poverty neighborhoods, or
    other forces that make it difficult for tenants to use vouchers or to
    use them in a wide variety of locations. The Department will use $50
    million for communities experiencing problems in utilizing Section 8
    vouchers for technical assistance to the local public housing authority
    or the community, for assistance to families to help them use vouchers,
    and for increased outreach to landlords.

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0319-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............                              43,430
    0340  Unobligated balance transferred...                  43,430
    0400  Appropriation to liquidate
            contract authority..............                              -1,000
    0700  Balance, end of year..............                  43,430      42,430
    ---------------------------------------------------------------------------

    Public and Indian Housing

        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 coordinators were the smallest agencies that administered less
    than 1,500 rental vouchers and certificates. Starting in 1999, the
    program was expanded to all PHAs.

        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 $45 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.

        In 2001, seven Public Housing Agencies (PHAs) previously selected by
    the Secretary for the Jobs Plus component of the Moving to Work (MTW)
    Demonstration (Section 204 of the Omnibus Consolidated Rescissions and
    Appropriations Act of 1996, P.L. 104-134) may use a total of up to $7
    million of their Section 8 project reserves, or funds which otherwise
    would be transferred to such reserves after year-end settlement, as
    reimbursement for the cost of providing rent incentives to families
    participating at eight MTW sites. The Jobs-Plus PHAs would be reimbursed
    of incurred costs upon HUD approval of a Plan submitted by the PHAs.
    Each rent incentive proposal will be approved by the Department in
    advance and be reasonable in terms of amount and duration.

        Tenant Protection Vouchers. The Housing Certificate fund supports
    families living in public and assisted housing units affected by changes
    in the status of the units. Income-eligible families who are affected by
    the demolition, disposition, revitalization or other capital improvement
    through no fault of their own, receive relocation/replacement vouchers
    through the Housing Certificate Fund.

    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.

        Verifying the right person gets the right benefit.--In 2000, HUD
    will begin verifying tenant reported income against

    [[Page 483]]

    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 provide 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
    $80 million from this matching effort in 2001.

        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.

        In 2001, The Department is seeking legislation to modify the
    existing statutes that require 50 percent of any back rent collection to
    be shared with HUD's agent in project-based housing. This sharing is no
    longer appropriate in instances where HUD background checks discover the
    deficiency.

                     Section 8 Reserve Preservation Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0316-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Contract Renewals.................         988
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         988
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         995          11
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.21 Unobligated balance transferred to
            other accounts..................                     -11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         999
    23.95 Total new obligations.............        -988
    24.40 Unobligated balance available, end
            of year.........................          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         289         845
    73.10 Total new obligations.............         988
    73.20 Total outlays (gross).............        -429
    73.31 Obligated balance transferred to
            other accounts..................                    -845
    73.45 Adjustments in unexpired accounts.          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         845
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         429
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         429
    ---------------------------------------------------------------------------

        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 2000.

        All balances in this account will 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Lower income housing..............         802
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         802
    ----------------------------------------------------------------------------

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

    21.40   Unobligated balance available,
              start of year.................       1,794         231
    21.40   Authority to Borrow.............          16         522
                                               ---------   ---------  ----------
    21.99   Total unobligated balance, start
              of year.......................       1,810         753
    22.00 New budget authority (gross)......      -1,089        -120
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         834
    22.21 Unobligated balance transferred to
            other accounts..................                    -632
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,555           1
    23.95 Total new obligations.............        -802
          Unobligated balance available, end of year:

    24.40   Unobligated balance available,
              end of year...................         231
    24.40   Unobligated balance available,
              end of year...................         522
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................         753
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.05   Appropriation (indefinite)......       2,737
    40.36   Unobligated balance rescinded...      -1,084         -16
    40.49   Portion applied to liquidate
              contract authority............      -2,737
    41.00   Transferred to other accounts...          -5        -104
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      -1,089        -120
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year      11,523       6,864
    72.49   Obligated balance, start of
              year: Contract authority......      46,167      43,430
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............      57,690      50,294
    73.10 Total new obligations.............         802
    73.20 Total outlays (gross).............      -7,365
    73.31 Obligated balance transferred to
            other accounts..................                 -50,293
    73.45 Adjustments in unexpired accounts.        -834
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..       6,864
    74.49   Obligated balance, end of year:
              Contract authority............      43,430
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................      50,294
    ----------------------------------------------------------------------------

    [[Page 484]]

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................       7,365
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,089        -120
    90.00 Outlays...........................       7,364
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0164-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............      46,167      43,430
    0340  Unobligated balance transferred...                 -43,430
    0400  Appropriation to liquidate
            contract authority..............      -2,737
    0700  Balance, end of year..............      43,430
    ---------------------------------------------------------------------------

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

        This account has not received an appropriation for several years.
    The 2000 Appropriations Act (P.L. 106-74) transferred the unexpended
    balances from this account to other accounts.

                                 Moving to Work

        Note.--Section 210 of the Department of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act,
    2000, provided $5 million for the Jobs-Plus Initiative within the
    Moving-to-Work Demonstration.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0331-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 JOBS PLUS Initiative..............                       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:
          Discretionary:

    40.00   Appropriation...................                       5
    ----------------------------------------------------------------------------

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................                       5
    90.00 Outlays...........................                       3           2
    ---------------------------------------------------------------------------

        The Moving-to-Work demonstration provides unprecedented autonomy and
    flexibility to a select group of high-performing public housing
    authorities (PHAs) in order to assess the potential impacts of Federal
    deregulation on resident households, housing developments, and local
    housing programs. Through waivers of requirements of the 1937 Housing
    Act, as amended, and related Federal regulations, participating PHAs can
    combine Federal funding allocated for public housing operating subsidy,
    capital subsidy, and Section 8 certificates and vouchers into a flexible
    housing assistance fund. By providing incentives to families that work,
    are seeking work, or are preparing for work, PHAs are also allowed to
    change administrative procedures and management policies so they can
    reallocate resources to better address local housing needs and
    priorities.

                           Public Housing Capital Fund

                         (including transfers of funds)

        For the Public Housing Capital Fund Program to carry out capital and
    management activities for public housing agencies, as authorized under
    section 9 of the United States Housing Act of 1937, as amended (42
    U.S.C. 1437), [$2,900,000,000]$2,955,000,000, to remain available until
    expended[: Provided, That of the total amount, up to $75,000,000]; of
    which, up to $100,000,000 shall be for carrying out activities under
    section 9(h) of such Act, and for lease adjustments to section 23
    projects[: Provided further, That no funds may be used under this
    heading for the purposes specified in section 9(k) of the United States
    Housing Act of 1937: Provided further, That of the total amount, up to
    $75,000,000 shall be available for the Secretary of Housing and Urban
    Development to make grants to public housing agencies for emergency
    capital needs resulting from emergencies and natural disasters in fiscal
    year 2000:]; $55,000,000 shall be for the Resident Opportunity and Self-
    Sufficiency Program for grants for supportive services for public
    housing residents, as authorized by section 34 of such Act, and for
    service coordinators and congregate services for the elderly and
    disabled residents of public and assisted housing; up to $10,000,000
    shall be for promoting consortia or other consolidations among housing
    authorities; and up to $1,000,000 shall be for the design of a capital
    financing program: Provided [further], That all balances for [debt
    service for Public and Indian Housing and Public and Indian Housing
    Grants previously] the Economic Development and Supportive Services
    program, the Tenant Opportunity program, and the Resident Opportunities
    and Self-Sufficiency program (section 34 of such Act), funded within the
    [``Annual Contributions for Assisted Housing''] ``Community Development
    Block Grants'' 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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital Grants....................       2,173       3,044       2,911
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       2,173       3,044       2,911
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       1,608       2,464       2,289
    22.00 New budget authority (gross)......       3,000       2,869       2,955
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          29
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,637       5,333       5,244
    23.95 Total new obligations.............      -2,173      -3,044      -2,911
    24.40 Unobligated balance available, end
            of year.........................       2,464       2,289       2,333
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,000       2,900       2,955
    40.36   Unobligated balance rescinded...                     -31
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,000       2,869       2,955
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       6,137       5,201      11,566
    73.10 Total new obligations.............       2,173       3,044       2,911
    73.20 Total outlays (gross).............      -3,080      -3,159      -3,346
    73.32 Obligated balance transferred from
            other accounts..................                   6,480
    73.45 Adjustments in unexpired accounts.         -29
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       5,201      11,566      11,131
    ----------------------------------------------------------------------------

    [[Page 485]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      65          70
    86.93 Outlays from discretionary
            balances........................       3,080       3,094       3,275
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,080       3,159       3,346
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,000       2,869       2,955
    90.00 Outlays...........................       3,080       3,159       3,346
    ---------------------------------------------------------------------------

        The Public Housing Capital Fund, 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;
    Family Investment Centers; and the resident opportunities and self
    sufficiency program.

        Of the $2.955 billion requested for the Public Housing Capital Fund,
    $2.79 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 inspection of public
    housing units. Further, of the requested amount, $55 million will be for
    the Resident Opportunities and Self Sufficiency Program. In addition, up
    to $10 million is provided to promote consortia or other consolidations
    among housing authorities and up to $1 million will be for the design of
    a capital financing program.

        During 1999, the Department modified its formula for allocating
    capital subsidies to housing authorities through negotiated rulemaking
    with representatives of public housing authorities, public housing
    residents, and other stakeholders. The new formula will be implemented
    in 2000.

        Pursuant to P.L. 106-74, all balances for debt service for Public
    and Indian Housing and Public and Indian Grants previously funded under
    the Annual Contributions for Assisted Housing account were transferred
    to the Public Housing Capital Fund in 2000.

        The 2001 Budget proposes to transfer all balances reflected in the
    Community Development Block Grant account for the Tenant Opportunities,
    the Economic Development and Supportive Services, and the Resident
    Opportunities and Self Sufficiency programs to the Public Housing
    Capital Fund.

                          Public Housing Operating Fund

                         (including transfers of funds)

        For payments to public housing agencies for the operation and
    management of public housing, as authorized by section 9(e) of the
    United States Housing Act of 1937, as amended (42 U.S.C. 1437g),
    [$3,138,000,000] $3,192,000,000, to remain available until expendedP[:
    Provided, That no funds may be used under this heading for the purposes
    specified in section 9(k) of the United States Housing Act of 1937].
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0163-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating subsidies...............       2,852       3,150       3,192
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       2,852       3,150       3,192
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          41          12
    22.00 New budget authority (gross)......       2,818       3,138       3,192
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,864       3,150       3,192
    23.95 Total new obligations.............      -2,852      -3,150      -3,192
    24.40 Unobligated balance available, end
            of year.........................          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,818       3,138       3,192
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,441       1,412       1,590
    73.10 Total new obligations.............       2,852       3,150       3,192
    73.20 Total outlays (gross).............      -2,876      -2,972      -3,160
    73.45 Adjustments in unexpired accounts.          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,412       1,590       1,622
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,454       1,600       1,628
    86.93 Outlays from discretionary
            balances........................       1,422       1,372       1,532
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,876       2,972       3,160
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,818       3,138       3,192
    90.00 Outlays...........................       2,876       2,972       3,160
    ---------------------------------------------------------------------------

        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 reflect efforts to date to develop a new formula for the
    allocation of operating subsidies using regulatory negotiations as
    required by the Quality Housing and Work Responsibility Act of 1998. It
    is anticipated that sufficient funds will be available to provide 100
    percent of PFS requirements in 2001.

        The following tables display the sources of housing authorities'
    expected revenue and expenditures by category for 2001. The distribution
    is based on historical data reported by housing authorities to HUD on
    the Statement of Operating Receipts and Expenditures.

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

                    Category                 Annual income    Percent of
                                                                 total
    Operating Subsidies.....................        $3,192              51
    Dwelling Rental.........................        $2,752              44
    Investment..............................          $125               2
    Other Income............................          $188               3
                                             -------------

       Total, Operating Revenue.............         6,259

        Operating Subsidies.--Represent HUD's contributions to a housing
    authority's operating budget. Under the current PFS, HUD sets a formula-
    determined allowable expense level (AEL) for each PHA and separately
    computes utility and audit costs. The PHA's dwelling rental income is
    also projected and the subsidy is the difference between the projected
    expenses and projected dwelling rental 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...............................        $1,377              22
    Administration..........................         1,189              19
    General Operating Expenses..............         1,127              18
    Maintenance.............................         1,815              29
    Tenant Services.........................            63               1
    Protective Services.....................           125               2
    Capital Expenditures....................           125               2

    [[Page 486]]

    Operating Reserve.......................           438               7
                                             -------------

       Total, Operating Expenses............         6,259

        Utilities.--Includes water, sewer, 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 extraordinary maintenance, casualty
    losses, and property betterments (e.g. roofs and furnaces).

        Operating reserves.--Provides working capital funds and is a reserve
    for emergencies.

        The Budget also projects that additional funds for operating
    subsidies will be available to housing authorities from increased rent
    collections from improved income matching.

        Pursuant to the requirements of the Quality Housing and Work
    Responsibility Act of 1998, during 2000, the Department will continue to
    modify its approach to the operating subsidy calculation through
    negotiated rulemaking with public housing authority representatives,
    public housing tenants, and other stakeholders. The operating subsidy
    negotiated rulemaking committee will base the new formula 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.

        The Administration proposes collecting security deposits in public
    housing beginning October 1, 2000. To improve incentives for resident
    upkeep of units, this administrative change would require a one-month
    security deposit from all public housing residents. This parallels
    management practices in HUD's Section 8 program and in the private
    rental market. Deposits will be placed in interest-bearing escrow
    accounts. PHAs have discretion to decide how the security deposit will
    be paid, either in monthly installments, up-front, or a combination of
    the two.

                 Drug Elimination Grants for Low-Income Housing

        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] $345,000,000, to remain available until
    expended[: Provided, That of the total amount provided under this
    heading, up to $4,500,000]; of which $10,000,000 shall be solely for
    technical assistance, technical assistance grants, training, and program
    assessment for or on behalf of public housing agencies, resident
    organizations, and Indian tribes and their tribally designated housing
    entities (including up to [$150,000] $250,000 for the cost of necessary
    travel for participants in such training)[: Provided further, That of
    the amount provided under this heading,]; $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:
    Provided further, That of the amount under this heading; $10,000,000
    shall be provided to the Office of Inspector General for Operation Safe
    Home[: Provided further, That of the amount under this heading,];
    $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 [further], 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 of the amount under this heading,
    $30,000,000 shall be for the Community Gun Safety and Violence Reduction
    Initiative, which will include (1) competitive grants to public or
    private nonprofit organizations and other appropriate entities as
    determined by the Secretary, including consortia of such organizations
    and entities, for community-based education and outreach programs to
    address gun violence, both criminal and accidental; (2) competitive
    matching grants and technical assistance to units of general local
    government, law enforcement agencies, pubic housing agencies, recipients
    under the Native American Housing Assistance and Self-Determination Act
    of 1996, public and private for-profit and nonprofit organizations, and
    civic associations, including consortia of such entities, to support gun
    safety and violence reduction activities, including gun buy-back
    programs, gun-tracing efforts, youth diversion programs that offer
    alternatives to crime, violence counseling programs, and gun-violence
    hotlines and training; (3) competitive grants and technical assistance
    to law enforcement agencies who have partnered with public and private
    entities to develop and support computer crime-tracking and mapping
    databases on gun-related crimes and violence; and (4) an evaluation and
    report on the initiative that sets forth which elements or combination
    of elements are most effective at reducing gun-related crime and
    violence. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0197-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         296         517         259
    00.02 Federally Assisted Housing........          16          35          16
    00.03 Operation Safe Home...............          17          31          20
    00.04 New Approach Anti-Drug Program....          11          49          20
    00.05 Community Gun Safety and Violence
            Reduction.......................                                  30
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         340         632         345
    ----------------------------------------------------------------------------

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

    21.40   Unobligated balance available,
              start of year.................         336          81
    21.40   Administrative Authority........          10         241
                                               ---------   ---------  ----------
    21.99   Total unobligated balance, start
              of year.......................         346         322

    [[Page 487]]

    22.00 New budget authority (gross)......         310         310         345
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         662         632         345
    23.95 Total new obligations.............        -340        -632        -345
          Unobligated balance available, end of year:

    24.40   Unobligated balance available,
              end of year...................          81
    24.40   Administrative Commitments......         241
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................         322
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         310         310         345
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         266         316         623
    73.10 Total new obligations.............         340         632         345
    73.20 Total outlays (gross).............        -283        -325        -315
    73.45 Adjustments in unexpired accounts.          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         316         623         653
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         283         325         315
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         310         310         345
    90.00 Outlays...........................         283         325         315
    ---------------------------------------------------------------------------

        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 assisted housing communities, 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
    prevention activities 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. In 1999, HUD completed rulemaking to
    implement the 1998 amendments and to distribute grant awards through a
    simple formula.

        The $345 million requested for this program in 2001 also includes
    funding for the Community Gun Safety and Violence Reduction Initiative.
    With more than 30,000 people killed and 100,000 injured by guns each
    year in our Nation, gun-related violence poses a major threat to HUD's
    obligation to help ensure ``a decent home and a suitable living
    environment for every American family.'' Through such programs as the
    Drug Elimination Program, the Gun Buyback Violence Reduction Initiative,
    Operation Safe Home, the Peacemakers Corp, the Youth Violence Prevention
    Program, Crime Prevention Through Environmental Design, Safe Futures and
    Others, HUD has targeted crime and violence in our Nation's communities,
    but more must be done about the distinctive program of gun-related
    violence, both criminal and accidental. The Community Gun Safety and
    Violence Reduction Initiative will help address this problem with three
    program elements. The Initiative will fund public education programs
    that will use a variety of media to address the hazards posed by the
    presence of firearms in the community as well as actions associated with
    responsible gun ownership. The Initiative will also provide technical
    assistance and matching funds to implement gun violence reduction
    programs, building upon or complementing existing community safety
    programs where they exist. Finally, the Initiative will fund state-of-
    the-art computerized gun-violence tracking and gun tracing efforts to
    close the knowledge gap and assist communities and law enforcement
    agencies in planning gun-violence reduction initiatives. An evaluation
    of the program will be included.

        The budget proposes to allocate the $345 million requested in 2001
    as follows: (1) $248.75 million for Drug Elimination Grants and
    clearinghouse information services; (2) $20 million for the New Approach
    Anti-Drug program; (3) $20 million for Operation Safe Home; (4) $16.25
    million for other Federally assisted low-income housing grants; (5) $10
    million for technical assistance, training, and information
    dissemination; and (6) $30 million for the Community Gun Safety and
    Violence Reduction initiative.

         Revitalization of Severely Distressed Public Housing (Hope VI)

        For grants to public housing agencies for 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, [$575,000,000] $625,000,000, to remain available until
    expended; of which the Secretary may use up to [$10,000,000] $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 none of such funds shall be
    used directly or indirectly by granting competitive advantage in awards
    to settle litigation or pay judgments, unless expressly permitted
    herein: Provided further, That of the amount provided under this
    heading, $1,200,000 shall be contracted through the Secretary to be used
    by the Urban Institute to conduct an independent study on the long-term
    effects of the HOPE VI program on former residents of distressed public
    housing developments]; and of which the Secretary shall use up to
    $180,000,000 for grants to address sites: (1) that are subject to
    conversion or assessment under section 202 of the Departments of
    Veterans Affairs and Housing and Urban Development and Independent
    Agencies Appropriations Act of 1996, and (2) for which no applicable
    approval under that section or other approval for demolition,
    disposition, or HOPE VI has been provided prior to January 1, 2000:
    Provided That the Secretary may allocate grants under the preceding
    clause in any manner the Secretary deems appropriate to assure to the
    maximum extent possible that such sites are addressed satisfactorily:
    Provided further, That of the amount in the preceding proviso, up to
    $50,000,000 shall be used for demolition grants and up to $5,000,000
    shall be used for capacity building in communities receiving grants to
    address sites described above. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0218-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         577       1,255         625
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         577       1,255         625
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         630         680
    22.00 New budget authority (gross)......         625         575         625
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,255       1,255         625
    23.95 Total new obligations.............        -577      -1,255        -625
    24.40 Unobligated balance available, end
            of year.........................         680
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         625         575         625
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,943       2,198       2,865
    73.10 Total new obligations.............         577       1,255         625
    73.20 Total outlays (gross).............        -321        -588        -597
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       2,198       2,865       2,893
    ----------------------------------------------------------------------------

    [[Page 488]]

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         321         588         597
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         625         575         625
    90.00 Outlays...........................         321         588         597
    ---------------------------------------------------------------------------

        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.

        For the 2001 Budget, HUD will use up to $180 million of HOPE VI
    funds to address sites subject to the ``mandatory conversion'' law. That
    law requires that sites which would cost more to operate and modernize
    than vouchers and cannot be reasonably revitalized must be removed from
    the inventory. By devoting funds to the resolution of issues regarding
    sites subject to this law, HUD will be removing nearly 30,000 of the
    worst public housing units in the country and providing a positive
    alternative over the next three years. The balance of funds will be used
    for general HOPE VI competition, demolition-only grants, and technical
    assistance.

                  [Native American] Indian Housing Block Grants

                          (including transfer of funds)

        For the [Native American] Indian Housing Block Grants program, as
    authorized under title I of the Native American Housing Assistance and
    Self-Determination Act of 1996 (NAHASDA) (Public Law 104-330),
    [$620,000,000] $650,000,000, to remain available until expended, of
    which [$2,000,000 shall be contracted through the Secretary as technical
    assistance and capacity building to be used by the National American
    Indian Housing Council in support of the implementation of NAHASDA and]
    up to [$4,000,000 by the Secretary] $6,000,000 shall be 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 for the Indian Homeownership
    Intermediary Initiative; and $5,000,000 shall be made available for the
    cost of guaranteed notes and other obligations, as authorized by title
    VI of 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] $43,360,000: 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 ``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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Indian Housing Block Grants.......         577         789         644
    00.02 Technical Assistance..............           5           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         582         795         650
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         136         175
    22.00 New budget authority (gross)......         620         620         650
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         756         795         650
    23.95 Total new obligations.............        -582        -795        -650
    24.40 Unobligated balance, end of year..         175
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         620         620         650
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,121       1,105       1,235
    73.10 Total new obligations.............         582         795         650
    73.20 Total outlays (gross).............        -597        -665        -699
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,105       1,235       1,186
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          59         192         202
    86.93 Outlays from discretionary
            balances........................         538         473         497
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         597         665         699
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         620         620         650
    90.00 Outlays...........................         597         665         699
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............                      55          43
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....                      55          43
        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..........           6           6           5
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..           6           6           5
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................                       3           2
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                       3           2
    ---------------------------------------------------------------------------

        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 (IHBG) 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 $5 million to create
    an Indian Homeownership Intermediary with specific expertise in Indian
    country. The purpose of this initiative is to provide a catalyst for a
    homeownership market by providing homeownership and homeownership-
    related services on Indian reservations and other Indian areas.

        The Indian Housing Block Grant program also includes a guaranteed
    loan provision (Title VI). A guarantee level of $43 million is proposed
    for this loan guarantee program for 2001. 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 des

    [[Page 489]]

    ignated 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program: Capital
            investment loans to PHAs........          17          40          40
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................          17          40          40
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          17          20          20
    22.00 New budget authority (gross)......         108         111         111
    22.60 Portion applied to repay debt.....         -88         -71         -71
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          37          60          60
    23.95 Total new obligations.............         -17         -40         -40
    24.40 Unobligated balance available, end
            of year.........................          20          20          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)          25          40          40
    69.00 Offsetting collections (cash).....          83          71          71
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         108         111         111
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         965         866         790
    73.10 Total new obligations.............          17          40          40
    73.20 Total outlays (gross).............        -116        -116        -116
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         866         790         714
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          28          40          40
    86.98 Outlays from mandatory balances...          88          76          76
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         116         116         116
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -12
    88.40     Non-Federal sources...........         -71         -71         -71
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -83         -71         -71
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          40          40
    90.00 Outlays...........................          32          45          45
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,492       1,421       1,350
    1251  Repayments: Repayments and
            prepayments.....................         -71         -71         -71
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,421       1,350       1,279
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,307       3,026       2,745
    2251  Repayments and prepayments........        -281        -281        -281
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,026       2,745       2,464
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       3,026       2,745       2,464
    ---------------------------------------------------------------------------

        The Low-Rent Public Housing Loan Fund provides direct Federal loans
    to fund remaining Public Housing Agency and Indian Housing Authority
    construction, acquisition, and modernization activities reserved under
    the Annual Contributions appropriation through 1986. These loans are
    made from borrowings from the Treasury. Under legislation enacted during
    1986 (Public Law 99-272), the borrowings from the Treasury are forgiven
    at the end of each fiscal year and the loans to PHAs/IHAs are forgiven
    as construction, acquisition, and modernization activities are
    completed. Under the provisions of this legislation, $25 million of
    borrowings from the Treasury were forgiven in 1999, an estimated $40
    million will be borrowed from the Treasury and forgiven in 2000, and an
    estimated $40 million will be borrowed from the Treasury and forgiven in
    2001.

        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 1998, 1999, 2000 and 2001 follows:

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         104            100           100            100
    0102  Expense...........................         -95            -91           -91            -91
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           9              9             9              9
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         968            886           886            886
            Investments in US securities:
    1106      Receivables, net..............       1,585
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          35          1,447         1,447          1,447
    1602    Interest receivable.............           3             89            89             89
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -12            -12           -12            -12
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............          26          1,524         1,524          1,524
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          26          1,524         1,524          1,524
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,579          2,410         2,410          2,410
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         181            173           173            173
    2104    Resources payable to Treasury...       1,491          1,420         1,420          1,420
    2207  Non-Federal liabilities: Other....           1            -15           -15            -15
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,673          1,578         1,578          1,578
        NET POSITION:
    3100  Appropriated capital..............         866            821           821            821
    3300  Cumulative results of operations..          40             11            11             11
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         906            832           832            832
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,579          2,410         2,410          2,410
    -----------------------------------------------------------------------------------------------

    [[Page 490]]

    Credit accounts:

               Indian Housing Loan Guarantee Fund Program Account

                          (including transfer of funds)

        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
    $71,956,000.
        In addition, for administrative expenses to carry out the guaranteed
    loan program, up to $150,000 from amounts in the first paragraph, which
    shall be transferred to and merged with the appropriation for ``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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........           1           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           1           6           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           4          13          13
    22.00 New budget authority (gross)......          10           6           6
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          15          19          19
    23.95 Total new obligations.............          -1          -6          -6
    24.40 Unobligated balance available, end
            of year.........................          13          13          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           6           6
    50.00   Reappropriation.................           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10           6           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           6           3           2
    73.10 Total new obligations.............           1           6           6
    73.20 Total outlays (gross).............          -2          -7          -7
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           3           2           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.93 Outlays from discretionary
            balances........................           1           6           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2           7           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10           6           6
    90.00 Outlays...........................           2           7           7
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............          12          72          72
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....          12          72          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..........          10           6           6
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          10           6           6
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................           2           7           7
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           2           7           7
    ---------------------------------------------------------------------------

        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 2001 will be used
    to guarantee approximately 450 loans.

              Indian Housing Loan Guarantee Fund Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           4           6          13
    22.00 New financing authority (gross)...           2           7           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6          13          20
    24.40 Unobligated balance available, end
            of year.........................           6          13          20
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Federal sources......           2           7           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources:
              Payments from program account.          -2          -7          -7
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -2          -7          -7
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          81          72          72
    2112  Uncommitted loan guarantee
            limitation......................         -69
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          12          72          72
    2199  Guaranteed amount of guaranteed
            loan commitments................          12          72          72
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          38          47          84
    2231  Disbursements of new guaranteed
            loans...........................          17          40          40
    2251  Repayments and prepayments........          -8          -3          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          47          84         121
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          47          84         121
    ---------------------------------------------------------------------------

        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 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

    [[Page 491]]

    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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           4              6             4              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           4              6             4              4
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           4              6             3              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           4              6             3              3
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           4              6             3              3
    -----------------------------------------------------------------------------------------------

              Title VI Indian Federal Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

        New financing authority (gross), detail:
          Discretionary:

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

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          55          55          43
    2112  Uncommitted loan guarantee
            limitation......................         -55
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                      55          43
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  52
    2231  Disbursements of new guaranteed
            loans...........................                      55          43
    2251  Repayments and prepayments........                      -3          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                      52          92
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      52          92
    ---------------------------------------------------------------------------

        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), [$232,000,000] $260,000,000, to remain available until expended:
    Provided, That the Secretary may use up to [0.75] 1 percent of the funds
    under this heading for technical assistance. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0308-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing for AIDs victims..........         208         289         260
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         208         289         260
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          40          57
    22.00 New budget authority (gross)......         225         232         260
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         265         289         260
    23.95 Total new obligations.............        -208        -289        -260
    24.40 Unobligated balance available, end
            of year.........................          57
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         225         232         260
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         440         436         513
    73.10 Total new obligations.............         208         289         260
    73.20 Total outlays (gross).............        -211        -212        -213
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         436         513         560
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           5           5
    86.93 Outlays from discretionary
            balances........................         209         207         207
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         211         212         213
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         225         232         260
    90.00 Outlays...........................         211         212         213
    ---------------------------------------------------------------------------

        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 is used for technical assistance to grantees
    and up to 0.5 percent is used for management information systems
    support. 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 2001 will support
    approximately 48,000 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

    [[Page 492]]

    ``Act'' herein) (42 U.S.C. 5301), [$4,800,000,000] $4,900,000,000, to
    remain available until September 30, [2002] 2003: Provided, That
    [$67,000,000] $69,000,000 shall be for flexible grants to Indian tribes
    notwithstanding section 106(a)(1) of such Act, of which $2,000,000 shall
    be for the Native American Economic Development Access Center,
    $3,000,000 shall be available as a grant to the Housing Assistance
    Council, $2,200,000 shall be available as a grant to the National
    American Indian Housing Council, and $5,000,000 for Tribal Colleges and
    Universities; and [$41,500,000] $68,500,000 shall be for grants pursuant
    to section 107 of the Act, including $5,000,000 for New Markets
    University Partnership pilot grants, including $2,000,000 to support
    Alaska Native serving institutions and native Hawaiian serving
    institutions, as defined under the Higher Education Act, as amended:
    Provided further, That [$20,000,000] $17,500,000 shall be for grants
    pursuant to the Self Help Housing Opportunity Program: Provided further,
    That $22,000,000 shall be for grants for economic revitalization and
    community development initiatives in the Mississippi Delta Region (as
    such region is defined in P.L. 100-460): 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, [$23,750,000]
    $31,500,000 shall be made available for capacity building[, of which
    $20,000,000 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 $4,000,000 of the
    funding to be used in rural areas, including tribal areas, and of which
    [$3,750,000] $7,500,000 shall be [made available] for capacity building
    activities administered by [to] Habitat for Humanity International.
        [Of the amount made available under this heading, the Secretary of
    Housing and Urban Development may use up to $55,000,000 for supportive
    services for public housing residents, as authorized by section 34 of
    the United States Housing Act of 1937, as amended, and for grants for
    service coordinators and congregate services for the elderly and
    disabled residents of public and assisted housing: Provided further,
    That amounts made available for congregate services and service
    coordinators for the elderly and disabled under this heading and in
    prior fiscal years may be used by grantees to reimburse themselves for
    costs incurred in connection with providing service coordinators
    previously advanced by grantees out of other funds due to delays in the
    granting by or receipt of funds from the Secretary, and the funds so
    made available to grantees for congregate services or service
    coordinators under this heading or in prior years shall be considered as
    expended by the grantees upon such reimbursement. The Secretary shall
    not condition the availability of funding made available under this
    heading or in prior years for congregate services or service
    coordinators upon any grantee's obligation or expenditure of any prior
    funding.]
        [Of the amount made available under this heading, $30,000,000 shall
    be available for neighborhood initiatives that are utilized to improve
    the conditions of distressed and blighted areas and neighborhoods, to
    stimulate investment, economic diversification, and community
    revitalization in areas with population outmigration or a stagnating or
    declining economic base, or to determine whether housing benefits can be
    integrated more effectively with welfare reform initiatives: Provided,
    that any unobligated balances of amounts set aside for neighborhood
    initiatives in fiscal years 1998 and 1999 may be utilized for any of the
    foregoing purposes: Provided further, That of the amount set aside for
    fiscal year 2000 under this paragraph, $23,000,000 shall be used for
    grants specified in the statement of the managers of the committee of
    conference accompanying this Act.]
        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 of the amount provided under this paragraph, [$2,500,000]
    $3,750,000 shall be set aside and made available for a grant to
    Youthbuild USA for capacity building for community development and
    affordable housing activities as specified in section 4 of the HUD
    Demonstration Act of 1993, as amended].
        Of the amount made available under this heading, [$275,000,000]
    $100,000,000 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 $240,000,000 for
    making individual grants for targeted economic investments in accordance
    with the terms and conditions specified for such grants in the statement
    of the managers of the committee of conference accompanying this Act].
        Of the amount made available under this heading, $20,000,000 shall
    be available to assist community-based (including religiously
    affiliated) non-profit organizations in their efforts to supply
    affordable housing, create economic opportunity, promote the goals of
    fair housing, and increase the effectiveness of other programs and
    initiatives administered in distressed high poverty areas by the
    Secretary: Provided, That these amounts for technical assistance and
    capacity building activities for community-based (including religiously
    affiliated) non-profit organizations shall be administered by the Center
    for Community and Interfaith Partnerships at the Department of Housing
    and Urban Development.
        For the cost of guaranteed loans, [$29,000,000] $28,000,000, 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] $1,217,000,000,
    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, up to $2,000,000 for
    administrative expenses to carry out the guaranteed loan program[,
    $1,000,000], which shall be transferred to and merged with the
    appropriation for ``Salaries and expenses''.
        [The Secretary is directed to transfer the administration of the
    small cities component of the Community Development Block Grant Program
    for the funds allocated for the State of New York under section 106(d)
    of the Housing and Community Development Act of 1974 for fiscal year
    2000 and all fiscal years thereafter to the State of New York to be
    administered by the Governor of New York]. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Community development.............       4,797       5,712       4,895
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       4,797       5,712       4,895
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         832         931
    22.00 New budget authority (gross)......       4,893       4,781       4,895
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,729       5,712       4,895
    23.95 Total new obligations.............      -4,797      -5,712      -4,895
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    24.40 Unobligated balance available, end
            of year.........................         931
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,750       4,800       4,895

    [[Page 493]]

    40.15   Appropriation (emergency).......         150
    40.76   Reduction pursuant to P.L. 106-
              113...........................                     -19
    41.00   Transferred to other accounts...          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,893       4,781       4,895
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       9,031       9,013      10,046
    73.10 Total new obligations.............       4,797       5,712       4,895
    73.20 Total outlays (gross).............      -4,804      -4,856      -4,826
    73.31 Obligated balance transferred to
            other accounts..................                    -100
    73.32 Obligated balance transferred from
            other accounts..................                     277
    73.40 Adjustments in expired accounts
            (net)...........................          -7
    73.45 Adjustments in unexpired accounts.          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       9,013      10,046      10,115
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          98          96          98
    86.93 Outlays from discretionary
            balances........................       4,706       4,760       4,728
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,804       4,856       4,826
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,893       4,781       4,895
    90.00 Outlays...........................       4,804       4,856       4,826
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................       4,893       4,781       4,895
      Outlays...........................       4,804       4,856       4,826
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                   5
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................       4,893       4,781       4,900
      Outlays...........................       4,804       4,856       4,826
                                        ====================================

        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.

        The 2001 Budget allocates $69 million to Indian tribes as authorized
    by Section 106(a)(1) of the Housing and Community Development Act of
    1974. Since its inception, funds made available to Native American
    communities have supported a wide variety of community development
    activities, predominantly, but not exclusively, community facilities,
    infrastructure and buildings to help meet the basic needs of low and
    moderate income community members. Since the vast majority of eligible
    tribes and Alaska Native Villages have non-existent tax bases, this
    program has helped to finance those public facilities needed to maintain
    or establish community viability. While it has had a significant impact
    on many Native American communities throughout the Nation, basic
    community development needs throughout Indian Country remain
    substantial.

        Seventy percent of formula funds are allocated to metropolitan
    cities and urban counties that receive their grants using the higher of
    two objective formulas. States and small cities receive 30 percent of
    the formula funds. The proposed level of funding for CDBG and the
    Section 108 Loan Guarantee Program will support an estimated 256,500
    jobs. These funds will also help to rehabilitate 169,300 housing units.

        Section 107 Grants include funding for Insular Areas, technical
    assistance, management information systems support, Historically Black
    Colleges and Universities, a New Markets University Partnerships pilot
    program, Hispanic serving Institutions, Alaska and Hawaiian serving
    Institutions, the Community Development Work Study and Community
    Outreach Partnership Centers (COPC) programs.

        As authorized by Section 4 of the HUD Demonstration Act of 1993, the
    National Community Development Initiative (NCDI) will help build
    capacity of community-based development corporations and housing
    development organizations, and assist such corporations and
    organizations to carry out community development and affordable housing
    activities. The 2001 Budget includes $24 million for this program.

        The Youthbuild program provides resources to educate, train and
    supply 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 2001 request for $75 million will provide more than
    5,100 young people with skills they need to obtain jobs and will provide
    approximately 750 families in distressed communities with homes.

        The 2001 Budget proposes $100 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 2000, 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 711 projects and completed the financing on
    429 of those for a total of $1.7 billion--projects such as supermarkets
    in Washington, DC, and Houston, TX, industrial parks, and other business
    ventures. When all 711 projects are completed, an estimated 338,000 jobs
    will have been created or retained.

        Funding of $22 million is requested for HUD's participation in the
    Mississippi Delta Regional Initiative. This initiative will provide
    funds and technical assistance for economic revitalization in the Delta
    region.

        Up to $2 million is included for the development of a toll-free
    telephone assistance service center at HUD to Native Americans to
    provide information and answer inquiries about economic development
    assistance. The center will feature the following components: (1) a
    comprehensive inventory of Federal, state and private programs available
    to support economic development in Indian Country; (2) a comprehensive
    inventory of credit enhancements available to the financial community
    for lending and investing in Indian Country; and (3) a comprehensive
    inventory of private market incentives for companies doing business in
    Indian Country.

        The 2001 Budget also includes $5 million in competitive grants to
    Tribal Colleges and Universities (TCU) to address community development
    needs in their communities. The TCUs funded would assist communities
    with neighborhood revitalization and housing and economic development.
    The predominant activities to be accomplished under this program would
    be to create partnerships, create community development corporations,
    develop supportive services for welfare to work initiatives,
    rehabilitate housing, promote economic development through small
    business incubators and job training programs and rehabilitate
    commercial properties. The target service population would be low- and
    moderate-income families within the communities served by the TCU.

        The Community and Interfaith Partnerships set-aside initiative seeks
    to empower community-based (including religiously affiliated) non-profit
    organizations in their efforts to supply affordable housing and create
    economic opportunity, promote the goal of fair housing, and assist HUD
    in the disposition of foreclosed properties and increase the
    effectiveness of HUD programs in distressed high poverty areas. Eligi

    [[Page 494]]

    ble entities for these capacity building and technical assistance grants
    would include social service and community development (including
    religiously affiliated) organizations. The initiative would be funded
    through a $20 million set-aside within the HUD Community Development
    Block Grant Program and administered by the Center for Community and
    Interfaith Partnerships. No funds provided to a community-based
    organization under this heading shall be expended for sectarian worship,
    instruction, or proselytization.

        The Department is finalizing an Optional Entitlement Communities
    (OEC) proposal under which cities as small as 25,000, that are not
    currently part of an entitlement county, and urban counties as small as
    100,000 population could opt for ``entitlement'' status within a three
    year period. These new OEC's would receive formula grants directly from
    HUD.

                       Community Development Block Grants

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-2-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 New Markets University Partnership
            Initiative......................                                   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:
          Discretionary:

    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...........................
    ---------------------------------------------------------------------------

                              Regional Connections

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0325-2-1-452      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants for Regional Activities....                                  25
                                               ---------   ---------  ----------
    10.00   Total new 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:
          Discretionary:

    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 discretionary
            authority.......................                                   1
    ----------------------------------------------------------------------------

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

        Regional Connections will provide $25 million to fund local
    partnerships to design and implement smarter growth strategies across
    jurisdictional lines. Such strategies may include: (a) compact
    development rules and incentives for new growth areas; and (b)
    coordinated reinvestment in already built-up and infrastructure-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), and partnerships of groups of localities and their
    state or states but these will demonstrate active partnerships with
    private and nonprofit stakeholders. Where formally designated by
    eligible lead applicants, 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 jurisdictional and sectional
    boundaries to address the critical issues; yet, many of these strategies
    require assistance to move them to implementation.

        Regional Connections 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-Pjurisdictional strategies developed with
    Federal funds.

                            [Urban Empowerment Zones]

        [For grants in connection with a second round of the empowerment
    zones program in urban areas, designated by the Secretary of Housing and
    Urban Development in fiscal year 1999 pursuant to the Taxpayer Relief
    Act of 1997, $55,000,000 to the Secretary of Housing and Urban
    Development for ``Urban Empowerment Zones'', including $3,666,000 for
    each empowerment zone for use in conjunction with economic development
    activities consistent with the strategic plan of each empowerment zone,
    to remain available until expended.] (Departments of Veterans Affairs
    and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0315-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Develop urban sites...............          42          62
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          42          62
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           4           7
    22.00 New budget authority (gross)......          45          55
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          49          62
    23.95 Total new obligations.............         -42         -62
    24.40 Unobligated balance available, end
            of year.........................           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          45          55
    ----------------------------------------------------------------------------

    [[Page 495]]

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           1          39          84
    73.10 Total new obligations.............          42          62
    73.20 Total outlays (gross).............          -3         -17         -37
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          39          84          47
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1
    86.93 Outlays from discretionary
            balances........................           3          16          37
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3          17          37
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          45          55
    90.00 Outlays...........................           3          17          37
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................          45          55
      Outlays...........................           3          17          37
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                 150
      Outlays...........................                                   3
                                        ------------------------------------
    Total:
      Budget Authority..................          45          55         150
      Outlays...........................           3          17          40
                                        ====================================

        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.
    Empowerment Zone principals include a strategic vision for change, a
    community-based partnership, providing economic opportunity and
    sustainable community development.

        The 2001 budget proposes legislation to authorize mandatory funding
    for the 15 urban Empowerment Zones designated in January 1999, for a
    nine year commitment of $1.5 billion. In addition, $100 million in
    discretionary funds was provided for Round II EZs in the 1999 and 2000
    Appropriations Act (P.L. 105-276 and P.L. 106-74).

        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; leveraging private sector resources, 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.

        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.

                             Urban Empowerment Zones

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0315-4-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Develop urban sites...............                                 150
                                               ---------   ---------  ----------
    10.00   Total new 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:
          Mandatory:

    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 mandatory
            authority.......................                                   3
    ----------------------------------------------------------------------------

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

                            Brownfields Redevelopment

        For Economic Development Grants, as authorized by section 108(q) of
    the Housing and Community Development Act of 1974, as amended, for
    Brownfields redevelopment projects, [$25,000,000] $50,000,000, to remain
    available until expended: Provided, That the Secretary of Housing and
    Urban Development shall make these grants available on a competitive
    basis as specified in section 102 of the Department of Housing and Urban
    Development Reform Act of 1989. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0314-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Cleanup and develop contaminated
            sites...........................                      75          50
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                      75          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          25          50
    22.00 New budget authority (gross)......          25          25          50
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          50          75          50
    23.95 Total new obligations.............                     -75         -50
    24.40 Unobligated balance available, end
            of year.........................          50
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          25          25          50
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year                                  65
    73.10 Total new obligations.............                      75          50
    73.20 Total outlays (gross).............                     -10         -28
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                      65          87
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            balances........................                       9          27
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      10          28
    ----------------------------------------------------------------------------

    [[Page 496]]

        Net budget authority and outlays:
    89.00 Budget authority..................          25          25          50
    90.00 Outlays...........................                      10          28
    ---------------------------------------------------------------------------

        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 Brownfields Redevelopment program was funded at $25 million in
    1998, 1999 and 2000. The 2001 request of $50 million accelerates and
    expands 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 20,000 to
    25,000 jobs.

                               Youthbuild Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0219-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

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

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

        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 2001 request of $75 million will provide more than
    5,100 young people with skills they need to get jobs and will provide
    750 families in distressed communities with homes. The Youthbuild
    program has been funded at a set-aside within the CDBG program since
    1996. The obligated balance and outlays shown above represent activity
    in the separate youthbuild 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], $1,650,000,000 to
    remain available until expended[: Provided, That up to $15,000,000 of
    these funds], of which up to $24,000,000 shall be available for Housing
    Counseling under section 106 of the Housing and Urban Development Act of
    1968[: Provided further, That $2,000,000 of these funds shall be made
    available as a grant to the National Housing Development Corporation for
    a program of housing acquisition and rehabilitation: 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; 3 percent shall be for Native Americans and up
    to $5,000,000 shall be for the development and operation of integrated
    community development management information systems. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0205-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 HOME grants.......................       1,647       1,791       1,650
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,647       1,791       1,650
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         236         191
    22.00 New budget authority (gross)......       1,600       1,600       1,650
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,838       1,791       1,650
    23.95 Total new obligations.............      -1,647      -1,791      -1,650
    24.40 Unobligated balance available, end
            of year.........................         191
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,600       1,600       1,650
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       3,650       3,947       4,081
    73.10 Total new obligations.............       1,647       1,791       1,650
    73.20 Total outlays (gross).............      -1,347      -1,657      -1,734
    73.45 Adjustments in unexpired accounts.          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       3,947       4,081       3,997
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          14          32          33
    86.93 Outlays from discretionary
            balances........................       1,333       1,625       1,701
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,347       1,657       1,734
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,600       1,600       1,650
    90.00 Outlays...........................       1,347       1,657       1,734
    ---------------------------------------------------------------------------

        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 2001
    request will result in the production of 92,064 units of affordable
    housing through new construction, rehabilitation, or acquisition. In
    addition, tenant-based rental assistance will be provided for 10,883
    units.

        The HOME request also includes up to $5 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 $24 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. Up to three percent of
    these funds are

    [[Page 497]]

    set aside for housing counseling assistance for Native Americans. The
    Housing Counseling program was funded at $17.5 million in 1999, and $15
    million in 2000 as set-asides in the HOME account.

                           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), [$1,020,000,000] $1,200,000,000, to
    remain available until expended, of which $105,000,000 shall be for
    section 8 rental assistance under the Housing Act of 1937: 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 any previous
    appropriations Acts 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 all awards of
    assistance under this heading shall take into account proposed
    strategies to expand access to McKinney and non-McKinney-funded programs
    by coordinating and integrating homeless programs with other mainstream
    health, social services, and employment progams for which homeless
    populations may be eligible. These include Medicaid, State Children's
    Health Insurance Program, Temporary Assistance for Needy Families, Food
    Stamps, and services funding through the Mental Health and Substance
    Abuse Block Grant, Workforce Investment Act, and the Welfare-to-Work
    grant program: Provided further, That up to 1 percent of the funds
    appropriated under this heading may be used for technical assistance and
    management information systems: [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'', 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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0192-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Homeless assistance grants........         934       2,197       1,095
    00.02 Homeless assistance vouchers......                                 105
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         934       2,197       1,200
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       1,019       1,072
    22.00 New budget authority (gross)......         975       1,020       1,200
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
    22.22 Unobligated balance transferred
            from other accounts.............                     105
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,006       2,197       1,200
    23.95 Total new obligations.............        -934      -2,197      -1,200
    24.40 Unobligated balance available, end
            of year.........................       1,072
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................         975       1,020       1,095
    40.00     Appropriation.................                                 105
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         975       1,020       1,200
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,588       1,867       3,774
    73.10 Total new obligations.............         934       2,197       1,200
    73.20 Total outlays (gross).............        -643        -961      -1,112
    73.32 Obligated balance transferred from
            other accounts..................                     671
    73.45 Adjustments in unexpired accounts.         -12
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,867       3,774       3,862
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9          31          43
    86.93 Outlays from discretionary
            balances........................         634         930       1,069
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         643         961       1,112
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         975       1,020       1,200
    90.00 Outlays...........................         643         961       1,112
    ---------------------------------------------------------------------------

        The Homeless Assistance Grants program funds the Shelter Plus Care,
    Supportive Housing, Emergency Shelter Grants, and Section 8 Moderate
    Rehabilitation 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 2001 request will fund
    14,500 transitional beds and 11,000 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, $105 million is 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.

                     Rural Housing and Economic Development

                          (including transfer of funds)

        For the Office of Rural Housing and Economic Development in the
    Department of Housing and Urban Development, [$25,000,000], $27,000,000
    to remain available until expended[: Provided, That of the amount under
    this heading, up to $3,000,000 shall be used to develop capacity at the
    State and local level for developing rural housing and for rural
    economic development and for maintaining a clearinghouse of ideas for
    innovative strategies for rural housing and economic development and
    revitalization: Provided further, That of the amount under this heading,
    at least $22,000,000], which amount shall be awarded [by June 1, 2000]
    to Indian tribes, 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

    [[Page 498]]

    activities in rural areas: Provided further, That all grants shall be
    awarded on a competitive basis as specified in section 102 of the HUD
    Reform Act. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0324-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural Housing.....................                      57          27
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                      57          27
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                      32
    22.00 New budget authority (gross)......          32          25          27
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          32          57          27
    23.95 Total new obligations.............                     -57         -27
    24.40 Unobligated balance available, end
            of year.........................          32
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          25          25          27
    42.00   Transferred from other accounts.           7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          32          25          27
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year                                  46
    73.10 Total new obligations.............                      57          27
    73.20 Total outlays (gross).............                     -11         -22
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                      46          51
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            balances........................                      10          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      11          22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          32          25          27
    90.00 Outlays...........................                      11          22
    ---------------------------------------------------------------------------

        The 2000 VA-HUD and Independent Agencies Appropriations Act (P.L.
    106-74) provided $25 million to the Rural Housing and Economic
    Development program. This program is located in the Office of Community
    Planning and Development and is used to encourage new and innovative
    approaches to serving the housing and economic development needs of the
    nation's rural communities.

                         Urban Development Action Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0170-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          96          78          68
    73.20 Total outlays (gross).............         -18         -10         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          78          68          58
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          18          10          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          18          10          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.

       Capacity Building for Community Development and Affordable Housing

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0222-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          21          19          10
    73.10 Total new obligations.............           8
    73.20 Total outlays (gross).............          -9          -9          -7
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          19          10           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           9           9           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           9           9           7
    ---------------------------------------------------------------------------

        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. Funding of
    $20 million was provided for this program in 2000 in Public Law 106-74
    as a set-aside within the CDBG program. $24 million is being requested
    in 2001, again as a set-aside within CDBG.

                        Emergency Shelter Grants Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0181-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           1           1
    22.21 Unobligated balance transferred to
            other accounts..................                      -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1
    24.40 Unobligated balance available, end
            of year.........................           1
    ----------------------------------------------------------------------------

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

    [[Page 499]]

        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 Appropriations Act transferred 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          17          35
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          20
    22.21 Unobligated balance transferred to
            other accounts..................                     -35
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          37
    23.95 Total new obligations.............          -2
    24.40 Unobligated balance available, end
            of year.........................          35
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         177          96
    73.10 Total new obligations.............           2
    73.20 Total outlays (gross).............         -63
    73.31 Obligated balance transferred to
            other accounts..................                     -96
    73.45 Adjustments in unexpired accounts.         -20
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          96
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          63
    ----------------------------------------------------------------------------

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

        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 Appropriations Act
    transferred 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           1           1
    22.21 Unobligated balance transferred to
            other accounts..................                      -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           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           1           1
    73.31 Obligated balance transferred to
            other accounts..................                      -1
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           1
    ----------------------------------------------------------------------------

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

        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 Appropriations Act
    transferred 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           6           3
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.21 Unobligated balance transferred to
            other accounts..................                      -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7
    23.95 Total new obligations.............          -4
    24.40 Unobligated balance available, end
            of year.........................           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         300         228
    73.10 Total new obligations.............           4
    73.20 Total outlays (gross).............         -75
    73.31 Obligated balance transferred to
            other accounts..................                    -228
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         228
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          75
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          75
    ---------------------------------------------------------------------------

        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.

        The 2000 Appropriations Act transferred all balances in this account
    to the Homeless Assistance Grants account.

    [[Page 500]]

              Innovative Homeless Initiatives Demonstration Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0221-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          18           9
    73.20 Total outlays (gross).............          -9
    73.31 Obligated balance transferred to
            other accounts..................                      -9
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           9
    ----------------------------------------------------------------------------

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

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

        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 Appropriations Act transferred all balances in
    this account to the Homeless Assistance Grants account.

     [National Cities] Communities in Schools Community Development Program

        Note.--Section 209 provides $5,000,000 for this account.
        For grants for the Communities in Schools Community Development
    Program, $5,000,000, as authorized by section 930 of the Housing and
    Community Development Act of 1992.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0220-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                       5           5
    42.00   Transferred from other accounts.           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           5           5           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year                       1           3
    73.10 Total new obligations.............           5           5           5
    73.20 Total outlays (gross).............          -4          -4          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           1           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           3           3
    86.93 Outlays from discretionary
            balances........................                       1           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           4           5
    ----------------------------------------------------------------------------

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

        The Communities in Schools program, formerly known as the National
    Cities in Schools program, provides funding to empower local communities
    to work through collaborative public/private partnerships involving
    schools, public housing communities, 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.
    The 2000 Appropriations Act (P.L. 106-74) provided $5 million; an
    additional $5 million is requested for 2001.

    Public enterprise funds:

                      Revolving Fund (Liquidating Programs)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Loan servicing....................           5          10           9
    09.03 Administrative expenses...........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           6          11          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         100          93          76
    22.00 New budget authority (gross)......          53          44          42
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.40 Capital transfer to general fund..         -55         -50         -45
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         100          87          73
    23.95 Total new obligations.............          -6         -11         -10
    24.40 Unobligated balance available, end
            of year.........................          93          76          63
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          53          44          42
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          12           9           4
    73.10 Total new obligations.............           6          11          10
    73.20 Total outlays (gross).............          -7         -16         -14
    73.45 Adjustments in unexpired accounts.          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           9           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           7          16          14
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -53         -44         -42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -45         -28         -28
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         220         175         140
    1251  Repayments: Repayments and
            prepayments.....................         -39         -35         -30
    1263  Write-offs for default: Direct
            loans...........................          -6
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         175         140         110
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           2           1
    2251  Repayments and prepayments........          -1          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           1
    ----------------------------------------------------------------------------

    [[Page 501]]

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

        The Revolving fund (liquidating programs) was established by the
    Independent Offices Appropriations 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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          11             11            10              9
    0102  Expense...........................          -4             -1            -1             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           7             10             9              8
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4015-0-3-451    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         112            103            85             60
          Non-Federal assets:

    1206    Receivables, net................          10             20            18             16
    1207    Advances and prepayments........           2
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         220            175           157            135
    1602    Interest receivable.............          17             16            15             11
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -20             -7            -7             -7
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............         217            184           165            139
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         217            184           165            139
    1801  Other Federal assets: Cash and
            other monetary assets...........           1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         342            308           268            215
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................           1              1             1              1
    2207    Other...........................           7              8             5              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           8              9             6              5
        NET POSITION:
    3100  Appropriated capital..............         197            193           170            140
    3300  Cumulative results of operations..         138            106            92             70
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         335            299           262            210
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         343            308           268            215
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           3           5           5
    32.0  Land and structures...............           3           6           5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           6          11          10
    ---------------------------------------------------------------------------

    Credit accounts:

              Community Development Loan Guarantees Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Community development loan
            guarantee credit subsidy........          10          29          28
    00.09 Administrative expense............           1           1           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................          11          30          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          30          30          30
    23.95 Total new obligations.............         -11         -30         -30
    23.98 Unobligated balance expiring or
            withdrawn.......................         -19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          30          30          30
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          18          18          32
    73.10 Total new obligations.............          11          30          30
    73.20 Total outlays (gross).............          -9         -16         -21
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          18          32          41
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           5           6
    86.93 Outlays from discretionary
            balances........................           6          11          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9          16          21
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          30          30
    90.00 Outlays...........................           9          16          21
    ---------------------------------------------------------------------------

        Guaranteed Loans.--The Community Development Block Grant program
    includes a guaranteed loan provision (Section 108). A commitment level
    of $1.2 billion is proposed for the Community Development Loan
    Guarantees (Section 108) program for 2001. The credit subsidy/
    administrative cost estimate for the guaranteed loan program is $30
    million in 2001.

        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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............         432       1,261       1,217
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....         432       1,261       1,217
        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..........          10          29          28
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          10          29          28
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................           8          15          19
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           8          15          19
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1           2
    3590  Outlays from new authority........           1           1           2
    ---------------------------------------------------------------------------

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

    [[Page 502]]

             Community Development Loan Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           7          16          32
    22.00 New financing authority (gross)...           9          16          21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16          32          53
    24.40 Unobligated balance available, end
            of year.........................          16          32          53
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............           9          16          21
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -8         -15         -19
    88.25     Interest on uninvested funds..          -1          -1          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -9         -16         -21
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -9         -16         -21
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       1,261       1,261       1,217
    2112  Uncommitted loan guarantee
            limitation......................        -829
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         432       1,261       1,217
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       1,189       1,509       1,959
    2231  Disbursements of new guaranteed
            loans...........................         468         650         825
    2251  Repayments and prepayments........        -148        -200        -250
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       1,509       1,959       2,534
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       1,509       1,959       2,534
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4096-0-3-451    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           7             16            32             53
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           7             16            32             53
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           8             16            32             53
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           8             16            32             53
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           8             16            32             53
    -----------------------------------------------------------------------------------------------

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

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

            Community Development Loan Guarantees Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          24           4           4
    22.60 Portion applied to repay debt.....         -17          -4          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7
    23.95 Total new obligations.............
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          24           4           4
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year         138         134         134
    72.95   From Federal sources:
              Receivables and unpaid,
              unfilled orders...............          10          10          10
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         148         144         144
    73.20 Total outlays (gross).............          -4
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..         134         134         134
    74.95   From Federal sources:
              Receivables and unpaid,
              unfilled orders...............          10          10          10
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         144         144         144
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -24          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -20          -4          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          30          13           9
    1251  Repayments: Repayments and
            prepayments.....................         -17          -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          13           9           5
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         165         134         109
    2251  Repayments and prepayments........         -31         -25         -25
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         134         109          84
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         134         109          84
    ---------------------------------------------------------------------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4097-0-3-451    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           8              8             6              6

    [[Page 503]]

    0102  Expense...........................          -8             -8            -6             -6
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4097-0-3-451    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          -8             -4            -4             -4
            Investments in US securities:
    1106      Receivables, net..............           9             11             7              7
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1701    Defaulted guaranteed loans,
              gross.........................          31             13            12             11
    1702    Interest receivable.............           4              4             4              4
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............          35             17            16             15
    1901  Other Federal assets: Other assets         149            139           135            130
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         185            163           154            148
        LIABILITIES:
    2105  Federal liabilities: Other........         155             14            14             13
    2201  Non-Federal liabilities: Accounts
            payable.........................          30            149           140            135
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         185            163           154            148
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         185            163           154            148
    -----------------------------------------------------------------------------------------------

        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

                          [including transfer of funds]

        For the cost of guaranteed loans under the America's Private
    Investment Companies Program, [$20,000,000], $37,000,000 to remain
    available until September 30, [2002] 2003, of which not to exceed
    $1,000,000 shall be for administrative expenses to carry out such a loan
    program, to be transferred to and merged with ``Salaries and Expenses'':
    Provided, That such costs, including the cost of modifying 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 guaranteed, not to exceed
    [$541,000,000: Provided further, That the funds appropriated under this
    heading shall not be available for obligation until the America's
    Private Investment Companies Program is authorized by subsequent
    legislation and the program is developed subject to notice and comment
    rulemaking: Provided further, That if the authorizing legislation is not
    enacted by June 30, 2000, all funds under this heading shall be
    transferred to and merged with the appropriation for the ``Community
    development financial institutions fund program account'' to be
    available for use as grants and loans under that account]
    $1,000,000,000. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0326-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Credit Subsidy....................                      19          36
    00.09 Administrative Expense............                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................                      20          37
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      20          37
    23.95 Total new obligations.............                     -20         -37
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                      20          37
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year                                   5
    73.10 Total new obligations.............                      20          37
    73.20 Total outlays (gross).............                     -15         -28
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                       5          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      15          27
    86.93 Outlays from discretionary
            balances........................                                   1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      15          28
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      20          37
    90.00 Outlays...........................                      15          28
    ---------------------------------------------------------------------------

        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 Budget
    proposes $36 million in credit subsidy, which is expected to leverage $1
    billion in loan commitments and an additional $500 million in private
    equity capital.

        APIC is administered by the Department of Housing and Urban
    Development (HUD) with support from the Small Business Administration
    (SBA), drawing on the dual expertise of these two agencies. The SBA's
    Small Business Investment Companies (SBIC) program also 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. APICs 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 funds issue debentures
    and takes equity positions in businesses needing equity-type capital of
    $10 million or more.

        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, 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.

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

    ----------------------------------------------------------------------------
    Identification code 86-0326-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............                     541       1,000
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....                     541       1,000
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................                    3.60        3.60
                                               ---------   ---------  ----------

    [[Page 504]]

    2329    Weighted average subsidy rate...                    3.60        3.60
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........                      20          36
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..                      20          36
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................                      14          27
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                      14          27
    ----------------------------------------------------------------------------

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

     America's Private Investment Companies Loan Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4102-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                                  14
    22.00 New financing authority (gross)...                      14          29
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                      14          43
    24.40 Unobligated balance available, end
            of year.........................                      14          43
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                      14          29
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                     -14         -27
    88.25     Interest on uninvested funds..                                  -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                     -14         -29
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                     -14         -29
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4102-0-3-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                     541       1,000
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                     541       1,000
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                 395
    2231  Disbursements of new guaranteed
            loans...........................                     395         771
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                     395       1,166
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                     395       1,166
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4102-0-3-451    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                       14             29
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                       14             29
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                                       14             29
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                       14             29
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                       14             29
    -----------------------------------------------------------------------------------------------

        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 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.

                                HOUSING PROGRAMS

                                  Federal Funds

    General and special funds:

                         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, [$911,000,000],
    $989,000,000, to remain available until expended: Provided, That
    [$710,000,000] $779,000,000 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), and for
    supportive services associated with the housing, 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 of which amount $50,000,000 shall be for grants for
    conversion of existing section 202 projects, or portions thereof, to
    assisted living or related use, consistent with the relevant provision
    of title V of this Act] $50,000,000 shall be for service coordinators
    and the continuation of existing congregate service 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; $50,000,000 shall be for the conversion of existing
    projects for the elderly, or portions of such projects, to assisted
    living or related use, as authorized by section 202b (including up to
    $5,000,000 for intergenerational learning centers); and $50,000,000
    shall be for grants for up to 20 percent of the units in any new
    assisted living facility which is developed with new constsruction or
    substantial rehabilitation loan guarantee financing under section 232 of
    the National Housing Act: Provided further, That such units shall be
    occupied by low-income elderly families with at least one member who is
    frail: Provided further, That such grants shall be awarded, at the
    discretion of the Secretary, based on an approved plan of the State or
    political subdivision thereof to supplement the grants with appropriate
    supportive services funding for those frail elderly occupying such
    units: Provided further, That of the amount under this heading,
    [$201,000,000] $210,000,000 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] shall designate [up to 25 percent] at least 25
    percent but no more than 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 5 years in duration:
    Provided further, That the Secretary may waive any provision of such
    section 202 and such

    [[Page 505]]

    section 811 (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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0320-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         972       1,280       1,355
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         972       1,280       1,355
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       2,864       2,749       2,380
    22.00 New budget authority (gross)......         854         911         989
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,721       3,660       3,369
    23.95 Total new obligations.............        -972      -1,280      -1,355
    24.40 Unobligated balance available, end
            of year.........................       2,749       2,380       2,014
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         854         911         989
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       3,591       3,799       4,295
    73.10 Total new obligations.............         972       1,280       1,355
    73.20 Total outlays (gross).............        -761        -784      -1,014
    73.45 Adjustments in unexpired accounts.          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       3,799       4,295       4,636
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         761         784       1,014
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         854         911         989
    90.00 Outlays...........................         761         784       1,014
    ---------------------------------------------------------------------------

        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 2001, a total
    of $989 million is requested for the Housing for Special Populations
    account.

        Housing for the Disabled.--$210 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 $779 million is proposed for
    housing for the elderly. Of this amount $50 million is for the capital
    grant program to convert existing 202 properties to assisted living
    under appropriate conditions. These funds for capital grants are
    available to existing HUD elderly subsidized (Section 202) projects that
    convert some or all units to Assisted Living. These competitive grants
    are 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) at least 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.

        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 will address the growing housing needs of the nation's elderly.

        This 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.

        Additionally, in the 2001 budget, the Administration includes
    funding for the Housing Security Plan, and to continue to implement the
    Continuum of Care for America's seniors. The budget this year proposes
    an initiative to increase assisted living opportunities for the elderly.
    $50 million is provided for the production of new affordable assisted
    living units for the low-income elderly. The Administration proposes
    that HUD partner with HHS and states and localities to better integrate
    housing assistance with Medicaid funding for services.

                         Other Assisted Housing Programs

                            Rental Housing Assistance

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rent supplement...................           8           5           5
    00.02 Homeownership and rental housing
            assistance (Sections 235 and
            236)............................          21          25          25
    00.03 College Housing...................           6
    00.04 IRP Rehab Grants..................                     190         300
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          35         220         330
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           8           7
    21.49 Unobligated balance available,
            start of year: Contract
            authority.......................         950       1,053       1,083
                                               ---------   ---------  ----------
    21.99   Total unobligated balance, start
              of year.......................         958       1,060       1,083
    22.00 New budget authority (gross)......                      -7
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         130         250         266
    22.75 Balance of contract authority
            withdrawn.......................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,094       1,303       1,349
    23.95 Total new obligations.............         -35        -220        -330
    24.40 Unobligated balance available, end
            of year.........................           7
    24.49 Unobligated balance, end of year:
            Contract authority..............       1,053       1,083       1,019
                                               ---------   ---------  ----------

    [[Page 506]]

    24.99   Total unobligated balance, end
              of year.......................       1,060       1,083       1,019
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.05   Appropriation (indefinite)......         676         664         711
    40.36   Preservation prepayment
              rescission....................                      -7
    40.49   Portion applied to liquidate
              contract authority............        -676        -664        -711
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                      -7
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year         127          39
    72.49   Obligated balance, start of
              year: Contract authority......      11,332      10,616       9,915
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............      11,459      10,655       9,915
    73.10 Total new obligations.............          35         220         330
    73.20 Total outlays (gross).............        -708        -710        -711
    73.45 Adjustments in unexpired accounts.        -130        -250        -266
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..          39
    74.49   Obligated balance, end of year:
              Contract authority............      10,616       9,915       9,268
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................      10,655       9,915       9,268
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         708         710         711
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      -7
    90.00 Outlays...........................         708         710         711
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............      12,282      11,669      10,998
        Contract authority:
    0200  Contract authority................                      -7
    0400  Appropriation to liquidate
            contract authority..............        -676        -664        -711
    0600  Balance of contract authority
            withdrawn.......................           6
    0700  Balance, end of year..............      11,669      10,998      10,287
    ---------------------------------------------------------------------------

                             OTHER ASSISTED HOUSING

                      Summary of Administrative Commitments

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Assistance contracts:
      College Housing...................           6
      Rent supplement...................           8           5           5
      Homeownership and rental housing
        assistance (sections 235 and
        236)............................          21          25          25
    IRP Rehab Grants....................                     190         300
    Administrative commitments, start of
    year................................          16          16          16
    Administrative commitments, end of
    year................................         -16         -16         -16
                                        ------------------------------------
          Total obligations.............          35         220         330
                                        ====================================

        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 $300 million of such grants are expected
    in 2001.

        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 1999,
    2000 and 2001.

                             SUMMARY OF OUTLAYS \1\

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Subsidized housing programs, total..      19,438      19,959      20,636
    Low-income housing assistance (sec.
    8)..................................      15,560      16,090      16,579
    Public housing capital fund.........       3,080       3,159       3,346
    Rent supplement.....................          55          56          56
    Homeownership assistance (sec. 235).          28          28          28
    Rental housing assistance (sec. 236)         609         610         610
    College housing grants..............          15          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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          11          14           3
    22.00 New budget authority (gross)......                     -11
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          14           3           3
    24.40 Unobligated balance available, end
            of year.........................          14           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...                     -11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         102          81          63
    73.20 Total outlays (gross).............         -18         -18         -18
    73.45 Adjustments in unexpired accounts.          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          81          63          45
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          18          18          18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     -11
    90.00 Outlays...........................          18          18          18
    ---------------------------------------------------------------------------

        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 2001. This schedule reflects the liquidation of prior year balances.

    [[Page 507]]

                               Congregate Services

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0178-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           9           2
    73.20 Total outlays (gross).............          -5          -2
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           5           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           5           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 Public Housing Capital Fund for 2001.
    Renewals of congregate services contracts for assisted housing are
    funded within the Housing for Special Populations account. 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           2
    73.20 Total outlays (gross).............
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    ----------------------------------------------------------------------------

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

        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 and at $15 million
    in 2000. The Budget proposes Housing Counseling as a $24 million HOME
    set-aside for 2001.

                        Section 8 Moderate Rehabilitation

                              single room occupancy

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0195-0-1-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          85          65
    22.21 Unobligated balance transferred to
            other accounts..................                     -65
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          85
    23.95 Total new obligations.............         -20
    24.40 Unobligated balance available, end
            of year.........................          65
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         348         337
    73.10 Total new obligations.............          20
    73.20 Total outlays (gross).............         -31
    73.31 Obligated balance transferred to
            other accounts..................                    -337
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         337
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          31
    ----------------------------------------------------------------------------

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

        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 Appropriations Act transferred all
    balances in this account to the Homeless Assistance Grants account.

                   Manufactured Home Inspection and Monitoring

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Manufactured home inspection and
            monitoring......................          15          16          17
        Appropriation:
    05.01 Manufactured home inspection and
            monitoring......................         -15         -16         -17
                                               ---------   ---------  ----------
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Transfer to salaries and expenses.           1           1           1
    00.02 Other program costs...............          14          15          16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          15          16          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           8           9           9
    22.00 New budget authority (gross)......          15          16          17
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          24          25          26
    23.95 Total new obligations.............         -15         -16         -17
    24.40 Unobligated balance available, end
            of year.........................           9           9           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.25   Appropriation (special fund,
              indefinite)...................          15          16          17
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           2           1           2
    73.10 Total new obligations.............          15          16          17
    73.20 Total outlays (gross).............         -15         -15         -16
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           1           2           3
    ----------------------------------------------------------------------------

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

    [[Page 508]]

        Net budget authority and outlays:
    89.00 Budget authority..................          15          16          17
    90.00 Outlays...........................          15          15          16
    ---------------------------------------------------------------------------

        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 1999, an estimated 375,000 manufactured
    homes and 631,828 transportable sections were produced.

        This account also presents activities formerly shown under the
    Interstate Land Sales account.

        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 1,020
    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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          34          31          28
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          34          31          28
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           1           1           1
    22.00 New budget authority (gross)......          34          31          28
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          35          32          29
    23.95 Total new obligations.............         -34         -31         -28
    24.40 Unobligated balance available, end
            of year.........................           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          34          31          28
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           7           7           6
    73.10 Total new obligations.............          34          31          28
    73.20 Total outlays (gross).............         -34         -31         -28
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           7           6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          34          31          28
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -34         -31         -28
    ----------------------------------------------------------------------------

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

        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, [1999] 2000, and any
    collections made during fiscal year [2000] 2001, 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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          18          17          18
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          18          17          18
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         235         264         286
    22.00 New budget authority (gross)......          48          39          36
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         283         303         322
    23.95 Total new obligations.............         -18         -17         -18
    24.40 Unobligated balance available, end
            of year.........................         264         286         305
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............          48          39          36
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          27          28          31
    73.10 Total new obligations.............          18          17          18
    73.20 Total outlays (gross).............         -17         -14         -20
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          28          31          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          17          14          20
    ----------------------------------------------------------------------------

    [[Page 509]]

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -41         -31         -28
    88.40     Non-Federal sources...........          -7          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -48         -39         -36
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -31         -25         -16
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            U.S. securities: Par value......         150         205         205
    92.02 Total investments, end of year:
            U.S. securities: Par value......         205         205         205
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         769         786         796
    1231  Disbursements: Direct loan
            disbursements...................          17          14          20
    1251  Repayments: Repayments and
            prepayments.....................                      -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         786         796         812
    ---------------------------------------------------------------------------

        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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          66             54            50             47
    0102  Expense...........................         -90             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         -24             53            50             47
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         131            108           184            200
            Investments in US securities:
    1102      Treasury securities, par......         150            205           205            205
    1106      Receivables, net..............           4
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         769            786           796            812
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -692           -692          -717           -731
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          77             94            79             81
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         362            407           468            486
        NET POSITION:
    3100  Appropriated capital..............         217            217           217            217
    3300  Cumulative results of operations..         145            190           251            269
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         362            407           468            486
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         362            407           468            486
    -----------------------------------------------------------------------------------------------

                          Homeownership Assistance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          23          23          23
    21.49 Unobligated balance available,
            start of year: Contract
            authority.......................          61          61          61
                                               ---------   ---------  ----------
    21.99   Total unobligated balance, start
              of year.......................          84          84          84
    22.00 New budget authority (gross)......           1
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          86          84          84
    24.40 Unobligated balance available, end
            of year.........................          23          23          23
    24.49 Unobligated balance, end of year:
            Contract authority..............          61          61          61
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................          84          84          84
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          -1
    73.45 Adjustments in unexpired accounts.          -1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -1
    ----------------------------------------------------------------------------

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

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

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-604      1999 actual   2000 est.   2001 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............                       3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................                       3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           1           3
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           3
    23.95 Total new obligations.............                      -3
    24.40 Unobligated balance available, end
            of year.........................           3
    ----------------------------------------------------------------------------

    [[Page 510]]

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          26          21          16
    73.10 Total new obligations.............                       3
    73.20 Total outlays (gross).............          -2          -8          -8
    73.45 Adjustments in unexpired accounts.          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          21          16           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           2           8           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           2           8           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 [2000], 2001 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 [$140,000,000,000]
    $160,000,000,000.
        During fiscal year [2000], 2001 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] $250,000,000: 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, $330,888,000, of which not to exceed
    $324,866,000 shall be transferred to the appropriation for ``Salaries
    and expenses''; 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] $65,500,000,000 on or before April
    1, [2000], 2001 an additional $1,400 for administrative contract
    expenses shall be available for each $1,000,000 in additional guaranteed
    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. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2000.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............       1,264
        Receipts:
    02.01 FHA Mutual Mortgage Insurance
            Guaranteed Loan, negative
            subsidies.......................       3,559
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       4,823
        Appropriation:
    05.01 FHA mutual mortgage insurance
            program account.................      -4,823
                                               ---------   ---------  ----------
    05.99 Subtotal appropriation............      -4,823
                                               ---------   ---------  ----------
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.07 Reestimates of loan guarantee
            negative subsidy................       3,789
    00.08 Interest on reestimates of loan
            guarantee subsidy...............         705
    00.09 Administrative expenses, salaries
            & expenses transfer.............         329         329         329
    00.12 Non-overhead administrative
            expenses for FHA contracts......                     160         160
    00.13 Transfer to Federal Housing Credit
            Consortium......................                       2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,823         491         491
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       4,823         491         491
    23.95 Total new obligations.............      -4,823        -491        -491
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                     491         491
    40.20   Appropriation (special fund,
              definite).....................         329
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         329         491         491
          Mandatory:

    60.25   Appropriation (special fund,
              indefinite)...................       4,494
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,823         491         491
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year                                  40
    73.10 Total new obligations.............       4,823         491         491
    73.20 Total outlays (gross).............      -4,823        -451        -491
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                      40          40
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         329         451         451
    86.93 Outlays from discretionary
            balances........................                                  40
          Outlays from permanent authority:

    86.97   Outlays from new mandatory
              authority.....................       4,494
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,823         451         491
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,823         491         491
    90.00 Outlays...........................       4,823         451         491
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................           1         100         250
                                               ---------   ---------  ----------
    1159    Total direct loan levels........           1         100         250
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  MMI Fund, Section 203(b)..........     123,546     122,658     158,993
    2150  Standby commitment authority......
    2150  Standby commitment authority......      16,454      17,342       1,007
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....     140,000     140,000     160,000
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       -2.62       -1.99       -2.57
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       -2.62       -1.99       -2.57
        Guaranteed loan subsidy budget authority:
    2330  MMI Section 203(b) negative
            subsidy.........................      -3,129      -2,628      -3,675
    2330  Subsidy budget authority--
            reestimates.....................       4,494
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..       1,365      -2,628      -3,675
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays--MMI 203(b)
            negative subsidy................      -3,129      -2,628      -3,675
    2340  Subsidy outlays--reestimates......       4,494
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........       1,365      -2,628      -3,675
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         329         491         491
    3580  Outlays from balances.............                                  40
    3590  Outlays from new authority........         329         451         451
    ---------------------------------------------------------------------------

    [[Page 511]]

        The Federal Housing Administration (FHA) 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).

        The Budget proposes to increase the FHA limitation on individual
    mortgages to insure single family loans with a principal balance at or
    below the conforming loan limits established by Freddie Mac and Fannie
    Mae. Under current law FHA cannot insure loans with a principal balance
    over 87 percent of the conforming loan limit. Raising the FHA loan limit
    to 100 percent of the Freddie Mac/Fannie Mae conforming loan limit will
    help approximately 55,000 families purchase their first homes,
    especially large families and families in high cost areas. These
    additional loans will generate $241 million in negative subsidy in the
    MMI Fund in 2001.

        In addition, the Budget proposes legislation to allow FHA to insure
    a relatively new product on the mortgage market--hybrid adjustable-rate
    mortgages (ARMs). Using the conventional market as a prototype, hybrid
    ARMs are defined as adjustable-rate loans that carry an initial fixed
    interest rate for longer than one year. After the initial fixed-rate
    period ends, these loans are subject to interest rate adjustments,
    typically on an annual basis and indexed to the corresponding term
    Treasury bond yield. FHA intends to develop ARMs with a set interest
    rate for an initial period of 3, 5, 7, or 10 years, and annual interest
    rate adjustments thereafter. Hybrid ARMs will substantially enhance
    FHA's product line, offering a sound mortgage product to borrowers who
    do not qualify for a fixed-rate mortgage or cannot afford the fixed-rate
    pricing, but who want to avoid the volatility associated with
    traditional ARMs. This new product will increase loan endorsement
    activity by approximately 40,000 loans, resulting in an additional $114
    million in negative subsidy in 2001.

        The Budget proposes an aggregate limitation of $160 billion on
    commitments to guarantee loans in 2001. The $20 billion increase over
    2000 reflects, in part, the increased volume of business associated with
    the proposals to increase the FHA mortgage limit and to offer hybrid
    ARMs.

        As required by the Federal Credit Reform Act of 1990, this account
    records administrative expenses for this program, as well as the subsidy
    costs, if any, associated with the loan guarantees committed in 1992 and
    thereafter. 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                     160         160
    25.3  Purchases of goods and services
            from Government accounts........         329         331         331
    41.0  Grants, subsidies, and
            contributions...................       4,494
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,823         491         491
    ---------------------------------------------------------------------------

          FHA--Mutual Mortgage Insurance Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           1         100         250
    00.02 Interest paid to Treasury.........                       6          15
    00.03 Claims & other....................                       4           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1         110         273
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           3           5
    22.00 New financing authority (gross)...           3         110         273
    22.60 Portion applied to repay debt.....                      -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6         110         273
    23.95 Total new obligations.............          -1        -110        -273
    24.40 Unobligated balance available, end
            of year.........................           5
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)                     100         250
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).           3          10          51
    68.47     Portion applied to repay debt.                                 -28
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           3          10          23
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           3         110         273
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           3           3          13
    73.10 Total new obligations.............           1         110         273
    73.20 Total financing disbursements
            (gross).........................          -2        -100        -250
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           3          13          36
    87.00 Total financing disbursements
            (gross).........................           2         100         250
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..                      -1          -1
              Non-Federal sources:
    88.40       Repayment of principal......          -3          -8         -47
    88.40       Repayment of interest.......                      -1          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -3         -10         -51
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     100         222
    90.00 Financing disbursements...........          -2          90         199
    ---------------------------------------------------------------------------

        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 $250 million in 2001 direct loan limitation in the MMI Fund
    would permit the Department to use Purchase Money Mortgages (PMMs) to
    help finance the sale of acquired single family properties. HUD would
    extend credit for these single-family homes to community nonprofit
    organizations or local government entities who would be expected to sell
    the properties to low- and moderate-income buyers. The use of PMMs
    provides a tool for State and local nonprofit organizations to use in
    revitalizing communities, and creates enhanced homeownership
    opportunities for low- and moderate-income families.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         100         100         250
    1112  Unobligated direct loan limitation         -99
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           1         100         250
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           5           3          87

    [[Page 512]]

    1231  Disbursements: Direct loan
            disbursements...................           1          90         227
    1251  Repayments: Repayments and
            prepayments.....................          -3          -6         -28
    1263  Write-offs for default: Direct
            loans...........................                                  -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           3          87         284
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4242-0-3-371    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           7              8            10             36
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..           5              3            87            284
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....           5              3            87            284
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          12             11            97            320
        LIABILITIES:
          Federal liabilities:

    2103    Treasury borrowing..............           7              7            88            302
    2105    Other liabilites--
              intragovernmental.............           3              3             3              6
    2207  Non-Federal liabilities: Other
            liabilites with the public......           2              1             6             12
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          12             11            97            320
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          12             11            97            320
    -----------------------------------------------------------------------------------------------

        FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Interest payments to Treasury.....         426         460         280
    00.09 Administrative expenses (payment
            of negative subsidy to receipt
            account)........................         329
    00.11 Default claims and other..........       4,948       4,131       4,772
    00.12 Payment to liquidating account of
            value of assets sold............                     169
                                               ---------   ---------  ----------
    00.91   Subtotal, capital/operating
              expenses......................       5,703       4,760       5,052
    08.01 Payment of negative subsidy to
            liquidating account for new
            business........................       2,729       2,628       3,674
    08.14 Negative subsidy to liquidating
            account, new legislation........         400
                                               ---------   ---------  ----------
    08.91   Subtotal, subsidy activity......       3,129       2,628       3,674
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       8,832       7,388       8,726
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         541       2,980       3,377
    22.00 New financing authority (gross)...      11,271       8,385       8,628
    22.60 Portion applied to repay debt.....                    -600      -2,900
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      11,812      10,765       9,105
    23.95 Total new obligations.............      -8,832      -7,388      -8,726
    24.40 Unobligated balance available, end
            of year.........................       2,980       3,377         379
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)         900         200         200
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).      10,371       8,185       8,428
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................      11,271       8,385       8,628
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year        -128         -78         -78
    73.10 Total new obligations.............       8,832       7,388       8,726
    73.20 Total financing disbursements
            (gross).........................      -8,782      -7,388      -8,726
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         -78         -78         -78
    87.00 Total financing disbursements
            (gross).........................       8,782       7,388       8,726
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Transfer of Reestimates from
                reserves in Liquidating
                account.....................      -4,494
    88.25     Interest on uninvested funds..         -92        -224        -212
              Non-Federal sources:
    88.40       Fees and premiums...........      -3,171      -3,733      -4,658
    88.40       Recoveries on defaults......      -2,614      -3,838      -3,558
    88.40       Gross proceeds from asset
                  sales.....................                    -390
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -10,371      -8,185      -8,428
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         900         200         200
    90.00 Financing disbursements...........      -1,589        -797         298
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     140,000     140,000     160,000
    2112  Uncommitted loan guarantee
            limitation......................     -16,454     -17,342      -1,007
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................     123,546     122,658     158,993
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     309,309     355,608     429,966
    2231  Disbursements of new guaranteed
            loans...........................     113,174     122,341     149,883
    2251  Repayments and prepayments........     -62,098     -44,493     -59,708
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -35         -14         -26
    2262    Terminations for default that
              result in acquisition of
              property......................      -4,664      -3,440      -4,273
    2263    Terminations for default that
              result in claim payments......         -78         -36         -46
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     355,608     429,966     515,796
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     355,608     429,966     515,796
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         348         369          35
    2331    Disbursements for guaranteed
              loan claims...................          35          14          26
    2351    Repayments of loans receivable..          -9          -1          -1
    2364    Other adjustments, net..........          -5        -347          -3
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         369          35          57
    ---------------------------------------------------------------------------

        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          1998
                                               actual\1\    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         730          3,228         3,586            588
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         258            369            35             57

    [[Page 513]]

    1504    Foreclosed property.............       2,045          2,820         1,425          1,299
    1505    Allowance for subsidy cost......        -880         -1,363        -1,249         -1,249
                                            ------------ --------------  ------------  -------------
    1599      Net value of assets related to
                defaulted guaranteed loan...       1,423          1,826           211            107
    1901  Other Federal assets: Other assets       4,713            388
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       6,866          5,442         3,797            695
        LIABILITIES:
          Federal liabilities:

    2103    Federal liabilities, Debt.......       5,482          6,382         5,982          3,282
    2105    Other liabilites
              -intragovernmental............          34          1,571
          Non-Federal liabilities:

    2201    Accounts payable................         205             34
    2204    Liabilities for loan guarantees.         873         -2,692        -2,694         -3,604
    2207    Other...........................          67            147           509          1,017
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       6,661          5,442         3,797            695
        NET POSITION:
    3300  Cumulative results of operations..         205
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         205
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       6,866          5,442         3,797            695
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 2000 Budget.

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

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Appropriation:
    05.01 Mutual mortgage and cooperative
            housing insurance funds
            liquidating account.............                                 355
                                               ---------   ---------  ----------
    07.99 Total balance, end of year........                                 355
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Transfer of Reestimates amount....       3,230
          Operating expenses:

    00.03   Other operating costs...........           6           6           6
    00.04   Administrative contract expenses         118
                                               ---------   ---------  ----------
    00.91     Total operating expenses......       3,354           6           6
          Capital investment:

    01.02   Assignment of defaulted
              mortgages.....................          11
    01.03   Acquisition of real properties..       1,078         273         183
    01.05   Acquisition of other assets.....           6           6           6
    01.07   Capitalized property expenses...         142         113          39
    01.08   Loss mitigation activities......           6           9           5
    01.09   Preforeclosure sale claims......          11           7           5
                                               ---------   ---------  ----------
    01.91     Total capital investment......       1,254         408         238
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,608         414         244
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................      14,392      14,736      18,973
    22.00 New budget authority (gross)......       4,939       4,651       4,986
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      19,344      19,387      23,959
    23.95 Total new obligations.............      -4,608        -414        -244
    24.40 Unobligated balance available, end
            of year.........................      14,736      18,973      23,716
    ----------------------------------------------------------------------------

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

            Discretionary:
    68.00     Offsetting collections (cash).                                 355
    68.26     Offsetting collections
                (unavailable balances)......                                -355
          Mandatory:

    69.00   Offsetting collections (cash)...       4,939       4,651       4,986
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,939       4,651       4,986
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         706         681         381
    73.10 Total new obligations.............       4,608         414         244
    73.20 Total outlays (gross).............      -4,620        -714        -444
    73.45 Adjustments in unexpired accounts.         -13
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         681         381         181
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       3,914           5          63
    86.98 Outlays from mandatory balances...         706         709         381
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,620         714         444
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payment from financing
                  account...................      -2,729      -2,628      -3,674
    88.00       Legislative savings.........        -400
    88.20     Interest on U.S. securities...        -983      -1,095      -1,354
              Non-Federal sources:
    88.40       Fees and premiums...........         -65         -55         -47
    88.40       Rebate of unearned prepaid
                  premiums collected........                      13
    88.40       Proceeds from sale of real
                  property..................        -762        -690        -263
    88.40       Proceeds from sale of
                  mortgage notes............                    -169
    88.40       Repayment of mortgage notes
                  and sales contracts.......          -1          -1
    88.40       Interest and operating
                  income....................         -14          -6
    88.40       Recoveries on defaulted
                  mortgages.................         -18         -17
    88.40       Miscellaneous collections...         -32
    88.40       Other income................          65          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -4,939      -4,651      -5,341
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -355
    90.00 Outlays...........................        -319      -3,937      -4,897
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            U.S. securities: Par value......      14,344      14,942      18,642
    92.02 Total investments, end of year:
            U.S. securities: Par value......      14,942      18,642      23,242
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           5           4
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1
    1264  Write-offs for default: Other
            adjustments, net................                      -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           4
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      71,030      55,866      47,384
    2251  Repayments and prepayments........     -14,065      -8,193      -6,704
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -11          -5          -3
    2262    Terminations for default that
              result in acquisition of
              property......................      -1,076        -273        -183
    2263    Terminations for default that
              result in claim payments......         -12         -11          -7
    2264    Other adjustments, net..........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      55,866      47,384      40,487
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      55,866      47,384      40,487
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         294         270           4
    2331    Disbursements for guaranteed
              loan claims...................          11           5           3
    2351    Repayments of loans receivable..         -18        -186

    [[Page 514]]

    2361    Write-offs of loans receivable..         -17         -85          -1
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         270           4           6
    ---------------------------------------------------------------------------

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

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

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

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

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

                               PROGRAM HIGHLIGHTS

                            (in millions of dollars)

                                        1999 actual
                                             \1\      2000 est.   2001 est.
    Insurance initiation:
      Mortgage insurance commitments
        (units).........................   1,287,654   1,191,988   1,473,620
                                        ====================================
    Mortgage insurance written (in
        fiscal year):
      Units.............................   1,219,469   1,206,533   1,401,626
      Amount............................    $113,174    $122,341    $149,883
                                        ====================================
    Insurance maintenance: Outstanding
        balance of insurance in force,
        end of year:
      Mortgage insurance................    $411,474    $477,351    $556,283
                                        ====================================
        \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          1998
                                               actual\1\ 1999 actual\2\     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       3,927          5,768         3,812          4,157
    0102  Expense...........................      -5,130           -382        -1,351           -279
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............      -1,203          5,386         2,461          3,878
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 2000 Budget.
        \2\ Estimated result on GAAP basis pending final audit.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4070-0-3-371          1998
                                               actual\1\    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         561            346           277            575
            Investments in US securities:
              Treasury securities, par:
    1102        Treasury securities, par....      14,344         14,942        18,642         23,242
    1102        Unamortized net premium/
                  discount..................        -236           -309          -307           -383
    1106      Receivables, net..............         174            298           175            175
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............           5              4
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -4             -2
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           1              2
    1701    Defaulted guaranteed loans,
              gross.........................         655            647             6              6
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -333           -339            -6             -6
                                            ------------ --------------  ------------  -------------
    1704      Defaulted guaranteed loans and
                interest receivable, net....         322            308
    1705    Allowance for uncollectables
              from foreclosed property......        -316           -367          -103            -39
    1706    Foreclosed property.............         779            899           252             96
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............         785            840           149             57
    1901  Other Federal assets: Other assets          95          1,636         1,639          1,642
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      15,724         17,755        20,575         25,308
        LIABILITIES:
    2105  Federal liabilities: Other
            Intragovernmental liabilites....       3,384            356
          Non-Federal liabilities:

    2201    Accounts payable................         153            205           164            131
    2206    Pension and other actuarial
              liabilities...................       1,039            667           533            427
    2207    Unearned revenue and advances,
              and other.....................       1,024          1,017           813            651
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       5,600          2,245         1,510          1,209
        NET POSITION:
    3100  Appropriated capital..............          18             18            18             18
    3300  Cumulative results of operations..      10,106         15,492        19,048         24,081
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      10,124         15,510        19,066         24,099
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      15,724         17,755        20,576         25,308
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 2000 Budget.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         124           6           6
    32.0  Land and structures...............       1,223         386         222
    33.0  Investments and loans.............          17          11           9
    41.0  Grants, subsidies, and
            contributions...................       3,230
    42.0  Insurance claims and indemnities..          14          11           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,608         414         244
    ---------------------------------------------------------------------------

                  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),
    [$153,000,000, including not to exceed $153,000,000 from unobligated
    balances previously appropriated under this heading] $101,000,000, to
    remain available until expended: Provided, That these funds are
    available to subsidize total loan principal, any part of which is to be
    guaranteed, of up to [$18,100,000,000] $21,000,000,000: 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

    [[Page 515]]

    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 ``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] $8,426,000,000 on or before April 1, [2000] 2001, 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] $8,426,000,000 (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, 2000.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    0101  FHA-General and special risk,
            negative subsidies..............         159         229         149
    0102  FHA-General and special risk,
            downward reestimates of
            subsidies.......................         154
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Prior year adjustment.............         108
    00.04 Guaranteed loan subsidy...........         182         153         101
    00.07 Reestimate of credit subsidy......         233
    00.09 Administrative expenses, salaries
            & expenses transfer.............         211         211         211
    00.10 Administrative contract expenses..                     144         144
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         734         508         456
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         443         250           4
    22.00 New budget authority (gross)......         541         262         456
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         984         512         460
    23.95 Total new obligations.............        -734        -508        -456
    24.40 Unobligated balance available, end
            of year.........................         250           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         292         262         456
    50.05   Reappropriation (indefinite)....          16
          Mandatory:

    60.05   Appropriation (indefinite)......         233
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         541         262         456
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         -15          78         105
    73.10 Total new obligations.............         734         508         456
    73.20 Total outlays (gross).............        -638        -479        -469
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          78         105          93
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         272         226         395
    86.93 Outlays from discretionary
            balances........................         133         253          74
    86.97 Outlays from new mandatory
            authority.......................         233
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         638         479         469
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         541         262         456
    90.00 Outlays...........................         638         479         469
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................         541         262         456
      Outlays...........................         638         479         469
    Supplemental proposal:
      Budget Authority..................                      49
      Outlays...........................                      37          12
                                        ------------------------------------
    Total:
      Budget Authority..................         541         311         456
      Outlays...........................         638         516         481
                                        ====================================

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

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Single-family PMMs................          20          20          20
    1150  Multifamily bridge loans..........          30          30          30
                                               ---------   ---------  ----------
    1159    Total direct loan levels........          50          50          50
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Apartments NC/SC..................       2,214       1,442       2,304
    2150  Mobile Home Parks.................           1
    2150  221d3 NP/Coop owned apts..........          49          35          49
    2150  Tax Credits NC....................          29         102         105
    2150  Mixed Income (Hope d4)............           6           4           9
    2150  Apartments Refinance..............         981         886         912
    2150  241a Supplemental Loans for Apts..          51          38          54
    2150  Operating Loss Loans for Apts
            (plus 232)......................          11           9          13
    2150  HFA Risk Sharing..................                     661         678
    2150  HFA NC@50 (542c)..................         145
    2150  HFA NC@90 (542c)..................          20
    2150  GSE Risk Sharing..................          19         792         816
    2150  FHA Full Insurance for Health Care
            Facilities (plus 241/232).......         816         409         421
    2150  Health Care Refinances............                     326         336
    2150  Hospitals.........................         230       1,030       1,030
    2150  Single Family Programs............
    2150  Section 234: Condominiums.........      10,397       5,984       8,137
    2150  Section 203(k): Rehabilitation
            Mortgages.......................       1,430         985       1,339
    2150  Section 221(d)(2): Low Income
            Housing.........................          30          19
    2150  Title I Programs..................
    2150  Property Improvements.............         482         340         464
    2150  Manufactured housing..............          13           8          10
    2150  Standby authority.................       1,176       5,030       4,323
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....      18,100      18,100      21,000
        Guaranteed loan subsidy (in percent):
    2320  Apartments NC/SR..................        7.09        7.12        3.35
    2320  Mobile Home Parks.................        7.09        0.00        0.00
    2320  221d3 NP/Coop owned apts..........       17.99       15.44       17.22
    2320  Tax Credits NC....................       -0.88       -0.57       -1.75
    2320  Mixed Income (Hope IV)............       12.13       11.81        3.35
    2320  Apartmentst Refinance.............       -0.78       -1.34       -1.11
    2320  241a Supplemental Loans for Apts..       17.06       13.88       22.08
    2320  Operating Loss Loans for Apts
            (plus 232's)....................       25.15       25.10       22.55
    2320  HFA Risk Sharing..................        0.00       -0.45       -1.14
    2320  HFA NC@50% (542c).................       -0.23        0.00        0.00
    2320  HFA NC@90% (542c).................       -0.88        0.00        0.00
    2320  GSE Risk Sharing..................       -1.01       -1.88       -1.52
    2320  FHA Full Insurance for Health Care
            Facilities (plus 241/232).......       -0.70       -2.79       -2.07
    2320  Health Care Refinance.............        0.00       -1.90       -1.38
    2320  Hospital..........................        1.53       -1.60       -1.77
    2320  Single Family Programs............        0.00        0.00        0.00
    2320  Section234: Condominiums..........       -1.32        0.26       -0.69
    2320  Section 203(k): Rehabilitation
            Mortgages.......................       -1.32        1.75       -0.11
    2320  Section 221(d)(2): Low Income
            Housing.........................       -1.32        4.49        0.00
    2320  Title I Programs..................        0.00        0.00        0.00

    [[Page 516]]

    2320  Property Improvements.............       -1.22        0.87       -0.06
    2320  Manufactured housing..............       -3.13        0.97        0.14
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        0.03        0.67       -0.12
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........          97                     101
    2330  Subsidy rate reestimate...........         233
    2330  Negative Subsidy Receipts.........        -159         -83        -122
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..         171         -83         -21
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................         194         160         114
    2340  Subsidy reestimate outlays........         233
    2340  Negative Subsidy Receipts.........        -159         -83        -122
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........         268          77          -8
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority, S&E Transfer....         211         117         211
    3510  Budget authority, FHA.............                     144         144
    3580  Outlays from balances.............                      94
    3590  Outlays from new authority........         211         225         355
    ---------------------------------------------------------------------------

        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 or commitments in any year), as well as administrative
    expenses of these programs. The subsidy amounts are estimated on a
    present value basis; the administrative expenses are accounted for on a
    cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                     144         144
    25.3  Purchases of goods and services
            from Government accounts........         211         211         211
    41.0  Grants, subsidies, and
            contributions...................         523         153         101
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         734         508         456
    ---------------------------------------------------------------------------

         FHA--General and Special Risk Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

    00.01   Default claims and other........         819         714         796
    00.05   Interest paid to Treasury.......         118
    00.08   Asset sale negative subsidy
              payment to the receipt account                                 146
    00.09   Asset sale payment to
              liquidating account...........                     118         110
    00.10   Value paid to liquidating
              account for guarantees
              refinanced under 223(a)(7)....           2           3           3
    08.01   Payment of negative subsidy to
              receipt account...............         159          83         122
    08.02   Downward subsidy rate reestimate         154
                                               ---------   ---------  ----------
    10.00     Total new obligations.........       1,252         918       1,177
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       1,095       1,907       2,394
    22.00 New financing authority (gross)...       2,291       1,651       1,534
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
    22.60 Portion applied to repay debt.....        -233        -246        -246
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,159       3,312       3,682
    23.95 Total new obligations.............      -1,252        -918      -1,177
    24.40 Unobligated balance available, end
            of year.........................       1,907       2,394       2,505
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)         750         200         200
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       1,541       1,451       1,334
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,291       1,651       1,534
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         -15         -36         -15
    73.10 Total new obligations.............       1,252         918       1,177
    73.20 Total financing disbursements
            (gross).........................      -1,267        -897      -1,162
    73.45 Adjustments in unexpired accounts.          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         -36         -15
    87.00 Total financing disbursements
            (gross).........................       1,267         897       1,162
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................        -210        -153        -101
    88.00       Repayment of principal and
                  interest from liquidating
                  account...................        -273        -273        -273
    88.00       Subsidy reestimate from
                  program account...........        -233
    88.25     Interest on uninvested funds..        -119         -81         -81
              Non-Federal sources:
    88.40       Fees and premiums...........        -340        -397        -445
    88.40       Recoveries on defaulted
                  mortgages.................         -45          -1          -2
    88.40       Title I recoveries..........         -17         -24          -6
    88.40       Single family property
                  recoveries................        -314        -307        -182
    88.40       Other recoveries............          -6
    88.40       Gross Proceeds from sale of
                  mortgage notes
                  (liquidating).............                    -118        -110
    88.40       Gross Proceeds from Mortgage
                  Note Sales................                    -104        -143
    88.40       Multifamily property
                  recoveries................          -1           7           9
    88.40       Prior Period Adjustment-
                  Subsidy...................          17
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,541      -1,451      -1,334
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         750         200         200
    90.00 Financing disbursements...........        -274        -554        -172
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      18,100      18,100      21,000
    2112  Uncommitted loan guarantee
            limitation......................      -1,176      -5,030      -4,323
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      16,924      13,070      16,677
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      52,697      59,692      67,406
    2231  Disbursements of new guaranteed
            loans...........................      16,074      13,070      16,429
    2251  Repayments and prepayments........      -8,331      -4,642      -4,602
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -243        -407        -508
    2262    Terminations for default that
              result in acquisition of
              property......................        -494        -307        -289
    2263    Terminations for default that
              result in claim payments......         -11
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      59,692      67,406      78,436
    ----------------------------------------------------------------------------

    [[Page 517]]

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      59,692      67,406      78,436
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         381         491         793
    2331    Disbursements for guaranteed
              loan claims...................         243         407         508
    2351    Repayments of loans receivable..         -17        -105        -145
    2361    Write-offs of loans receivable..        -116
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         491         793       1,156
    ---------------------------------------------------------------------------

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

                               Balance Sheet\1\ (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4077-0-3-371    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,080          1,897         1,633          1,633
            Investments in US securities:
    1107      Borrowings receivable from
                liquidating account.........                                      202            202
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         381            491           793          1,156
    1504    Foreclosed property.............         308            347           598            598
    1505    Allowance for subsidy cost......        -443           -539        -1,061         -1,061
                                            ------------ --------------  ------------  -------------
    1599      Net value of assets related to
                defaulted guaranteed loan...         246            299           330            693
    1901  Other Federal assets: Other assets                        787
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,326          2,983         2,165          2,528
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable
              Intragovernmental.............                          4
    2103    Debt............................       1,089          1,606         1,555          1,386
    2105    Payable to Special Receipt
              Account for Subsidy Reestimate                        303
          Non-Federal liabilities:

    2204    Liabilities for loan guarantees.         237          1,056           610          1,142
    2207    Other...........................                         14
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,326          2,983         2,165          2,528
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,326          2,983         2,165          2,528
    -----------------------------------------------------------------------------------------------
        \1\ Preliminary results pending final audit. Subsidy reestimates for
    fiscal year 1999 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                      15          15
    00.02 Interest paid to Treasury.........                       2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                      17          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                       1           1
    22.00 New financing authority (gross)...           1          16          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1          17          17
    23.95 Total new obligations.............                     -17         -17
    24.40 Unobligated balance available, end
            of year.........................           1           1           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)                      15          15
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).           1           2           2
    68.47     Portion applied to repay debt.                      -1          -1
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           1          16          16
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                      17          17
    73.20 Total financing disbursements
            (gross).........................          -1         -17         -17
    87.00 Total financing disbursements
            (gross).........................           1          17          17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Interest received on
              loans.........................          -1          -2          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      14          14
    90.00 Financing disbursements...........          -1          15          15
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          50          50          50
    1112  Unobligated direct loan limitation         -50         -33         -33
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                      17          17
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                       1          17
    1231  Disbursements: Direct loan
            disbursements...................           1          17          17
    1251  Repayments: Repayments and
            prepayments.....................                      -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1          17          33
    ---------------------------------------------------------------------------

        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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..           1              1            17             33
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....           1              1            17             33
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1              1            17             33
        LIABILITIES:
          Federal liabilities:

    2103    Treasury borrowing..............           1              1            16             32
    2104    Resources payable to Treasury...                                        1              1
                                            ------------ --------------  ------------  -------------

    [[Page 518]]

    2999    Total liabilities...............           1              1            17             33
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1              1            17             33
    -----------------------------------------------------------------------------------------------

              FHA--Loan Guarantee Recovery Fund--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       2           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........           8           7
    2113  Uncommitted limitation carried
            forward.........................          -7
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................           1           7
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           1           2           6
    2231  Disbursements of new guaranteed
            loans...........................           1           4           4
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           2           6          10
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           2           6          10
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4106-0-3-371    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102    Federal assets: Treasury
              securities, par...............           1              1             3              5
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1              1             3              5
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           1              1             3              5
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              1             3              5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1              1             3              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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                       7           7
    06.20 Reduction pursuant to Public Law
            106-51..........................           7
                                               ---------   ---------  ----------
    07.99 Total balance, end of year........           7           7           7
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Interest on debentures..........          22          22          22
    00.03   Other operating costs...........          18          18          18
    00.04   Administrative Contract Expenses         126
    00.05   Legislative savings repayments..         273         273         273
    00.06   PAE & 3rd party restructuring
              fees..........................                     101         101
                                               ---------   ---------  ----------
    00.91     Total operating expenses......         439         414         414
          Capital investment: Claims and other:

    01.01   Acquisition of defaulted Title I
              notes.........................         -14          12          11
    01.02   Assignment of mortgages.........         161         149         181
    01.03   Acquisition of real properties..         126         115          97
    01.04   Rehabilitation of real
              properties....................          62          42          65
    01.05   Rehabitation Grants.............          59          43          65
    01.07   Capitalized property expenses...         118          79          69
    01.08   Loss on defaulted guaranteed
              loans.........................           3           3           3
    01.10   Tax advances on held mortgages..          66          66          66
    01.11   Mark-To-Market Restructures.....          24         229       2,010
    01.12   Mark-to-market rehabilitation...                      18          18
                                               ---------   ---------  ----------
    01.91     Total capital investment......         605         756       2,585
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,044       1,170       2,999
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       2,029         393
    22.00 New budget authority (gross)......         628       1,216       3,045
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          10
    22.40 Capital transfer to general fund..      -1,094        -393
    22.60 Portion applied to repay debt.....        -135         -46         -46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,438       1,170       2,999
    23.95 Total new obligations.............      -1,044      -1,170      -2,999
    24.40 Unobligated balance available, end
            of year.........................         393
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.05   Appropriation (indefinite)......                     502       2,346
    67.15   Authority to borrow (indefinite)          76          46          46
    69.00 Offsetting collections (cash).....         559         668         653
    69.75 Reduction pursuant to P.L. 106-51.          -7
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         552         668         653
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         628       1,216       3,045
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         523         499         499
    73.10 Total new obligations.............       1,044       1,170       2,999
    73.20 Total outlays (gross).............      -1,057      -1,170      -2,999
    73.45 Adjustments in unexpired accounts.         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         499         499         499
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         628       1,170       2,999
    86.98 Outlays from mandatory balances...         429
                                               ---------   ---------  ----------

    [[Page 519]]

    87.00   Total outlays (gross)...........       1,057       1,170       2,999
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Fees and premiums...........        -177        -160        -160
    88.40       Rebates of insurance
                  premiums..................          10          10          10
    88.40       Multifamily foreclosure
                  sales.....................                     -95         -97
    88.40       Proceeds from sale of real
                  property..................        -100         -96        -105
    88.40       Proceeds from sale of
                  mortgage notes............         -11        -118        -110
    88.40       MTM second mortgage
                  repayments................                     -12         -16
    88.40       Prior year adjustment.......          17
    88.40       Recoveries on defaulted
                  mortgages.................        -196        -158        -137
    88.40       Interest and operating
                  income....................         -70          -6          -5
    88.40       Other interest, dividends
                  and revenue...............         -29         -30         -30
    88.40       Modification subsidy &
                  transfers from financing
                  acct......................          -2          -3          -3
    88.40       Payment from the Finanacing
                  Account...................          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -559        -668        -653
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          69         548       2,392
    90.00 Outlays...........................         499         502       2,346
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            U.S. securities: Par value......           6           5           6
    92.02 Total investments, end of year:
            U.S. securities: Par value......           5           6           6
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          72          68          64
    1251  Repayments: Repayments and
            prepayments.....................          -2          -2          -2
    1264  Write-offs for default: Other
            adjustments, net................          -2          -2          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          68          64          60
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      36,590      32,905      30,053
    2251  Repayments and prepayments........      -3,377      -2,017        -651
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -172        -136        -170
    2262    Terminations for default that
              result in acquisition of
              property......................        -126        -115         -97
    2263    Terminations for default that
              result in claim payments......         -24        -571      -1,222
    2264    Other adjustments, net..........          14         -13         -11
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      32,905      30,053      27,902
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      32,905      30,053      27,902
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,989       1,890       1,497
    2331    Disbursements for guaranteed
              loan claims...................         172         136         170
    2351    Repayments of loans receivable..        -215        -300        -294
    2361    Write-offs of loans receivable..         -56        -229        -652
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,890       1,497         721
    ---------------------------------------------------------------------------

        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.

        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          1998
                                               actual\1\ 1999 actual\2\     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,393            640           304            556
    0102  Expense...........................      -1,649         -1,143        -1,393         -1,321
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............        -256           -503        -1,089           -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          1998
                                               actual\1\    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       2,545            845
            Investments in US securities:
              Treasury securities, par:
    1102        Treasury securities, par....                          5
    1102        Unamortized net premium/
                  discount..................                         -2
    1106      Receivables, net..............           3              4             3              3
    1206  Non-Federal assets: Receivables,
            net.............................          51                           86             86
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          72             68            64             60
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -56            -43           -51            -47
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          16             25            13             13
    1701    Defaulted guaranteed loans,
              gross.........................       2,044          2,492         1,701          1,701
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,464         -1,771        -1,208         -1,208
                                            ------------ --------------  ------------  -------------
    1704      Defaulted guaranteed loans and
                interest receivable, net....         580            721           493            493
    1705    Allowance for uncollectables
              from foreclosed property......        -384           -561          -150           -150
    1706    Foreclosed property.............         255            651           244            244
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............         451            811           587            587
    1901  Other Federal assets: Other assets         270            150           330            330
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,336          1,838         1,019          1,019
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................         136            499           363            363
          Non-Federal liabilities:

    2201    Accounts payable................         561                          443            443
    2206    Pension and other actuarial
              liabilities...................       6,810          6,372         6,000          6,000
    2207    Unearned revenue and advances...         123            598           124            124
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       7,630          7,469         6,930          6,930
        NET POSITION:
    3100  Appropriated capital..............       7,264                        8,532          8,532

    [[Page 520]]

    3300  Cumulative results of operations..     -11,558         -5,632       -14,443        -14,443
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -4,294         -5,632        -5,911         -5,911
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,336          1,837         1,019          1,019
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in 1999 Budget.
        \2\ Preliminary pending final audit.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..         126
    25.2  Other services....................          18         119         119
    32.0  Land and structures...............         365         279         296
    33.0  Investments and loans.............         171         408       2,220
    42.0  Insurance claims and indemnities..          69          69          69
    43.0  Interest and dividends............          22          22          22
    44.0  Repayments to financing account...         273         273         273
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,044       1,170       2,999
    ---------------------------------------------------------------------------

         Housing for the Elderly or Handicapped Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.01   Housing for the elderly or
              handicapped loans.............           1           3           3
    00.02   Maintenance security and
              collateral....................           1           1           2
                                               ---------   ---------  ----------
    00.91     Subtotal, capital investment..           2           4           5
    01.01 Operating expenses: Interest on
            borrowings......................         402         274         232
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         404         278         237
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       1,189         900
    22.00 New budget authority (gross)......         772         751         751
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
    22.60 Portion applied to repay debt.....        -665      -1,372        -514
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,305         279         237
    23.95 Total new obligations.............        -404        -278        -237
    24.40 Unobligated balance available, end
            of year.........................         900
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         772         751         751
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         200         214         127
    73.10 Total new obligations.............         404         278         237
    73.20 Total outlays (gross).............        -382        -365        -267
    73.45 Adjustments in unexpired accounts.          -9
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         214         127          97
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         382         365         267
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -772        -751        -751
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -389        -386        -484
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       8,143       8,045       7,958
    1231  Disbursements: Direct loan
            disbursements...................           3
    1251  Repayments: Repayments and
            prepayments.....................         -99         -87         -86
    1264  Write-offs for default: Other
            adjustments, net................          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       8,045       7,958       7,872
    ---------------------------------------------------------------------------
        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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         691            685           664            665
    0102  Expense...........................        -489           -403          -275           -234
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         202            282           389            431
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       1,389          1,114           127             97
          Non-Federal assets:

    1206    Receivables, net................          82             84            84             84
    1207    Advances and prepayments........                          8
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       8,143          8,044         7,957          7,872
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -20            -20           -20            -20
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       8,123          8,024         7,937          7,852
    1606    Acquired Real Property..........           1              3
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       8,124          8,027         7,937          7,852
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       9,595          9,233         8,148          8,033
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         166            203           138            117

    [[Page 521]]

    2103    Debt............................       5,293          4,628         2,978          2,464
    2104    Resources payable to Treasury...       4,126          4,395         5,027          5,446
    2207  Non-Federal liabilities: Other....           9              6             6              6
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       9,594          9,232         8,149          8,033
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       9,594          9,232         8,149          8,033
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    32.0  Land and structures...............           1           1           2
    33.0  Investments and loans.............           1           3           3
    43.0  Interest and dividends............         402         274         232
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         404         278         237
    ---------------------------------------------------------------------------

                Nonprofit Sponsor Assistance Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4042-0-3-604      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           6           6
    22.00 New budget authority (gross)......                      -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6
    24.40 Unobligated balance available, end
            of year.........................           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...                      -6
    ----------------------------------------------------------------------------

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4042-0-3-604      1999 actual   2000 est.   2001 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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                          6             6              6
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............           1              1             1              1
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -1             -1            -1             -1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                          6             6              6
        NET POSITION:
    3100  Appropriated capital..............                          6             6              6
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                          6             6              6
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                          6             6              6
    -----------------------------------------------------------------------------------------------

                    GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

                                  Federal Funds

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

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

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $779 million in 2000 and $783 million in
    2001.

    Credit accounts:

     Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

                          (including transfer of funds)

        [During fiscal year 2000, new] 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 $200,000,000,000, to
    remain available until September 30, 2002.
        For administrative expenses necessary to carry out the guaranteed
    mortgage-backed securities program, $9,383,000 to be derived from the
    GNMA guarantees of mortgage-backed securities guaranteed loan receipt
    account, of which not to exceed $9,383,000 shall be transferred to the
    appropriation for departmental ``Salaries and expenses''. In addition,
    for administrative contract expenses, $40,000,000, to remain available
    until September 30, 2002: Provided, That to the extent guarantee
    commitments exceed $42,460,000,000 on or before April 1, 2001, an
    additional $400 for administrative contract expenses shall be available
    for each $1,000,000 in additional guarantee 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 $10,000,000. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2000.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............         355         701       7,222
        Receipts:
    02.01 Guarantees of mortgage backed
            securities guarantee loans,
            negative subsidies..............         355       6,530         721
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         710       7,231       7,943
        Appropriation:
    05.01 Guarantees of mortgage-backed
            securities loan guarantee
            program account.................          -9          -9          -9
                                               ---------   ---------  ----------
    07.99 Total balance, end of year........         701       7,222       7,934
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative expenses, salaries
            and expenses....................           9           9           9
    00.02 Administrative Contract Expenses..                                  40
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           9           9          49
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9           9          49
    23.95 Total new obligations.............          -9          -9         -49
    ----------------------------------------------------------------------------

    [[Page 522]]

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  40
    40.20   Appropriation (special fund,
              definite).....................           9           9           9
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           9           9          49
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............           9           9          49
    73.20 Total outlays (gross).............          -9          -9         -49
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9           9          49
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9           9          49
    90.00 Outlays...........................           9           9          49
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total Investments, start of year:
            U.S. securities: Par value \1\..                               6,189
    92.02 Total Investments, end of year:
            U.S. securities: Par value \1\..                   6,189       6,554
    ---------------------------------------------------------------------------
        \1\ These invested balances are shown in the program account for
    presentation purposes only. Actual balances are in the receipt account.

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

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............     163,508     114,311      96,262
    2150  Standby commitment authority......      36,492      85,689     103,738
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....     200,000     200,000     200,000
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       -0.42       -0.33       -0.36
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       -0.42       -0.33       -0.36
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........        -355        -341        -356
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..        -355        -341        -356
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................        -355        -341        -356
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........        -355        -341        -356
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           9           9          49
    3590  Outlays from new authority........           9           9          49
    ---------------------------------------------------------------------------

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                  40
    25.3  Purchases of goods and services
            from Government accounts........           9           9           9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           9           9          49
    ---------------------------------------------------------------------------
                                                 -------

           Guarantees of Mortgage-Backed Securities Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating expenses................          39          51          54
    00.02 Capital investment................                     140         133
    08.01 Payment to receipt account for
            negative subsidy................         355         341         356
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         394         532         543
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         415         496         570
    22.00 New financing authority (gross)...         475         606         604
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         890       1,102       1,174
    23.95 Total new obligations.............        -394        -532        -543
    24.40 Unobligated balance available, end
            of year.........................         496         570         631
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............         475         606         604
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           8          11          16
    73.10 Total new obligations.............         394         532         543
    73.20 Total financing disbursements
            (gross).........................        -392        -527        -540
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          11          16          18
    87.00 Total financing disbursements
            (gross).........................         392         527         540
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..         -38         -29         -29
              Non-Federal sources:
    88.40       Guarantee Fees..............        -362        -365        -369
    88.40       Commitment and other fees...         -55         -49         -46
    88.40       Multiclass fees.............         -20         -29         -32
    88.40       Repayment of advances.......                    -134        -128
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -475        -606        -604
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         -83         -79         -64
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     200,000     200,000     200,000
    2112  Uncommitted loan guarantee
            limitation......................     -36,492     -85,689    -103,738
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................     163,508     114,311      96,262
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     445,615     569,312     599,567
    2231  Disbursements of new guaranteed
            loans...........................     163,508     114,311      96,262
    2251  Repayments and prepayments........     -39,811     -84,056     -88,825
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     569,312     599,567     607,004
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     569,312     599,567     607,004
    ---------------------------------------------------------------------------

        Operating Results.--Fee collections, interest, and other income are
    expected to exceed expenses by $79 million in 1999; $82 million in 2000
    and $67 million in 2001. These amounts will be retained against losses
    that may be incurred on guarantees.

    [[Page 523]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4240-0-3-371    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         423            507           586            650
    1206  Non-Federal assets: Receivables,
            net.............................           2             30            27             26
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............                                        4              7
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................                                        4              7
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         425            537           617            683
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................          10             40            43             45
    2207    Other...........................                                      201            253
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          10             40           244            298
        NET POSITION:
    3300  Cumulative results of operations..         415            496           373            386
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         415            496           373            386
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         425            536           617            684
    -----------------------------------------------------------------------------------------------
        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

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
    03.00 Offsetting collections............                                  50
                                               ---------   ---------  ----------
    07.99 Total balance, end of year........                                  50
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Functional services...............           1           2           2
          Operating expenses:

    00.02   Default expenses................           3           3           3
    00.03   Servicing expenses..............           3           3           3
    00.04   Other expenses..................           2           2           2
    00.05   Administrative contract expenses                      50
                                               ---------   ---------  ----------
    00.91     Total operating expenses......           9          60          10
          Capital investment:

    01.01   Advances of guaranty payments...         101         111         100
          Other:

    02.01   Transfer to Receipt Account.....                   6,189
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         110       6,360         110
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       5,508       5,826
    22.00 New budget authority (gross)......         428         532         109
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,936       6,358         109
    23.95 Total new obligations.............        -110      -6,360        -110
    24.40 Unobligated balance available, end
            of year.........................       5,826
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

          Mandatory:

    69.00   Offsetting collections (cash)...         428         532         159
                                                     428         532         109
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of
            year\1\.........................         -74         -57         -55
    73.10 Total new obligations.............         110       6,360         110
    73.20 Total outlays (gross).............         -93      -6,358         -35
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         -57         -55          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 -50
    86.97 Outlays from new mandatory
            authority.......................          93         532          85
    86.98 Outlays from mandatory balances...                   5,826
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          93       6,358          35
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources (financing
                account)....................                     -50         -50
    88.20     Interest on U.S. securities...        -323        -364
              Non-Federal sources:
    88.40       Repayments of guaranteed
                  payments..................         -95        -106         -95
    88.40       Servicing income............          -8          -8          -8
    88.40       Repayments on mortgages.....          -1          -1          -1
    88.40       Other Fees..................          -1          -3          -5
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -428        -532        -159
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -50
    90.00 Outlays...........................        -336       5,826        -124
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            U.S. securities: Par value......       5,449       5,781
    92.02 Total investments, end of year:
            U.S. securities: Par value......       5,781
    ---------------------------------------------------------------------------
        \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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         358         360         342
    1232  Disbursements: Purchase of loans
            assets from the public..........         101         112         101
    1252  Repayments: Proceeds from loan
            asset sales to the public or
            discounted......................         -95        -108         -98
    1264  Write-offs for default: Other
            adjustments, net................          -4         -22         -20
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         360         342         325
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      96,009         156         156
    2251  Repayments and prepayments........     -95,853                      -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         156         156         154
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         156         156         154
    ---------------------------------------------------------------------------

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $326 million in 1999, $365 million in
    2000 and $4 million in 2001. 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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         112            329           374             13
    0102  Expense...........................         -52             -3            -9             -9
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............          60            326           365              4
                                            ------------ --------------  ------------  -------------
    0199  Total comprehensive income........          60            326           365              4
    -----------------------------------------------------------------------------------------------

    [[Page 524]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           1              3             3              4
            Investments in US securities:
    1102      Treasury securities, par......       5,449          5,778
    1106      Receivables, net..............          73             70            75              6
    1206  Non-Federal assets: Receivables,
            net.............................          31              1             2
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         358            360           340            323
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -325           -326          -192           -181
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          33             34           148            142
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       5,587          5,886           228            152
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................          35             17            20             24
    2207    Other...........................         512            512           101             15
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         547            529           121             39
        NET POSITION:
    3300  Cumulative results of operations..       5,039          5,357           107            112
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       5,039          5,357           107            112
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       5,586          5,886           228            151
    -----------------------------------------------------------------------------------------------
        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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           9          60          10
    33.0  Investments and loans.............         101         111         100
    92.0  Undistributed.....................                   6,189
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         110       6,360         110
    ---------------------------------------------------------------------------

                         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 [$45,000,000]
    $62,000,000, to remain available until September 30, [2001: Provided,
    That of the amount provided under this heading, $10,000,000] 2002, of
    which $12,000,000 shall be for the Partnership for Advancing Technology
    in Housing (PATH) Initiative [and $500,000 shall be for a commission
    established in section 525 of title V of this Act]. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing Research..................          47          36          50
    00.02 PATH..............................          10          10          12
    00.03 International Activities..........                      10
    00.04 Commission on Affordable Housing..                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          57          57          62
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          11          12
    22.00 New budget authority (gross)......          58          45          62
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          69          57          62
    23.95 Total new obligations.............         -57         -57         -62
    24.40 Unobligated balance available, end
            of year.........................          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          48          45          62
    42.00   Transferred from other accounts.          10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          58          45          62
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          22          52          56
    73.10 Total new obligations.............          57          57          62
    73.20 Total outlays (gross).............         -27         -53         -56
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          52          56          62
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          18          25
    86.93 Outlays from discretionary
            balances........................          16          35          31
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          27          53          56
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          58          45          62
    90.00 Outlays...........................          27          53          56
    ---------------------------------------------------------------------------

        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 2001, the research program will focus on activities to support
    research examining the implications of significant changes in public and
    assisted housing policy and the impacts of welfare reform on HUD-
    assisted households and HUD-subsidized developments. National Housing
    Surveys will continue in 2001. Research and evaluation will support the
    Department in carrying out its responsibilities under the Government
    Performance and Results Act.

        The 2001 request includes $12 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 housing technology infrastructure of the United
    States and to reduce carbon emissions. A public/private partnership,
    PATH joins together key Federal agencies, 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          52          52          56
    41.0  Grants, subsidies, and
            contributions...................           5           5           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          57          57          62
    ---------------------------------------------------------------------------

    [[Page 525]]

                       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,
    [$44,000,000] $50,000,000, to remain available until September 30,
    [2001] 2002, of which [$24,000,000] $29,000,000 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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0144-0-1-751      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fair housing assistance...........          13          30          21
    00.02 Fair housing initiatives..........          22          40          29
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          35          70          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          22          26
    22.00 New budget authority (gross)......          40          44          50
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          62          70          50
    23.95 Total new obligations.............         -35         -70         -50
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance available, end
            of year.........................          26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          40          44          50
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          30          34          68
    73.10 Total new obligations.............          35          70          50
    73.20 Total outlays (gross).............         -31         -36         -31
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          34          68          87
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3
    86.93 Outlays from discretionary
            balances........................          28          36          31
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          31          36          31
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          40          44          50
    90.00 Outlays...........................          31          36          31
    ---------------------------------------------------------------------------

        The Budget proposes an appropriation of $50 million in 2001 for fair
    housing activities to fund programs, consistent with the President's
    ``One America'' policy, which will continue to support efforts to end
    housing discrimination. Of the amount requested, $21 million is for the
    Fair Housing Assistance Program and $29 million is for the Fair Housing
    Initiatives Program.

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

        The 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 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
    93 in 2001 from 88 in 2000. Of the $21 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 $29 million requested, $7.5 million will be used to fund the
    final year of a three-year audit-based enforcement initiative which will
    continue to address the existence of both blatant and subtle forms of
    housing discrimination confirmed through testing experience.

        $2.5 million will be used to fund the Project for Accessbility
    Training and Technical Assistance (PATTA). PATTA will provide training
    and technical assistance to housing providers on designing and
    constructing properties to be in compliance with the accessibility
    requirements of the Fair Housing Act. $1 million will be used to
    establish an academy to conduct HUD-approved training, primarily in the
    areas of testing and self-monitoring, to fair housing organizations and
    industry. It will be a joint venture combining an institution of higher
    learning and a private fair housing group. 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

                          (including transfer of funds)

        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] $120,000,000 to remain available until expended, of
    which [$1,000,000 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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0174-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Lead abatement....................          18         144         120
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          18         144         120
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                      62

    [[Page 526]]

    22.00 New budget authority (gross)......          80          80         120
    22.22 Unobligated balance transferred
            from other accounts.............                       2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          80         144         120
    23.95 Total new obligations.............         -18        -144        -120
    24.40 Unobligated balance available, end
            of year.........................          62
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          80          80         120
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year                      16         286
    73.10 Total new obligations.............          18         144         120
    73.20 Total outlays (gross).............          -2         -80         -81
    73.32 Obligated balance transferred from
            other accounts..................                     206
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          16         286         325
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.93 Outlays from discretionary
            balances........................                      78          79
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2          80          81
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          80          80         120
    90.00 Outlays...........................           2          80          81
    ---------------------------------------------------------------------------

        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.

        The President's Task Force on Children's Environmental Health and
    Safety Risk has developed a ten-year, interagency strategy to eliminate
    lead poisoning in children. The 2001 Budget includes a 50 percent
    increase, to $90 million, for HUD's Lead Hazard Control Grant program as
    a major part of this ambitious strategy.

        The Lead Hazard Control Grant Program 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 new, low cost approaches to hazard control that can be replicated
    across the nation.

        The Healthy Homes Initiative will enable the Department to control
    additional childhood diseases and injuires that are caused by housing
    related factors. The initative will allow for a demonstration that
    evaluates the 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 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. Starting in 1999 the program was
    funded as a separate, stand-alone program.

                          MANAGEMENT AND ADMINISTRATION

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                          (including transfer of funds)

        For necessary administrative and 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, [$1,005,733,000] $1,094,733,000, 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 the
    Government National Mortgage Association, $1,000,000 shall be provided
    from the ``Community development block grants program'' account, up to
    $1,000,000 shall be provided from the ``America's Private Investment
    Companies Program'' account, $150,000 shall be provided by transfer from
    the ``Title VI Indian federal guarantees program'' account, and $200,000
    shall be provided by transfer from the ``Indian housing loan guarantee
    fund program'' account: [Provided, That the Secretary is prohibited from
    using any funds under this heading or any other heading in this Act from
    employing more than 77 schedule C and 20 noncareer Senior Executive
    Service employees: Provided further, That the Secretary is prohibited
    from using funds under this heading or any other heading in this Act to
    employ more than 9,300 employees: Provided further, That the Secretary
    is prohibited from using funds under this heading or any other heading
    in this Act to convert any external community builders to career
    employees, and after September 1, 2000 to employ any external community
    builders: Provided further, That the Secretary is prohibited from using
    funds under this heading or any other heading in this Act to employ more
    than 14 employees in the Office of Public Affairs: Provided further,
    That of the amount made available under this heading, $2,000,000 shall
    be for the Millennial Housing Commission as established under section
    206.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Housing, mortgage credit,
              regulatory and energy
              conservation..................         174         174         206
    00.02   Community planning and
              development programs..........          29          29          35
    00.03   Equal opportunity and research
              programs......................          32          32          38
    00.04   Departmental management, legal
              and audit services............          28          28          34
    00.05   Field direction and
              administration................         206         214         252
    09.01 Reimbursable program..............         534         529         530
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......         534         529         530
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,003       1,006       1,095
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,006       1,006       1,095
    23.95 Total new obligations.............      -1,003      -1,006      -1,095
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         457         477         565
    42.00   Transferred from other accounts.          15
                                               ---------   ---------  ----------

    [[Page 527]]

    43.00     Appropriation (total
                discretionary)..............         472         477         565
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         534         529         530
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,006       1,006       1,095
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         185         163         160
    73.10 Total new obligations.............       1,003       1,006       1,095
    73.20 Total outlays (gross).............      -1,028      -1,006      -1,073
    73.40 Adjustments in expired accounts
            (net)...........................           3          -3          12
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         163         160         193
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         915         897         965
    86.93 Outlays from discretionary
            balances........................         113         109         109
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,028       1,006       1,073
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -534        -529        -530
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         472         477         565
    90.00 Outlays...........................         493         477         543
    ---------------------------------------------------------------------------

        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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         233         255         294
    11.3      Other than full-time permanent          17          18          21
    11.5      Other personnel compensation..           6           7           8
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         256         280         323
    12.1    Civilian personnel benefits.....          56          61          69
    21.0    Travel and transportation of
              persons.......................           7           7          11
    22.0    Transportation of things........           1                       1
    23.1    Rental payments to GSA..........          38          40          48
    23.3    Communications, utilities, and
              miscellaneous charges.........          15          16          19
    24.0    Printing and reproduction.......           2           2           2
    25.1    Advisory and assistance services          69          51          68
    25.2    Other services..................           6           5           6
    25.3    Purchases of goods and services
              from Government accounts......          10           8          10
    25.4    Operation and maintenance of
              facilities....................           5           4           5
    26.0    Supplies and materials..........           3           2           2
    31.0    Equipment.......................           3           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         471         477         565
    99.0  Reimbursable obligations..........         532         529         530
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,003       1,006       1,095
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       4,210       4,363       4,804
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       4,747       4,837       4,496
    ---------------------------------------------------------------------------

                           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,
    [$83,000,000] $84,000,000, 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 appropriation for ``Drug elimination grants for low-income
    housing'': 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, 2000.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          38          61          52
    09.01 Reimbursable program..............          33          32          32
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          71          93          84
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                      10
    22.00 New budget authority (gross)......          83          83          84
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          83          93          84
    23.95 Total new obligations.............         -71         -93         -84
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance available, end
            of year.........................          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          50          51          52
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          33          32          32
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          83          83          84
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          24          52          32
    73.10 Total new obligations.............          71          93          84
    73.20 Total outlays (gross).............         -42        -112         -87
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          52          32          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          41          71          72
    86.93 Outlays from discretionary
            balances........................           1          41          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          42         112          87
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -33         -32         -32
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          50          51          52
    90.00 Outlays...........................           9          80          55
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................          50          51          52
      Outlays...........................           9          80          55
    Supplemental proposal:
      Budget Authority..................                      -6           6
      Outlays...........................                      -5           4
                                        ------------------------------------
    Total:
      Budget Authority..................          50          45          58
      Outlays...........................           9          75          59
                                        ====================================

        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.

    [[Page 528]]

    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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          19          26          26
    11.5      Other personnel compensation..           2           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          21          29          29
    12.1    Civilian personnel benefits.....           5           8           6
    21.0    Travel and transportation of
              persons.......................           3           5           5
    23.1    Rental payments to GSA..........           2           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           3           3
    25.1    Advisory and assistance services           1           7           2
    25.3    Purchases of goods and services
              from Government accounts......           3           3           2
    31.0    Equipment.......................           2           3           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          38          61          52
    99.0  Reimbursable obligations..........          33          32          32
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          71          93          84
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         312         374         329
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         266         331         331
    ---------------------------------------------------------------------------

                 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, including not to exceed $500 for official
    reception and representation expenses, [$19,493,000] $25,800,000, 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, 2000.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Office of federal housing
            enterprise oversight............          16          19          26
        Appropriation:
    05.01 Office of federal housing
            enterprise oversight............         -16         -19         -26
                                               ---------   ---------  ----------
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          16          19          26
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          16          19          26
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          16          19          26
    23.95 Total new obligations.............         -16         -19         -26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund,
              definite).....................          16          19          26
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           5           4           4
    73.10 Total new obligations.............          16          19          26
    73.20 Total outlays (gross).............         -16         -19         -25
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           4           4           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          12          15          21
    86.93 Outlays from discretionary
            balances........................           4           4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          16          19          25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          19          26
    90.00 Outlays...........................          16          19          25
    ---------------------------------------------------------------------------

        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 two 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Personnel
            Compensation....................           7          10          12
    12.1  Civilian personnel benefits.......           1           2           3
    23.2  Rental payments to others.........           2           2           3
    25.2  Other services....................           4           4           6
    31.0  Equipment.........................           1           1           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          15          19          26
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          16          19          26
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          73          95         118
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............         348         266         390
                                               ---------   ---------  ----------

    [[Page 529]]

    10.00   Total new obligations...........         348         266         390
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          57          32
    22.00 New budget authority (gross)......         319         266         390
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5         -32
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         381         266         390
    23.95 Total new obligations.............        -348        -266        -390
    24.40 Unobligated balance available, end
            of year.........................          32
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         305         266         390
    69.10   From Federal sources: Change in
              receivables and unpaid,
              unfilled orders...............          12
    69.15   From Federal sources:
              Adjustments to receivables and
              unpaid, unfilled orders.......           2
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         319         266         390
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year         -13          21          34
    72.95   From Federal sources:
              Receivables and unpaid,
              unfilled orders...............           9          21          21
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          -4          42          55
    73.10 Total new obligations.............         348         266         390
    73.20 Total outlays (gross).............        -296        -285        -390
    73.45 Adjustments in unexpired accounts.          -5          32
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..          21          34          34
    74.95   From Federal sources:
              Receivables and unpaid,
              unfilled orders...............          21          21          21
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          42          55          55
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         296         285         390
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -305        -266        -390
          Against gross budget authority only:

    88.95   From Federal sources: Change in
              receivables and unpaid,
              unfilled orders...............         -12
    88.96   From Federal sources: Adjustment
              to receivables and unpaid,
              unfilled orders...............          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -9          19
    ---------------------------------------------------------------------------

        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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          24          18          27
    12.1  Civilian personnel benefits.......           5           4           6
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........          54          42          59
    25.1  Advisory and assistance services..         223         170         252
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................          40          30          44
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         348         266         390
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         355         462         462
    ---------------------------------------------------------------------------

                            Administrative Provisions

        Sec. 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. 202. None of the amounts made available under this Act may be
    used during fiscal year [2000] 2001 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.

               Housing Opportunities for Persons With AIDS Grants

        Sec. 203. [Section 207 of the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1999, is amended by striking wherever it occurs ``fiscal year 1999
    and 2000'' and inserting ``fiscal years 1999 and 2000''.]
        (a) Eligibility. Notwithstanding section 854(c)(1)(A) of the AIDS
    Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts
    made available under this title for fiscal year 2001 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
        2001 under such clause (ii) because the areas in the State outside
        of the metropolitan statistical areas that qualify under clause (i)
        in fiscal year 2000 do not have the number of cases of acquired
        immunodeficiency syndrome required under such clause.
        (b) Amount.--The amount of the allocation and grant for any State
    described in subsection (a) shall be an amount based on the cumulative
    number of AIDS cases in the areas of that State that are outside of
    metropolitan statistical areas that qualify under clause (i) of such
    section 845(c)(1)(A) in fiscal year 2000, 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 the Act is amended by
    adding the following new subsection at the end:
        ``(h) Environmental Review.--For purposes of environmental review, a
    grant under 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, and shall be subject to the
    regulations issued by the Secretary to implement such section.''.

                                 [Reprogramming]

        [Sec. 204. Of the amounts made available under the sixth
    undesignated paragraph under the heading ``Community Planning and
    Development--community development block grants'' in title II of the
    Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 1999 (Public Law 105-276; 112
    Stat. 2477) for the Economic Development Initiative (EDI) for grants for
    targeted economic investments, the $1,000,000 to be made available
    (pursuant to the related provisions of the joint explanatory statement
    in the conference report to accompany such Act (House Report No. 105-
    769, 105th Congress, 2d session)) to the City of Redlands, California,
    for the redevelopment initiatives near the historic Fox Theater shall,
    notwithstanding such provisions, be made available to such city for the
    following purposes:
            (1) $700,000 shall be for renovation of the City of Redlands
        Fire Station No. 1;

    [[Page 530]]

            (2) $200,000 shall be for renovation of the Mission Gables House
        at the Redlands Bowl historic outdoor amphitheater; and
            (3) $100,000 shall be for the preservation of historic Hillside
        Cemetery.]

     [Adjustments to Income Eligibility for Unusually High or Low Families
                          Incomes in Assisted Housing]

        [Sec. 205. Section 16 of the United States Housing Act of 1937 is
    amended--
            (1) in subsection (a)(2)(A), by inserting before the period the
        following: ``; except that the Secretary may establish income
        ceilings higher or lower than 30 percent of the area median income
        on the basis of the Secretary's findings that such variations are
        necessary because of unusually high or low family incomes''; and
            (2) in subsection (c)(3), by inserting before the period the
        following: ``; except that the Secretary may establish income
        ceilings higher or lower than 30 percent of the area median income
        on the basis of the Secretary's findings that such variations are
        necessary because of unusually high or low family incomes''.]

                         [Millennial Housing Commission]

        [Sec. 206. (a) Establishment.--There is hereby established a
    commission to be known as the Millennial Housing Commission (in this
    section referred to as the ``Commission'').
        (b) Study.--The duty of the Commission shall be to conduct a study
    that examines, analyzes, and explores--
            (1) the importance of housing, particularly affordable housing
        which includes housing for the elderly, to the infrastructure of the
        United States;
            (2) the various possible methods for increasing the role of the
        private sector in providing affordable housing in the United States,
        including the effectiveness and efficiency of such methods; and
            (3) whether the existing programs of the Department of Housing
        and Urban Development work in conjunction with one another to
        provide better housing opportunities for families, neighborhoods,
        and communities, and how such programs can be improved with respect
        to such purpose.
        (c) Membership.--
            (1) Number and Appointment.--The Commission shall be composed of
        22 members, appointed not later than January 1, 2000, as follows:
                    (A) Two co-chairpersons appointed by--
        (i) one co-chairperson appointed by a committee consisting of the
    chairmen of the Subcommittees on the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies of the
    Committees on Appropriations of the House of Representatives and the
    Senate, and the chairman of the Subcommittee on Housing and Community
    Opportunities of the House of Representatives and the chairman of the
    Subcommittee on Housing and Transportation of the Senate; and
        (ii) one co-chairperson appointed by a committee consisting of the
    ranking minority members of the Subcommittees on the Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies of the Committees on Appropriations of the House of
    Representatives and the Senate, and the ranking minority member of the
    Subcommittee on Housing and Community Opportunities of the House of
    Representatives and the ranking minority member of the Subcommittee on
    Housing and Transportation of the Senate.
                    (B) Ten members appointed by the Chairman and Ranking
                Minority Member of the Committee on Appropriations of the
                House of Representatives and the Chairman and Ranking
                Minority Member of the Committee on Banking and Financial
                Services of the House of Representatives.
                    (C) Ten members appointed by the Chairman and Ranking
                Minority Member of the Committee on Appropriations of the
                Senate and the Chairman and Ranking Minority Member of the
                Committee on Banking, Housing, and Urban Affairs of the
                Senate.
            (2) Qualifications.--Appointees should have proven expertise in
        directing, assemblying, or applying capital resources from a variety
        of sources to the successful development of affordable housing or
        the revitalization of communities, including economic and job
        development.
            (3) Vacancies.--Any vacancy on the Commission shall not affect
        its powers and shall be filled in the manner in which the original
        appointment was made.
            (4) Chairpersons.--The members appointed pursuant to paragraph
        (1)(A) shall serve as co-chairpersons of the Commission.
            (5) Prohibition of pay.--Members of the Commission shall serve
        without pay.
            (6) Travel expenses.--Each member of the Commission shall
        receive travel expenses, including per diem in lieu of subsistence,
        in accordance with sections 5702 and 5703 of title 5, United States
        Code.
            (7) Quorum.--A majority of the members of the Commission shall
        constitute a quorum but a lesser number may hold hearings.
            (8) Meetings.--The Commission shall meet at the call of the
        Chairpersons.
        (d) Director and Staff.--
            (1) Director.--The Commission shall have a Director who shall be
        appointed by the Chairperson. The Director shall be paid at a rate
        not to exceed the rate of basic pay payable for level V of the
        Executive Schedule.
            (2) Staff.--The Commission may appoint personnel as appropriate.
        The staff of the Commission shall be appointed subject to the
        provisions of title 5, United States Code, governing appointments in
        the competitive service, and shall be paid in accordance with the
        provisions of chapter 51 and subchapter III of chapter 53 of that
        title relating to classification and General Schedule pay rates.
            (3) Experts and consultants.--The Commission may procure
        temporary and intermittent services under section 3109(b) of title
        5, United States Code, but at rates for individuals not to exceed
        the daily equivalent of the maximum annual rate of basic pay payable
        for the General Schedule.
            (4) Staff of federal agencies.--Upon request of the Commission,
        the head of any Federal department or agency may detail, on a
        reimbursable basis, any of the personnel of that department or
        agency to the Commission to assist it in carrying out its duties
        under this Act.
        (e) Powers.--
            (1) Hearings and sessions.--The Commission may, for the purpose
        of carrying out this section, hold hearings, sit and act at times
        and places, take testimony, and receive evidence as the Commission
        considers appropriate.
            (2) Powers of members and agents.--Any member or agent of the
        Commission may, if authorized by the Commission, take any action
        which the Commission is authorized to take by this section.
            (3) Obtaining official data.--The Commission may secure directly
        from any department or agency of the United States information
        necessary to enable it to carry out this Act. Upon request of the
        Chairpersons of the Commission, the head of that department or
        agency shall furnish that information to the Commission.
            (4) Gifts, bequests, and devises.--The Commission may accept,
        use, and dispose of gifts, bequests, or devises of services or
        property, both real and personal, for the purpose of aiding or
        facilitating the work of the Commission. Gifts, bequests, or devises
        of money and proceeds from sales of other property received as
        gifts, bequests, or devises shall be deposited in the Treasury and
        shall be available for disbursement upon order of the Commission.
            (5) Mails.--The Commission may use the United States mails in
        the same manner and under the same conditions as other departments
        and agencies of the United States.
            (6) Administrative support services.--Upon the request of the
        Commission, the Administrator of General Services shall provide to
        the Commission, on a reimbursable basis, the administrative support
        services necessary for the Commission to carry out its
        responsibilities under this section.
            (7) Contract Authority.--The Commission may contract with and
        compensate Government and private agencies or persons for services,
        without regard to section 3709 of the Revised Statutes (41 U.S.C.
        5).
        (f ) Report.--The Commission shall submit to the Committees on
    Appropriations and Banking and Financial Services of the House of
    Representatives and the Committees on Appropriations and Banking,
    Housing, and Urban Affairs of the Senate a final report not later than
    March 1, 2002. The report shall contain a detailed statement of the
    findings and conclusions of the Commission with respect to the study
    conducted under subsection (b), together with its recommendations for
    legislation, administrative actions, and any other actions the
    Commission considers appropriate.
        (g) Termination.--The Commission shall terminate on June 30, 2002.
    Section 14(a)(2)(B) of the Federal Advisory Committee Act (5

    [[Page 531]]

    U.S.C. App.; relating to the termination of advisory committees) shall
    not apply to the Commission.]

                           [FHA Technical Correction]

        [Sec. 207. Section 203(b)(2)(A)(ii) of the National Housing Act (12
    U.S.C. 1709(b)(2)(A)(ii)) is amended by adding before ``48 percent'' the
    following: ``the greater of the dollar amount limitation in effect under
    this section for the area on the date of the enactment of the
    Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act for Fiscal Year 1999 or''.]

                                  [Rescissions]

        [Sec. 208. Of the balances remaining from funds appropriated to the
    Department of Housing and Urban Development in Public Law 105-65 and
    prior appropriations Acts, $74,400,000 is rescinded: Provided, That the
    amount rescinded shall be comprised of--
            (1) $30,552,000 of the amounts that were appropriated for the
        modernization of public housing unit; under the heading ``Annual
        contributions for assisted housing'', including an amount equal to
        the amount transferred from such account to, and merged with amounts
        under the heading ``Public housing capital fund'';
            (2) $3,048,000 of the amounts from which no disbursements have
        been made within five successive fiscal years beginning after
        September 30, 1993, that were appropriated under the heading
        ``Annual contributions for assisted housing'', including an amount
        equal to the amount transferred from such account to the account
        under the heading ``Housing certificate fund'';
            (3) $22,975,000 of amounts appropriated for homeownership
        assistance under section 235(r) of the National Housing Act,
        including $6,875,000 appropriated in Public Law 103-327 (approved
        September 28, 1994, 104 Stat. 2305) for such purposes;
            (4) $11,400,000 of the amounts appropriated for the
        Homeownership and Opportunity for People Everywhere programs (HOPE
        programs), as authorized by the Cranston-Gonzalez National
        Affordable Housing Act; and
            (5) $6,400,000 of the balances remaining in the account under
        the heading ``Nonprofit Sponsor Assistance Account''.]

                     [Grant for National Cities in Schools]

        [Sec. 209. For a grant to the National Cities in Schools Community
    Development program under section 930 of the Housing and Community
    Development Act of 1992, $5,000,000.]

                         [Moving to Work Demonstration]

        [Sec. 210. For the Jobs-Plus Initiative of the Moving to Work
    Demonstration, $5,000,000 to cover the cost of rent-based work
    incentives to families in selected public housing developments, who
    shall be encouraged to go to work under work incentive plans approved by
    the Secretary and carefully tracked as part of the research and
    demonstration effort.]

                                   [Repealer]

        [Sec. 211. Section 218 of Public Law 104-204 is repealed.]

                 [FHA Administrative Contract Expense Authority]

        [Sec. 212. Section 1 of the National Housing Act (12 U.S.C. 1702) is
    amended by inserting the following new sentence after the first proviso:
    ``Except with respect to title III, 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.''.]

                            [Full Payment of Claims]

        [Sec. 213. (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 the
        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).''.]

                  [Availability of Income Matching Information]

        [Sec. 214. (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''.]

      Exemption for Alaska and Mississippi From Requirement of Resident on
                                      Board

        Sec. [215] 204. Public housing agencies in the States of Alaska and
    Mississippi shall not be required to comply with section 2(b) of the
    United States Housing Act of 1937, as amended, during fiscal year [2000]
    2001.

             [Administration of the CDBG Program by New York State]

        [Sec. 216. The Secretary of Housing and Urban Development shall
    transfer on the date of the enactment of this Act the administration of
    the Small Cities component of the Community Development Block Grants
    program for all funds allocated for the State of New York under section
    106(d) of the Housing and Community Development Act of 1974 for fiscal
    year 2000 and all fiscal years thereafter, to the State of New York to
    be administered by the Governor of such State.]

                             [Section 202 Exemption]

        [Sec. 217. Notwithstanding section 202 of the Housing Act of 1959 or
    any other provision of law, Peggy A. Burgin may not be disqualified on
    the basis of age from residing at Clark's Landing in Groton, Vermont.]

                       [Darlinton Preservation Amendment]

        [Sec. 218. Notwithstanding any other provision of law, upon
    prepayment of the FHA-insured section 236 mortgage, the Secretary shall
    continue to provide interest reduction payment in accordance with the
    existing amortization schedule for Darlinton Manor Apartments, a 100-
    unit project located at 606 North 5th Street, Bozemen, Montana, which
    will continue as affordable housing pursuant to a use agreement with the
    State of Montana.]

                             [Risk-Sharing Priority]

        [Sec. 219. Section 517(b)(3) of the Departments of Veterans Affairs
    and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 1998 is amended by inserting after ``1992.'' the
    following: ``The Secretary shall use risk-shared financing under section
    542(c) of the Housing and Community Development Act of 1992 for any
    mortgage restructuring, rehabilitation financing, or debt refinancing
    included as part of a mortgage restructuring and rental assistance
    sufficiency plan if the terms and conditions are considered to be the
    best available financing in terms of financial savings to the FHA
    insurance funds and will result in reduced risk of loss to the Federal
    Government.''.]

         [Treatment of Expiring Economic Development Initiative Grants]

        [Sec. 220. (a) Availability.--Notwithstanding section 1552 of title
    31, United States Code, the grant amounts identified in subsection

    [[Page 532]]

    (b) shall remain available to the grantees for the purposes for which
    such amounts were obligated through September 30, 2000.
        (b) Grants.--The grant amounts identified in this subsection are the
    amounts provided under the following grants made by the Secretary of
    Housing and Urban Development under the economic development initiative
    under section 108(q) of the Housing and Community Development Act of
    1974 (42 U.S.C. 5308(q)):
            (1) The grant for Miami, Florida, designated as B-92-ED-12-013.
            (2) The grant for Miami Beach, Florida, designated as B-92-ED-
        12-014.
        (c) Effective Date.--This section shall be considered to have taken
    effect on September 30, 1999. The Secretary of the Treasury and the
    Secretary of Housing and Urban Development shall take such actions as
    may be necessary to carry out this section, notwithstanding any actions
    taken previously pursuant to section 1552 of title 31, United States
    Code.]

           [Use of Trusts With Regard to Cooperative Housing Section]

        [Sec. 221. Section 213(a) of the National Housing Act (12 U.S.C.
    1715e(a)) is amended by adding at the end the following new sentence:
    ``Nothing in this section may be construed to prevent membership in a
    nonprofit housing cooperative from being held in the name of a trust,
    the beneficiary of which shall occupy the dwelling unit in accordance
    with rules and regulations prescribed by the Secretary.''.]

                          [Grant Technical Correction]

        [Sec. 222. Notwithstanding any other provision of law, the amount
    made available under the Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 1991
    (Public Law 101-507) for a special purpose grant under section 107 of
    the Housing and Community Development Act of 1974 to the County of
    Hawaii for the purpose of an environmental impact statement for the
    development of a water resource system in Kohala, Hawaii, that is
    unobligated on the date of the enactment of this Act, may be used to
    fund water system improvements, including exploratory wells, well
    drillings, pipeline replacements, water system planning and design, and
    booster pump and reservoir development.]

                       [Reuse of Certain Budget Authority]

        [Sec. 223. Section 8(z) of the United States Housing Act of 1937 is
    amended--
            (1) in paragraph (1)--
                    (A) by inserting after ``on account of'' the following:
                ``expiration or''; and
                    (B) by striking the parenthetical phrase; and
            (2) by striking paragraph (3).]

                              [Section 108 Waiver]

        [Sec. 224. With respect to the $6,700,000 commitment in connection
    with guaranteed obligations for the Sandtown-Winchester Home Ownership
    Zone under section 108 of the Housing and Community Development Act of
    1974, the Secretary shall not require security in excess of that
    authorized under section 108(d)(1)(B).]

                                [Hopwa Technical]

        [Sec. 225. (a) Notwithstanding any other provision of law, the
    amount allocated for fiscal year 2000, and the amounts that would
    otherwise be allocated for fiscal year 2001, to the City of
    Philadelphia, Pennsylvania on behalf of the Philadelphia, PA-NJ Primary
    Metropolitan Area (hereafter ``metropolitan area''), under section
    854(c) of the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)), the
    Secretary of Housing and Urban Development shall adjust such amounts by
    allocating to the State of New Jersey the proportion of the metropolitan
    area's amount that is based on the number of cases of AIDS reported in
    the portion of the metropolitan area that is located in New Jersey.
        (b) The State of New Jersey shall use amounts allocated to the State
    under this section to carry out eligible activities under section 855 of
    the AIDS Housing Opportunity Act (42 U.S.C. 12904) in the portion of the
    metropolitan area that is located in New Jersey.]

    Expansion of Environmental Assumption Authority for Homeless Assistance
                                    Programs

        Sec. 205. Section 443 of the Stewart B. McKinney Homeless Assistance
    Act is amended to read as follows:
    ``SEC. 443. ENVIRONMENTAL REVIEW.
        For purposes of environmental review, assistance and projects under
    this title shall be treated as assistance for special projects that are
    subject to section 305(c) of the Multifamily Housing Property
    Disposition Reform Act of 1994, and shall be subject to the regulations
    issued by the Secretary to implement such section.''.

      Permanent Extension of FHA Multifamily Mortgage Credit Demonstrations

        Sec. 206. Section 542 of the Housing and Community Development Act
    of 1992 is amended--
            (1) by revising subsection (b)(5) to read as follows:
            ``(5) Insurance Authority.--Using any authority provided in
        appropriation Acts to insure mortgages under the National Housing
        Act, the Secretary may enter into commitments under this subsection
        for risk-sharing units.'';
            (2) by revising subsection (c)(4) to read as follows:
            ``(4) Insurance Authority.--Using any authority provided in
        appropriation Acts to insure mortgages under the National Housing
        Act, the Secretary may enter into commitments under this subsection
        for risk-sharing units.'';
            (3) in the heading, by striking ``Demonstrations'' and inserting
        ``Programs'';
            (4) in the first sentence of subsection (a), by striking
        ``demonstrate the effectiveness of providing'' and inserting
        ``provide'';
            (5) in the second sentence of subsection (a), by striking
        ``demonstration'';
            (6) in subsection (b)(1), by striking `'determine the
        effectiveness of'' and inserting ``provide'';
            (7) in subsection (c)(1), by striking ``test the effectiveness
        of'' and inserting ``provide'';
            (8) by striking subsection (d); and
            (9) by striking ``pilot'' and ``PILOT'' each place it appears.
        Sec. 207. Permanent Extension of Streamlined Downpayment
    Requirements.--Section 203(b)(2) of the National Housing Act is amended
    by striking subparagraph (B) and all that follows in the paragraph
    through ``applicability of this requirement,'' and inserting the
    following:
            ``(B) not to exceed an amount equal to--
                ``(i) 98.75 percent of the appraised value of the property,
            if such value is equal to or less than $50,000;
                ``(ii) 97.65 percent of the appraised value of the property,
            if such value is in excess of $50,000 but not in excess of
            $125,000;
                ``(iii) 97.15 percent of the appraised value of the
            property, if such value is in excess of $125,000; or
                ``(iv) Notwithstanding clauses (ii) and (iii), 97.75 percent
            of the appraised value of the property, if such value is in
            excess of $50,000 and the property is in a State for which the
            average closing cost exceeds 2.10 percent of the average, for
            the State, of the sales price of properties located in the State
            for which mortgages have been executed, as determined by the
            Secretary.
                    ``For purposes of this subparagraph, the term `average
                closing cost' means, with respect to a State, the average,
                for mortgages executed for properties in the State, of the
                total amounts (as determined by the Secretary) of initial
                service charges, appraisal, inspection, and other fees and
                costs (as the Secretary shall approve) that are paid in
                connection with such mortgages.''.

                         Enhanced Disposition Authority

        Sec. 208. Section 204 of the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1997, is amended by striking ``and 2000'' and inserting ``2000, and
    thereafter''.

                  Ginnie Mae Administrative Contract Authority

        Sec. 209. Section 1 of the National Housing Act (12 U.S.C. 1702) is
    amended in the first sentence following the first proviso by striking
    ``Except with respect to title III,'' and inserting ``Except with
    respect to the Federal National Mortgage Association,''.

                           FHA Mortgage Limit Increase

        Sec. 210. Increase in FHA Single Family Maximum Mortgage Amount.

    [[Page 533]]

        (a) Increase in Maximum Mortgage Amounts to Uniform National
    Maximum.--Section 203(b)(2)(A) of the National Housing Act is amended to
    read as follows:
                ``(A) not to exceed the average of the dollar amounts
            determined under section 305(a)(2) of the Federal Home Loan
            Mortgage Corporation Act and section 302(b)(2) of the National
            Housing Act for a residence of the applicable size; and''
        (b) Conforming Amendment for Title I Manufactured Home Loans in
    High-Cost Areas.--Section 2(b)(2) of such Act is amended by--
            (1) striking ``the lesser of (A)''; and
            (2) striking ``, or (B)'' and all that follows up to the period.
        (c) Conforming Amendment For Hecms.--Section 255(g) of such Act is
    amended by striking ``in the area'' and all that follows up to the
    period.
        Sec. 211. Rental Assistance Fraud Recoveries. Section 326(b) of the
    Housing and Community Development Act of 1992, Public Law 102-550, is
    repealed.

                          FHA Insurance For Hybrid Arms

        Sec. 212. FHA Insurance for Hybrid Arms.--Section 251 of the
    National Housing Act is amended--
            (1) in subsection (b), by striking ``issue regulations'' and all
        that follows and inserting the following: ``require that the
        mortgagee make available to the mortgagor, at the time of loan
        application, a written explanation of the features of an adjustable
        rate mortgage consistent with the disclosure requirements applicable
        to variable rate mortgages secured by a principal dwelling under the
        Truth in Lending Act.'';
            (2) in subsection (c), by striking ``30'' and inserting ``40'';
        and
            (3) by adding the following new subsection at the end:
        ``(d)(1) The Secretary may insure under this subsection a mortgage
    that meets the requirements of subsection (a), except that the effective
    rate of interest--
                ``(A) shall be fixed for a period of not less than the first
            3 years of the mortgage term;
                ``(B) shall be adjusted by the mortgagee initially upon the
            expiration of such period and annually thereafter; and
                ``(C) in the case of the initial interest rate adjustment,
            is subject to the 1 percent limitation only if the interest rate
            remained fixed for 5 or fewer years.
            ``(2) The disclosure required under subsection (b) shall be
        required for a mortgage insured under this subsection.
            ``(3) The Secretary may implement this subsection in advance of
        rulemaking.''.
        Sec. 213.--Mixed Financing for Section 202.
        Section 202 of the Housing Act of 1959 is amended--
            (1) in subsection (h)(6), by striking ``non-Federal sources''
        and inserting ``sources other than this section''; and
            (2) in subsection (k)(4), by inserting after and below
        subparagraph (C) the following new sentence:
                ``Such term includes: (1) a limited partnership the sole
            general partner of which is an organization meeting the
            requirements of subparagraphs (A), (B), and (C); and (2) a
            corporation wholly owned by an organization meeting the
            requirements under subparagraphs (A), (B), and (C).''.
        Sec. 214.--Maximum Payment Standard for Enhanced Vouchers.
        Section 8(t)(1)(B) of the United States Housing Act of 1937 is
    amended by inserting ``and any other reasonable limit prescribed by the
    Secretary'' immediately before the semi-colon. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2000.)
        Sec. 215. Technical Amendments and Corrections to the National
    Housing Act.
        (a) Section 203 Subsection Designations.--Section 203 of the
    National Housing Act is amended by--
            (1) redesignating subsection (t) as subsection (u);
            (2) redesignating subsection (s), as added by section 329 of the
        Cranston-Gonzalez National Affordable Housing Act, as subsection
        (t); and
            (3) redesignating subsection (v), as added by section 504 of the
        Housing and Community Development Act of 1992, as subsection (w).
        (b) Mortgage Auctions.--The first sentence of section
    221(g)(4)(C)(viii) of the National Housing Act is amended by inserting
    after ``December 31, 2002'' the following: ``, except that this
    subparagraph shall continue to apply if the Secretary receives a
    mortgagee's written notice of intent to assign its mortgage to the
    Secretary on or before such date''.
        (c) Mortgagee Review Board.--Section 202(c)(2) of the National
    Housing Act is amended--
            (1) in subparagraph (E), by striking ``and'';
            (2) in subparagraph (F), by striking ``or their designees.'' and
        inserting ``and'';
            (3) by adding the following new subparagraph at the end:
                ``(G) the Director of the Enforcement Center; or their
            designees.''.
        Sec. 216. 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 (4) 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 all regulations concerning
        contract renewals under section 524 of this Act, including
        amendment, revision and removal of such regulations previously
        issued by the Director.''.
        Sec. 217. Housing Production Assistance.
        (a) Types of Assistance.
            (1) voucher authority.--In addition to assistance otherwise
        available under section 8 of the United States Housing Act of 1937,
        the Secretary of Housing and Urban Development shall make up to an
        additional 10,000 housing vouchers available to public housing
        agencies, under such terms and conditions as the Secretary
        determines. Such vouchers shall be for extremely low-income
        families.
            (2) incentive grants.--Of the amounts appropriated for this
        section for fiscal year 2001, the Secretary may use up to $8,000,000
        for one-time grants to developers who produce housing units that
        satisfy such unmet needs as the Secretary may identify, such as a
        need for an increase in units to house large families.
        (b) HUD Allocation of Vouchers.--Notwithstanding section 213(d) of
    the Housing and Community Development Act of 1974, the Secretary shall
    allocate the vouchers described in subsection (a) to States in the same
    proportions as low-income housing tax credits pursuant to 26 U.S.C. 42
    are allocated. Allocation of these vouchers shall be subject to the per
    capita tax credit amount established for such credits for fiscal year
    2001. The Secretary may reallocate any vouchers that a State housing
    credit agency does not designate for use at a particular building
    pursuant to subsection (c) in the same manner as such tax credits are
    reallocated.
        (c) Distribution of Vouchers.
            (1) The housing credit agency shall select the buildings or
        housing at which the vouchers made available for each State under
        subsection (b) shall be used. Such buildings or housing may
        include--
                (A) new buildings with a mortgage insured under section
            221(d)(4) of the National Housing Act which is allocated a
            housing credit dollar amount pursuant to 26 U.S.C. 42 and is not
            located in a qualified census tract; and
                (B) new multifamily housing with a mortgage insured under
            section 542(c) of the Housing and Community Development Act of
            1992 which may or may not be allocated a housing credit dollar
            amount pursuant to 26 U.S.C. 42 and is not located in a
            qualified census tract.
            (2) The housing credit agency shall determine the number of
        vouchers the Secretary shall distribute for use at the buildings or
        housing selected under paragraph (1), but in no case shall such
        number be more than 25 percent of the total number of units in the
        building or housing.
            (3) The housing credit agency shall select a public housing
        agency to administer these vouchers, and subject to paragraph (4),
        any public housing agency that has jurisdiction over the building or
        multifamily housing for which these vouchers have been distributed
        for use may be so selected.
            (4) The Secretary shall decline to make the requested vouchers
        available to any public housing agency that--
                (A)(i) the Secretary determines is not administering tenant-
            based assistance under section 8 of the United States Housing
            Act of 1937 in a satisfactory manner; and
                (ii) has not proposed an alternative administrator of
            vouchers under this section satisfactory to the Secretary;
                (B) does not comply with title VI of the Civil Rights Act of
            1964, the Fair Housing Act, section 504 of the Rehabilitation
            Act of 1973, or title II of the Americans with Disabilities Act
            of 1990, or other applicable civil rights laws; or

    [[Page 534]]

                (C) is otherwise determined by the Secretary to be
            ineligible for receipt of such vouchers.
        (d) Public Housing Agency Allocation of Vouchers.
            (1) in general.--The public housing agency receiving housing
        vouchers under this section shall make the vouchers available for
        use in accordance with subsection (e) to extremely low-income
        households that agree to move into the buildings or multifamily
        housing selected by the housing credit agency under subsection
        (c)(1).
            (2) interim use.--Notwithstanding this section, prior to such
        time as the housing vouchers made available under this section may
        be used pursuant to paragraph (1), the public housing agency
        receiving the vouchers may administer such vouchers in accordance
        with the provisions of section 8(o) of the United States Housing Act
        of 1937 and such other terms and conditions as the Secretary may
        determine. In the event of such use, the Secretary shall reserve
        authority in future fiscal years to provide housing assistance under
        section 8(o) in furtherance of this section such that the same
        number of families receive assistance under this section as would
        have been assisted absent any interim use of vouchers under this
        paragraph.
            (3) lihtc building standards unaffected.--No vouchers shall be
        made available under this section for use at a building allocated a
        housing credit dollar amount pursuant to 26 U.S.C. 42, unless the
        building at which the vouchers would be used meets all standards for
        tax credit financing under such section, without taking into account
        the vouchers made available under this section.
        (e) Use Restrictions.--The vouchers described in subsection (a)
    shall be administered in accordance with the provisions of section 8(o)
    of the United States Housing Act of 1937, except that--
            (1) public housing agencies administering these vouchers shall
        initially make these vouchers available to extremely low-income
        households that agree to move into buildings or housing selected by
        a housing credit agency pursuant to subsection (c)(1) of this
        section, for initial use of at least one year at such buildings or
        housing;
            (2) subject to the availability of appropriations, after the
        initial 1-year use of these vouchers, the household receiving the
        voucher--
                (A) may elect to remain in place with the voucher assistance
            for up to 14 additional years; or
                (B) may elect to relocate with the voucher assistance to
            another dwelling unit eligible under section 8(o); and
            (3) the payment standard for each size of dwelling unit shall be
        equal to the lesser of comparable market rents or rents available
        pursuant to 26 U.S.C. 42 for the selected building or housing, but
        in no event shall the payment standard be higher than 150 percent of
        the fair market rent of the area in which the building or
        multifamily housing is located, except that the Secretary may adjust
        such percentage on an exception basis.
        (f) Funding.--In addition to any amounts appropriated in this Act
    for fiscal year 2001, there are hereby authorized to be appropriated
    such sums as may be necessary in ensuing years to carry out this
    section. Any amounts appropriated shall remain available until expended.
        (g) Definition.--For purposes of this section, the term ``extremely
    low-income family'' means a family whose income does not exceed 30
    percent of the median family income for the area, as determined by the
    Secretary with adjustments for smaller or larger families, except that
    the Secretary may establish income ceilings higher or lower than 30
    percent of the median for the area on the basis of the Secretary's
    findings that such variations are necessary because of unusually high or
    low family income, but such income ceilings shall not exceed the minimum
    set-asides under 26 U.S.C. 42(g).
        Sec. 218. Repeal of Independent Assessment for Troubled Agencies.
        Section 6(j)(2) of the United States Housing Act of 1937 is
    amended--
            (1) by repealing subparagraph (B); and
            (2) in subparagraph (C), by revising the first sentence to read
        as follows: ``The Secretary shall seek to enter into an agreement
        with each troubled public housing agency.''.

                       indian housing block grant program

        Sec. 219. Defines certain law enforcement officers as eligible
    families for housing assistance under the Indian Housing Block Grant
    program.
        Section 201(b) of the Native American Housing Assistance and Self-
    Determination Act of 1996 is amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs (5)
        and (6) respectively; and
            (2) by inserting after paragraph (3) the following new
        paragraph:
            ``(4) law enforcement officers.--Notwithstanding paragraph (1),
        a recipient may provide housing or housing assistance provided
        through affordable housing activities assisted with grant amounts
        under this Act to a law enforcement officer on the reservation or
        other Indian area, who is employed full-time by a Federal, state,
        county or tribal government, and in implementing such full-time
        employment is sworn to uphold, and make arrests for violations of
        Federal, state, county or tribal law, if the recipient determines
        that the presence of the law enforcement officer on the Indian
        reservation or other Indian area may deter crime.''.

                          General Fund Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      86-271910  FHA-General and Special
        Risk, Negative Subsidies............         159         229         149
      86-271930  FHA-General and Special
        Risk, Downward reestimates of
        subsidies...........................         154
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................         313         229         149
    ---------------------------------------------------------------------------