[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.
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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
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