Appendix - Department of Housing and Urban Development

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

[[Page 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)

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)

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)

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)

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)

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)

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)

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)

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

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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

Nonprofit Sponsor Assistance Liquidating Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 6 6
22.00 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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

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

Administrative Provisions

Sec. 201. Fifty percent of the amounts of budget authority, or in
lieu thereof 50 percent of the cash amounts associated with such budget
authority, that are recaptured from projects described in section
1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of
1988 (Public Law 100-628; 102 Stat. 3224, 3268) shall be rescinded, or
in the case of cash, shall be remitted to the Treasury, and such amounts
of budget authority or cash recaptured and not rescinded or remitted to
the Treasury shall be used by State housing finance agencies or local
governments or local housing agencies with projects approved by the
Secretary of Housing and Urban Development for which settlement occurred
after January 1, 1992, in accordance with such section. Notwithstanding
the previous sentence, the Secretary may award up to 15 percent of the
budget authority or cash recaptured and not rescinded or remitted to the
Treasury to provide project owners with incentives to refinance their
project at a lower interest rate.

Fair Housing and Free Speech

Sec. 202. None of the amounts made available under this Act may be
used during fiscal year [2000] 2001 to investigate or prosecute under
the Fair Housing Act any otherwise lawful activity engaged in by one or
more persons, including the filing or maintaining of a nonfrivolous
legal action, that is engaged in solely for the purpose of achieving or
preventing action by a Government official or entity, or a court of
competent jurisdiction.

Housing Opportunities for Persons With AIDS Grants

Sec. 203. [Section 207 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1999, is amended by striking wherever it occurs ``fiscal year 1999
and 2000'' and inserting ``fiscal years 1999 and 2000''.]
(a) Eligibility. Notwithstanding section 854(c)(1)(A) of the AIDS
Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts
made available under this title for fiscal year 2001 that are allocated
under such section, the Secretary of Housing and Urban Development shall
allocate and make a grant, in the amount determined under subsection
(b), for any State that--
(1) received an allocation in a prior fiscal year under clause
(ii) of such section; and
(2) is not otherwise eligible for an allocation for fiscal year
2001 under such clause (ii) because the areas in the State outside
of the metropolitan statistical areas that qualify under clause (i)
in fiscal year 2000 do not have the number of cases of acquired
immunodeficiency syndrome required under such clause.
(b) Amount.--The amount of the allocation and grant for any State
described in subsection (a) shall be an amount based on the cumulative
number of AIDS cases in the areas of that State that are outside of
metropolitan statistical areas that qualify under clause (i) of such
section 845(c)(1)(A) in fiscal year 2000, in proportion to AIDS cases
among cities and States that qualify under clauses (i) and (ii) of such
section and States deemed eligible under subsection (a).
(c) Environmental Review. Section 856 of the Act is amended by
adding the following new subsection at the end:
``(h) Environmental Review.--For purposes of environmental review, a
grant under this subtitle shall be treated as assistance for a special
project that is subject to section 305(c) of the Multifamily Housing
Property Disposition Reform Act of 1994, and shall be subject to the
regulations issued by the Secretary to implement such section.''.

[Reprogramming]

[Sec. 204. Of the amounts made available under the sixth
undesignated paragraph under the heading ``Community Planning and
Development--community development block grants'' in title II of the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999 (Public Law 105-276; 112
Stat. 2477) for the Economic Development Initiative (EDI) for grants for
targeted economic investments, the $1,000,000 to be made available
(pursuant to the related provisions of the joint explanatory statement
in the conference report to accompany such Act (House Report No. 105-
769, 105th Congress, 2d session)) to the City of Redlands, California,
for the redevelopment initiatives near the historic Fox Theater shall,
notwithstanding such provisions, be made available to such city for the
following purposes:
(1) $700,000 shall be for renovation of the City of Redlands
Fire Station No. 1;

[[Page 530]]

(2) $200,000 shall be for renovation of the Mission Gables House
at the Redlands Bowl historic outdoor amphitheater; and
(3) $100,000 shall be for the preservation of historic Hillside
Cemetery.]

[Adjustments to Income Eligibility for Unusually High or Low Families
Incomes in Assisted Housing]

[Sec. 205. Section 16 of the United States Housing Act of 1937 is
amended--
(1) in subsection (a)(2)(A), by inserting before the period the
following: ``; except that the Secretary may establish income
ceilings higher or lower than 30 percent of the area median income
on the basis of the Secretary's findings that such variations are
necessary because of unusually high or low family incomes''; and
(2) in subsection (c)(3), by inserting before the period the
following: ``; except that the Secretary may establish income
ceilings higher or lower than 30 percent of the area median income
on the basis of the Secretary's findings that such variations are
necessary because of unusually high or low family incomes''.]

[Millennial Housing Commission]

[Sec. 206. (a) Establishment.--There is hereby established a
commission to be known as the Millennial Housing Commission (in this
section referred to as the ``Commission'').
(b) Study.--The duty of the Commission shall be to conduct a study
that examines, analyzes, and explores--
(1) the importance of housing, particularly affordable housing
which includes housing for the elderly, to the infrastructure of the
United States;
(2) the various possible methods for increasing the role of the
private sector in providing affordable housing in the United States,
including the effectiveness and efficiency of such methods; and
(3) whether the existing programs of the Department of Housing
and Urban Development work in conjunction with one another to
provide better housing opportunities for families, neighborhoods,
and communities, and how such programs can be improved with respect
to such purpose.
(c) Membership.--
(1) Number and Appointment.--The Commission shall be composed of
22 members, appointed not later than January 1, 2000, as follows:
(A) Two co-chairpersons appointed by--
(i) one co-chairperson appointed by a committee consisting of the
chairmen of the Subcommittees on the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies of the
Committees on Appropriations of the House of Representatives and the
Senate, and the chairman of the Subcommittee on Housing and Community
Opportunities of the House of Representatives and the chairman of the
Subcommittee on Housing and Transportation of the Senate; and
(ii) one co-chairperson appointed by a committee consisting of the
ranking minority members of the Subcommittees on the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies of the Committees on Appropriations of the House of
Representatives and the Senate, and the ranking minority member of the
Subcommittee on Housing and Community Opportunities of the House of
Representatives and the ranking minority member of the Subcommittee on
Housing and Transportation of the Senate.
(B) Ten members appointed by the Chairman and Ranking
Minority Member of the Committee on Appropriations of the
House of Representatives and the Chairman and Ranking
Minority Member of the Committee on Banking and Financial
Services of the House of Representatives.
(C) Ten members appointed by the Chairman and Ranking
Minority Member of the Committee on Appropriations of the
Senate and the Chairman and Ranking Minority Member of the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
(2) Qualifications.--Appointees should have proven expertise in
directing, assemblying, or applying capital resources from a variety
of sources to the successful development of affordable housing or
the revitalization of communities, including economic and job
development.
(3) Vacancies.--Any vacancy on the Commission shall not affect
its powers and shall be filled in the manner in which the original
appointment was made.
(4) Chairpersons.--The members appointed pursuant to paragraph
(1)(A) shall serve as co-chairpersons of the Commission.
(5) Prohibition of pay.--Members of the Commission shall serve
without pay.
(6) Travel expenses.--Each member of the Commission shall
receive travel expenses, including per diem in lieu of subsistence,
in accordance with sections 5702 and 5703 of title 5, United States
Code.
(7) Quorum.--A majority of the members of the Commission shall
constitute a quorum but a lesser number may hold hearings.
(8) Meetings.--The Commission shall meet at the call of the
Chairpersons.
(d) Director and Staff.--
(1) Director.--The Commission shall have a Director who shall be
appointed by the Chairperson. The Director shall be paid at a rate
not to exceed the rate of basic pay payable for level V of the
Executive Schedule.
(2) Staff.--The Commission may appoint personnel as appropriate.
The staff of the Commission shall be appointed subject to the
provisions of title 5, United States Code, governing appointments in
the competitive service, and shall be paid in accordance with the
provisions of chapter 51 and subchapter III of chapter 53 of that
title relating to classification and General Schedule pay rates.
(3) Experts and consultants.--The Commission may procure
temporary and intermittent services under section 3109(b) of title
5, United States Code, but at rates for individuals not to exceed
the daily equivalent of the maximum annual rate of basic pay payable
for the General Schedule.
(4) Staff of federal agencies.--Upon request of the Commission,
the head of any Federal department or agency may detail, on a
reimbursable basis, any of the personnel of that department or
agency to the Commission to assist it in carrying out its duties
under this Act.
(e) Powers.--
(1) Hearings and sessions.--The Commission may, for the purpose
of carrying out this section, hold hearings, sit and act at times
and places, take testimony, and receive evidence as the Commission
considers appropriate.
(2) Powers of members and agents.--Any member or agent of the
Commission may, if authorized by the Commission, take any action
which the Commission is authorized to take by this section.
(3) Obtaining official data.--The Commission may secure directly
from any department or agency of the United States information
necessary to enable it to carry out this Act. Upon request of the
Chairpersons of the Commission, the head of that department or
agency shall furnish that information to the Commission.
(4) Gifts, bequests, and devises.--The Commission may accept,
use, and dispose of gifts, bequests, or devises of services or
property, both real and personal, for the purpose of aiding or
facilitating the work of the Commission. Gifts, bequests, or devises
of money and proceeds from sales of other property received as
gifts, bequests, or devises shall be deposited in the Treasury and
shall be available for disbursement upon order of the Commission.
(5) Mails.--The Commission may use the United States mails in
the same manner and under the same conditions as other departments
and agencies of the United States.
(6) Administrative support services.--Upon the request of the
Commission, the Administrator of General Services shall provide to
the Commission, on a reimbursable basis, the administrative support
services necessary for the Commission to carry out its
responsibilities under this section.
(7) Contract Authority.--The Commission may contract with and
compensate Government and private agencies or persons for services,
without regard to section 3709 of the Revised Statutes (41 U.S.C.
5).
(f ) Report.--The Commission shall submit to the Committees on
Appropriations and Banking and Financial Services of the House of
Representatives and the Committees on Appropriations and Banking,
Housing, and Urban Affairs of the Senate a final report not later than
March 1, 2002. The report shall contain a detailed statement of the
findings and conclusions of the Commission with respect to the study
conducted under subsection (b), together with its recommendations for
legislation, administrative actions, and any other actions the
Commission considers appropriate.
(g) Termination.--The Commission shall terminate on June 30, 2002.
Section 14(a)(2)(B) of the Federal Advisory Committee Act (5

[[Page 531]]

U.S.C. App.; relating to the termination of advisory committees) shall
not apply to the Commission.]

[FHA Technical Correction]

[Sec. 207. Section 203(b)(2)(A)(ii) of the National Housing Act (12
U.S.C. 1709(b)(2)(A)(ii)) is amended by adding before ``48 percent'' the
following: ``the greater of the dollar amount limitation in effect under
this section for the area on the date of the enactment of the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act for Fiscal Year 1999 or''.]

[Rescissions]

[Sec. 208. Of the balances remaining from funds appropriated to the
Department of Housing and Urban Development in Public Law 105-65 and
prior appropriations Acts, $74,400,000 is rescinded: Provided, That the
amount rescinded shall be comprised of--
(1) $30,552,000 of the amounts that were appropriated for the
modernization of public housing unit; under the heading ``Annual
contributions for assisted housing'', including an amount equal to
the amount transferred from such account to, and merged with amounts
under the heading ``Public housing capital fund'';
(2) $3,048,000 of the amounts from which no disbursements have
been made within five successive fiscal years beginning after
September 30, 1993, that were appropriated under the heading
``Annual contributions for assisted housing'', including an amount
equal to the amount transferred from such account to the account
under the heading ``Housing certificate fund'';
(3) $22,975,000 of amounts appropriated for homeownership
assistance under section 235(r) of the National Housing Act,
including $6,875,000 appropriated in Public Law 103-327 (approved
September 28, 1994, 104 Stat. 2305) for such purposes;
(4) $11,400,000 of the amounts appropriated for the
Homeownership and Opportunity for People Everywhere programs (HOPE
programs), as authorized by the Cranston-Gonzalez National
Affordable Housing Act; and
(5) $6,400,000 of the balances remaining in the account under
the heading ``Nonprofit Sponsor Assistance Account''.]

[Grant for National Cities in Schools]

[Sec. 209. For a grant to the National Cities in Schools Community
Development program under section 930 of the Housing and Community
Development Act of 1992, $5,000,000.]

[Moving to Work Demonstration]

[Sec. 210. For the Jobs-Plus Initiative of the Moving to Work
Demonstration, $5,000,000 to cover the cost of rent-based work
incentives to families in selected public housing developments, who
shall be encouraged to go to work under work incentive plans approved by
the Secretary and carefully tracked as part of the research and
demonstration effort.]

[Repealer]

[Sec. 211. Section 218 of Public Law 104-204 is repealed.]

[FHA Administrative Contract Expense Authority]

[Sec. 212. Section 1 of the National Housing Act (12 U.S.C. 1702) is
amended by inserting the following new sentence after the first proviso:
``Except with respect to title III, for the purposes of this section,
the term `nonadministrative' shall not include contract expenses that
are not capitalized or routinely deducted from the proceeds of sales,
and such expenses shall not be payable from funds made available by this
Act.''.]

[Full Payment of Claims]

[Sec. 213. (a) Section 541 of the National Housing Act is amended--
(1) by amending the heading to read as follows: ``partial
payment of claims on defaulted mortgages and in connection with
mortgage restructuring''; and
(2) in subsection (b), by striking ``partial payment of the
claim under the mortgage insurance contract'' and inserting
``partial or full payment of claim under one or more mortgage
insurance contracts''.
(b) Section 517 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 is amended by adding a new subsection (a)(6)
to read as follows: ``(6) The second mortgage under this section may be
a first mortgage if no restructured or new first mortgage will meet the
requirement of paragraph (1)(A).''.]

[Availability of Income Matching Information]

[Sec. 214. (a) Section 3(f ) of the United States Housing Act of
1937 (42 U.S.C. 1437a), as amended by section 508(d)(1) of the Quality
Housing and Work Responsibility Act of 1998, is further amended--
(1) in paragraph (1)--
(A) after the first appearance of ``public housing
agency'' by inserting ``, or the owner responsible for
determining the participant's eligibility or level of
benefits,''; and
(B) after ``as applicable'' by inserting ``, or to the
owner responsible for determining the participant's
eligibility or level of benefits''; and
(2) in paragraph (2)--
(A) in subparagraph (A) by striking ``or'';
(B) in subparagraph (B) by striking the period and
inserting ``, or''; and
(C) by inserting at the end the following new
subparagraph:
``(C) for which project-based assistance is provided under
section 8, section 202, or section 811.''.
(b) Section 904(b) of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 3544), as amended by section 508(d)(2)
of the Quality Housing and Work Responsibility Act of 1998, is further
amended in paragraph (4)--
(1) by inserting after ``public housing agency'' the first time
it appears the following: ``, or the owner responsible for
determining the participant's eligibility or level of benefits,'';
and
(2) by striking ``the public housing agency verifying income''
and inserting ``verifying income''.]

Exemption for Alaska and Mississippi From Requirement of Resident on
Board

Sec. [215] 204. Public housing agencies in the States of Alaska and
Mississippi shall not be required to comply with section 2(b) of the
United States Housing Act of 1937, as amended, during fiscal year [2000]
2001.

[Administration of the CDBG Program by New York State]

[Sec. 216. The Secretary of Housing and Urban Development shall
transfer on the date of the enactment of this Act the administration of
the Small Cities component of the Community Development Block Grants
program for all funds allocated for the State of New York under section
106(d) of the Housing and Community Development Act of 1974 for fiscal
year 2000 and all fiscal years thereafter, to the State of New York to
be administered by the Governor of such State.]

[Section 202 Exemption]

[Sec. 217. Notwithstanding section 202 of the Housing Act of 1959 or
any other provision of law, Peggy A. Burgin may not be disqualified on
the basis of age from residing at Clark's Landing in Groton, Vermont.]

[Darlinton Preservation Amendment]

[Sec. 218. Notwithstanding any other provision of law, upon
prepayment of the FHA-insured section 236 mortgage, the Secretary shall
continue to provide interest reduction payment in accordance with the
existing amortization schedule for Darlinton Manor Apartments, a 100-
unit project located at 606 North 5th Street, Bozemen, Montana, which
will continue as affordable housing pursuant to a use agreement with the
State of Montana.]

[Risk-Sharing Priority]

[Sec. 219. Section 517(b)(3) of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1998 is amended by inserting after ``1992.'' the
following: ``The Secretary shall use risk-shared financing under section
542(c) of the Housing and Community Development Act of 1992 for any
mortgage restructuring, rehabilitation financing, or debt refinancing
included as part of a mortgage restructuring and rental assistance
sufficiency plan if the terms and conditions are considered to be the
best available financing in terms of financial savings to the FHA
insurance funds and will result in reduced risk of loss to the Federal
Government.''.]

[Treatment of Expiring Economic Development Initiative Grants]

[Sec. 220. (a) Availability.--Notwithstanding section 1552 of title
31, United States Code, the grant amounts identified in subsection

[[Page 532]]

(b) shall remain available to the grantees for the purposes for which
such amounts were obligated through September 30, 2000.
(b) Grants.--The grant amounts identified in this subsection are the
amounts provided under the following grants made by the Secretary of
Housing and Urban Development under the economic development initiative
under section 108(q) of the Housing and Community Development Act of
1974 (42 U.S.C. 5308(q)):
(1) The grant for Miami, Florida, designated as B-92-ED-12-013.
(2) The grant for Miami Beach, Florida, designated as B-92-ED-
12-014.
(c) Effective Date.--This section shall be considered to have taken
effect on September 30, 1999. The Secretary of the Treasury and the
Secretary of Housing and Urban Development shall take such actions as
may be necessary to carry out this section, notwithstanding any actions
taken previously pursuant to section 1552 of title 31, United States
Code.]

[Use of Trusts With Regard to Cooperative Housing Section]

[Sec. 221. Section 213(a) of the National Housing Act (12 U.S.C.
1715e(a)) is amended by adding at the end the following new sentence:
``Nothing in this section may be construed to prevent membership in a
nonprofit housing cooperative from being held in the name of a trust,
the beneficiary of which shall occupy the dwelling unit in accordance
with rules and regulations prescribed by the Secretary.''.]

[Grant Technical Correction]

[Sec. 222. Notwithstanding any other provision of law, the amount
made available under the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1991
(Public Law 101-507) for a special purpose grant under section 107 of
the Housing and Community Development Act of 1974 to the County of
Hawaii for the purpose of an environmental impact statement for the
development of a water resource system in Kohala, Hawaii, that is
unobligated on the date of the enactment of this Act, may be used to
fund water system improvements, including exploratory wells, well
drillings, pipeline replacements, water system planning and design, and
booster pump and reservoir development.]

[Reuse of Certain Budget Authority]

[Sec. 223. Section 8(z) of the United States Housing Act of 1937 is
amended--
(1) in paragraph (1)--
(A) by inserting after ``on account of'' the following:
``expiration or''; and
(B) by striking the parenthetical phrase; and
(2) by striking paragraph (3).]

[Section 108 Waiver]

[Sec. 224. With respect to the $6,700,000 commitment in connection
with guaranteed obligations for the Sandtown-Winchester Home Ownership
Zone under section 108 of the Housing and Community Development Act of
1974, the Secretary shall not require security in excess of that
authorized under section 108(d)(1)(B).]

[Hopwa Technical]

[Sec. 225. (a) Notwithstanding any other provision of law, the
amount allocated for fiscal year 2000, and the amounts that would
otherwise be allocated for fiscal year 2001, to the City of
Philadelphia, Pennsylvania on behalf of the Philadelphia, PA-NJ Primary
Metropolitan Area (hereafter ``metropolitan area''), under section
854(c) of the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)), the
Secretary of Housing and Urban Development shall adjust such amounts by
allocating to the State of New Jersey the proportion of the metropolitan
area's amount that is based on the number of cases of AIDS reported in
the portion of the metropolitan area that is located in New Jersey.
(b) The State of New Jersey shall use amounts allocated to the State
under this section to carry out eligible activities under section 855 of
the AIDS Housing Opportunity Act (42 U.S.C. 12904) in the portion of the
metropolitan area that is located in New Jersey.]

Expansion of Environmental Assumption Authority for Homeless Assistance
Programs

Sec. 205. Section 443 of the Stewart B. McKinney Homeless Assistance
Act is amended to read as follows:
``SEC. 443. ENVIRONMENTAL REVIEW.
For purposes of environmental review, assistance and projects under
this title shall be treated as assistance for special projects that are
subject to section 305(c) of the Multifamily Housing Property
Disposition Reform Act of 1994, and shall be subject to the regulations
issued by the Secretary to implement such section.''.

Permanent Extension of FHA Multifamily Mortgage Credit Demonstrations

Sec. 206. Section 542 of the Housing and Community Development Act
of 1992 is amended--
(1) by revising subsection (b)(5) to read as follows:
``(5) Insurance Authority.--Using any authority provided in
appropriation Acts to insure mortgages under the National Housing
Act, the Secretary may enter into commitments under this subsection
for risk-sharing units.'';
(2) by revising subsection (c)(4) to read as follows:
``(4) Insurance Authority.--Using any authority provided in
appropriation Acts to insure mortgages under the National Housing
Act, the Secretary may enter into commitments under this subsection
for risk-sharing units.'';
(3) in the heading, by striking ``Demonstrations'' and inserting
``Programs'';
(4) in the first sentence of subsection (a), by striking
``demonstrate the effectiveness of providing'' and inserting
``provide'';
(5) in the second sentence of subsection (a), by striking
``demonstration'';
(6) in subsection (b)(1), by striking `'determine the
effectiveness of'' and inserting ``provide'';
(7) in subsection (c)(1), by striking ``test the effectiveness
of'' and inserting ``provide'';
(8) by striking subsection (d); and
(9) by striking ``pilot'' and ``PILOT'' each place it appears.
Sec. 207. Permanent Extension of Streamlined Downpayment
Requirements.--Section 203(b)(2) of the National Housing Act is amended
by striking subparagraph (B) and all that follows in the paragraph
through ``applicability of this requirement,'' and inserting the
following:
``(B) not to exceed an amount equal to--
``(i) 98.75 percent of the appraised value of the property,
if such value is equal to or less than $50,000;
``(ii) 97.65 percent of the appraised value of the property,
if such value is in excess of $50,000 but not in excess of
$125,000;
``(iii) 97.15 percent of the appraised value of the
property, if such value is in excess of $125,000; or
``(iv) Notwithstanding clauses (ii) and (iii), 97.75 percent
of the appraised value of the property, if such value is in
excess of $50,000 and the property is in a State for which the
average closing cost exceeds 2.10 percent of the average, for
the State, of the sales price of properties located in the State
for which mortgages have been executed, as determined by the
Secretary.
``For purposes of this subparagraph, the term `average
closing cost' means, with respect to a State, the average,
for mortgages executed for properties in the State, of the
total amounts (as determined by the Secretary) of initial
service charges, appraisal, inspection, and other fees and
costs (as the Secretary shall approve) that are paid in
connection with such mortgages.''.

Enhanced Disposition Authority

Sec. 208. Section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1997, is amended by striking ``and 2000'' and inserting ``2000, and
thereafter''.

Ginnie Mae Administrative Contract Authority

Sec. 209. Section 1 of the National Housing Act (12 U.S.C. 1702) is
amended in the first sentence following the first proviso by striking
``Except with respect to title III,'' and inserting ``Except with
respect to the Federal National Mortgage Association,''.

FHA Mortgage Limit Increase

Sec. 210. Increase in FHA Single Family Maximum Mortgage Amount.

[[Page 533]]

(a) Increase in Maximum Mortgage Amounts to Uniform National
Maximum.--Section 203(b)(2)(A) of the National Housing Act is amended to
read as follows:
``(A) not to exceed the average of the dollar amounts
determined under section 305(a)(2) of the Federal Home Loan
Mortgage Corporation Act and section 302(b)(2) of the National
Housing Act for a residence of the applicable size; and''
(b) Conforming Amendment for Title I Manufactured Home Loans in
High-Cost Areas.--Section 2(b)(2) of such Act is amended by--
(1) striking ``the lesser of (A)''; and
(2) striking ``, or (B)'' and all that follows up to the period.
(c) Conforming Amendment For Hecms.--Section 255(g) of such Act is
amended by striking ``in the area'' and all that follows up to the
period.
Sec. 211. Rental Assistance Fraud Recoveries. Section 326(b) of the
Housing and Community Development Act of 1992, Public Law 102-550, is
repealed.

FHA Insurance For Hybrid Arms

Sec. 212. FHA Insurance for Hybrid Arms.--Section 251 of the
National Housing Act is amended--
(1) in subsection (b), by striking ``issue regulations'' and all
that follows and inserting the following: ``require that the
mortgagee make available to the mortgagor, at the time of loan
application, a written explanation of the features of an adjustable
rate mortgage consistent with the disclosure requirements applicable
to variable rate mortgages secured by a principal dwelling under the
Truth in Lending Act.'';
(2) in subsection (c), by striking ``30'' and inserting ``40'';
and
(3) by adding the following new subsection at the end:
``(d)(1) The Secretary may insure under this subsection a mortgage
that meets the requirements of subsection (a), except that the effective
rate of interest--
``(A) shall be fixed for a period of not less than the first
3 years of the mortgage term;
``(B) shall be adjusted by the mortgagee initially upon the
expiration of such period and annually thereafter; and
``(C) in the case of the initial interest rate adjustment,
is subject to the 1 percent limitation only if the interest rate
remained fixed for 5 or fewer years.
``(2) The disclosure required under subsection (b) shall be
required for a mortgage insured under this subsection.
``(3) The Secretary may implement this subsection in advance of
rulemaking.''.
Sec. 213.--Mixed Financing for Section 202.
Section 202 of the Housing Act of 1959 is amended--
(1) in subsection (h)(6), by striking ``non-Federal sources''
and inserting ``sources other than this section''; and
(2) in subsection (k)(4), by inserting after and below
subparagraph (C) the following new sentence:
``Such term includes: (1) a limited partnership the sole
general partner of which is an organization meeting the
requirements of subparagraphs (A), (B), and (C); and (2) a
corporation wholly owned by an organization meeting the
requirements under subparagraphs (A), (B), and (C).''.
Sec. 214.--Maximum Payment Standard for Enhanced Vouchers.
Section 8(t)(1)(B) of the United States Housing Act of 1937 is
amended by inserting ``and any other reasonable limit prescribed by the
Secretary'' immediately before the semi-colon. (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 2000.)
Sec. 215. Technical Amendments and Corrections to the National
Housing Act.
(a) Section 203 Subsection Designations.--Section 203 of the
National Housing Act is amended by--
(1) redesignating subsection (t) as subsection (u);
(2) redesignating subsection (s), as added by section 329 of the
Cranston-Gonzalez National Affordable Housing Act, as subsection
(t); and
(3) redesignating subsection (v), as added by section 504 of the
Housing and Community Development Act of 1992, as subsection (w).
(b) Mortgage Auctions.--The first sentence of section
221(g)(4)(C)(viii) of the National Housing Act is amended by inserting
after ``December 31, 2002'' the following: ``, except that this
subparagraph shall continue to apply if the Secretary receives a
mortgagee's written notice of intent to assign its mortgage to the
Secretary on or before such date''.
(c) Mortgagee Review Board.--Section 202(c)(2) of the National
Housing Act is amended--
(1) in subparagraph (E), by striking ``and'';
(2) in subparagraph (F), by striking ``or their designees.'' and
inserting ``and'';
(3) by adding the following new subparagraph at the end:
``(G) the Director of the Enforcement Center; or their
designees.''.
Sec. 216. Clarification of Rulemaking Authority for Renewals of
Project-Based Assistance Without Restructuring.--Section 522(a) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 is
amended by inserting the following new paragraph (4) at the end:
``(4) rulemaking after initial implementation.--After the
Director issues final regulations under paragraph (2), the Secretary
shall have the authority to issue all regulations concerning
contract renewals under section 524 of this Act, including
amendment, revision and removal of such regulations previously
issued by the Director.''.
Sec. 217. Housing Production Assistance.
(a) Types of Assistance.
(1) voucher authority.--In addition to assistance otherwise
available under section 8 of the United States Housing Act of 1937,
the Secretary of Housing and Urban Development shall make up to an
additional 10,000 housing vouchers available to public housing
agencies, under such terms and conditions as the Secretary
determines. Such vouchers shall be for extremely low-income
families.
(2) incentive grants.--Of the amounts appropriated for this
section for fiscal year 2001, the Secretary may use up to $8,000,000
for one-time grants to developers who produce housing units that
satisfy such unmet needs as the Secretary may identify, such as a
need for an increase in units to house large families.
(b) HUD Allocation of Vouchers.--Notwithstanding section 213(d) of
the Housing and Community Development Act of 1974, the Secretary shall
allocate the vouchers described in subsection (a) to States in the same
proportions as low-income housing tax credits pursuant to 26 U.S.C. 42
are allocated. Allocation of these vouchers shall be subject to the per
capita tax credit amount established for such credits for fiscal year
2001. The Secretary may reallocate any vouchers that a State housing
credit agency does not designate for use at a particular building
pursuant to subsection (c) in the same manner as such tax credits are
reallocated.
(c) Distribution of Vouchers.
(1) The housing credit agency shall select the buildings or
housing at which the vouchers made available for each State under
subsection (b) shall be used. Such buildings or housing may
include--
(A) new buildings with a mortgage insured under section
221(d)(4) of the National Housing Act which is allocated a
housing credit dollar amount pursuant to 26 U.S.C. 42 and is not
located in a qualified census tract; and
(B) new multifamily housing with a mortgage insured under
section 542(c) of the Housing and Community Development Act of
1992 which may or may not be allocated a housing credit dollar
amount pursuant to 26 U.S.C. 42 and is not located in a
qualified census tract.
(2) The housing credit agency shall determine the number of
vouchers the Secretary shall distribute for use at the buildings or
housing selected under paragraph (1), but in no case shall such
number be more than 25 percent of the total number of units in the
building or housing.
(3) The housing credit agency shall select a public housing
agency to administer these vouchers, and subject to paragraph (4),
any public housing agency that has jurisdiction over the building or
multifamily housing for which these vouchers have been distributed
for use may be so selected.
(4) The Secretary shall decline to make the requested vouchers
available to any public housing agency that--
(A)(i) the Secretary determines is not administering tenant-
based assistance under section 8 of the United States Housing
Act of 1937 in a satisfactory manner; and
(ii) has not proposed an alternative administrator of
vouchers under this section satisfactory to the Secretary;
(B) does not comply with title VI of the Civil Rights Act of
1964, the Fair Housing Act, section 504 of the Rehabilitation
Act of 1973, or title II of the Americans with Disabilities Act
of 1990, or other applicable civil rights laws; or

[[Page 534]]

(C) is otherwise determined by the Secretary to be
ineligible for receipt of such vouchers.
(d) Public Housing Agency Allocation of Vouchers.
(1) in general.--The public housing agency receiving housing
vouchers under this section shall make the vouchers available for
use in accordance with subsection (e) to extremely low-income
households that agree to move into the buildings or multifamily
housing selected by the housing credit agency under subsection
(c)(1).
(2) interim use.--Notwithstanding this section, prior to such
time as the housing vouchers made available under this section may
be used pursuant to paragraph (1), the public housing agency
receiving the vouchers may administer such vouchers in accordance
with the provisions of section 8(o) of the United States Housing Act
of 1937 and such other terms and conditions as the Secretary may
determine. In the event of such use, the Secretary shall reserve
authority in future fiscal years to provide housing assistance under
section 8(o) in furtherance of this section such that the same
number of families receive assistance under this section as would
have been assisted absent any interim use of vouchers under this
paragraph.
(3) lihtc building standards unaffected.--No vouchers shall be
made available under this section for use at a building allocated a
housing credit dollar amount pursuant to 26 U.S.C. 42, unless the
building at which the vouchers would be used meets all standards for
tax credit financing under such section, without taking into account
the vouchers made available under this section.
(e) Use Restrictions.--The vouchers described in subsection (a)
shall be administered in accordance with the provisions of section 8(o)
of the United States Housing Act of 1937, except that--
(1) public housing agencies administering these vouchers shall
initially make these vouchers available to extremely low-income
households that agree to move into buildings or housing selected by
a housing credit agency pursuant to subsection (c)(1) of this
section, for initial use of at least one year at such buildings or
housing;
(2) subject to the availability of appropriations, after the
initial 1-year use of these vouchers, the household receiving the
voucher--
(A) may elect to remain in place with the voucher assistance
for up to 14 additional years; or
(B) may elect to relocate with the voucher assistance to
another dwelling unit eligible under section 8(o); and
(3) the payment standard for each size of dwelling unit shall be
equal to the lesser of comparable market rents or rents available
pursuant to 26 U.S.C. 42 for the selected building or housing, but
in no event shall the payment standard be higher than 150 percent of
the fair market rent of the area in which the building or
multifamily housing is located, except that the Secretary may adjust
such percentage on an exception basis.
(f) Funding.--In addition to any amounts appropriated in this Act
for fiscal year 2001, there are hereby authorized to be appropriated
such sums as may be necessary in ensuing years to carry out this
section. Any amounts appropriated shall remain available until expended.
(g) Definition.--For purposes of this section, the term ``extremely
low-income family'' means a family whose income does not exceed 30
percent of the median family income for the area, as determined by the
Secretary with adjustments for smaller or larger families, except that
the Secretary may establish income ceilings higher or lower than 30
percent of the median for the area on the basis of the Secretary's
findings that such variations are necessary because of unusually high or
low family income, but such income ceilings shall not exceed the minimum
set-asides under 26 U.S.C. 42(g).
Sec. 218. Repeal of Independent Assessment for Troubled Agencies.
Section 6(j)(2) of the United States Housing Act of 1937 is
amended--
(1) by repealing subparagraph (B); and
(2) in subparagraph (C), by revising the first sentence to read
as follows: ``The Secretary shall seek to enter into an agreement
with each troubled public housing agency.''.

indian housing block grant program

Sec. 219. Defines certain law enforcement officers as eligible
families for housing assistance under the Indian Housing Block Grant
program.
Section 201(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 is amended--
(1) by redesignating paragraphs (4) and (5) as paragraphs (5)
and (6) respectively; and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) law enforcement officers.--Notwithstanding paragraph (1),
a recipient may provide housing or housing assistance provided
through affordable housing activities assisted with grant amounts
under this Act to a law enforcement officer on the reservation or
other Indian area, who is employed full-time by a Federal, state,
county or tribal government, and in implementing such full-time
employment is sworn to uphold, and make arrests for violations of
Federal, state, county or tribal law, if the recipient determines
that the presence of the law enforcement officer on the Indian
reservation or other Indian area may deter crime.''.

General Fund Receipt Accounts

(in millions of dollars)

----------------------------------------------------------------------------
1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
86-271910 FHA-General and Special
Risk, Negative Subsidies............ 159 229 149
86-271930 FHA-General and Special
Risk, Downward reestimates of
subsidies........................... 154
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 313 229 149
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