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]

THE BUDGET FOR FISCAL YEAR 2002

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 2002 Budget for HUD reflects initial implementation
of a multi-year comprehensive reform effort which will enhance the
effectiveness of programs, reduce high unobligated and obligated
balances, and return HUD to its core mission. Congress has provided
significant increases in several HUD programs over the past two years.

The 2002 budget provides for three grant programs which will serve
HUD's fundamental affordable housing and economic development missions.
Community Development Block Grants (CDBG) will be increased to initiate
a Community Technology Centers program building on HUD's existing
neighborhood network program. In addition, a new initiative will be
funded to improve access by disabled persons to religiously affiliated
and community based facilities that are exempt from the requirements of
Americans with Disabilities Act. The Self-Help Opportunities Program
(SHOP) is increased by more than 10 percent in an effort to accelerate
home ownership by low-income families.

The HOME Investment Partnerships Program will include $200 million
in targeted grants to increase first-time home ownership by lower-income
families. New home buyers will receive down payment assistance.

The 2002 budget includes 34,000 incremental vouchers that will help
address the severe housing needs of low-income households. These
vouchers are necessary to address the substantial number of families
nationwide which have worst case needs for housing assistance:
extremely-low income families currently paying more than half their
income for rent or living in severely inadequate conditions. In
addition, this Administration reaffirms the 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.

The Housing for the Elderly program (under Section 202 of the
Housing Act of 1959) will be increased in 2002 to fully provide for the
renewal of contracts to assist rental of low-income elderly units. This
is the first year that contracts for assistance will be renewed. The
Housing for Persons with Disabilities Program (under Section 811 of the
National Affordable Housing Act of 1990) will also receive additional
funding to renew contracts for rental assistance in this program.

The budget will increase the Federal Housing Administration's (FHA)
maximum mortgage loan limits for multi-family projects. In addition, the
budget authorizes FHA to develop new adjustable rate mortgage products.
These provisions will provide much-needed credit 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. Funds dedicated in past budgets to completing a national
survey of housing discrimination will be redirected in 2002 to both FHIP
and FHAP, increasing total anti-discrimination activities by almost 20
percent.

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 funds necessary to ensure timely provision of data,
research and analysis of national housing and economic conditions, and
to measure the performance of programs, consistent with the Government
Performance and Results Act of 1994.

The Department will initiate a number of reforms in 2002 to refocus
HUD on its core mission and key programs. The first in a series of
planned reforms to improve program performance is to ensure that
programs receive funding when it is needed. Several programs have built
up large amounts of unobligated and obligated balances, including the
Public Housing Capital Fund and Section 8. Hence, these programs will
not receive last year's levels until these balances are brought down to
reasonable levels.

In addition, duplicative and low-impact programs will be terminated.
The Department is initiating full-scale reviews of other programs as
well. Public Housing Drug Elimination Grants, which duplicates Public
Housing Operating and Capital Funds, and a rural economic development
program, which duplicates numerous USDA programs dedicated to rural
development, will be terminated. Management reforms are a top priority
for the new HUD. Inadequate systems have weakened HUD's ability to
monitor lenders that use HUD's guarantees and resulted in several
material weaknesses identified in the FHA financial audit. A fraudulent
scheme known as property flipping also has been discovered. FHA will
strengthen the integrity of internal systems and controls to eliminate
the need for foreclosure moratoria or other emergency responses. Actions
also include improving loan origination processes and providing better
monitoring of lenders and appraisers. HUD will also focus on the long-
standing problems of weak oversight of local housing providers and
overpayments in HUD's rental assistance programs. Weak oversight of
local agents has reduced the quality of housing services, increased
costs, and reduced the number of households that can be aided. HUD will
improve its management rating instruments to oversee these agents,
making them more outcome-oriented rather than process-oriented and
making other revisions as recommended by the National Academy of Public
Administration. HUD will also undertake reforms to correct overpayments
in HUD's rental assistance program because tenants' incomes are under
reported and rents are improperly calculated or not fully collected. HUD
will undertake reforms to reduce these overpayments including steps to
ensure that local agencies and landlords can correctly calculate the
rent owed based on program rules, full implementation of HUD's existing
authority to match tenant-reported incomes with IRS records, and more
accurate and full reporting by local housing agencies of tenant
characteristics for all assisted tenants.

[[Page 482]]

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,
[$13,940,907,000] $15,717,392,000 and amounts that are recaptured in
this account to remain available until expended: Provided, That of the
total amount provided under this heading, [$13,430,000,000, of which
$9,230,000,000 shall be available on October 1, 2000 and $4,200,000,000
shall be available on October 1, 2001,] $15,506,746,000 shall be for
assistance under the United States Housing Act of 1937 (``the Act''
herein) (42 U.S.C. 1437): Provided further, That the budget authority
(but not the outlays) for $4,200,000,000 provided under this heading in
fiscal year 2001, to be available as an advance appropriation in fiscal
year 2002, shall be considered direct spending in fiscal year 2002 for
purposes of the Balanced Budget and Emergency Deficit Control Act of
1990, as amended, and section 2(a) of Public Law 106-554: Provided
further, That the foregoing amounts shall be 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)), contract administrators, and contracts entered into pursuant
to section 441 of the [Stewart B.] McKinney-Vento Homeless Assistance
Act: Provided further, That amounts available under the first proviso
under this heading shall be available for section 8 rental assistance
under the Act: (1) for the relocation and replacement of housing units
that are demolished or disposed of 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; (2) for the conversion of section 23
projects to assistance under section 8; (3) for funds to carry out the
family unification program; (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; (5)
for tenant protection assistance, including replacement and relocation
assistance; and (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 total amount provided under this heading,
[$11,000,000 shall be transferred to the Working Capital Fund for the
development and maintenance of] up to $13,400,000 shall be for
information technology [systems]: [Provided further, That of the total
amount provided under this heading, $40,000,000 shall be made available
to nonelderly disabled families affected by the designation of a public
housing development under section 7 of the 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 of the total
amount provided under this heading, [$452,907,000] $197,246,000 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: [Provided further, That of the total amount
provided under this heading, up to $7,000,000 shall be made available
for the completion of the Jobs Plus Demonstration:] 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 $1,833,000,000 is rescinded from unobligated
balances remaining from funds appropriated to the Department of Housing
and Urban Development under this heading or the heading ``Annual
Contributions for Assisted Housing'' or any other heading for fiscal
year 2000 and prior years: Provided further, That any such balances
governed by reallocation provisions under the statute authorizing the
program for which the funds were originally appropriated shall not be
available for this rescission: Provided further, That the Secretary
shall have until September 30, 2001, to meet the rescission in the
proviso preceding the immediately preceding proviso]: 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, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Contract renewals................. 8,145 14,935 15,748
00.02 Contract Administrator............ 137 192 196
00.03 Relocation & other................ 209 326 203
00.04 Preservation...................... 1 9
00.05 Section 514 Technical Assistance.. 4 10
00.06 Non-Elderly Disabled.............. 64 56
00.07 Welfare to Work................... 281 1
00.08 Regional Opportunity Counseling... 10
00.09 Section 8 Amendment............... 334 356
00.10 Preservation Prepayments.......... 8
00.11 Incremental vouchers.............. 353 452 197
00.12 Other............................. 57 433
00.13 Job Plus.......................... 7
00.14 Working Capital Fund.............. 11 13
00.15 Section8 Counseling............... 12
00.16 Relocation/Replacement/Demolition. 2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 9,593 16,812 16,357
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3,185 2,948 643
22.00 New budget authority (gross)...... 4,852 12,082 19,917
22.10 Resources available from
recoveries of prior year
obligations..................... 3,810 2,427
22.21 Unobligated balance transferred to
other accounts.................. -2
22.22 Unobligated balance transferred
from other accounts............. 725
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12,572 17,455 20,560
23.95 Total new obligations............. -9,593 -16,812 -16,357
23.98 Unobligated balance expiring or
withdrawn....................... -31 -3
24.40 Unobligated balance carried
forward, end of year............ 2,948 643 4,200
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 7,177 9,741 15,717
40.36 Unobligated balance rescinded... -2,253 -1,833
40.76 Reduction pursuant to P.L. 106-
113........................... -72
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -17
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 4,852 7,891 15,717
55.00 Advance appropriation........... 4,200
55.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -9
--------- --------- ----------
55.90 Advance appropriation (total
discretionary).............. 4,191
Mandatory:

60.00 Appropriation................... 3,000 3,000
60.49 Portion applied to liquidate
contract authority............ -3,000 -3,000
65.00 Advance appropriation........... 4,200
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 4,852 12,082 19,917
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 12,174 46,154 43,884
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 12,174 46,154 43,884
73.10 Total new obligations............. 9,593 16,812 16,357
73.20 Total outlays (gross)............. -15,972 -16,655 -17,676
73.32 Obligated balance transferred from
other accounts.................. 44,169
73.45 Recoveries of prior year
obligations..................... -3,810 -2,427
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 46,154 43,884 42,565
--------- --------- ----------

[[Page 483]]

74.99 Obligated balance, end of year 46,154 43,884 42,565
75.01 Obligated balance, start of year:
Contract authority.............. 31,583 28,583
75.02 Obligated balance, end of year:
Contract authority.............. 31,583 28,583 25,583
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 718 791 1,197
86.93 Outlays from discretionary
balances........................ 15,254 15,864 16,479
--------- --------- ----------
87.00 Total outlays (gross)........... 15,972 16,655 17,676
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4,852 12,082 19,917
90.00 Outlays........................... 15,972 16,655 17,676
---------------------------------------------------------------------------

The funds requested could support the following activities for 2002,
as shown in the table below.

HOUSING CERTIFICATE FUND

[Budget Authority Request for FY 2002, $ in Millions]

Units Per Unit Cost BA
FY 2002:
Incremental Rental Assistance..... 33,700 5,853 197
Tenant Protections--Housing....... 30,300 NA 203
Contract Administrators........... NA NA 196
Information Technology/Working
Capital Fund.................... 13
Contract Renewals:
PIH............................. 10,889
CPD-Mod. Rehab. SRO............. 10
Housing......................... NA 4,209
------------------------------------
Subtotal, contract renewals... 15,108
Administrative Fees-PIH [non-add]. Approx. [1,100]
Total, FY 2002 Housing
Certificate Fund............ 15,717
====================================

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 contracts authorized under
section 441 of the McKinney-Vento Homeless Assistance Act. It also
includes $46.4 million to renew funding for Family self-sufficiency
coordinators.

Incremental Rental Assistance. For 2002, the Department is
requesting approximately 34,000 incremental vouchers and $197 million in
budget authority.

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0319-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 31,583 28,583
0340 Unobligated balance transferred... 31,583
0400 Appropriation to liquidate
contract authority.............. -3,000 -3,000
0700 Balance, end of year.............. 31,583 28,583 25,583
---------------------------------------------------------------------------

Public and Indian Housing

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 2002, HUD
will continue to verify tenant reported income against other Federal
income and other wage data, as authorized under existing statutes. This
will help ensure that housing assistance is only provided to the extent
entitled. It will provide greater assurance that tenants pay the proper
amount of rent as provided under law.

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.

Section 8 Reserve Preservation Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0316-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 11
22.21 Unobligated balance transferred to
other accounts.................. -11
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 845
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 845
73.31 Obligated balance transferred to
other accounts.................. -845
----------------------------------------------------------------------------

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

The Section 8 Reserve Preservation Account was authorized by P.L.
105-18. This account contained funds which were recaptured from project
reserve accounts maintained by Housing Authorities nationwide.

All balances in this account were transferred to the Housing
Certificate Fund in 2000.

Annual Contributions For Assisted Housing

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 766
21.49 Unobligated balance carried
forward, start of year: Contract
authority....................... 17
--------- --------- ----------
21.99 Total unobligated balance
carried forward, start of year 783
22.00 New budget authority (gross)...... -16
22.21 Unobligated balance transferred to
other accounts.................. -766
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1
----------------------------------------------------------------------------

[[Page 484]]

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescinded... -16
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -16
Mandatory:

60.00 Appropriation................... 3,000
60.49 Portion applied to liquidate
contract authority............ -3,000
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -16
----------------------------------------------------------------------------

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

Unpaid obligations, start of
year:
72.40 Unpaid obligations, start of
year........................ 5,322
72.40 Unpaid obligations, start of
year........................ 45,098
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 50,420
73.31 Obligated balance transferred to
other accounts.................. -50,420
75.01 Obligated balance, start of year:
Contract authority.............. 39,748
----------------------------------------------------------------------------

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

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0164-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 39,765
0340 Unobligated balance transferred... -36,765
0400 Appropriation to liquidate
contract authority.............. -3,000
---------------------------------------------------------------------------

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

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0331-0-1-451 2000 actual 2001 est. 2002 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:
Unpaid obligations, start of year:

72.40 Unpaid obligations, start of
year.......................... 5
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 5
73.10 Total new obligations............. 5
73.20 Total outlays (gross)............. -3
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 5
--------- --------- ----------
74.99 Obligated balance, end of year 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 3
----------------------------------------------------------------------------

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

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. No additional funding is being requested for this
demonstration.

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), [$3,000,000,000] $2,293,400,000, to remain available until
expended, of which up to [$50,000,000] $41,000,000 shall be for carrying
out activities under section 9(h) of such Act, up to $500,000 shall be
for lease adjustments to section 23 projects [and $43,000,000 shall be
transferred to the Working Capital Fund for the development and
maintenance of information technology systems: 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: 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 2001]; up to $54,700,000 shall be for
information technology; and up to $14,200,000 shall be for the provision
of remediation services to Public Housing Agencies identified as
``troubled'' under the Section 8 Management Assessment Program and for
surveys used to calculate local Fair Market Rents and assess housing
conditions in connection with rental assistance under section 8 of the
Housing Act of 1937. (Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Capital Grants.................... 3,872 4,529 2,183
00.02 Technical Assistance.............. 55
00.03 Information Technology............ 55
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 3,872 4,529 2,293
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,464 1,536
22.00 New budget authority (gross)...... 2,884 2,993 2,293
22.10 Resources available from
recoveries of prior year
obligations..................... 268
22.22 Unobligated balance transferred
from other accounts............. 52
22.75 Balance of contract authority
withdrawn....................... -260
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,408 4,529 2,293
23.95 Total new obligations............. -3,872 -4,529 -2,293
24.40 Unobligated balance carried
forward, end of year............ 1,536
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2,900 3,000 2,293
40.36 Unobligated balance rescinded... -16
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -7
--------- --------- ----------

[[Page 485]]

43.00 Appropriation (total
discretionary).............. 2,884 2,993 2,293
Mandatory:

60.00 Appropriation................... 600 589
60.49 Portion applied to liquidate
contract authority............ -600 -589
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,884 2,993 2,293
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 5,201 11,837 12,648
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 5,201 11,837 12,648
73.10 Total new obligations............. 3,872 4,529 2,293
73.20 Total outlays (gross)............. -3,690 -3,718 -3,583
73.32 Obligated balance transferred from
other accounts.................. 6,722
73.45 Recoveries of prior year
obligations..................... -268
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 11,837 12,648 11,358
--------- --------- ----------
74.99 Obligated balance, end of year 11,837 12,648 11,358
75.01 Obligated balance, start of year:
Contract authority.............. 30 4,952 4,352
75.02 Obligated balance, end of year:
Contract authority.............. 4,952 4,352 3,763
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 42 125 129
86.93 Outlays from discretionary
balances........................ 3,648 3,593 3,454
--------- --------- ----------
87.00 Total outlays (gross)........... 3,690 3,718 3,583
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,884 2,993 2,293
90.00 Outlays........................... 3,690 3,718 3,583
---------------------------------------------------------------------------

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); and public housing amendments.

Of the $2.3 billion requested for the Public Housing Capital Fund,
$2.2 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. The $700 million cut to the Public Housing Capital fund will
not reduce the number of households helped or the quality of assistance
provided. There are over $6 billion in 2000 and prior year unspent
Public Housing Capital balances available for this purpose. New
regulatory tools and funding for demolition and replacement (HOPE VI)
can be used to remove failing units from the public housing inventory.
Such units represent a disproportionate share of the backlog. In
addition, of the requested amount, up to $41 million is set aside for
technical assistance including inspection of public housing units and no
more than $55 million shall be available for information technology.

In addition, $14.2 million will be used for program support and
evaluation, such as contracts to determine local fair market rents,
assessment of Section 8 housing conditions, and towards remediation
efforts for Public Housing Agencies designated as ``troubled.''

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0304-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 30 4,952 4,352
0340 Unobligated balance transferred... 5,182
0400 Appropriation to liquidate
contract authority.............. -600 -589
0600 Balance of contract authority
withdrawn....................... -260
0700 Balance, end of year.............. 4,952 4,352 3,763
---------------------------------------------------------------------------

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),
[$3,242,000,000,] $3,384,868,000 to remain available until expended, of
which $10,000,000 shall be provided to the Office of Inspector General
for Operation Safe Home: 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, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0163-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Operating Subsidy................. 3,103 3,290 3,375
00.02 Operation Safe Home............... 10
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 3,103 3,290 3,385
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 12 55
22.00 New budget authority (gross)...... 3,138 3,235 3,385
22.10 Resources available from
recoveries of prior year
obligations..................... 8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,158 3,290 3,385
23.95 Total new obligations............. -3,103 -3,290 -3,385
24.40 Unobligated balance carried
forward, end of year............ 55
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3,138 3,242 3,385
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 3,138 3,235 3,385
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 1,412 1,671 1,744
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 1,412 1,671 1,744
73.10 Total new obligations............. 3,103 3,290 3,385
73.20 Total outlays (gross)............. -2,836 -3,217 -3,336
73.45 Recoveries of prior year
obligations..................... -8
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 1,671 1,744 1,793
--------- --------- ----------
74.99 Obligated balance, end of year 1,671 1,744 1,793
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,437 1,553 1,625
86.93 Outlays from discretionary
balances........................ 1,399 1,664 1,711
--------- --------- ----------
87.00 Total outlays (gross)........... 2,836 3,217 3,336
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,138 3,235 3,385
90.00 Outlays........................... 2,836 3,217 3,336
---------------------------------------------------------------------------

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 subsidy requirements in 2002.

The following tables display the sources of housing authorities'
expected revenue and expenditures by category for 2002. The distribution
is based on historical data reported by housing authorities to HUD on
the Statement of Operating Receipts and Expenditures.

[[Page 486]]

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

Category Annual income Percent of
total
Operating Subsidies..................... $3,385 53%
Dwelling Rental......................... $2,572 40%
Investment.............................. $125 2%
Other Income............................ $318 5%
------------- --------------

Total, Operating Revenue............. 6,400 100%
------------- --------------

Operating Subsidies.--Represent HUD's contributions to a housing
authority's operating budget. Under the current formula-based approach,
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 AEL, utility, and audit 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............................... $1,344 21%
Administration.......................... 1,280 20%
General Operating Expenses.............. 1,088 17%
Maintenance............................. 1,984 31%
Tenant Services......................... 64 1%
Protective Services..................... 192 3%
Capital Expenditures.................... 128 2%
Operating Reserve....................... 320 5%
------------- --------------

Total, Operating Expenses............ 6,400 100%
------------- --------------

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.

Drug Elimination Grants for Low-Income Housing

[(including transfers of funds)]

[For grants to public housing agencies and Indian tribes and their
tribally designated housing entities for use in eliminating crime in
public housing projects authorized by 42 U.S.C. 11901-11908, for grants
for federally assisted low-income housing authorized by 42 U.S.C. 11909,
and for drug information clearinghouse services authorized by 42 U.S.C.
11921-11925, $310,000,000, to remain available until expended: Provided,
That of the total amount provided under this heading, up to $3,000,000
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 for the cost of
necessary travel for participants in such training) for oversight,
training and improved management of this program, $2,000,000 shall be
available to the Boys and Girls Clubs of America for the operating and
start-up costs of clubs located in or near, and primarily serving
residents of, public housing and housing assisted under the Native
American Housing Assistance and Self-Determination Act of 1996, and
$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 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.] (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0197-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 383 402
00.02 Federally Assisted Housing........ 17 35
00.03 Operation Safe Home............... 22 30
00.04 New Approach Anti-Drug Program.... 18 51
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 440 518
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 322 209
--------- --------- ----------
21.99 Total unobligated balance
carried forward, start of year 322 209
22.00 New budget authority (gross)...... 310 309
22.10 Resources available from
recoveries of prior year
obligations..................... 17
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 649 518
23.95 Total new obligations............. -440 -518
24.40 Unobligated balance carried
forward, end of year............ 209
--------- --------- ----------
24.99 Total unobligated balance
carried forward, end of year.. 209
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 310 310
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 310 309
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 316 451 653
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 316 451 653
73.10 Total new obligations............. 440 518

[[Page 487]]

73.20 Total outlays (gross)............. -288 -317 -313
73.45 Recoveries of prior year
obligations..................... -17
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 451 653 340
--------- --------- ----------
74.99 Obligated balance, end of year 451 653 340
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 288 317 313
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 310 309
90.00 Outlays........................... 288 317 313
---------------------------------------------------------------------------

The Public Housing Drug Elimination Grants program was authorized in
1988 and provided funds to Public Housing Authorities (PHAs) and
Tribally Designated Housing Entities (TDHEs) for their anti-drug, and
anti-crime efforts. Eligible activities included reimbursing local law
enforcement for additional services, security contracts, investigators,
and training residents for volunteer resident programs.

The Budget terminates the Public Housing Drug Elimination program
because the same types of activities (e.g., security patrols and better
lighting) are eligible under the Public Housing Operating and Capital
programs. The program was found to have limited impact; current
regulatory tools, such as eviction, are effective in reducing drug-
related crime in public housing; and finally, fighting crime and drugs
is not directly related to HUD's core mission--it is the mission of
federal law enforcement and other agencies whose programs help combat
illegal drugs and crime in public housing communities.

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] $573,735,000 to remain available until expended,
of which the Secretary may use up to [$10,000,000] $5,000,000 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. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0218-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 595 1,234 569
00.02 Technical Assistance.............. 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 595 1,234 574
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 680 660
22.00 New budget authority (gross)...... 575 574 574
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,255 1,234 574
23.95 Total new obligations............. -595 -1,234 -574
24.40 Unobligated balance carried
forward, end of year............ 660
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 575 575 574
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 575 574 574
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 2,198 2,413 3,188
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 2,198 2,413 3,188
73.10 Total new obligations............. 595 1,234 574
73.20 Total outlays (gross)............. -379 -460 -552
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 2,413 3,188 3,210
--------- --------- ----------
74.99 Obligated balance, end of year 2,413 3,188 3,210
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 379 460 552
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 575 574 574
90.00 Outlays........................... 379 460 552
---------------------------------------------------------------------------

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 will be used for project demolition, hard replacement units,
as well as tenant-based rental assistance.

Native American Housing Block Grants

(including transfer of funds)

For the Native American 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), [$650,000,000]
$648,570,000, to remain available until expended, of which [$6,000,000]
$5,000,000 shall be to support the inspection of Indian housing units,
contract expertise, training, and technical assistance in the training,
oversight, and management of Indian housing and tenant-based assistance,
including up to $300,000 for related travel ; and of which up to
$3,000,000 shall be for information technology: Provided, That of the
amount provided under this heading, [$6,000,000] $5,987,000 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] $52,726,000:
Provided further, That for administrative expenses to carry out the
guaranteed loan program, up to $150,000 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[: Provided further, That of the amount
provided in this heading, $2,000,000 shall be transferred to the Working
Capital Fund for development and maintaining information technology
systems]. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Indian Housing Block Grants....... 617 790 635
00.02 Title VI Loan Guarantee Subsidy... 23 6
00.03 Technical Assistance.............. 8 9 5
00.04 Working Capital Fund.............. 2
00.05 Information Technology............ 3
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 625 824 649
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 175 175
22.00 New budget authority (gross)...... 620 649 649
22.10 Resources available from
recoveries of prior year
obligations..................... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 800 824 649

[[Page 488]]

23.95 Total new obligations............. -625 -824 -649
24.40 Unobligated balance carried
forward, end of year............ 175
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 620 650 649
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 620 649 649
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 1,105 1,082 1,200
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 1,105 1,082 1,200
73.10 Total new obligations............. 625 824 649
73.20 Total outlays (gross)............. -643 -707 -669
73.45 Recoveries of prior year
obligations..................... -5
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 1,082 1,200 1,180
--------- --------- ----------
74.99 Obligated balance, end of year 1,082 1,200 1,180
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 79 204 205
86.93 Outlays from discretionary
balances........................ 564 503 464
--------- --------- ----------
87.00 Total outlays (gross)........... 643 707 669
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 620 649 649
90.00 Outlays........................... 643 707 669
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 2 55 53
--------- --------- ----------
2159 Total loan guarantee levels..... 2 55 53
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
--------- --------- ----------
2339 Total subsidy budget authority.. 6 6
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 1 3
--------- --------- ----------
2349 Total subsidy outlays........... 1 3
---------------------------------------------------------------------------

Title I of the Native American Housing Assistance and Self-
Determination Act (NAHASDA) of 1996 (P.L. 104-330) authorized the Native
American Housing Block Grant program. This program provides an
allocation of funds on a formula basis to Indian tribes and their
tribally designated housing entities to help them address housing needs
within their communities. Indian tribes use performance measures and
benchmarks that are consistent with the national goals of the program
but can base these measures on the needs and priorities they establish
in their own Indian housing plan.

The Native American Housing Block Grant program includes a
guaranteed loan provision (Title VI). A guarantee level of $53 million
is proposed for this loan guarantee program for 2002. 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.

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........ 9 40 40
--------- --------- ----------
10.00 Total new obligations (object
class 33.0)................... 9 40 40
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 20 20
22.00 New budget authority (gross)...... 104 110 124
22.60 Portion applied to repay debt..... -95 -90 -71
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 29 40 53
23.95 Total new obligations............. -9 -40 -40
24.40 Unobligated balance carried
forward, end of year............ 20 13
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 25 40 40
69.00 Offsetting collections (cash)..... 79 70 84
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 104 110 124
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 866 772 702
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 866 772 702
73.10 Total new obligations............. 9 40 40
73.20 Total outlays (gross)............. -103 -110 -124
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 772 702 618
--------- --------- ----------
74.99 Obligated balance, end of year 772 702 618
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 24 110 124
86.98 Outlays from mandatory balances... 79
--------- --------- ----------
87.00 Total outlays (gross)........... 103 110 124
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -71 -70 -84
88.40 Non-Federal sources........... -8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -79 -70 -84
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25 40 40
90.00 Outlays........................... 24 40 40
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,421 1,350 1,279
1251 Repayments: Repayments and
prepayments..................... -71 -71 -71
--------- --------- ----------
1290 Outstanding, end of year........ 1,350 1,279 1,208
---------------------------------------------------------------------------

[[Page 489]]

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 3,026 2,742 2,458
2251 Repayments and prepayments........ -284 -284 -284
--------- --------- ----------
2290 Outstanding, end of year........ 2,742 2,458 2,174
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,742 2,458 2,174
---------------------------------------------------------------------------

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 2000, an estimated $40
million will be borrowed from the Treasury and forgiven in 2001, and an
estimated $40 million will be borrowed from the Treasury and forgiven in
2002.

Since 1987, new reservations of capital funds for construction,
acquisition, and modernization activities have been provided directly
from the Public Housing Capital Fund appropriations.

Operating results.--The actual and estimated net operating income
for 1999, 2000, 2001 and 2002 follows:

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4098-0-3-604 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 100 102 100 100
0102 Expense........................... -91 -99 -99 -99
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 9 3 1 1
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4098-0-3-604 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 886 792 792 792
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 1,447 1,359 1,359 1,359
1602 Interest receivable............. 89 85 85 85
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -12 -2 -2 -2
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 1,524 1,442 1,442 1,442
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 1,524 1,442 1,442 1,442
------------ -------------- ------------ -------------
1999 Total assets.................... 2,410 2,234 2,234 2,234
LIABILITIES:
Federal liabilities:

2102 Interest payable................ 173 164 164 164
2104 Resources payable to Treasury... 1,420 1,348 1,348 1,348
2207 Non-Federal liabilities: Other.... -15 2 2 2
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,578 1,514 1,514 1,514
NET POSITION:
3100 Appropriated capital.............. 821 705 705 705
3300 Cumulative results of operations.. 11 15 15 15
------------ -------------- ------------ -------------
3999 Total net position.............. 832 720 720 720
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,410 2,234 2,234 2,234
-----------------------------------------------------------------------------------------------

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] $5,987,000, 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] $234,283,000.
In addition, for administrative expenses to carry out the guaranteed
loan program, up to $200,000 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, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
0101 Indian housing loan guarantee
fund, downward reestimates of
subsidies....................... 6
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

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

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 13 17 17
22.00 New budget authority (gross)...... 6 6 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 19 23 23
23.95 Total new obligations............. -2 -6 -6
24.40 Unobligated balance carried
forward, end of year............ 17 17 17
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 6 6
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 3 3 6
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 3 3 6
73.10 Total new obligations............. 2 6 6
73.20 Total outlays (gross)............. -2 -3 -7
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 3 6 5
--------- --------- ----------
74.99 Obligated balance, end of year 3 6 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1 1
86.93 Outlays from discretionary
balances........................ 1 2 6
--------- --------- ----------
87.00 Total outlays (gross)........... 2 3 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 6 6
90.00 Outlays........................... 2 3 7
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 15 72 234
--------- --------- ----------
2159 Total loan guarantee levels..... 15 72 234
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 8.13 8.13 2.47
--------- --------- ----------

[[Page 490]]

2329 Weighted average subsidy rate... 8.13 8.13 2.47
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 1 6 6
2330 Reestimation Subsidy budget
authority....................... -6
--------- --------- ----------
2339 Total subsidy budget authority.. 1 6
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 2 2 3
2340 Reestimate Subsidy Outlays........ -6
--------- --------- ----------
2349 Total subsidy outlays........... 2 -4 3
---------------------------------------------------------------------------

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.

Indian Housing Loan Guarantee Fund Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
08.02 Re-estimate....................... 5
08.04 Interest on re-estimate........... 1
--------- --------- ----------
10.00 Total new obligations........... 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 6 8 4
22.00 New financing authority (gross)... 2 2 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8 10 7
23.95 Total new obligations............. -6
24.40 Unobligated balance carried
forward, end of year............ 8 4 7
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Federal sources...... 2 2 3
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 6
73.20 Total financing disbursements
(gross)......................... -6
87.00 Total financing disbursements
(gross)......................... 6
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: Payments from
program account............. -2 -2 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2 -2 -3
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -2 4 -3
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 135 72 234
2112 Uncommitted loan guarantee
limitation...................... -120 -49
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 15 23 234
2199 Guaranteed amount of guaranteed
loan commitments................ 15 23 234
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 47 60 75
2231 Disbursements of new guaranteed
loans........................... 18 18 18
2251 Repayments and prepayments........ -5 -3 -3
2263 Adjustments: Terminations for
default that result in claim
payments........................ -1
--------- --------- ----------
2290 Outstanding, end of year........ 60 75 89
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 60 75 89
---------------------------------------------------------------------------

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 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 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 6 8 8 6
------------ -------------- ------------ -------------
1999 Total assets.................... 6 8 8 6
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 6 8 8 6
------------ -------------- ------------ -------------
2999 Total liabilities............... 6 8 8 6
------------ -------------- ------------ -------------
4999 Total liabilities and net position 6 8 8 6
-----------------------------------------------------------------------------------------------

Title VI Indian Federal Guarantees Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New financing authority (gross)... 1 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1 4
24.40 Unobligated balance carried
forward, end of year............ 1 4
----------------------------------------------------------------------------

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

Discretionary:
68.00 Offsetting collections (cash). 1 3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 1 3
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1 -3
----------------------------------------------------------------------------

[[Page 491]]

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -1 -3
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4244-0-3-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 55 55 53
2112 Uncommitted loan guarantee
limitation...................... -53
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 2 55 53
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1 15
2231 Disbursements of new guaranteed
loans........................... 1 15 41
2251 Repayments and prepayments........ -1 -3
--------- --------- ----------
2290 Outstanding, end of year........ 1 15 53
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1 15 53
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4244-0-3-604 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1 3
------------ -------------- ------------ -------------
1999 Total assets.................... 1 3
NET POSITION:
3100 Appropriated capital.............. 1 3
------------ -------------- ------------ -------------
3999 Total net position.............. 1 3
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 3
-----------------------------------------------------------------------------------------------

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), [$258,000,000] $277,432,000, to remain available until expended:
Provided, That the Secretary shall renew all expiring contracts that
were funded under section 854(c)(3) of such Act that meet all program
requirements before awarding funds for new contracts and activities
authorized under this section: Provided further, That the Secretary may
use up to [1 percent] $2,000,000 of the funds under this heading for
training, oversight, and technical assistance activities. (Departments
of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0308-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Housing for AIDs victims.......... 220 326 277
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 220 326 277
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 57 69
22.00 New budget authority (gross)...... 232 257 277
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 290 326 277
23.95 Total new obligations............. -220 -326 -277
24.40 Unobligated balance carried
forward, end of year............ 69
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 232 258 277
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 232 257 277
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 436 441 551
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 436 441 551
73.10 Total new obligations............. 220 326 277
73.20 Total outlays (gross)............. -215 -216 -219
73.45 Recoveries of prior year
obligations..................... -1
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 441 551 609
--------- --------- ----------
74.99 Obligated balance, end of year 441 551 609
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 5 6
86.93 Outlays from discretionary
balances........................ 214 211 213
--------- --------- ----------
87.00 Total outlays (gross)........... 215 216 219
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 232 257 277
90.00 Outlays........................... 215 216 219
---------------------------------------------------------------------------

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.

Up to $2 million is used for technical assistance to grantees.
States and metropolitan areas receive 90 percent of the remaining funds
by formula based on the incidence of HIV/AIDS in their jurisdictions.
The final 10 percent is awarded competitively to States, local
governments, and private nonprofit entities for projects of national
significance. Awards are also made to States and local governments for
projects in jurisdictions which do not qualify for a formula allocation.
The requested funding for 2002 will support approximately 53,100 housing
units for persons with HIV/AIDS and their families.

Community Development [Fund] Block Grants

For assistance to units of State and local government, and to other
entities, for economic and community development activities, and for
other purposes, [$5,057,550,000] $4,701,993,000 to remain available
until September 30, 2004: Provided, That of the amount provided,
[$4,409,000,000] $4,399,300,000 is for carrying out the community
development block grant program under title I of the Housing and
Community Development Act of 1974, as amended (the ``Act'' herein) (42
U.S.C. 5301)[, to remain available until September 30, 2003] : Provided
further, That [$71,000,000] $69,000,000 shall be for grants to Indian
tribes notwithstanding section 106(a)(1) of such Act, [$3,000,000] of
which up to $1,250,000 shall be to implement and support Native American
Economic Development Access Center, $2,993,000 shall be available as a
grant to the Housing Assistance Council, [$2,600,000] $2,200,000 shall
be available as a grant to the National American Indian Housing Council,
$2,993,000 shall be for support of Alaska Native and Native Hawaiian
Serving Institutions, as defined under the Higher Education Act, as
amended, and $2,993,000 shall be available to Tribal Colleges and
Universities to build, expand, renovate, and equip their facilities
[$10,000,000 shall

[[Page 492]]

be available as a grant to the National Housing Development Corporation,
for operating expenses not to exceed $2,000,000 and for a program of
affordable housing acquisition and rehabilitation], and [$45,500,000]
$38,424,000 shall be for grants pursuant to section 107 of the Act [of
which $3,000,000 shall be made available to support Alaska Native
serving institutions and native Hawaiian serving institutions, as
defined under the Higher Education Act, as amended, and of which
$3,000,000 shall be made available to tribal colleges and universities
to build, expand, renovate, and equip their facilities]: 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 up to [That $15,000,000] $18,000,000
shall be transferred to the Working Capital Fund for the development and
maintenance of information technology systems: Provided further, That
[$20,000,000] $21,956,000 shall be for grants pursuant to the Self Help
Housing Opportunity Program.
Of the amount made available under this heading, [$28,450,000]
$29,387,000 shall be made available for capacity building, of which
[$25,000,000] $24,945,000 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, of which not less than [$5,000,000]
$4,989,000 of the funding shall be used in rural areas, including tribal
areas, and of which [$3,450,000] $4,442,000 shall be made available for
capacity building activities administered by 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] $54,879,000
for supportive services for public housing residents, as authorized by
section 34 of the United States Housing Act of 1937, as amended, and for
residents of housing assisted under the Native American Housing
Assistance and Self-Determination Act of 1996 (NAHASDA) and for grants
for service coordinators and congregate services for the elderly and
disabled residents of public and assisted housing and housing assisted
under NAHASDA.
[Of the amount made available under this heading, $44,000,000 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, 1999, and 2000 may be utilized for any
of the foregoing purposes: Provided further, That these grants shall be
provided in accord with the terms and conditions specified in the
statement of managers accompanying this conference report.]
Of the amount made available under this heading, $80,000,000 is for
grants to create or expand community technology centers in high poverty
urban communities and to provide technical assistance to those centers.
Of the amount made available under this heading, $20,000,000 is for
competitive grants to community-based, civic, and religiously affiliated
organizations which are exempt from the Americans with Disabilities Act
and which have limited resources: Provided, That these grants shall be
to make facilities of these organizations accessible to the disabled.
Of the amount made available under this heading, notwithstanding any
other provision of law, [$60,000,000] $59,868,000 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 no more than ten percent of any grant award may be used
for administrative costs: Provided further, That not less than
[$10,000,000] $9,978,000 shall be available for grants to establish
YouthBuild programs in underserved and rural areas: Provided further,
That of the amount provided under this paragraph, [$4,000,000]
$2,000,000 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 amounts made available under this heading, $2,000,000 shall
be available to the Utah Housing Finance Agency for the temporary use of
relocatable housing during the 2002 Winter Olympic Games provided such
housing is targeted to the housing needs of low-income families after
the Games.]
[Of the amount made available under this heading, $292,000,000 shall
be available for grants for the Economic Development Initiative (EDI) to
finance a variety of targeted economic investments in accordance with
the terms and conditions specified in the statement of managers
accompanying this conference report.]
[For the cost of guaranteed loans, $29,000,000, as authorized by
section 108 of the Housing and Community Development Act of 1974:
Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That these funds are available to
subsidize total loan principal, any part of which is to be guaranteed,
not to exceed $1,261,000,000, notwithstanding any aggregate limitation
on outstanding obligations guaranteed in section 108(k) of the Housing
and Community Development Act of 1974: Provided further, That in
addition, for administrative expenses to carry out the guaranteed loan
program, $1,000,000, which shall be transferred to and merged with the
appropriation for ``Salaries and expenses''.] (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)
[For an additional amount for ``Community development fund'',
$66,128,000 to remain available until September 30, 2003.]
[The referenced statement of the managers in the seventh
undesignated paragraph under this heading in title II of the Departments
of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2001 (Public Law 106-377) is deemed to be
amended by striking ``West Dallas neighborhoods'' in reference to
improvement efforts by the Pleasant Wood/Pleasant Grove Community
Development Corporation, and inserting ``the Pleasant Grove area'' in
lieu thereof.]
[The unobligated amount appropriated in the third paragraph under
the heading ``Community development block grants'' in Chapter 8 of title
II of the Emergency Supplemental Act, 2000 (Public Law 106-246) for a
grant to the City of Hamlet, North Carolina for demolition and removal
of buildings and equipment destroyed by fire shall remain available
until September 30, 2002 for a grant for such purpose to the County of
Richmond, North Carolina.]
[The seventh paragraph under this heading in title II of Public Law
106-377 is amended by striking ``$292,000,000'' and inserting in lieu
thereof $358,128,000'': Provided, That such funds shall be available for
grants for the Economic Development Initiative (EDI) to finance a
variety of targeted economic investments in accordance with the terms
and conditions specified in the statement of managers accompanying this
conference report.] (Division A, Miscellaneous Appropriations Act, 2001,
as enacted by section 1(a)(4) of P.L. 106-554.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Community development............. 4,854 5,996 4,702
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 4,854 5,996 4,702
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 931 883
22.00 New budget authority (gross)...... 4,809 5,113 4,702
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,743 5,996 4,702
23.95 Total new obligations............. -4,854 -5,996 -4,702
23.98 Unobligated balance expiring or
withdrawn....................... -5
24.40 Unobligated balance carried
forward, end of year............ 883
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4,800 5,124 4,702

[[Page 493]]

40.15 Appropriation (emergency)....... 28
40.76 Reduction pursuant to P.L. 106-
113........................... -19
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -11
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 4,809 5,113 4,702
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 9,013 9,074 10,130
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 9,013 9,074 10,130
73.10 Total new obligations............. 4,854 5,996 4,702
73.20 Total outlays (gross)............. -4,955 -4,940 -5,036
73.31 Obligated balance transferred to
other accounts.................. -99
73.32 Obligated balance transferred from
other accounts.................. 269
73.40 Adjustments in expired accounts
(net)........................... -4
73.45 Recoveries of prior year
obligations..................... -3
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 9,074 10,130 9,796
--------- --------- ----------
74.99 Obligated balance, end of year 9,074 10,130 9,796
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 100 102 94
86.93 Outlays from discretionary
balances........................ 4,855 4,838 4,940
--------- --------- ----------
87.00 Total outlays (gross)........... 4,955 4,940 5,036
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4,809 5,113 4,702
90.00 Outlays........................... 4,955 4,940 5,036
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2000 actual 2001 est. 2002 est.
Enacted/requested:
Budget Authority.................. 4,809 5,113 4,702
Outlays........................... 4,955 4,940 5,034
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 100
Outlays........................... 10
------------------------------------
Total:
Budget Authority.................. 4,809 5,113 4,802
Outlays........................... 4,955 4,940 5,044
====================================

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 under the Community Development Block Grant (CDBG)
program and States to fund local community development programs.

The 2002 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 CDBG 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 114,379 and
30,000 jobs, respectively. These funds will also help to rehabilitate
161,336 housing units.

Section 107 Grants include funding for Insular Areas, management
information systems support, Historically Black Colleges and
Universities, Hispanic serving Institutions, the Community Development
Work Study and Community Outreach Partnership Centers (COPC) programs.

The Budget provides $80,000,000 for the new Community Technology
Centers initiative which will enhance the existing Department of
Education CTC program and expand the HUD Neighborhood Networks effort,
by providing competitive grants to create or expand community technology
centers in high poverty urban communities and provide technical
assistance to those centers. This Community Technology Centers program
will be administered by HUD. Eligible applicants will include State
educational agencies, local educational agencies, institutions of higher
education, for-profit businesses, public or private non-profit
organizations, or a consortium of such entities that have the capacity
to expand access to computers and related services in eligible
communities.

The Budget provides $20,000,000 for a new Improving Access
Initiative that will provide grants to Americans with Disabilities Act-
exempt community-based, civic, and religiously affiliated organizations
with limited resources. These ADA-exempt organizations will be eligible
to compete for grants to make their facilities accessible to the
disabled.

As authorized by Section 4 of the HUD Demonstration Act of 1993, the
National Community Development Initiative (NCDI) helps 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 2002
Budget includes $29 million for this program. In addition, $3.4 million
is set aside for Habitat for Humanity capacity building programs. Both
programs will target their efforts to increasing minority homeownership.

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 2002 request for $60 million will provide more than
3,774 young people with skills they need to obtain jobs. Funding of $23
million is provided for the Self Help-Shop Program which is targeted at
very low-income populations. In addition, $3 million each is provided
for the Housing Assistance and Native American Indian Housing Councils
to meet unserved rural and Native American housing needs.

The 2002 Budget also includes $3 million in competitive grants to
Tribal Colleges and Universities (TCU) to provide resources to build,
expand, renovate and equip facilities. In addition, $3 million is
provided to assist Alaska Native and Native Hawaiian Serving
institutions. The Budget also provides $55 million for the Resident
Opportunities and Self-Sufficiency program to help meet housing and
related service needs to improve lives and communities served by public
housing.

Community Development [Fund] Block Grants

(Legislative Proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-2-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Improving Access Initiative....... 20
00.02 Community Technology Centers...... 80
--------- --------- ----------
10.00 Total new obligations........... 100
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 100
--------- --------- ----------

[[Page 494]]

23.90 Total budgetary resources
available for obligation...... 100
23.95 Total new obligations............. -100
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

Appropriation:
40.00 Appropriation................. 20
40.00 Appropriation................. 80
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 100
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 100
73.20 Total outlays (gross)............. -10
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 90
--------- --------- ----------
74.99 Obligated balance, end of year 90
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 10
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 100
90.00 Outlays........................... 10
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

Grants, subsidies, and contributions:

41.0 Grants, subsidies, and
contributions................. 20
41.0 Grants, subsidies, and
contributions................. 80
--------- --------- ----------
99.9 Total new obligations........... 100
---------------------------------------------------------------------------

Empowerment Zones/Enterprise Communities

For grants in connection with a second round of empowerment zones
and enterprise communities, [$90,000,000] $150,000,000, to remain
available until expended[: Provided, That $75,000,000 shall be available
for the Secretary of Housing and Urban Development], for ``Urban
Empowerment Zones'', as authorized in the Taxpayer Relief Act of 1997,
including [$5,000,000] $10,000,000 for each empowerment zone for use in
conjunction with economic development activities consistent with the
strategic plan of each empowerment zone[: Provided further, That
$15,000,000 shall be available to the Secretary of Agriculture for
grants for designated empowerment zones in rural areas and for grants
for designated rural enterprise communities]. (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)
[For an additional amount for ``Empowerment zones and enterprise
communities'', $110,000,000, to remain available until expended:
Provided, That $185,000,000 shall be available for urban empowerment
zones, as authorized by the Taxpayer Relief Act of 1997, including
$12,333,333 for each empowerment zone.] (Division A, Miscellaneous
Appropriations Act, 2001, as enacted by section 1(a)(4) of P.L. 106-
554.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0315-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Develop urban sites............... 61 185 150
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 61 185 150
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 7
22.00 New budget authority (gross)...... 55 185 150
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 62 185 150
23.95 Total new obligations............. -61 -185 -150
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 55 185 150
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 39 93 229
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 39 93 229
73.10 Total new obligations............. 61 185 150
73.20 Total outlays (gross)............. -7 -49 -92
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 93 229 287
--------- --------- ----------
74.99 Obligated balance, end of year 93 229 287
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 3
86.93 Outlays from discretionary
balances........................ 7 45 89
--------- --------- ----------
87.00 Total outlays (gross)........... 7 49 92
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 55 185 150
90.00 Outlays........................... 7 49 92
---------------------------------------------------------------------------

The goal of the Empowerment Zone (EZ) initiative is to revitalize
city neighborhoods by attracting business development and providing
employment opportunities to residents of empowerment zones. Grant funds
will allow the 15 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 VA HUD Appropriations Act of 2001 (P.L. 106-377 and P.L. 106-
554) provided $185 million for Round II Urban Empowerment Zones. The
2002 Budget proposes $150 million for Round II urban Empowerment Zones
that will bring the total funding for Round II urban EZs through 2002 to
$435 million.

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 and supporting jobs, and
helping families move from welfare to work.

The Community Renewal and Tax Relief Act of 2000 (P.L. 106-554)
authorized the designation of a third round of 7 urban and 2 rural
empowerment zones. The Community Renewal and Tax Relief Act of 2000 also
authorized the creation of a Renewal Communities program to be
administered by HUD that will include 40 communities to be designated by
competition by December 31, 2001.

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, to remain

[[Page 495]]

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, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0314-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Cleanup and develop contaminated
sites........................... 50 50 25
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 50 50 25
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

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

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

72.40 Unpaid obligations, start of
year.......................... 46 71
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 46 71
73.10 Total new obligations............. 50 50 25
73.20 Total outlays (gross)............. -4 -25 -30
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 46 71 66
--------- --------- ----------
74.99 Obligated balance, end of year 46 71 66
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1
86.93 Outlays from discretionary
balances........................ 4 24 29
--------- --------- ----------
87.00 Total outlays (gross)........... 4 25 30
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25 25 25
90.00 Outlays........................... 4 25 30
---------------------------------------------------------------------------

The Brownfields Redevelopment initiative 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 initiative has received annual
appropriations of $25 million since its inception in 1998. The 2002
request of $25 million will enable communities to reclaim and redevelop
approximately 25 Brownfield sites.

Youthbuild Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0219-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

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

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

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

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

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

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 2002 request of $60 million will provide more than
3,774 young people with skills they need to get jobs. The Youthbuild
program has been funded as 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

(including transfer of funds)

For the HOME investment partnerships program, as authorized under
title II of the Cranston-Gonzalez National Affordable Housing Act, as
amended, [$1,800,000,000] $1,796,040,000 to remain available until
expended[: Provided, That] , of which $200,000,000 shall be for the
Downpayment Assistance Initiative; of which up to $20,000,000 of these
funds shall be available for Housing Counseling under section 106 of the
Housing and Urban Development Act of 1968[: Provided further, That
$17,000,000] ; and of which up to $22,000,000 shall be for information
technology projects, including $20,000,000 that shall be transferred to
the Working Capital Fund for the development and maintenance of
information technology systems. (Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0205-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 HOME grants....................... 1,644 1,985 1,796
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,644 1,985 1,796
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 191 189
22.00 New budget authority (gross)...... 1,636 1,796 1,796
22.10 Resources available from
recoveries of prior year
obligations..................... 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,833 1,985 1,796
23.95 Total new obligations............. -1,644 -1,985 -1,796
24.40 Unobligated balance carried
forward, end of year............ 189
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,636 1,800 1,796
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,636 1,796 1,796
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 3,947 4,107 4,356
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 3,947 4,107 4,356
73.10 Total new obligations............. 1,644 1,985 1,796
73.20 Total outlays (gross)............. -1,479 -1,736 -1,857

[[Page 496]]

73.45 Recoveries of prior year
obligations..................... -6
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 4,107 4,356 4,295
--------- --------- ----------
74.99 Obligated balance, end of year 4,107 4,356 4,295
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 19 36 36
86.93 Outlays from discretionary
balances........................ 1,460 1,700 1,821
--------- --------- ----------
87.00 Total outlays (gross)........... 1,479 1,736 1,857
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,636 1,796 1,796
90.00 Outlays........................... 1,479 1,736 1,857
---------------------------------------------------------------------------

The HOME Investment Partnerships 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 2002
request will result in the production of 87,035 units of affordable
housing through new construction, rehabilitation, or acquisition. In
addition, tenant-based rental assistance will be provided for 10,350
units.

The Down Payment Assistance Initiative will assist approximately
130,000 first-time low-income homebuyers.

The HOME request also includes up to $22 million for information
technology projects. Of this total, $20 million will be transferred to
the Working Capital Fund. Funding for technical assistance is also
included.

Funding of $20 million for the Housing Counseling Assistance program
is also proposed 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 set aside for housing counseling assistance for Native
Americans.

The Housing Counseling program was funded at $17.5 million as a HOME
set-aside in 1999, $15 million in 2000, and $20 million in 2001. The
2002 Budget proposes $20 million for housing counseling.

Homeless Assistance Grants

(including transfer of funds)

For the emergency shelter grants program (as authorized under
subtitle B of title IV of the [Stewart B.] McKinney-Vento 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-Vento Homeless Assistance Act; and the shelter plus care
program (as authorized under subtitle F of title IV of such Act),
[$1,025,000,000] $1,022,745,000, to remain available until expended:
Provided, That not less than 30 percent of these funds shall be used for
permanent housing, and all funding for services must be matched by 25
percent in funding by each grantee: Provided further, That all awards of
assistance under this heading shall be required to coordinate and
integrate homeless programs with other mainstream health, social
services, and employment programs for which homeless populations may be
eligible, including 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 1.5 percent] $2,500,000 of the funds
appropriated under this heading [is transferred to the Working Capital
Fund to be used] shall be available for technical assistance [for
management information systems and to develop an automated, client-level
Annual Performance Report System]: Provided further, That up to
$11,700,000 shall be available for information technology, including the
development of a client-level Annual Performance Report System: Provided
further, That $500,000 shall be made available for the Interagency
Council for the Homeless for administrative needs. (Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0192-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Homeless assistance grants........ 882 2,363 1,023
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 882 2,363 1,023
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,072 1,340
22.00 New budget authority (gross)...... 1,020 1,023 1,023
22.10 Resources available from
recoveries of prior year
obligations..................... 25
22.22 Unobligated balance transferred
from other accounts............. 105
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,222 2,363 1,023
23.95 Total new obligations............. -882 -2,363 -1,023
24.40 Unobligated balance carried
forward, end of year............ 1,340
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,020 1,025 1,023
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,020 1,023 1,023
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 1,867 2,510 3,873
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 1,867 2,510 3,873
73.10 Total new obligations............. 882 2,363 1,023
73.20 Total outlays (gross)............. -885 -1,000 -1,200
73.32 Obligated balance transferred from
other accounts.................. 670
73.45 Recoveries of prior year
obligations..................... -25
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 2,510 3,873 3,696
--------- --------- ----------
74.99 Obligated balance, end of year 2,510 3,873 3,696
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 31 31 31
86.93 Outlays from discretionary
balances........................ 854 969 1,169
--------- --------- ----------
87.00 Total outlays (gross)........... 885 1,000 1,200
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,020 1,023 1,023
90.00 Outlays........................... 885 1,000 1,200
---------------------------------------------------------------------------

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 fund

[[Page 497]]

ing would be available for a wide range of activities to assist homeless
persons and prevent future homelessness. The 2002 request will fund over
50,000 new and renewal transitional and 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.

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 to remain
available until expended, which amount shall be awarded by June 1, 2001,
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 activities in rural areas: Provided, 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, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0324-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Rural Housing..................... 31 51
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 31 51
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 32 26
22.00 New budget authority (gross)...... 25 25
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 57 51
23.95 Total new obligations............. -31 -51
24.40 Unobligated balance carried
forward, end of year............ 26
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

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

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

72.40 Unpaid obligations, start of
year.......................... 23 50
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 23 50
73.10 Total new obligations............. 31 51
73.20 Total outlays (gross)............. -8 -24 -25
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 23 50 25
--------- --------- ----------
74.99 Obligated balance, end of year 23 50 25
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1
86.93 Outlays from discretionary
balances........................ 7 23 25
--------- --------- ----------
87.00 Total outlays (gross)........... 8 24 25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25 25
90.00 Outlays........................... 8 24 25
---------------------------------------------------------------------------

The 2001 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. The 2002 Budget proposes no new funding for
this program.

Urban Development Action Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0170-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 78 68 58
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 78 68 58
73.20 Total outlays (gross)............. -10 -10 -10
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 68 58 48
--------- --------- ----------
74.99 Obligated balance, end of year 68 58 48
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 10 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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 19 7
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 19 7
73.20 Total outlays (gross)............. -12 -7
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 7
--------- --------- ----------
74.99 Obligated balance, end of year 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 12 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 12 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
$28 million was provided for this program in 2001 in Public Law 106-377
as a set-aside within the CDBG program. $29 million is being requested
in 2002, again as a set-aside within CDBG.

[[Page 498]]

Emergency Shelter Grants Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0181-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

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

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

Title IV, subtitle B, of the McKinney-Vento 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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 35
22.21 Unobligated balance transferred to
other accounts.................. -35
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 96
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 96
73.31 Obligated balance transferred to
other accounts.................. -96
----------------------------------------------------------------------------

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

Title IV, subtitle C, of the McKinney-Vento 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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

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

Title IV, subtitle D, of the McKinney-Vento 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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3
22.21 Unobligated balance transferred to
other accounts.................. -3
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 228
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 228
73.31 Obligated balance transferred to
other accounts.................. -228
----------------------------------------------------------------------------

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

Title IV, subtitle F, of the McKinney-Vento 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.

Shelter Plus Care Renewals

For the renewal on an annual basis [of contracts expiring during
fiscal years 2001 and 2002] or amendment of contracts funded under the
Shelter Plus Care program, as authorized under subtitle F of title IV of
the [Stewart B.] McKinney-Vento Homeless Assistance Act, as amended,
[$100,000,000] $99,780,000, to remain available until expended:
Provided, That each Shelter Plus Care project with an expiring contract
shall be eligible for renewal only if the project is determined to be
needed under the applicable continuum of care and meets appropriate
program requirements and financial standards, as determined by the
Secretary. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0232-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Renewal of Expiring Contracts..... 100 100
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 100 100
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 100 100
23.95 Total new obligations............. -100 -100
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 100 100
----------------------------------------------------------------------------

[[Page 499]]

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

72.40 Unpaid obligations, start of
year.......................... 89
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 89
73.10 Total new obligations............. 100 100
73.20 Total outlays (gross)............. -11 -57
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 89 132
--------- --------- ----------
74.99 Obligated balance, end of year 89 132
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 11 11
86.93 Outlays from discretionary
balances........................ 46
--------- --------- ----------
87.00 Total outlays (gross)........... 11 57
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 100 100
90.00 Outlays........................... 11 57
---------------------------------------------------------------------------

Shelter Plus Care provides rental assistance that, when combined
with social services, supplies supportive housing for homeless people
with disabilities and their families. Homeless people with disabilities
often need more than shelter to live independently, such as medical care
or other social services. Shelter Plus Care provides for a variety of
housing choices such as group homes or individual units, coupled with a
range of supportive services (which are funded by other sources).
Grantees must match the rental assistance with supportive services that
are at least equal in value to the amount of HUD's rental assistance.
The Shelter Plus Care renewal funding will renew contracts on a one-year
basis and will also provide funding to amend contracts that were
previously extended but which will run out of funding.

Innovative Homeless Initiatives Demonstration Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0221-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 9
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 9
73.31 Obligated balance transferred to
other accounts.................. -9
----------------------------------------------------------------------------

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

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 in Schools Community Development Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0220-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.05 Appropriation (indefinite)...... 5
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 5
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 1
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 1
73.10 Total new obligations............. 5
73.20 Total outlays (gross)............. -5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5
90.00 Outlays........................... 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. No
funding was provided in 2001 and none is requested for 2002.

Public enterprise funds:

Revolving Fund (Liquidating Programs)

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Loan servicing.................... 6 9 8
09.03 Administrative expenses........... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 7 10 9
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 93 76 63
22.00 New budget authority (gross)...... 36 42 37
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.40 Capital transfer to general fund.. -50 -45 -40
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 82 73 60
23.95 Total new obligations............. -7 -10 -9
24.40 Unobligated balance carried
forward, end of year............ 76 63 51
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 36 42 37
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 9 6 3
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 9 6 3
73.10 Total new obligations............. 7 10 9
73.20 Total outlays (gross)............. -7 -13 -9
73.45 Recoveries of prior year
obligations..................... -3
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 6 3 3
--------- --------- ----------
74.99 Obligated balance, end of year 6 3 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 7 13 9
----------------------------------------------------------------------------

[[Page 500]]

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -36 -42 -37
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -29 -29 -28
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 175 142 109
1251 Repayments: Repayments and
prepayments..................... -28 -30 -25
1263 Write-offs for default: Direct
loans........................... -5 -3 -2
--------- --------- ----------
1290 Outstanding, end of year........ 142 109 82
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

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 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 11 5 5 5
0102 Expense........................... -1 -4 -4 -4
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 10 1 1 1
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1206 Receivables, net................ 20 17 16 15
1207 Advances and prepayments........ 1
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 175 142 109 82
1602 Interest receivable............. 16 12 11 10
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -7 -19 -17 -15
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 184 135 103 77
1606 Foreclosed property............. 1 1 1
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 184 136 104 78
1801 Other Federal assets: Cash and
other monetary assets........... 1 1 1 1
------------ -------------- ------------ -------------
1999 Total assets.................... 308 237 186 154
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 1 1 1 1
2207 Other........................... 8 8 4 3
------------ -------------- ------------ -------------
2999 Total liabilities............... 9 9 5 4
NET POSITION:
3100 Appropriated capital.............. 193 10 10 10
3300 Cumulative results of operations.. 106 218 171 140
------------ -------------- ------------ -------------
3999 Total net position.............. 299 228 181 150
------------ -------------- ------------ -------------
4999 Total liabilities and net position 308 237 186 154
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
25.2 Other services.................... 5 7 6
32.0 Land and structures............... 2 3 3
--------- --------- ----------
99.9 Total new obligations........... 7 10 9
---------------------------------------------------------------------------

Credit accounts:

Community Development Loan Guarantees Program Account

For the cost of guaranteed loans, $14,000,000, 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 $608,696,000 notwithstanding any aggregate limitation on
outstanding obligations guaranteed in section 108(k) of the Housing and
Community Development Act of 1974. In addition, for administrative
expenses to carry out the guaranteed loan program, $1,000,000 which
shall be transferred to and merged with the appropriation for ``Salaries
and Expenses''.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Community development loan
guarantee credit subsidy........ 9 29 14
00.09 Administrative expense............ 1 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 33.0)................... 10 30 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 30 30 15
23.95 Total new obligations............. -10 -30 -15
23.98 Unobligated balance expiring or
withdrawn....................... -20
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 30 30 15
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 18 22 32
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 18 22 32
73.10 Total new obligations............. 10 30 15
73.20 Total outlays (gross)............. -7 -20 -20
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 22 32 27
--------- --------- ----------
74.99 Obligated balance, end of year 22 32 27
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 5 3
86.93 Outlays from discretionary
balances........................ 5 15 17
--------- --------- ----------
87.00 Total outlays (gross)........... 7 20 20
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 30 30 15
90.00 Outlays........................... 7 20 20
---------------------------------------------------------------------------

Guaranteed Loans.--The Community Development Loan Guarantee program
(Section 108) has a proposed commitment

[[Page 501]]

level of $609 million in 2002. The credit subsidy/administrative cost
estimate for the guaranteed loan program is $15 million in 2002.

Section 108 loan guarantees are used by Community Development Block
Grant 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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 1,261 1,258 609
--------- --------- ----------
2159 Total loan guarantee levels..... 1,261 1,258 609
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.......... 29 29 14
--------- --------- ----------
2339 Total subsidy budget authority.. 29 29 14
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 6 19 19
--------- --------- ----------
2349 Total subsidy outlays........... 6 19 19
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 1 1 1
3580 Outlays from balances.............
3590 Outlays from new authority........ 1 1 1
---------------------------------------------------------------------------

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

Community Development Loan Guarantees Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 16 22 44
22.00 New financing authority (gross)... 7 21 22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 23 43 66
24.40 Unobligated balance carried
forward, end of year............ 22 44 67
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 7 21 22
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -6 -19 -19
88.25 Interest on uninvested funds.. -1 -2 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -7 -21 -22
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -7 -21 -22
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 1,261 1,258 609
2112 Uncommitted loan guarantee
limitation...................... -849
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 412 1,258 609
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,509 1,692 1,942
2231 Disbursements of new guaranteed
loans........................... 322 500 400
2251 Repayments and prepayments........ -139 -250 -200
--------- --------- ----------
2290 Outstanding, end of year........ 1,692 1,942 2,142
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1,692 1,942 2,142
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4096-0-3-451 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 16 22 44 67
------------ -------------- ------------ -------------
1999 Total assets.................... 16 22 44 67
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 16 22 44 67
------------ -------------- ------------ -------------
2999 Total liabilities............... 16 22 44 67
------------ -------------- ------------ -------------
4999 Total liabilities and net position 16 22 44 67
-----------------------------------------------------------------------------------------------

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)...... 4
22.40 Capital transfer to general fund.. 134
22.70 Balance of authority to borrow
withdrawn....................... -138
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 7 4 4
69.27 Capital transfer to general fund -3 -4 -4
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 4
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 134 134 134
--------- --------- ----------

[[Page 502]]

72.99 Obligated balance, start of
year........................ 134 134 134
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 134 134 134
--------- --------- ----------
74.99 Obligated balance, end of year 134 134 134
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -7 -4 -4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -3 -4 -4
90.00 Outlays........................... -7 -4 -4
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 13 13 13
1251 Repayments: Repayments and
prepayments.....................
--------- --------- ----------
1290 Outstanding, end of year........ 13 13 13
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 134 107 82
2251 Repayments and prepayments........ -27 -25 -23
--------- --------- ----------
2290 Outstanding, end of year........ 107 82 59
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 107 82 59
---------------------------------------------------------------------------

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4097-0-3-451 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 8 2 2 2
0102 Expense........................... -8 -2 -2 -2
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

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

1701 Defaulted guaranteed loans,
gross......................... 13 11 11 11
1702 Interest receivable............. 4
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 17 11 11 11
1901 Other Federal assets: Other assets 139
------------ -------------- ------------ -------------
1999 Total assets.................... 163 11 11 11
LIABILITIES:
Federal liabilities:

2103 Debt............................ 11 11 11
2105 Other........................... 14
2201 Non-Federal liabilities: Accounts
payable......................... 149
------------ -------------- ------------ -------------
2999 Total liabilities............... 163 11 11 11
------------ -------------- ------------ -------------
4999 Total liabilities and net position 163 11 11 11
-----------------------------------------------------------------------------------------------

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,
development or expansion of 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

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0326-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.05 Appropriation (indefinite)...... 20
41.00 Transferred to other accounts... -20
----------------------------------------------------------------------------

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

The 2000 appropriation provided $20 million for America's Private
Investment Companies (APIC) contingent upon the program's authorization.
The program was not authorized and the funding was transferred to
Community Development Financial Institutions. No funding was provided
for 2001 and none is proposed for 2002.

America's Private Investment Companies Loan Guarantee Financing Account

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4102-0-3-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 541
2112 Uncommitted loan guarantee
limitation...................... -541
---------------------------------------------------------------------------

HOUSING PROGRAMS

Federal Funds

General and special funds:

Housing for Special Populations

(including transfer of funds)

For assistance for the purchase, construction, acquisition, or
development of additional public and subsidized housing units for low
income families not otherwise provided for, [$996,000,000]
$1,001,009,000, to remain available until expended: Provided, That
[$779,000,000] $783,286,000 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

[[Page 503]]

amount [$50,000,000] $49,890,000 shall be for service coordinators and
the continuation of existing congregate service grants for residents of
assisted housing projects, of which amount up to $3,000,000 shall be
available to renew expiring project rental assisance contracts for up to
a one-year term, and of which amount [$50,000,000] $49,890,000 shall be
for grants under section 202b of the Housing Act of 1959 (12 U.S.C.
1701q-2) for conversion of eligible projects under such section to
assisted living or related use: Provided further, That of the amount
under this heading, [$217,000,000] $217,723,000 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,
of which up to $1,200,000 shall be available to renew expiring project
rental assistance contracts for up to a one-year term: Provided further,
That [$1,000,000] up to $3,000,000, to be divided evenly between the
appropriations for the section 202 and section 811 programs, shall be
[transferred to the Working Capital Fund for the development and
maintenance of] available for information technology [systems]: Provided
further, That the Secretary may designate up to 25 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 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, 2001, as enacted by section 1(a)(1) of P.L.
106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0320-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 937 939 1,001
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 937 939 1,001
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,749 2,760 2,817
22.00 New budget authority (gross)...... 911 994 1,001
22.10 Resources available from
recoveries of prior year
obligations..................... 37
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,697 3,754 3,818
23.95 Total new obligations............. -937 -939 -1,001
24.40 Unobligated balance carried
forward, end of year............ 2,760 2,817 2,817
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 911 996 1,001
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 911 994 1,001
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 3,799 3,978 3,929
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 3,799 3,978 3,929
73.10 Total new obligations............. 937 939 1,001
73.20 Total outlays (gross)............. -720 -988 -1,025
73.45 Recoveries of prior year
obligations..................... -37
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 3,978 3,929 3,905
--------- --------- ----------
74.99 Obligated balance, end of year 3,978 3,929 3,905
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 720 988 1,025
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 911 994 1,001
90.00 Outlays........................... 720 988 1,025
---------------------------------------------------------------------------

This account consolidates activity under the Section 202 Housing for
the Elderly Program and the Section 811 Housing for the Disabled
Program. In 2002, $1,001 million is requested for the Housing for
Special Populations account.

Housing for the Disabled.--$217.7 million is proposed for housing
for persons with disabilities, including language to permit up to 25
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 $783 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.

Conversion of units to assisted living 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 a 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 grants and the 202 program will address the
growing housing needs of the nation's elderly.

Other Assisted Housing Programs

Rental Housing Assistance

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Rent supplement................... 7 6 6
00.02 Homeownership and rental housing
assistance (Sections 235 and
236)............................ 867 60 60
00.03 College Housing................... 1
00.04 IRP Rehab Grants/Loans............ 100 300
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 875 166 366
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 7 30 264
21.49 Unobligated balance carried
forward, start of year: Contract
authority....................... 1,053 1,025 1,025
--------- --------- ----------
21.99 Total unobligated balance
carried forward, start of year 1,060 1,055 1,289
22.00 New budget authority (gross)...... 818
22.10 Resources available from
recoveries of prior year
obligations..................... 73 400 200
22.75 Balance of contract authority
withdrawn....................... -21
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,930 1,455 1,489
23.95 Total new obligations............. -875 -166 -366
24.40 Unobligated balance carried
forward, end of year............ 30 264 98
24.49 Unobligated balance carried
forward, end of year: Contract
authority....................... 1,025 1,025 1,025
--------- --------- ----------

[[Page 504]]

24.99 Total unobligated balance
carried forward, end of year.. 1,055 1,289 1,123
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.05 Appropriation (indefinite)...... 736 698 712
40.36 Homeownership Assistance
Rescission.................... -7
40.49 Portion applied to liquidate
contract authority............ -729 -698 -712
49.05 Contract authority (indefinite). 818
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 818
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 10,655 10,775 9,843
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 10,655 10,775 9,843
73.10 Total new obligations............. 875 166 366
73.20 Total outlays (gross)............. -682 -698 -712
73.45 Recoveries of prior year
obligations..................... -73 -400 -200
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 10,775 9,843 9,297
--------- --------- ----------
74.99 Obligated balance, end of year 10,775 9,843 9,297
75.01 Obligated balance, start of year:
Contract authority.............. 10,616 10,705 10,007
75.02 Obligated balance, end of year:
Contract authority.............. 10,705 10,007 9,295
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 682 698 712
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 818
90.00 Outlays........................... 682 698 712
---------------------------------------------------------------------------

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0206-0-1-999 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 11,669 11,730 11,032
Contract authority:
0200 Contract authority................ 811
0400 Appropriation to liquidate
contract authority.............. -729 -698 -712
0600 Balance of contract authority
withdrawn....................... -21
0700 Balance, end of year.............. 11,730 11,032 10,320
---------------------------------------------------------------------------

OTHER ASSISTED HOUSING

Summary of Administrative Commitments

(in millions of dollars)

2000 actual 2001 est. 2002 est.
Assistance contracts:
College Housing................... 1
Rent supplement................... 7 6 6
Homeownership and rental housing
assistance (sections 235 and
236)............................ 867 60 60
IRP Rehab Grants.................... 0 100 300
Administrative commitments, start of
year................................ 16 16 16
Administrative commitments, end of
year................................ -16 -16 -16
------------------------------------
Total obligations............. 875 166 366
====================================

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
Housing Certificate Fund; the Public Housing Capital Fund; and the Other
Assisted Housing account, for 2000, 2001, and 2002.

SUMMARY OF OUTLAYS \1\

(in millions of dollars)

2000 actual 2001 est. 2002 est.
Subsidized housing programs, total.. 20,344 21,071 21,960
Low-income housing assistance (sec.
8).................................. 15,972 16,655 17,676
Public housing capital fund......... 3,690 3,718 3,572
Rent supplement..................... 54 56 55
Homeownership assistance (sec. 235). 17 16 16
Rental housing assistance (sec. 236) 596 610 625
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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14
22.00 New budget authority (gross)...... -19
22.10 Resources available from
recoveries of prior year
obligations..................... 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescinded... -19
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 81 51 26
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 81 51 26
73.20 Total outlays (gross)............. -25 -25 -25
73.45 Recoveries of prior year
obligations..................... -5
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 51 26 1
--------- --------- ----------
74.99 Obligated balance, end of year 51 26 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 25 25 25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -19
90.00 Outlays........................... 25 25 25
---------------------------------------------------------------------------

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 2002. This schedule reflects the liquidation of prior year balances.

[[Page 505]]

Congregate Services

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0178-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 2
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 2
73.20 Total outlays (gross)............. -1
73.40 Adjustments in expired accounts
(net)........................... -1
----------------------------------------------------------------------------

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

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

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. No new funds are requested under this account. However,
congregate services are an eligible activity in 2002 under the Community
Develoment Block Grant program. 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.

Section 8 Moderate Rehabilitation

single room occupancy

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0195-0-1-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 65
22.21 Unobligated balance transferred to
other accounts.................. -65
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 337
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 337
73.31 Obligated balance transferred to
other accounts.................. -337
----------------------------------------------------------------------------

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

Section 8 assistance for single room occupancy dwellings is
authorized by Title IV, subtitle E, of the McKinney-Vento 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

(including transfers of funds)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5271-0-2-376 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Receipts:
02.00 Manufactured home inspection and
monitoring...................... 11
Appropriations:
05.00 Manufactured home inspection and
monitoring...................... -11
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Transfer to salaries and expenses. 1 1
00.02 Other program costs............... 14 4
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 15 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 9 5
22.00 New budget authority (gross)...... 11
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 20 5
23.95 Total new obligations............. -15 -5
24.40 Unobligated balance carried
forward, end of year............ 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.25 Appropriation (special fund,
indefinite)................... 11
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 1 2 2
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 1 2 2
73.10 Total new obligations............. 15 5
73.20 Total outlays (gross)............. -14 -5 -2
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 2 2
--------- --------- ----------
74.99 Obligated balance, end of year 2 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 9
86.98 Outlays from mandatory balances... 5 5 2
--------- --------- ----------
87.00 Total outlays (gross)........... 14 5 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 11
90.00 Outlays........................... 14 5 2
---------------------------------------------------------------------------

This account provides spending for HUD and its agents for
development of manufactured housing standards. Consistent with the
Manufactured Housing Improvement Act of 2000, spending for 2002 on these
activities is proposed in the Manufactured Housing Fees Trust Fund
account.

Public enterprise funds:

Rental Housing Assistance Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4041-0-3-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
09.00 Reimbursable program.............. 19 16
09.01 Refunds of Excess Income.......... 17
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 19 17 16
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1 1
22.00 New budget authority (gross)...... 19 17 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 20 18 17
23.95 Total new obligations............. -19 -17 -16
24.40 Unobligated balance carried
forward, end of year............ 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 19 17 16
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 7 19 19
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 7 19 19
73.10 Total new obligations............. 19 17 16

[[Page 506]]

73.20 Total outlays (gross)............. -7 -17 -16
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 19 19 19
--------- --------- ----------
74.99 Obligated balance, end of year 19 19 19
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 7 17 16
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -19 -17 -16
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -12
---------------------------------------------------------------------------

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, [2000] 2001, and any
collections made during fiscal year [2001] 2002, 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, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

Obligations by program activity:
09.00 Reimbursable program.............. 12 18
09.01 Refund of Excess Income........... 20
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 12 38
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 264 268 238
22.00 New budget authority (gross)...... 15 8 24
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 280 276 262
23.95 Total new obligations............. -12 -38
24.40 Unobligated balance carried
forward, end of year............ 268 238 262
----------------------------------------------------------------------------

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

Discretionary:
68.00 Offsetting collections (cash). 15 8 24
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 15 8 24
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 28 14 12
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 28 14 12
73.10 Total new obligations............. 12 38
73.20 Total outlays (gross)............. -17 -40 -12
73.40 Adjustments in expired accounts
(net)........................... -6
73.45 Recoveries of prior year
obligations..................... -1
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 14 12
--------- --------- ----------
74.99 Obligated balance, end of year 14 12
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 17 40 12
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -7 -16
88.40 Non-Federal sources........... -8 -8 -8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -15 -8 -24
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 2 32 -12
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 205
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 761 703 648
1231 Disbursements: Direct loan
disbursements................... 17 20 12
1251 Repayments: Repayments and
prepayments..................... -4 -4 -4
1264 Write-offs for default: Other
adjustments, net................ -71 -71 -71
--------- --------- ----------
1290 Outstanding, end of year........ 703 648 585
---------------------------------------------------------------------------

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. In 2000, Congress enacted legislation
which permits excess income balances in the Rental Housing Assistance
Fund or transferred to the Flexible Subsidy Fund to be used for refunds
of prior excess income remittances, as permitted by law.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4044-0-3-604 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 54 -15 1 13
0102 Expense........................... -1 -31 -20
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 53 -46 -19 13
-----------------------------------------------------------------------------------------------

[[Page 507]]

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 108 281 266 278
Investments in US securities:
1102 Treasury securities, par...... 205
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 786 760 776 784
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -692 -678 -698 -705
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 94 82 78 79
------------ -------------- ------------ -------------
1999 Total assets.................... 407 363 344 357
LIABILITIES:
2207 Non-Federal liabilities: Other.... 3 3 3
------------ -------------- ------------ -------------
2999 Total liabilities............... 3 3 3
NET POSITION:
3100 Appropriated capital.............. 217 217 217 217
3300 Cumulative results of operations.. 190 143 124 137
------------ -------------- ------------ -------------
3999 Total net position.............. 407 360 341 354
------------ -------------- ------------ -------------
4999 Total liabilities and net position 407 363 344 357
-----------------------------------------------------------------------------------------------

Homeownership Assistance Fund

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 23 23 23
21.49 Unobligated balance carried
forward, start of year: Contract
authority....................... 61 61 61
--------- --------- ----------
21.99 Total unobligated balance
carried forward, start of year 84 84 84
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 84 84 84
24.40 Unobligated balance carried
forward, end of year............ 23 23 23
24.49 Unobligated balance carried
forward, end of year: Contract
authority....................... 61 61 61
--------- --------- ----------
24.99 Total unobligated balance
carried forward, end of year.. 84 84 84
----------------------------------------------------------------------------

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

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4043-0-3-604 2000 actual 2001 est. 2002 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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 3 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 3 3
24.40 Unobligated balance carried
forward, end of year............ 3 3 3
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 21 16 8
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 21 16 8
73.20 Total outlays (gross)............. -6 -8 -8
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 16 8
--------- --------- ----------
74.99 Obligated balance, end of year 16 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 6 8 8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 6 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 [2001] 2002, 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 $160,000,000,000.
During fiscal year [2001] 2002, obligations to make direct loans to
carry out the purposes of section 204(g) of the National Housing Act, as
amended, shall not exceed $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] $336,700,000, of which not to
exceed [$324,866,000] $332,678,000 shall be transferred to the
appropriation for ``Salaries and expenses''; and not to exceed
$4,022,000 shall be transferred to the appropriation for ``Office of
Inspector General''. In addition, for administrative contract expenses,
$160,000,000[, of which $96,500,000 shall be transferred to the Working
Capital Fund for the development and maintenance of information
technology systems]: Provided, That a combined total of up to
$160,000,000 from amounts appropriated for administrative contract
expenses under this head and from amounts appropriated for
administrative contract expenses under the head, FHA--General and
Special Risk Program Account, shall be made available for information
technology: Provided further, That to the extent guaranteed loan
commitments exceed $65,500,000,000 on or before April 1, [2001] 2002 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, 2001, as enacted by section
1(a)(1) of P.L. 106-377.)

Unavailable Collections (in millions of dollars)

[[Page 508]]

Appropriations:
05.00 FHA mutual mortgage insurance
program account................. -4,027
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.07 Reestimates of loan guarantee
negative subsidy................ 3,049
00.08 Interest on reestimates of loan
guarantee subsidy............... 977
00.09 Administrative expenses, salaries
& expenses transfer............. 329 329 337
00.12 Non-overhead administrative
expenses for FHA contracts...... 140 160 160
00.13 Transfer to Federal Housing Credit
Consortium...................... 2
--------- --------- ----------
10.00 Total new obligations........... 469 4,517 497
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 491 4,517 497
23.95 Total new obligations............. -469 -4,517 -497
23.98 Unobligated balance expiring or
withdrawn....................... -22
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 491 491 497
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 491 490 497
Mandatory:

60.25 Appropriation (special fund,
indefinite)................... 4,027
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 491 4,517 497
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 128 40
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 128 40
73.10 Total new obligations............. 469 4,517 497
73.20 Total outlays (gross)............. -341 -4,606 -496
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 128 40 41
--------- --------- ----------
74.99 Obligated balance, end of year 128 40 41
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 341 450 456
86.93 Outlays from discretionary
balances........................ 128 40
86.97 Outlays from new mandatory
authority....................... 4,027
--------- --------- ----------
87.00 Total outlays (gross)........... 341 4,606 496
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 491 4,517 497
90.00 Outlays........................... 341 4,606 496
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 3 250 250
--------- --------- ----------
1159 Total direct loan levels........ 3 250 250
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 MMI Fund, Section 203(b).......... 94,161 127,609 134,736
2150 Standby commitment authority...... 45,839 32,391 25,264
--------- --------- ----------
2159 Total loan guarantee levels..... 140,000 160,000 160,000
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... -1.99 -2.15 -2.07
--------- --------- ----------
2329 Weighted average subsidy rate... -1.99 -2.15 -2.07
Guaranteed loan subsidy budget authority:
2330 MMI Section 203(b) negative
subsidy......................... -1,864 -2,246 -2,501
2330 Reestimates....................... 3,350
--------- --------- ----------
2339 Total subsidy budget authority.. -1,864 1,104 -2,501
Guaranteed loan subsidy outlays:
2340 Subsidy outlays--MMI 203(b)
negative subsidy................ -1,864 -2,006 -2,501
2340 Subsidy outlays for net
reestimates..................... 3,350
--------- --------- ----------
2349 Total subsidy outlays........... -1,864 1,344 -2,501
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 491 490 497
3580 Outlays from balances............. 128 40
3590 Outlays from new authority........ 341 451 451
---------------------------------------------------------------------------

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 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 $99 million in negative subsidy in
2002.

The Budget proposes an aggregate limitation of $160 billion on
commitments to guarantee loans in 2002.

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.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
25.2 Other services.................... 140 160 160
25.3 Purchases of goods and services
from Government accounts........ 329 331 337
41.0 Grants, subsidies, and
contributions................... 3,049
43.0 Interest and dividends............ 977
--------- --------- ----------
99.9 Total new obligations........... 469 4,517 497
---------------------------------------------------------------------------

FHA--Mutual Mortgage Insurance Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 3 250 250
00.02 Interest paid to Treasury......... 1 7 25

[[Page 509]]

00.03 Claims & other.................... 19 23
--------- --------- ----------
10.00 Total new obligations........... 4 276 298
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 9
22.00 New financing authority (gross)... 8 276 298
22.60 Portion applied to repay debt..... -7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13 278 298
23.95 Total new obligations............. -4 -276 -298
24.40 Unobligated balance carried
forward, end of year............ 9
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.05 Authority to borrow (indefinite) 3
Mandatory:

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

Discretionary:
68.00 Offsetting collections (cash). 9 79 160
68.47 Portion applied to repay debt. -4 -53 -112
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 5 26 48
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 8 276 298
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 3 4 31
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 3 4 31
73.10 Total new obligations............. 4 276 298
73.20 Total financing disbursements
(gross)......................... -4 -249 -296
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 4 31 33
--------- --------- ----------
74.99 Obligated balance, end of year 4 31 33
87.00 Total financing disbursements
(gross)......................... 4 249 296
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -1 -1 -1
Non-Federal sources:
88.40 Repayment of principal...... -8 -73 -145
88.40 Repayment of interest....... -5 -14
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -9 -79 -160
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -1 197 138
90.00 Financing disbursements........... -5 170 136
---------------------------------------------------------------------------

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 2002 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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 100 250 250
1112 Unobligated direct loan limitation -97
--------- --------- ----------
1150 Total direct loan obligations... 3 250 250
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 3 177
1231 Disbursements: Direct loan
disbursements................... 3 248 245
Repayments:

1251 Repayments and prepayments...... -2 -69 -137
1252 Proceeds from loan asset sales
to the public or discounted... -5
Write-offs for default:

1263 Direct loans.................... -2 -3
1264 Other adjustments, net.......... 1
--------- --------- ----------
1290 Outstanding, end of year........ 177 282
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4242-0-3-371 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 9 13 10 10
1206 Non-Federal assets: Receivables,
net............................. 13 46
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 3 -1 177 282
1405 Allowance for subsidy cost (-).. -1 -1
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 2 -2 177 282
------------ -------------- ------------ -------------
1999 Total assets.................... 11 11 200 338
LIABILITIES:
Federal liabilities:

2103 Treasury borrowing.............. 7 10 200 338
2105 Other liabilites--
intragovernmental............. 3
Non-Federal liabilities:

2201 Accounts payable................ 1
2202 Interest payable................ 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 11 11 200 338
------------ -------------- ------------ -------------
4999 Total liabilities and net position 11 11 200 338
-----------------------------------------------------------------------------------------------

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..... 471 479 486
00.11 Default claims and other.......... 5,586 6,103 6,203
--------- --------- ----------
00.91 Subtotal, capital/operating
expenses...................... 6,057 6,582 6,689
Negative Subsidy Activity:

08.01 Payment of negative subsidy to
liquidating account for new
business...................... 1,864 2,246 2,501
08.02 Reestimate of loan guarantee
subsidy (downward reestimates) 636
08.04 Interest on reestimates of loan
guarantee subsidy............. 40
--------- --------- ----------
08.91 Subtotal, subsidy activity...... 1,864 2,922 2,501
--------- --------- ----------
10.00 Total new obligations........... 7,921 9,504 9,190
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,980 2,659 4,298
22.00 New financing authority (gross)... 8,500 11,644 8,000
22.60 Portion applied to repay debt..... -900 -500 -3,000
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 10,580 13,803 9,298
23.95 Total new obligations............. -7,921 -9,504 -9,190
24.40 Unobligated balance carried
forward, end of year............ 2,659 4,298 109
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 700 200 500
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 7,897 11,444 7,500

[[Page 510]]

68.10 Change in uncollected customer
payments from Federal
sources..................... -97
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 7,800 11,444 7,500
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 8,500 11,644 8,000
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 18 312 312
72.95 Uncollected customer payments
from program account, start of
year.......................... -97
--------- --------- ----------
72.99 Obligated balance, start of
year........................ -79 312 312
73.10 Total new obligations............. 7,921 9,504 9,190
73.20 Total financing disbursements
(gross)......................... -7,627 -9,504 -9,190
74.00 Change in uncollected customer
payments from Federal sources... 97
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 312 312 312
--------- --------- ----------
74.99 Obligated balance, end of year 312 312 312
87.00 Total financing disbursements
(gross)......................... 7,627 9,504 9,190
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Transfer of Reestimates from
reserves in Liquidating
account..................... -4,027
88.25 Interest on uninvested funds.. -241 -215 -150
Non-Federal sources:
88.40 Fees and premiums........... -3,239 -3,188 -3,258
88.40 Recoveries on defaults...... -3,826 -3,622 -3,953
88.40 Gross proceeds from asset
sales..................... -209 -392 -139
88.40 Other....................... -382
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -7,897 -11,444 -7,500
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 97
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 700 200 500
90.00 Financing disbursements........... -269 -1,940 1,690
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 140,000 160,000 160,000
2112 Uncommitted loan guarantee
limitation...................... -45,839 -32,391 -25,264
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 94,161 127,609 134,736
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 355,608 401,960 468,930
2231 Disbursements of new guaranteed
loans........................... 86,274 106,016 119,712
2251 Repayments and prepayments........ -34,971 -33,795 -66,695
Adjustments:

2261 Terminations for default that
result in loans receivable.... -55 -360 -588
2262 Terminations for default that
result in acquisition of
property...................... -4,829 -4,873 -4,709
2263 Terminations for default that
result in claim payments...... -67 -18 -46
--------- --------- ----------
2290 Outstanding, end of year........ 401,960 468,930 516,604
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 401,960 468,930 516,604
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 360 102
2331 Disbursements for guaranteed
loan claims................... 55 360 588
2351 Repayments of loans receivable.. -9
2364 Other adjustments, net.......... -304 -462 -588
--------- --------- ----------
2390 Outstanding, end of year...... 102
---------------------------------------------------------------------------

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 1999
actual\1\ 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 3,228 2,768 4,299 109
Investments in US securities:
1106 Receivables, net.............. 187 91
Non-Federal assets:

1206 Receivables, net................ 10 2,952
1207 Advances and prepayments........ 2
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501 Defaulted guaranteed loans
receivable, gross............. 234 102
1502 Interest receivable............. 20 725
1504 Foreclosed property............. 2,820 1,113 2,052 2,052
1505 Allowance for subsidy cost...... -1,148
------------ -------------- ------------ -------------
1599 Net value of assets related to
defaulted guaranteed loan... 1,926 1,940 2,052 2,052
------------ -------------- ------------ -------------
1999 Total assets.................... 5,353 7,751 6,351 2,161
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 2,080 2,865
2103 Federal liabilities, Debt....... 6,382 6,182 5,882 3,382
Non-Federal liabilities:

2201 Accounts payable................ 102 208
2204 Liabilities for loan guarantees. -3,289 -1,043 206 -1,221
2207 Other........................... 78 -461 263
------------ -------------- ------------ -------------
2999 Total liabilities............... 5,353 7,751 6,351 2,161
------------ -------------- ------------ -------------
4999 Total liabilities and net position 5,353 7,751 6,351 2,161
-----------------------------------------------------------------------------------------------
\1\ As reflected in the 2001 Budget.

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

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

00.03 Other operating costs........... 12 12 12
Capital investment:

01.02 Assignment of defaulted
mortgages..................... 15 39 130
01.03 Acquisition of real properties.. 689 859 234
01.05 Other obligations............... -32
01.07 Capitalized property expenses... 268 218 139
01.08 Loss mitigation activities...... 5 14 23
01.09 Preforeclosure sale claims...... 7 14 4
--------- --------- ----------
01.91 Total capital investment...... 952 1,144 530
Upward Re-estimates of Subsidy Activity:

08.07 Reestimate of loan guarantee
subsidy- upward re-estimates
from MMI reserves............. 3,049
08.08 Interest on reestimates of loan
guarantee subsidy............. 977
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 4,026
--------- --------- ----------
10.00 Total new obligations........... 964 5,182 542
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14,675 17,744 17,458

[[Page 511]]

22.00 New budget authority (gross)...... 3,926 4,896 4,274
22.10 Resources available from
recoveries of prior year
obligations..................... 107
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 18,708 22,640 21,732
23.95 Total new obligations............. -964 -5,182 -542
24.40 Unobligated balance carried
forward, end of year............ 17,744 17,458 21,190
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1,864 2,246 2,501
Mandatory:

69.00 Offsetting collections (cash)... 1,741 2,650 1,773
69.10 Change in uncollected acounts
receivable from Federal
sources....................... 321
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 2,062 2,650 1,773
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,926 4,896 4,274
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 945 917 717
72.95 Uncollected accounts receivable
from Federal sources, start of
year.......................... -202 -523 -523
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 743 394 194
73.10 Total new obligations............. 964 5,182 542
73.20 Total outlays (gross)............. -885 -5,382 -617
73.45 Recoveries of prior year
obligations..................... -107
74.00 Change in uncollected customer
payments from Federal sources... -321
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 917 717 642
74.95 Uncollected customer payments
from Federal sources, end of
year.......................... -523 -523 -523
--------- --------- ----------
74.99 Obligated balance, end of year 394 194 119
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 142 1,356 423
86.98 Outlays from mandatory balances... 743 4,026 194
--------- --------- ----------
87.00 Total outlays (gross)........... 885 5,382 617
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Payment from financing account -1,864 -2,922 -2,501
88.20 Interest on Federal securities -967 -1,186 -1,315
Non-Federal sources:
88.40 Fees and premiums........... -37 -47 -42
88.40 Rebate of unearned prepaid
premiums collected........ 2
88.40 Proceeds from sale of real
property.................. -756 -693 -397
88.40 Proceeds from sale of
mortgage notes............ -218 -46 -19
88.40 Repayment of mortgage notes
and sales contracts....... -1
88.40 Interest and operating
income.................... -12 -2
88.40 Recoveries on defaulted
mortgages................. -12
88.40 Other income................ 260
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3,605 -4,896 -4,274
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources. -321
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -2,720 486 -3,657
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 14,942 17,260 17,760
92.02 Total investments, end of year:
Federal securities: Par value... 17,260 17,760 21,760
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 4 3
1251 Repayments: Repayments and
prepayments..................... -5 -3
1264 Write-offs for default: Other
adjustments, net................ 4
--------- --------- ----------
1290 Outstanding, end of year........ 3
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

2261 Terminations for default that
result in loans receivable.... -20 -50 -148
2262 Terminations for default that
result in acquisition of
property...................... -689 -859 -234
2263 Terminations for default that
result in claim payments...... -7 -16 -9
--------- --------- ----------
2290 Outstanding, end of year........ 47,619 40,912 35,505
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 47,619 40,912 35,505
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 270 46 39
2331 Disbursements for guaranteed
loan claims................... 20 50 148
2351 Repayments of loans receivable.. -14
2361 Write-offs of loans receivable.. -42 -19 -43
2364 Other adjustments, net.......... -188 -38 -111
--------- --------- ----------
2390 Outstanding, end of year...... 46 39 33
---------------------------------------------------------------------------

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 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)

2000 actual
\1\ 2001 est. 2002 est.
Insurance initiation:
Mortgage insurance commitments
(units)......................... 911,345 1,207,579 1,243,311
====================================
Mortgage insurance written (in
fiscal year):
Units............................. 873,265 1,046,799 1,152,947
Amount............................ $86,274 $106,016 $119,712
====================================

[[Page 512]]

Insurance maintenance: Outstanding
balance of insurance in force,
end of year:
Mortgage insurance................ $449,805 $505,021 $552,684
====================================
\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 1999 actual 2000 actual\1\ 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 1,391 1,372 1,554 1,633
0102 Expense........................... -148 -207 -279 -259
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 1,243 1,165 1,275 1,374
0108 Other comprehensive income........ 4,825 1,867 2,603 2,501
-----------------------------------------------------------------------------------------------
\1\ Estimated result on GAAP basis pending final audit.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4070-0-3-371 1999
actual\1\ 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 346 1,139 518 323
Investments in US securities:
Treasury securities, par:
1102 Treasury securities, par.... 14,942 17,260 18,260 21,760
1102 Unamortized net premium/
discount.................. -213 -208 -220 -263
1106 Receivables, net.............. 2,282 2,526 2,526 2,526
Non-Federal assets:

1206 Receivables, net................ 18 34 34 34
1207 Advances and prepayments........ 43 43
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 5 4
1602 Interest receivable............. 3 2
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -4 -3 -3
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 4 3 -3
1701 Defaulted guaranteed loans,
gross......................... 317 25 50 8
1702 Interest receivable............. 322 17
1703 Allowance for estimated
uncollectible loans and
interest (-).................. -331 -31 -62 -5
------------ -------------- ------------ -------------
1704 Defaulted guaranteed loans and
interest receivable, net.... 308 11 -12 3
1705 Allowance for uncollectables
from foreclosed property...... -367
1706 Foreclosed property............. 902 309 395 63
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 843 320 383 66
1901 Other Federal assets: Other assets 14 14 14
------------ -------------- ------------ -------------
1999 Total assets.................... 18,265 21,088 21,555 24,460
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 91 91 91 91
2105 Other Intragovernmental
liabilites.................... 77 77 77 77
Non-Federal liabilities:

2201 Accounts payable................ 388 726 726 726
2204 Liabilities for loan guarantees. 669 462 370
2207 Unearned revenue and advances,
and other..................... 848 584 446 467
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,073 1,940 1,710 1,361
NET POSITION:
3300 Cumulative results of operations.. 16,192 19,148 19,845 23,099
------------ -------------- ------------ -------------
3999 Total net position.............. 16,192 19,148 19,845 23,099
------------ -------------- ------------ -------------
4999 Total liabilities and net position 18,265 21,088 21,555 24,460
-----------------------------------------------------------------------------------------------
\1\ As reflected in the 2001 Budget.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
25.2 Other services.................... 243 230 151
32.0 Land and structures............... 689 859 234
33.0 Investments and loans............. 20 50 148
41.0 Grants, subsidies, and
contributions................... 3,049
42.0 Insurance claims and indemnities.. 12 17 9
43.0 Interest and dividends............ 977
--------- --------- ----------
99.9 Total new obligations........... 964 5,182 542
---------------------------------------------------------------------------

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),
[$101,000,000] $15,000,000, 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
$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 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] $216,100,000, of
which [$193,134,000] $197,779,000, shall be transferred to the
appropriation for ``Salaries and expenses''; and of which $18,321,000
shall be transferred to the appropriation for ``Office of Inspector
General''. In addition, for administrative contract expenses necessary
to carry out the guaranteed and direct loan programs, $144,000,000[, of
which $33,500,000 shall be transferred to the Working Capital Fund for
the development and maintenance of information technology systems]:
Provided, That to the extent guaranteed loan commitments exceed
$8,426,000,000 on or before April 1, [2001] 2002, an additional
$19,800,000 for administrative contract expenses shall be available for
each $1,000,000 in additional guaranteed loan commitments over
$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, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)
[For an additional amount for FHA--General and special risk program
account 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 modifications (as that term is defined in
section 502 of the Congressional Budget Act of 1974, as amended),
$40,000,000, to remain available until expended: Provided, That the
entire amount shall be available only to the extent an official budget
request, that includes designation of the entire amount of the request
as an emergency requirement as defined in the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended, is transmitted by the
President to the Congress: Provided further, That the entire amount is
designated by the Congress as an emergency requirement pursuant to
section 251(b)(2)(A) of the

[[Page 513]]

Balanced Budget and Emergency Deficit Control Act: Provided further,
That the funding under this heading shall only be made available upon
the submission of a certification by the Secretary of Housing and Urban
Development to the Committees on Appropriations that all funds
committed, expended, or obligated under this heading in the Departments
of Veterans Affairs and Housing and Urban Development, Independent
Agencies Appropriations Act, 2000 were committed, expended or obligated
in compliance with the Antideficiency Act (31 U.S.C. 1341).]
(Legislative Appropriations Act, 2001, as enacted by section 1(a)(2) of
P.L. 106-554.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
0101 FHA-General and special risk,
negative subsidies.............. 62 103 445
0102 FHA-General and special risk,
downward reestimates of
subsidies....................... 304
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 155 141 15
00.07 Reestimate of credit subsidy...... 33
00.08 Interest on reestimates of loan
guarantee subsidy............... 13
00.09 Administrative expenses, salaries
& expenses transfer............. 211 211 216
00.10 Administrative contract expenses.. 116 144 144
--------- --------- ----------
10.00 Total new obligations........... 482 542 375
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 250 8 1
22.00 New budget authority (gross)...... 231 541 375
22.10 Resources available from
recoveries of prior year
obligations..................... 37
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 518 549 376
23.95 Total new obligations............. -482 -542 -375
23.98 Unobligated balance expiring or
withdrawn....................... -28 -7
24.40 Unobligated balance carried
forward, end of year............ 8 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 231 456 375
40.15 Appropriation (emergency)....... 40
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 231 495 375
Mandatory:

60.05 Appropriation (indefinite)...... 46
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 231 541 375
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 78 128 131
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 78 128 131
73.10 Total new obligations............. 482 542 375
73.20 Total outlays (gross)............. -395 -539 -406
73.45 Recoveries of prior year
obligations..................... -37
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 128 131 100
--------- --------- ----------
74.99 Obligated balance, end of year 128 131 100
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 204 424 335
86.93 Outlays from discretionary
balances........................ 191 68 71
86.97 Outlays from new mandatory
authority....................... 46
--------- --------- ----------
87.00 Total outlays (gross)........... 395 539 406
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 231 541 375
90.00 Outlays........................... 395 539 406
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Single-family PMMs................ 2 2
1150 Multifamily bridge loans.......... 2 2
1150 Unused Limitation Authority....... 50 46 46
--------- --------- ----------
1159 Total direct loan levels........ 50 50 50
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 Apartments NC/SC.................. 1,367 2,304 3,000
2150 221d3 NP/Coop owned apts.......... 103 49 67
2150 Tax Credits NC.................... 184 105 500
2150 Mixed Income (Hope d4)............ 9 9
2150 Apartments Refinance.............. 166 912 951
2150 241a Supplemental Loans for Apts.. 29 54 18
2150 Operating Loss Loans for Apts
(plus 232)...................... 5 13 4
2150 HFA Risk Sharing.................. 240 678 650
2150 GSE Risk Sharing.................. 2 816 100
2150 FHA Full Insurance for Health Care
Facilities (plus 241/232)....... 702 421 1,000
2150 Health Care Refinances............ 192 336 500
2150 Hospitals......................... 17 1,030 100
2150 Section 234: Condominiums......... 5,175 8,137 8,482
2150 Section 203(k): Rehabilitation
Mortgages....................... 848 1,339 1,395
2150 Section 221(d)(2): Low Income
Housing......................... 9
2150 Title 1 Property Improvements..... 258 464 216
2150 Title 1 Manufactured housing...... 11 10 11
2150 Standby authority................. 8,792 4,323 3,997
--------- --------- ----------
2159 Total loan guarantee levels..... 18,100 21,000 21,000
Guaranteed loan subsidy (in percent):
2320 Apartments NC/SR.................. 7.12 3.35 -0.14
2320 221d3 NP/Coop owned apts.......... 15.44 17.22 10.30
2320 Tax Credits NC.................... -0.57 -1.75 -2.50
2320 Mixed Income (Hope IV)............ 11.81 3.35 -0.14
2320 Apartments Refinance.............. -1.34 -1.11 -0.97
2320 241a Supplemental Loans for Apts.. 13.88 22.08 29.31
2320 Operating Loss Loans for Apts
(plus 232's).................... 25.10 22.55 21.05
2320 HFA Risk Sharing.................. -0.45 -1.14 -1.55
2320 GSE Risk Sharing.................. -1.88 -1.52 -0.57
2320 FHA Full Insurance for Health Care
Facilities (plus 241/232)....... -2.79 -2.07 -2.21
2320 Health Care Refinance............. -1.90 -1.38 -2.54
2320 Hospital.......................... -1.60 -1.77 -0.36
2320 Section 234: Condominiums......... 0.26 -0.69 -1.99
2320 Section 203(k): Rehabilitation
Mortgages....................... 1.75 -0.11 -1.53
2320 Section 221(d)(2): Low Income
Housing......................... 4.49 0.00 0.00
2320 Title 1 Property Improvements..... 0.86 -0.06 0.96
2320 Title 1 Manufactured housing...... 0.99 0.14 -0.84
--------- --------- ----------
2329 Weighted average subsidy rate... 1.31 -0.12 -1.45
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 101 15
2330 Negative Subsidy Receipts......... -62 -103 -245
2330 Subsidy rate upward reestimate.... 46
2330 Subsidy rate downward reestimate.. -304
2330 Emergency Appropriation........... 40
--------- --------- ----------
2339 Total subsidy budget authority.. -62 -220 -230
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 160 115 36
2340 Negative Subsidy Receipts......... -62 -103 -245
2340 Subsidy upward reestimate......... 46
2340 Subsidy rate downward reestimate.. -304
2340 Subsidy outlays from Emergency
Appropriation................... 30 10
--------- --------- ----------
2349 Total subsidy outlays........... 98 -216 -199
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority, S&E Transfer.... 87 211 216
3510 Budget authority, FHA............. 144 144 144
3580 Outlays from balances............. 94 29 36
3590 Outlays from new authority........ 141 319 324
---------------------------------------------------------------------------

Multifamily Products.--This account includes budget authority for
multifamily insurance programs requiring positive credit subsidies, as
well as for salaries and expenses and other administrative costs for all
General and Special Risk Insurance Fund programs.

[[Page 514]]

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.

The Budget includes an increase in the annual premium rate of
multifamily Section 221(d)(4) loan guarantees from 50 basis points to 80
basis points. This eliminates the need for appropriated credit subsidy
to support this program.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 116 144 144
25.3 Purchases of goods and services
from Government accounts........ 211 211 216
41.0 Grants, subsidies, and
contributions................... 155 187 15
--------- --------- ----------
99.9 Total new obligations........... 482 542 375
---------------------------------------------------------------------------

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........ 726 1,104 1,198
00.05 Interest paid to Treasury....... 104 120 135
00.08 Asset sale negative subsidy
payment to the receipt account 200
00.09 Asset sale payment to
liquidating account........... 329 226
00.10 Value paid to liquidating
account for guarantees
refinanced under 223(a)(7).... 1 3 3
00.14 Contract Costs.................. 114 100 100
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level).......... 945 1,656 1,862
08.01 Payment of negative subsidy to
receipt account............... 62 103 445
08.02 Downward subsidy rate reestimate 261
08.04 Interest on subsidy rate
reestimates................... 43
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level).......... 62 407 445
--------- --------- ----------
10.00 Total new obligations......... 1,007 2,063 2,307
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,907 1,801 1,955
22.00 New financing authority (gross)... 1,530 2,463 2,121
22.10 Resources available from
recoveries of prior year
obligations..................... 12
22.60 Portion applied to repay debt..... -640 -246 -246
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,809 4,018 3,830
23.95 Total new obligations............. -1,007 -2,063 -2,307
24.40 Unobligated balance carried
forward, end of year............ 1,801 1,955 1,523
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 200 200
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1,464 2,263 1,921
68.10 Change in uncollected customer
payments from Federal
sources..................... 66
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 1,530 2,263 1,921
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1,530 2,463 2,121
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 13 12 115
72.95 Uncollected customer payments
from program account, start of
year.......................... -49 -115 -115
--------- --------- ----------
72.99 Obligated balance, start of
year........................ -36 -103
73.10 Total new obligations............. 1,007 2,063 2,307
73.20 Total financing disbursements
(gross)......................... -997 -1,960 -2,307
73.45 Recoveries of prior year
obligations..................... -12
74.00 Change in uncollected customer
payments from Federal sources... -66
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 12 115 115
74.95 Uncollected customer payments
from program account, end of
year.......................... -115 -115 -115
--------- --------- ----------
74.99 Obligated balance, end of year -103
87.00 Total financing disbursements
(gross)......................... 997 1,960 2,307
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
Federal sources:
88.00 Payments from program
account................... -154 -141 -46
88.00 Repayment of principal and
interest from liquidating
account................... -273 -273 -16
88.00 Subsidy reestimate from
program account........... -46
88.25 Interest on uninvested funds.. -129 -135 -135
Non-Federal sources:
88.40 Fees and premiums........... -386 -435 -494
88.40 Recoveries on defaulted
mortgages................. -38 -5 -9
88.40 Title I recoveries.......... -24 -6 -6
88.40 Single family property
recoveries................ -391 -383 -413
88.40 Other recoveries............ -47
88.40 Gross Proceeds from sale of
mortgage notes
(liquidating)............. -329 -226
88.40 Gross Proceeds from Mortgage
Note Sales................ -13 -505 -567
88.40 Multifamily property
recoveries................ -9 -5 -9
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,464 -2,263 -1,921
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -66
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 200 200
90.00 Financing disbursements........... -467 -303 386
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 18,100 21,000 21,000
2112 Uncommitted loan guarantee
limitation...................... -8,792 -3,619 -5,478
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 9,308 17,381 15,522
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 59,692 69,128 72,845
2231 Disbursements of new guaranteed
loans........................... 12,507 15,175 15,732
2251 Repayments and prepayments........ -2,344 -10,355 -8,930
Adjustments:

2261 Terminations for default that
result in loans receivable.... -226 -462 -526
2262 Terminations for default that
result in acquisition of
property...................... -498 -641 -672
2263 Terminations for default that
result in claim payments...... -3
--------- --------- ----------
2290 Outstanding, end of year........ 69,128 72,845 78,449
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 69,128 72,845 78,449
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 491 552 504
2331 Disbursements for guaranteed
loan claims................... 226 462 526
2351 Repayments of loans receivable.. -79 -510 -577

[[Page 515]]

2361 Write-offs of loans receivable.. -86
--------- --------- ----------
2390 Outstanding, end of year...... 552 504 453
---------------------------------------------------------------------------

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 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 1,897 1,698 1,633 1,663
Investments in US securities:
1106 Receivables, net.............. 520 344
1107 Borrowings receivable from
liquidating account......... 202 202
Non-Federal assets:

1201 Investments in non-Federal
securities, net............... 26 7
1206 Receivables, net................ 2 3
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501 Defaulted guaranteed loans
receivable, gross............. 486 552 504 453
1502 Interest receivable............. 5 8
1504 Foreclosed property............. 347 225 598 598
1505 Allowance for subsidy cost...... -541 -1,061 -1,061
------------ -------------- ------------ -------------
1599 Net value of assets related to
defaulted guaranteed loan... 297 785 41 -10
1901 Other Federal assets: Other assets -2 -8
------------ -------------- ------------ -------------
1999 Total assets.................... 2,740 2,829 1,876 1,855
LIABILITIES:
Federal liabilities:

2101 Accounts payable
Intragovernmental............. 4 6
2103 Debt............................ 1,606 966 738 738
2105 Payable to Special Receipt
Account for Subsidy Reestimate 338 338
Non-Federal liabilities:

2201 Accounts payable................ 8 -17
2203 Debt............................ -2
2204 Liabilities for loan guarantees. 770 1,533 1,142 1,117
2207 Other........................... 14 5
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,740 2,829 1,880 1,855
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,740 2,829 1,880 1,855
-----------------------------------------------------------------------------------------------
\1\ Preliminary results pending final audit. Subsidy reestimates for
fiscal year 2000 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...................... 3 3
00.02 Interest paid to Treasury......... 1 1
--------- --------- ----------
10.00 Total new obligations........... 4 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New financing authority (gross)... 3 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1 3 3
23.95 Total new obligations............. -4 -4
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 3 3
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1 4
68.47 Portion applied to repay debt. -1 -4
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 3 3
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 4 4
73.20 Total financing disbursements
(gross)......................... -4 -4
87.00 Total financing disbursements
(gross)......................... 4 4
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Interest received on loans.. -1 -1
88.40 Repayment of Principal...... -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1 -4
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 2 -1
90.00 Financing disbursements........... 3
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 50 50 50
1112 Unobligated direct loan limitation -50 -46 -46
--------- --------- ----------
1150 Total direct loan obligations... 4 4
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1 1 4
1231 Disbursements: Direct loan
disbursements................... 4 4
1251 Repayments: Repayments and
prepayments..................... -1 -4
--------- --------- ----------
1290 Outstanding, end of year........ 1 4 4
---------------------------------------------------------------------------

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 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 1 2 2
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 1 2 2
------------ -------------- ------------ -------------
1999 Total assets.................... 1 2 2
LIABILITIES:
Federal liabilities:

2103 Treasury borrowing.............. 1 1 1
2104 Resources payable to Treasury... 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 2 2
------------ -------------- ------------ -------------

[[Page 516]]

4999 Total liabilities and net position 1 2 2
-----------------------------------------------------------------------------------------------

FHA--Loan Guarantee Recovery Fund--Financing Account

Program and Financing (in millions of dollars)

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

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 4
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4
----------------------------------------------------------------------------

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 7 4
2113 Uncommitted limitation carried
forward......................... -4
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 3 4
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2 3 7
2231 Disbursements of new guaranteed
loans........................... 1 4 3
--------- --------- ----------
2290 Outstanding, end of year........ 3 7 10
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 3 7 10
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4106-0-3-371 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:

1102 Federal assets: Treasury
securities, par............... 1 1 5
------------ -------------- ------------ -------------
1999 Total assets.................... 1 1 5
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1 1 5
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 1 5
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 1 5
-----------------------------------------------------------------------------------------------

Section 4 of the Church Arson Prevention Act of 1996 (P.L. 104-155),
entitled ``Loan Guarantee Recovery Fund,'' authorizes the Secretary of
Housing and Urban Development to guarantee loans made by financial
institutions to assist certain nonprofit organizations that were damaged
as a result of acts of arson or terrorism.

FHA--General and Special Risk Insurance Funds Liquidating Account

Unavailable Collections (in millions of dollars)

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

00.02 Interest on debentures.......... 25 22 22
00.03 Other operating costs........... 9 18 20
00.04 M & M Contract.................. 19 10 7
00.05 Legislative savings repayments.. 273 273 16
00.06 PAE & 3rd party restructuring
fees.......................... 10 31 26
--------- --------- ----------
00.91 Total operating expenses...... 336 354 91
Capital investment: Claims and other:

01.01 Acquisition of defaulted Title I
notes......................... -8 12 6
01.02 Assignment of mortgages......... 107 201 205
01.03 Assignments per 221 G4.......... 248 367 491
01.04 Assignments-Portfolio
Reengineering................. 110
01.05 Mark-To-Market Restructures..... 2 570 1,275
01.06 Mark-to-market rehabilitation... 1
01.07 Loss on defaulted guaranteed
loans......................... 50 3 3
01.08 Tax advances on held mortgages.. -26 50 50
01.09 Acquisition of real properties.. 107 97 95
01.10 Capitalized property expenses... 149 160 150
01.11 Rehabilitation of real
properties.................... 119 130 125
01.12 Upfront Grants.................. 41 75 92
01.13 Other........................... -9 3 5
--------- --------- ----------
01.91 Total capital investment...... 891 1,668 2,497
--------- --------- ----------
10.00 Total new obligations........... 1,227 2,022 2,588
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 285 1,245
22.00 New budget authority (gross)...... 2,167 2,071 2,634
22.10 Resources available from
recoveries of prior year
obligations..................... 19
22.40 Capital transfer to general fund.. -1,245
22.60 Portion applied to repay debt..... -49 -46
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,471 2,022 2,588
23.95 Total new obligations............. -1,227 -2,022 -2,588
24.40 Unobligated balance carried
forward, end of year............ 1,245
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.05 Appropriation (indefinite)...... 1,194 1,092 1,904
67.15 Authority to borrow (debentures
issued)....................... 112 46 46
69.00 Offsetting collections (cash)..... 816 933 684
69.10 Change in uncollected customer
payments from Federal sources... 45
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 861 933 684
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,168 2,071 2,634
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 611 560 49
72.95 Uncollected customer payments
from Federal sources, start of
year.......................... -4 -49 -49
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 607 511
73.10 Total new obligations............. 1,227 2,022 2,588
73.20 Total outlays (gross)............. -1,259 -2,533 -2,634
73.45 Recoveries of prior year
obligations..................... -19
74.00 Change in uncollected customer
payments from Federal sources... -45

[[Page 517]]

Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 560 49 3
74.95 Uncollected customer payments
from Federal sources, end of
year.......................... -49 -49 -49
--------- --------- ----------
74.99 Obligated balance, end of year 511 -46
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1,259 2,022 2,634
86.98 Outlays from mandatory balances... 511
--------- --------- ----------
87.00 Total outlays (gross)........... 1,259 2,533 2,634
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... 19
Non-Federal sources:
88.40 Fees and premiums........... -141 -160 -128
88.40 Rebates of insurance
premiums.................. 10 10
88.40 Multifamily foreclosure
sales..................... -75 -25 -28
88.40 Proceeds from sale of real
property.................. -104 -126 -112
88.40 Proceeds from sale of
mortgage notes............ -20 -329 -226
88.40 MTM second mortgage
repayments................ -10 -5
88.40 Prior year recoveries....... -19
88.40 Recoveries on defaulted
mortgages................. -147 -158 -82
88.40 Interest.................... -77 -25 -25
88.40 Other interest, dividends
and revenue............... -24 -30 -30
88.40 Modification subsidy &
transfers from financing
acct...................... -3 -3
88.40 Payment from the Finanacing
Account................... -1 -3 -5
88.40 Other collections........... -227 -74 -50
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -816 -933 -684
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources. -45
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,306 1,138 1,950
90.00 Outlays........................... 443 1,600 1,950
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 5 7 6
92.02 Total investments, end of year:
Federal securities: Par value... 7 6 6
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 68 44 20
1251 Repayments: Repayments and
prepayments..................... -24 -24 -10
--------- --------- ----------
1290 Outstanding, end of year........ 44 20 10
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

2261 Terminations for default that
result in loans receivable.... -457 -208 -211
2262 Terminations for default that
result in acquisition of
property...................... -107 -97 -95
2263 Terminations for default that
result in claim payments...... -50 -102 -81
--------- --------- ----------
2290 Outstanding, end of year........ 29,761 27,783 25,073
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 29,761 27,783 25,073
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 1,890 1,960 1,262
2331 Disbursements for guaranteed
loan claims................... 457 208 211
2351 Repayments of loans receivable.. -324 -583 -474
2361 Write-offs of loans receivable.. -63 -323 -687
--------- --------- ----------
2390 Outstanding, end of year...... 1,960 1,262 312
---------------------------------------------------------------------------

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, nursing homes, 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.

Restructuring authorities under the Multifamily Assisted Housing
Reform and Affordability Act of 1997 expire at the end of fiscal year
2001. To facilitate efficient restructuring activity after this date,
the Administration intends to submit legislation in the near future to
extend and modify the expiring restructuring authorities.

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 1999 actual 2000 actual\1\ 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 640 304 556
0102 Expense........................... -1,143 -1,393 -1,321
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -503 -1,089 -765
-----------------------------------------------------------------------------------------------
\1\ Preliminary results pending final audit.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4072-0-3-371 1999
actual\1\ 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 845 1,749
Investments in US securities:
1102 Treasury securities, par...... 5 8
1106 Receivables, net.............. 4 45 3 3
1107 Advances and prepayments...... 20 20
Non-Federal assets:

1201 Investments in non-Federal
securities, net............... -6
1206 Receivables, net................ 56 113 86 86
1207 Advances and prepayments........ 1
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 67 44 20 10
1602 Interest receivable............. 10 1
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -54 -33 -47 -47
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 23 12 -27 -37
1701 Defaulted guaranteed loans,
gross......................... 1,895 1,982 1,701 1,707
1702 Interest receivable............. 359 215

[[Page 518]]

1703 Allowance for estimated
uncollectible loans and
interest (-).................. -1,554 -1,347 -1,208 -1,208
------------ -------------- ------------ -------------
1704 Defaulted guaranteed loans and
interest receivable, net.... 700 850 493 499
1705 Allowance for uncollectables
from foreclosed property...... 652 763 -150 -150
1706 Foreclosed property............. -561 -663 244 244
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 791 950 587 593
Other Federal assets:

1801 Funds held by the Public........ 70 74
1901 Other assets.................... 9 330
------------ -------------- ------------ -------------
1999 Total assets.................... 1,815 2,974 979 645
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 458 205 363 363
2105 Other Liabilities............... 44 20
Non-Federal liabilities:

2201 Accounts payable................ 161 353 443 443
2202 Interest payable................ 16 12
2203 Debt............................ 106 220
2204 Liabilities for loan guarantees. 7,653 6,715
2206 Pension and other actuarial
liabilities................... 5,960 5,960
2207 Unearned revenue and advances... 309 416 124 124
------------ -------------- ------------ -------------
2999 Total liabilities............... 8,747 7,941 6,890 6,890
NET POSITION:
3100 Appropriated capital.............. 921 8,532 8,532
3300 Cumulative results of operations.. -6,932 -5,888 -14,443 -14,777
------------ -------------- ------------ -------------
3999 Total net position.............. -6,932 -4,967 -5,911 -6,245
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,815 2,974 979 645
-----------------------------------------------------------------------------------------------
\1\ Preliminary pending final audit.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
25.2 Other services.................... 29 60 58
32.0 Land and structures............... 416 463 462
33.0 Investments and loans............. 460 1,151 1,977
42.0 Insurance claims and indemnities.. 24 53 53
43.0 Interest and dividends............ 25 22 22
44.0 Repayments to financing account... 273 273 16
--------- --------- ----------
99.9 Total new obligations........... 1,227 2,022 2,588
---------------------------------------------------------------------------

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............. 4
00.02 Maintenance security and
collateral.................... 1 1 1
--------- --------- ----------
00.91 Subtotal, capital investment.. 1 5 1
01.01 Operating expenses: Interest on
borrowings...................... 345 283 230
--------- --------- ----------
10.00 Total new obligations........... 346 288 231
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 900 116
22.00 New budget authority (gross)...... 808 288 288
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.40 Capital transfer to general fund.. -272 -116 -57
22.60 Portion applied to repay debt..... -975
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 462 288 231
23.95 Total new obligations............. -346 -288 -231
24.40 Unobligated balance carried
forward, end of year............ 116
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.05 Appropriation (indefinite)...... 87 87
69.00 Offsetting collections (cash)..... 808 751 751
69.47 Portion applied to repay debt..... -550 -550
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 808 201 201
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 808 288 288
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 214 178 149
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 214 178 149
73.10 Total new obligations............. 346 288 231
73.20 Total outlays (gross)............. -380 -317 -317
73.45 Recoveries of prior year
obligations..................... -1
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 178 149 63
--------- --------- ----------
74.99 Obligated balance, end of year 178 149 63
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 380 288 288
86.98 Outlays from mandatory balances... 29 29
--------- --------- ----------
87.00 Total outlays (gross)........... 380 317 317
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -808 -751 -751
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -463 -463
90.00 Outlays........................... -428 -434 -434
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 8,043 7,923 7,777
1231 Disbursements: Direct loan
disbursements................... 6 5 5
1251 Repayments: Repayments and
prepayments..................... -122 -151 -187
1264 Write-offs for default: Other
adjustments, net................ -4
--------- --------- ----------
1290 Outstanding, end of year........ 7,923 7,777 7,595
---------------------------------------------------------------------------
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.

[[Page 519]]

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 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 685 674 600 564
0102 Expense........................... -403 -345 -284 -230
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 282 329 316 334
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1206 Receivables, net................ 84 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............. 8,044 7,922 7,778 7,595
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -20 -23 -23 -22
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 8,024 7,899 7,755 7,573
1606 Acquired Real Property.......... 3 8 8 8
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 8,027 7,907 7,763 7,581
------------ -------------- ------------ -------------
1999 Total assets.................... 9,233 8,285 7,880 7,782
LIABILITIES:
Federal liabilities:

2102 Interest payable................ 203 171 141 114
2103 Debt............................ 4,628 3,653 3,103 2,778
2104 Resources payable to Treasury... 4,395 4,451 4,651 4,985
2207 Non-Federal liabilities: Other.... 6 10 10 10
------------ -------------- ------------ -------------
2999 Total liabilities............... 9,232 8,285 7,905 7,887
------------ -------------- ------------ -------------
4999 Total liabilities and net position 9,232 8,285 7,905 7,887
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

Nonprofit Sponsor Assistance Liquidating Account

Program and Financing (in millions of dollars)

21.40 Unobligated balance carried
forward, start of year........ 6
22.00 New budget authority (gross).... -6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.36 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 2000 actual 2001 est. 2002 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 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 6
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

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

Manufactured Housing Fees Trust Fund

For expenses authorized by section 620 of the National Manufactured
Housing Construction and Safety Standards Act of 1974, as amended,
$17,254,000 from amounts in the Manufactured Housing Fees Trust Fund, to
remain available until expended: Provided, That all balances of fees
collected under sections 620 and 623 of the National Manufactured
Housing Construction and Safety Standards Act of 1974, as such sections
existed on December 26, 2000, shall be transferred to and merged with
the amounts in the Trust Fund.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-8119-0-7-376 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Receipts:
02.00 Manufactured home inspection and
monitoring...................... 17
Appropriations:
05.00 Manufactured home inspection and
monitoring...................... -17
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Transfer to salaries and expenses. 2
00.02 Other program costs............... 15
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 17
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 17
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 17
23.95 Total new obligations............. -17
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.26 Appropriation (trust fund,
definite)..................... 17
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 17
73.20 Total outlays (gross)............. -14

[[Page 520]]

Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 3
--------- --------- ----------
74.99 Obligated balance, end of year 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 14
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 17
90.00 Outlays........................... 14
---------------------------------------------------------------------------

The National Manufactured Housing Construction and Safety Standards
Act of 1974, as amended by the Manufactured Housing Improvement Act of
2000, authorizes development and enforcement of appropriate standards
for the construction, design, and performance of manufactured homes to
assure their quality, durability, affordability, 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. New program requirements mandated by
the Manufactured Housing Improvement Act of 2000 include procurement of
an Administering Organization, formation of a Consensus Committee to
recommend revisions to and interpretations of the manufactured housing
standards, development and implementation of standards for installation
of manufactured housing, and development and implementation of a dispute
resolution program.

Fees are charged to the manufacturers for each manufactured home
transportable section produced and will be used to fund the costs of all
authorized activities necessary for the consensus committee, HUD, and
its agents to carry out all aspects of the manufactured housing
legislation. Fees are deposited in a trust 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 2000, an estimated 431,845 transportable
sections were produced, for a total of 254,000 manufactured homes.

The Manufactured Housing Improvement Act of 2000 created a
Manufactured Housing Fees Trust Fund and made spending subject to
appropriations. This account provides spending for activities formerly
funded under Manufactured Home Inspection and Monitoring.

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.

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

The Budget proposes legislation to allow FHA to insure a new
product--hybrid adjustable-rate mortages. This will increase demand for
FHA mortgages and thus increase the volume of Ginnie Mae guarantees of
securities backed by FHA mortgages. In 2002, this proposal will increase
GNMA commitments by approximately $4 billion, resulting in an additional
$13 million in negative subsidy.

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 $775 million in 2001 and $796 million in
2002.

Credit accounts:

Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

(including transfer of funds)

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] 2003.
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 ``Salaries and expenses''. (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 701 1,004 7,961
Receipts:
02.20 Negative subsidies................ 312 356 354
02.21 Subsidy balance transfer.......... 6,610 439
--------- --------- ----------
02.99 Total receipts and collections.. 312 6,966 793
--------- --------- ----------
04.00 Total: Balances and collections... 1,013 7,970 8,754
Appropriations:
05.00 Guarantees of mortgage-backed
securities loan guarantee
program account................. -9 -9 -9
--------- --------- ----------
07.99 Balance, end of year.............. 1,004 7,961 8,745
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Administrative expenses, salaries
and expenses.................... 9 9 9
--------- --------- ----------
10.00 Total new obligations (object
class 25.3)................... 9 9 9
----------------------------------------------------------------------------

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

[[Page 521]]

New budget authority (gross), detail:
Discretionary:

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

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

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

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

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 6,610
92.02 Total investments, end of year:
Federal securities: Par value... 6,610 7,049
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 105,518 96,262 103,199
2150 Standby commitment authority...... 94,482 103,738 96,801
--------- --------- ----------
2159 Total loan guarantee levels..... 200,000 200,000 200,000
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... -0.29 -0.36 -0.33
--------- --------- ----------
2329 Weighted average subsidy rate... -0.29 -0.36 -0.33
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... -312 -356 -354
--------- --------- ----------
2339 Total subsidy budget authority.. -312 -356 -354
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... -312 -356 -354
--------- --------- ----------
2349 Total subsidy outlays........... -312 -356 -354
----------------------------------------------------------------------------

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

As required by the Federal Credit Reform Act of 1990, this account
records the administrative expenses of this program. The administrative
expenses are estimated on a cash basis.

Guarantees of Mortgage-Backed Securities Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Operating expenses................ 37 49 52
00.02 Capital investment................ 5 47 51
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 42 96 103
08.01 Payment to receipt account for
negative subsidy................ 312 356 354
--------- --------- ----------
10.00 Total new obligations........... 354 452 457
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 496 598 625
22.00 New financing authority (gross)... 457 479 501
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 953 1,077 1,126
23.95 Total new obligations............. -354 -452 -457
24.40 Unobligated balance carried
forward, end of year............ 598 625 668
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 457 479 501
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 11 16 16
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 11 16 16
73.10 Total new obligations............. 354 452 457
73.20 Total financing disbursements
(gross)......................... -349 -452 -457
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 16 16 17
--------- --------- ----------
74.99 Obligated balance, end of year 16 16 17
87.00 Total financing disbursements
(gross)......................... 349 452 457
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -45 -36 -38
Non-Federal sources:
88.40 Guarantee Fees.............. -370 -378 -386
88.40 Commitment and other fees... -32 -44 -34
88.40 Multiclass fees............. -10 -21 -23
88.40 Repayment of advances....... -20
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -457 -479 -501
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -107 -27 -44
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371 2000 actual 2001 est. 2002 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...................... -94,482 -103,738 -96,801
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 105,518 96,262 103,199
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 569,312 602,741 620,259
2231 Disbursements of new guaranteed
loans........................... 105,518 96,262 103,199
2251 Repayments and prepayments........ -72,089 -78,744 -91,619
--------- --------- ----------
2290 Outstanding, end of year........ 602,741 620,259 631,839
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 602,741 620,259 631,839
---------------------------------------------------------------------------

Operating Results.--Fee collections, interest, and other income are
expected to exceed expenses by $91 million in 2000; $55 million in 2001
and $67 million in 2002. These amounts will be retained against losses
that may be incurred on guarantees.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4240-0-3-371 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 507 614 641 685
1206 Non-Federal assets: Receivables,
net............................. 30 31 32 33
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 19 27
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 19 27
1803 Other Federal assets: Property,
plant and equipment, net........ 5 8 12
------------ -------------- ------------ -------------
1999 Total assets.................... 537 650 700 757

[[Page 522]]

LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 40 47 49 50
2207 Other........................... 22 38 50
------------ -------------- ------------ -------------
2999 Total liabilities............... 40 69 87 100
NET POSITION:
3300 Cumulative results of operations.. 496 581 613 657
------------ -------------- ------------ -------------
3999 Total net position.............. 496 581 613 657
------------ -------------- ------------ -------------
4999 Total liabilities and net position 536 650 700 757
-----------------------------------------------------------------------------------------------
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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Receipts:
02.80 Guarantees of mortgage-backed
securities liquidating account,
offsetting collections.......... 456 414 58
Appropriations:
05.00 Guarantees of mortgage-backed
securities liquidating account.. -456 -414 -58
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

00.02 Default expenses................ 1 1
00.03 Servicing expenses.............. 2 2
00.04 Other expenses.................. 1
--------- --------- ----------
00.91 Total operating expenses...... 3 3 1
Capital investment:

01.01 Advances of guaranty payments... 42 38 1
Other:

02.01 Transfer to Receipt Account..... 6,610 56
--------- --------- ----------
10.00 Total new obligations........... 45 6,651 58
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5,827 6,237
22.00 New budget authority (gross)...... 456 414 58
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6,283 6,651 58
23.95 Total new obligations............. -45 -6,651 -58
24.40 Unobligated balance carried
forward, end of year............ 6,237
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 456 414 58
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year\1\....................... -57 -79 -57
--------- --------- ----------
72.99 Obligated balance, start of
year........................ -57 -79 -57
73.10 Total new obligations............. 45 6,651 58
73.20 Total outlays (gross)............. -67 -6,630 -58
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. -79 -57
--------- --------- ----------
74.99 Obligated balance, end of year -79 -57
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 67 414 58
86.98 Outlays from mandatory balances... 6,216
--------- --------- ----------
87.00 Total outlays (gross)........... 67 6,630 58
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.20 Interest on Federal securities -370 -374 -56
Non-Federal sources:
88.40 Repayments of guaranteed
payments.................. -79 -36 -1
88.40 Servicing income............ -5 -2
88.40 Repayments on mortgages..... -2 -2 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -456 -414 -58
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -389 6,216
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 5,781 6,190
92.02 Total investments, end of year:
Federal securities: Par value... 6,190
---------------------------------------------------------------------------
\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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 360 109 65
1232 Disbursements: Purchase of loans
assets from the public.......... 42 38 2
1252 Repayments: Proceeds from loan
asset sales to the public or
discounted...................... -81 -37 -2
1263 Write-offs for default: Direct
loans........................... -212 -45 -16
--------- --------- ----------
1290 Outstanding, end of year........ 109 65 49
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 156 146 135
2251 Repayments and prepayments........ -10 -11 -12
--------- --------- ----------
2290 Outstanding, end of year........ 146 135 123
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 146 135 123
---------------------------------------------------------------------------

Operating results.--Fee collections, interest, and other income are
expected to exceed expenses by $370 million in 2000 and $373 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. In 2002,
fee collections, interest, and other income are expected to equal
expenses.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4238-0-3-371 1999 actual 2000 actual 2001 est. 2002 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 329 370 377 1
0102 Expense........................... -3 -3 -1
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 326 370 374
------------ -------------- ------------ -------------
0199 Total comprehensive income........ 326 370 374
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 3
Investments in US securities:
1102 Treasury securities, par...... 5,778 6,171
1106 Receivables, net.............. 70 89 56
1206 Non-Federal assets: Receivables,
net............................. 1 3 3

[[Page 523]]

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 360 109 65 49
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -326 -105 -16 -5
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 34 4 49 44
------------ -------------- ------------ -------------
1999 Total assets.................... 5,886 6,267 108 44
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 17 20 1
2207 Other........................... 512 513 105 43
------------ -------------- ------------ -------------
2999 Total liabilities............... 529 533 106 43
NET POSITION:
3300 Cumulative results of operations.. 5,357 5,734 2 1
------------ -------------- ------------ -------------
3999 Total net position.............. 5,357 5,734 2 1
------------ -------------- ------------ -------------
4999 Total liabilities and net position 5,886 6,267 108 44
-----------------------------------------------------------------------------------------------
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 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
25.2 Other services.................... 3 3 2
33.0 Investments and loans............. 42 38
92.0 Undistributed..................... 6,610 56
--------- --------- ----------
99.9 Total new obligations........... 45 6,651 58
---------------------------------------------------------------------------

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, [$53,500,000]
$43,404,000, to remain available until September 30, [2002: Provided,
That of the amount provided under this heading, $10,000,000 shall be for
the Partnership for Advancing Technology in Housing (PATH) Initiative:
Provided further, That $3,000,000 shall be for program evaluation to
support strategic planning, performance measurement, and their
coordination with the Department's budget process: Provided further,
That $500,000, to remain available until expended, shall be for a
commission as established under section 525 of Preserving Affordable
Housing for Senior Citizens and Families into the 21st Century Act]
2003. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001, as
enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Housing Research.................. 35 42 43
00.02 PATH.............................. 10 10
00.03 International Activities.......... 10
00.04 Commission on Affordable Housing.. 1
00.05 Strategic Planning Performance
Measurement..................... 3
--------- --------- ----------
10.00 Total new obligations........... 55 56 43
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 12 2
22.00 New budget authority (gross)...... 45 54 43
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 57 56 43
23.95 Total new obligations............. -55 -56 -43
24.40 Unobligated balance carried
forward, end of year............ 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 45 54 43
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 52 63 61
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 52 63 61
73.10 Total new obligations............. 55 56 43
73.20 Total outlays (gross)............. -43 -58 -60
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 63 61 44
--------- --------- ----------
74.99 Obligated balance, end of year 63 61 44
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 22 17
86.93 Outlays from discretionary
balances........................ 34 36 43
--------- --------- ----------
87.00 Total outlays (gross)........... 43 58 60
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 45 54 43
90.00 Outlays........................... 43 58 60
---------------------------------------------------------------------------

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 2002, the research program will focus on research and evaluation
of HUD's housing, community development, and economic development
programs. National Housing Surveys will continue in 2002. Research and
evaluation activities will also support the Department in carrying out
its responsibilities under the Government Performance and Results Act.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
25.2 Other services.................... 39 50 38
41.0 Grants, subsidies, and
contributions................... 16 6 5
--------- --------- ----------
99.9 Total new obligations........... 55 56 43
---------------------------------------------------------------------------

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,
[$46,000,000] $45,899,000, to remain available until September 30,
[2002] 2003, of which [$24,000,000] $22,949,000 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, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0144-0-1-751 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Fair housing assistance........... 22 28 23
00.02 Fair housing initiatives.......... 16 48 23
--------- --------- ----------

[[Page 524]]

10.00 Total new obligations (object
class 41.0)................... 38 76 46
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 26 30
22.00 New budget authority (gross)...... 44 46 46
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 70 76 46
23.95 Total new obligations............. -38 -76 -46
23.98 Unobligated balance expiring or
withdrawn....................... -2
24.40 Unobligated balance carried
forward, end of year............ 30
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 44 46 46
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 34 39 78
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 34 39 78
73.10 Total new obligations............. 38 76 46
73.20 Total outlays (gross)............. -33 -37 -37
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 39 78 87
--------- --------- ----------
74.99 Obligated balance, end of year 39 78 87
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1
86.93 Outlays from discretionary
balances........................ 32 37 37
--------- --------- ----------
87.00 Total outlays (gross)........... 33 37 37
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 44 46 46
90.00 Outlays........................... 33 37 37
---------------------------------------------------------------------------

The Budget proposes an appropriation of $46 million in 2002 to fund
fair housing activities that support efforts to end housing
discrimination. Of the amount requested, $23 million is for the Fair
Housing Assistance Program and $23 million is for the Fair Housing
Initiatives Program. This includes $7.5 million used in previous budgets
for the National Housing Discrimination Audit now redirected to increase
fair housing program activities by 20 percent over the 2001 level.

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 fair housing enforcement
by increasing funding to support additional State and local fair housing
organizations to meet the needs of currently underserved populations. It
is estimated that the number of new State and local agencies with laws
equivalent to the Fair Housing Act will increase to 95 in 2002 from 89
in 2001.

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.
FHIP provides funding for projects that inform and educate the public,
including housing providers, on the rights and obligations of the Fair
Housing Act and about substantially equivalent state and local fair
housing laws.

OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES

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, [$100,000,000] $109,758,000 to remain available until expended, of
which [$1,000,000 shall be for CLEARCorps and] $10,000,000 shall be for
the Healthy Homes Initiative, 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] childhood diseases and hazards: Provided, That for
purposes of environmental review, a grant under the Healthy Homes
Initiative, under this heading or under prior appropriations Acts, 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. (Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0174-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Lead abatement.................... 71 174 110
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 71 174 110
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 62 72
22.00 New budget authority (gross)...... 80 100 110
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 143 174 110
23.95 Total new obligations............. -71 -174 -110
24.40 Unobligated balance carried
forward, end of year............ 72
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 80 100 110
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 16 196 275
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 16 196 275
73.10 Total new obligations............. 71 174 110
73.20 Total outlays (gross)............. -95 -95 -95
73.32 Obligated balance transferred from
other accounts.................. 204
73.45 Recoveries of prior year
obligations..................... -1
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 196 275 290
--------- --------- ----------
74.99 Obligated balance, end of year 196 275 290
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2 2
86.93 Outlays from discretionary
balances........................ 93 93 93
--------- --------- ----------
87.00 Total outlays (gross)........... 95 95 95
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 80 100 110
90.00 Outlays........................... 95 95 95
---------------------------------------------------------------------------

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

[[Page 525]]

exposure of young children to lead-based paint hazards in their homes.

The program is a major part of a 10-year strategy to eliminate lead
poisoning in children. The 2002 Budget includes a $10 million increase
to $100 million for HUD's Lead Hazard Control Program and $10 million
for the Healthy Homes Initiative.

The Lead Hazard Control Grant Program provides grants of $1 to $3
million to State and local governments and Indian tribes 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- or EPA-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 Healthy Homes and Lead Hazard Control will continue
its Technical Assistance program, which will include public education;
technical assistance for State and local agencies, private property
owners, HUD programs and field offices and professional organizations;
quality control to ensure that the evaluation and control of lead-based
paint hazards is done properly in HUD-assisted housing; development of
standards, technical guidance, regulations and improved testing; and
hazard control methods.

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, [$1,072,000,000] $1,097,257,000, of which [$518,000,000]
$530,457,000 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 fund'' 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
not more than $758,000,000 shall be made available to the personal
services object class: Provided further, That no less than $100,000,000
shall be transferred to the Working Capital Fund for the development and
maintenance of Information Technology Systems: Provided further, That
the Secretary shall fill 7 out of 10 vacancies at the GS-14 and GS-15
levels until the total number of GS-14 and GS-15 positions in the
Department has been reduced from the number of GS-14 and GS-15 positions
on the date of enactment of this provision by two and one-half percent:
Provided further, That the Secretary shall submit a staffing plan for
the Department by May 15, 2001: 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 or in any position in the Department where the employee reports
to an employee of the Office of Public Affairs]. (Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
106-377.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Housing, mortgage credit,
regulatory and energy
conservation.................. 185 211 216
00.02 Community planning and
development programs.......... 31 36 37
00.03 Equal opportunity and research
programs...................... 34 39 40
00.04 Departmental management, legal
and audit services............ 30 34 35
00.05 Field direction and
administration................ 194 222 228
09.01 Reimbursable program.............. 535 528 541
--------- --------- ----------
09.99 Total reimbursable program...... 535 528 541
--------- --------- ----------
10.00 Total new obligations........... 1,009 1,070 1,097
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,012 1,070 1,097
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,012 1,070 1,097
23.95 Total new obligations............. -1,009 -1,070 -1,097
23.98 Unobligated balance expiring or
withdrawn....................... -2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 477 543 556
40.77 Reduction pursuant to P.L. 106-
554 (0.22 percent)............ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 477 542 556
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 535 528 541
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 535 528 541
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,012 1,070 1,097
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 163 194 194
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 163 194 194
73.10 Total new obligations............. 1,009 1,070 1,097
73.20 Total outlays (gross)............. -968 -1,070 -1,092
73.31 Obligated balance transferred to
other accounts.................. -2
73.40 Adjustments in expired accounts
(net)........................... -10
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 194 194 199
--------- --------- ----------
74.99 Obligated balance, end of year 194 194 199
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 903 945 969
86.93 Outlays from discretionary
balances........................ 65 125 125
--------- --------- ----------
87.00 Total outlays (gross)........... 968 1,070 1,092
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -535 -528 -541
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 477 542 556
90.00 Outlays........................... 433 542 551
---------------------------------------------------------------------------

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

[[Page 526]]

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........... 267 284 296
11.3 Other than full-time permanent 2 2 2
11.5 Other personnel compensation.. 5 5 5
--------- --------- ----------
11.9 Total personnel compensation 274 291 303
12.1 Civilian personnel benefits..... 62 66 68
21.0 Travel and transportation of
persons....................... 8 12 12
23.1 Rental payments to GSA.......... 43 53 53
23.3 Communications, utilities, and
miscellaneous charges......... 14 16 16
24.0 Printing and reproduction....... 3 2 2
25.1 Advisory and assistance services 42 70 70
25.2 Other services.................. 3 3 3
25.3 Purchases of goods and services
from Government accounts...... 14 21 21
25.4 Operation and maintenance of
facilities.................... 4 5 5
26.0 Supplies and materials.......... 3 2 2
31.0 Equipment....................... 4 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 474 542 556
99.0 Reimbursable obligations.......... 535 528 541
--------- --------- ----------
99.9 Total new obligations........... 1,009 1,070 1,097
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 4,271 4,333 4,333
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 4,699 4,767 4,767
---------------------------------------------------------------------------

Office of Inspector General

For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended,
[$85,000,000] $93,898,000, 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''] the ``Public Housing Operating Fund'': 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, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 58 59 62
09.01 Reimbursable program.............. 33 33 32
--------- --------- ----------
10.00 Total new obligations........... 91 92 94
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 6
22.00 New budget authority (gross)...... 84 86 94
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 97 92 94
23.95 Total new obligations............. -91 -92 -94
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 57 53 62
40.36 Unobligated balance rescinded... -6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 51 53 62
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 33 33 32
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 33 33 32
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 84 86 94
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 52 27 28
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 52 27 28
73.10 Total new obligations............. 91 92 94
73.20 Total outlays (gross)............. -112 -90 -92
73.45 Recoveries of prior year
obligations..................... -3
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 27 28 30
--------- --------- ----------
74.99 Obligated balance, end of year 27 28 30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 72 74 80
86.93 Outlays from discretionary
balances........................ 41 16 12
--------- --------- ----------
87.00 Total outlays (gross)........... 112 90 92
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

Net budget authority and outlays:
89.00 Budget authority.................. 51 53 62
90.00 Outlays........................... 79 57 60
---------------------------------------------------------------------------

This appropriation provides agency wide audit and investigative
functions to identify and correct management and administrative
deficiencies that create conditions for existing or potential instances
of fraud, waste and mismanagement. The audit function provides internal
audit and contract audit. Internal audits review and evaluate all facets
of agency operations. The investigative function provides for the
detection and investigation of improper and illegal activities involving
programs, personnel, and operations.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 31 31 36
11.5 Other personnel compensation.. 1 1 2
--------- --------- ----------
11.9 Total personnel compensation 32 32 38
12.1 Civilian personnel benefits..... 8 8 8
21.0 Travel and transportation of
persons....................... 4 4 4
23.1 Rental payments to GSA.......... 5 4 4
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.1 Advisory and assistance services 4 5 3
25.3 Purchases of goods and services
from Government accounts...... 2 3 2
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 58 59 62
99.0 Reimbursable obligations.......... 33 33 32
--------- --------- ----------
99.9 Total new obligations........... 91 92 94
---------------------------------------------------------------------------

[[Page 527]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 447 451 446
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 251 254 234
---------------------------------------------------------------------------

Consolidated Fee Fund

Of the balances remaining from fees and charges under section 7(j)
of the Department of Housing and Urban Development Act, $6,700,000 is
rescinded.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5486-0-2-604 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Receipts:
02.00 Miscellaneous fees and charges.... 16
Appropriations:
05.00 Consolidated fee fund............. -16
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.3)................... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 16 15
22.00 New budget authority (gross)...... 16 -7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 16 16 8
23.95 Total new obligations............. -1
24.40 Unobligated balance carried
forward, end of year............ 16 15 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescinded... -7
Mandatory:

60.25 Appropriation (special fund,
indefinite)................... 16
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 16 -7
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 16 -7
90.00 Outlays........................... 1
---------------------------------------------------------------------------

Section 7(j) of the Department of Housing and Urban Development Act
establishes fees and charges from selected programs to offset the costs
of audits, inspections and other related expenses that may be incurred
by the Department in monitoring these programs. These fees were mis-
classified for many years as deposit funds, which is a holding fund for
refunds to private entities. Because these are Federal funds, they are
now re-classified as such and displayed on budget. In 2002, a rescission
is requested, which offsets most of the increase in funding for the
Inspector General account.

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] $1,000 for
official reception and representation expenses, [$22,000,000]
$27,000,000, 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, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
Receipts:
02.60 Office of federal housing
enterprise oversight............ 19 22 27
Appropriations:
05.00 Office of federal housing
enterprise oversight............ -19 -22 -27
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 20 23 27
--------- --------- ----------
10.00 Total new obligations........... 20 23 27
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 19 22 27
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 19 23 27
23.95 Total new obligations............. -20 -23 -27
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund,
definite)..................... 19 22 27
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 19 22 27
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 4 6 6
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 4 6 6
73.10 Total new obligations............. 20 23 27
73.20 Total outlays (gross)............. -18 -22 -26
73.45 Recoveries of prior year
obligations..................... -1
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 6 6 7
--------- --------- ----------
74.99 Obligated balance, end of year 6 6 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 14 18 22
86.93 Outlays from discretionary
balances........................ 4 4 4
--------- --------- ----------
87.00 Total outlays (gross)........... 18 22 26
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 19 22 27
90.00 Outlays........................... 18 22 26
---------------------------------------------------------------------------

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

[[Page 528]]

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)

Direct obligations:

11.1 Personnel compensation:
Personnel Compensation........ 9 13 13
12.1 Civilian personnel benefits..... 2 3 3
23.2 Rental payments to others....... 2 2 3
25.2 Other services.................. 5 3 3
31.0 Equipment....................... 1 1 4
--------- --------- ----------
99.0 Subtotal, direct obligations.. 19 22 26
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 20 23 27
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 87 111 116
---------------------------------------------------------------------------

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Reimbursable program.............. 275 352 362
--------- --------- ----------
10.00 Total new obligations........... 275 352 362
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 32 25
22.00 New budget authority (gross)...... 265 327 362
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 300 352 362
23.95 Total new obligations............. -275 -352 -362
24.40 Unobligated balance carried
forward, end of year............ 25
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 255 314 362
69.10 Change in uncollected customer
payments from Federal sources. 10 13
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 265 327 362
----------------------------------------------------------------------------

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

72.40 Unpaid obligations, start of
year.......................... 109 81 108
72.95 Uncollected customer payments
from Federal sources, start of
year.......................... -88 -98 -111
--------- --------- ----------
72.99 Obligated balance, start of
year........................ 21 -17 -3
73.10 Total new obligations............. 275 352 362
73.20 Total outlays (gross)............. -299 -327 -362
73.45 Recoveries of prior year
obligations..................... -3
74.00 Change in uncollected customer
payments from Federal sources... -10 -13
Unpaid obligations, end of year:

74.40 Unpaid obligations, end of year. 81 108 108
74.95 Uncollected customer payments
from Federal sources, end of
year.......................... -98 -111 -111
--------- --------- ----------
74.99 Obligated balance, end of year -17 -3 -3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 299 327 362
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -255 -314 -362
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources. -10 -13
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 44 13
---------------------------------------------------------------------------

The Working Capital Fund, authorized by the Department of Housing
and Urban Development Act of 1965, finances information technology and
office automation initiatives which can be performed more efficiently on
a centralized basis. The fund is financed from fees charged for services
performed.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451 2000 actual 2001 est. 2002 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 25 28 35
12.1 Civilian personnel benefits....... 5 5 6
21.0 Travel and transportation of
persons......................... 1 1 1
22.0 Transportation of things.......... 1
23.3 Communications, utilities, and
miscellaneous charges........... 43 45 46
25.1 Advisory and assistance services.. 191 240 252
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 9 32 20
--------- --------- ----------
99.9 Total new obligations........... 275 352 362
---------------------------------------------------------------------------

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-Vento 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 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 non-frivolous 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] 202. (a) Eligibility.--[Notwithstanding] Beginning in
fiscal year 2002 and thereafter, and notwithstanding section
854(c)(1)(A) of the AIDS Housing Opportunity Act (42 U.S.C.

[[Page 529]]

12903(c)(1)(A)), from any amounts made available under this title for a
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 such 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 such fiscal year [2001] do not have the number of
cases of acquired immunodeficiency syndrome (AIDS) 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 854(c)(1)(A) [in fiscal year 2001], 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.''.]
Sec. 203. Section 225 of the Department of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 2000, P.L. 106-74, is amended by inserting ``and fiscal year 2002''
after ``fiscal year 2001''.

[enhanced disposition authority]

[Sec. 204. 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''.]

[Maximum Payment Standard for Enhanced Vouchers]

[Sec. 205. 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 semicolon.]

[Due Process for Homeless Assistance]

[Sec. 206. None of the funds appropriated under this or any other
Act may be used by the Secretary of Housing and Urban Development to
prohibit or debar or in any way diminish the responsibilities of any
entity (and the individuals comprising that entity) that is responsible
for convening and managing a continuum of care process (convenor) in a
community for purposes of the Stewart B. McKinney Homeless Assistance
Act from participating in that capacity unless the Secretary has
published in the Federal Register a description of all circumstances
that would be grounds for prohibiting or debarring a convenor from
administering a continuum of care process and the procedures for a
prohibition or debarment: Provided, That these procedures shall include
a requirement that a convenor shall be provided with timely notice of a
proposed prohibition or debarment, an identification of the
circumstances that could result in the prohibition or debarment, an
opportunity to respond to or remedy these circumstances, and the right
for judicial review of any decision of the Secretary that results in a
prohibition or debarment.]

[HUD Reform Act Compliance]

[Sec. 207. Except as explicitly provided in legislation, any grant
or assistance made pursuant to Title II of this Act shall be made in
accordance with section 102 of the Department of Housing and Urban
Development Reform Act of 1989 on a competitive basis.]

[Expansion of Environmental Assumption Authority for Homeless Assistance
Programs]

[Sec. 208. 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.''.]

[Technical Amendments and Corrections to the National Housing Act]

[Sec. 209. (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.''.]

[indian housing block grant program]

[Sec. 210. 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.''.]

[prohibition on the use of federal assistance in support of the sale of
tobacco products]

[Sec. 211. None of the funds appropriated in this or any other Act
may be used by the Secretary of Housing and Urban Development to provide
any grant or other assistance to construct, operate, or otherwise
benefit a facility, or facility with a designated portion of that
facility, which sells, or intends to sell, predominantly cigarettes or
other tobacco products. For the purposes of this provision, predominant
sale of cigarettes or other tobacco products means cigarette or tobacco
sales representing more than 35 percent of the annual total in-store,
non-fuel, sales.]

[prohibition on implementation of puerto rico public housing
administration settlement agreement]

[Sec. 212. No funds may be used to implement the agreement between
the Commonwealth of Puerto Rico, the Puerto Rico Public Housing
Administration, and the Department of Housing and Urban Development,
dated June 7, 2000, related to the allocation of operating subsidies for
the Puerto Rico Public Housing Administration unless the Puerto Rico
Public Housing Administration and the Department of Housing and Urban
Development submit by December 31, 2000 a schedule of benchmarks and
measurable goals to the House and Senate Committees on Appropriations
designed to address issues of mismanagement and safeguards against fraud
and abuse.]

[HOPE VI Grant for Hollander Ridge]

[Sec. 213. The Housing Authority of Baltimore City may use the grant
award of $20,000,000 made to such authority for development efforts at
Hollander Ridge in Baltimore, Maryland with funds appropriated for
fiscal year 1996 under the heading ``Public Housing Demolition, Site
Revitalization, and Replacement Housing Grants'' for use, as approved by
the Secretary of Housing and Urban Development--

[[Page 530]]

(1) for activities related to the revitalization of the
Hollander Ridge site; and
(2) in accordance with section 24 of the United States Housing
Act of 1937.]

[Computer Access for Public Housing Residents]

[Sec. 214. (a) Use of Public Housing Capital and Operating Funds.--
Section 9 of the United States Housing Act of 1937 is amended--
(1) in subsection (d)(1)(E), by inserting before the semicolon
the following: ``, including the establishment and initial operation
of computer centers in and around public housing through a
Neighborhood Networks initiative, for the purpose of enhancing the
self-sufficiency, employability, and economic self-reliance of
public housing residents by providing them with onsite computer
access and training resources'';
(2) in subsection (e)(1)--
(A) in subparagraph (I), by striking the word ``and'' at
the end;
(B) in subparagraph (J), by striking the period and
inserting ``; and''; and
(C) by adding after subparagraph (J) the following:
``(K) the costs of operating computer centers in public
housing through a Neighborhood Networks initiative described
in subsection (d)(1)(E), and of activities related to that
initiative.''; and
(3) in subsection (h)--
(A) in paragraph (6), by striking the word ``and'' at
the end;
(B) in paragraph (7), by striking the period and
inserting ``; and''; and
(C) by inserting after paragraph (7) the following:
``(8) assistance in connection with the establishment and
operation of computer centers in public housing through a
Neighborhood Networks initiative described in subsection
(d)(1)(E).''.
(b) Demolition, Site Revitalization, Replacement Housing, and
Tenant-Based Assistance Grants for Projects.--Section 24 of the United
States Housing Act of 1937 is amended--
(1) in subsection (d)(1)(G), by inserting before the semicolon
the following: ``, including a Neighborhood Networks initiative for
the establishment and operation of computer centers in public
housing for the purpose of enhancing the self-sufficiency,
employability, an economic self-reliance of public housing residents
by providing them with onsite computer access and training
resources''; and
(2) in subsection (m)(2), in the first sentence, by inserting
before the period the following ``, including assistance in
connection with the establishment and operation of computer centers
in public housing through the Neighborhoods Networks initiative
described in subsection (d)(1)(G)''.]

[Mark-to-Market Reform]

[Sec. 215. Notwithstanding any other provision of law, the
properties known as the Hawthornes in Independence, Missouri shall be
considered eligible multifamily housing projects for purposes of
participating in the multifamily housing restructuring program pursuant
to title V of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998 (Public
Law 105-65).]

[Section 236 Excess Income]

[Sec. 216. Section 236(g)(3)(A) of the National Housing Act is
amended by striking out ``fiscal year 2000'' and inserting in lieu
thereof ``fiscal years 2000 and 2001''.]

[cdbg eligibility]

[Sec. 217. Section 102(a)(6)(D) of the Housing and Community
Development Act of 1974 is amended by--
(1) in clause (v), striking out the ``or'' at the end;
(2) in clause (vi), striking the period at the end; and
(3) adding at the end the following new clause:
``(vii)(I) has consolidated its government with one or more
municipal governments, such that within the county boundaries there are
no unincorporated areas, (II) has a population of not less than 650,000,
(III) for more than 10 years, has been classified as a metropolitan city
for purposes of allocating and distributing funds under section 106, and
(IV) as of the date of enactment of this clause, has over 90 percent of
the county's population within the jurisdiction of the consolidated
government; or
``(viii) notwithstanding any other provision of this section, any
county that was classified as an urban county pursuant to subparagraph
(A) for fiscal year 1999, at the option of the county, may hereafter
remain classified as an urban county for purposes of this Act.''.]

[exemption for alaska and mississippi from requirement of resident on
board of pha]

[Sec. 218. 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 2001.]

[use of moderate rehabilitation funds for home]

[Sec. 219. Notwithstanding any other provision of law, the Secretary
of Housing and Urban Development shall make the funds available under
contracts NY36K113004 and NY36K113005 of the Department of Housing and
Urban Development available for use under the HOME Investment
Partnerships Act and shall allocate such funds to the City of New
Rochelle, New York.]

[loma linda reprogramming]

[Sec. 220. 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) 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 105-769)) to the
City of Loma Linda, California, for infrastructure improvements at
Redlands Boulevard and California Streets shall, notwithstanding such
provisions, be made available to the City for infrastructure
improvements related to the Mountain View Bridge.]

[native american eligibility for the ross program]

[Sec. 221. (a) Section 34 of the United States Housing Act of 1937
is amended--
(1) in the heading, by striking ``PUBLIC HOUSING'' and inserting
``PUBLIC AND INDIAN HOUSING'';
(2) in subsection (a)--
(A) by inserting after ``residents,'' the following:
``recipients under the Native American Housing Assistance
and Self-Determination Act of 1996 (notwithstanding section
502 of such Act) on behalf of residents of housing assisted
under such Act,'' and
(B) by inserting after ``public housing residents'' the
second place it appears the following: ``and residents of
housing assisted under such Act'',
(3) in subsection (b)--
(A) by inserting after ``project'' the first place it
appears the following: ``or the property of a recipient
under such Act or housing assisted under such Act'';
(B) by inserting after ``public housing residents'' the
following: ``or residents of housing assisted under such
Act''; and
(C) in subsection (b)(1), by inserting after ``public
housing project'' the following: ``or residents of housing
assisted under such Act''; and
(4) in subsection (d)(2), by striking ``State or local'' and
inserting ``State, local, or tribal''.
(b) Assessment and Report.--Section 538(b)(1) of the Quality Housing
and Work Responsibility Act of 1998 is amended by inserting after
``public housing'' the following: ``and housing assisted under the
Native American Housing Assistance and Self-Determination Act of
1996''.]

[treatment of expiring economic development initiative grants]

[Sec. 222. (a) Availability.--Section 220(a) of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2000 (Public Law 106-74; 113 Stat. 1075) is
amended by striking ``September 30, 2000'' and inserting ``September 30,
2001''.
(b) Applicability.--The Secretary of the Treasury and the Secretary
of Housing and Urban Development shall take such actions as may be
necessary to carry out such section 220 (as amended

[[Page 531]]

by this subsection (a) of this section) notwithstanding any actions
taken previously pursuant to section 1552 of title 31, United States
Code.]

[home program disaster funding for elderly housing]

[Sec. 223. Of the amounts made available under Chapter IX of the
Supplemental Appropriations Act of 1993 for assistance under the HOME
investment partnerships program to the city of Homestead, Florida
(Public Law 103-50; 107 Stat. 262), up to $583,926.70 shall be made
available to Dade County, Florida, for use only for rehabilitating
housing for low-income elderly persons, and such amount shall not be
subject to the requirements of such program, except for section 288 of
the HOME Investment Partnerships Act (42 U.S.C. 12838).]

[cdbg public services cap]

[Sec. 224. Section 105(a)(8) of the Housing and Community
Development Act of 1974 is amended by striking ``1993'' and all that
follows through ``City of Los Angeles'' and inserting ``1993 through
2001 to the City of Los Angeles''.]

[extension of applicability of downpayment simplification provisions]

[Sec. 225. Subparagraph (A) of section 203(b)(10) of the National
Housing Act (12 U.S.C. 1709(b)(10)(A)) is amended, in the matter that
precedes clause (i), by striking ``mortgage'' and all that follows
through ``involving'' and inserting ``mortgage closed on or before
December 31, 2002, involving''.]

[use of supportive housing program funds for information systems]

[Sec. 226. Section 423 of the Stewart B. McKinney Homeless
Assistance Act is amended under subsection (a) by adding the following
paragraph:
``(7) Management information system.--A grant for the costs of
implementing and operating management information systems for
purposes of collecting unduplicated counts of homeless people and
analyzing patterns of use of assistance funded under this Act.''.]

[Indian Housing Loan Guarantee Reform]

[Sec. 227. Section 184 of the Housing and Community Development Act
of 1992 is amended--
(1) in subsection (a), by striking ``or as a result of a lack of
access to private financial markets''; and
(2) in subsection (b)(2), by inserting ``refinance,'' after
``acquire,''.]

[Use of Section 8 Vouchers for Opt-Outs]

[Sec. 228. Section 8(t)(2) of the United States Housing Act of 1937
is amended by inserting after ``contract for rental assistance under
section 8 of the United States Housing Act of 1937 for such housing
project'' the following: ``(including any such termination or expiration
during fiscal years after fiscal year 1996 prior to the effective date
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001)''.]

[Homeless Discharge Coordination Policy]

[Sec. 229. (a) Discharge Coordination Policy.--Subtitle A of title
IV of the Stewart B. McKinney Homeless Assistance Act is amended by
adding at the end the following new section:

``SEC. 402. DISCHARGE COORDINATION POLICY.

``The Secretary may not provide a grant under this title for any
governmental entity serving as an applicant unless the applicant agrees
to develop and implement, to the maximum extent practicable and where
appropriate, policies and protocols for the discharge of persons from
publicly funded institutions or systems of care (such as health care
facilities, foster care or other youth facilities, or correction
programs and institutions) in order to prevent such discharge from
immediately resulting in homelessness for such persons.''.
(b) Assistance Under Emergency Shelter Grants Program.--Section
414(a)(4) of the Stewart B. McKinney Homeless Assistance Act is
amended--
(1) in the matter preceding subparagraph (A), by inserting a
comma after ``homelessness'';
(2) by striking ``Not'' and inserting the following:
``Activities that are eligible for assistance under this paragraph
shall include assistance to very low-income families who are
discharged from publicly funded institutions or systems of care
(such as health care facilities, foster care or other youth
facilities, or correction programs and institutions). Not''.]

[technical change to seniors housing commission]

[Sec. 230. Section 525 of the Preserving Affordable Housing for
Senior Citizens and Families into the 21st Century Act'' (42 U.S.C.
12701 note) is amended in subsection (a) by striking ``Commission on
Affordable Housing and Health Care Facility Needs in the 21st Century''
and inserting ``Commission on Affordable Housing and Health Facility
Needs for Seniors in the 21st Century''.]

[interagency council on the homeless reforms]

[Sec. 231. Title II of the Stewart B. McKinney Homeless Assistance
Act is amended--
(1) in section 202, under subsection (b) by inserting after the
period the following: ``The positions of Chairperson and Vice
Chairperson shall rotate among its members on an annual basis.'';
and
(2) in section 209 by striking ``1994'' and inserting ``2005''.]

[section 8 pha project-based assistance]

[Sec. 232. (a) In General.--Paragraph (13) of section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended to
read as follows:
``(13) PHA project-based assistance.--
``(A) In general.--A public housing agency may use
amounts provided under an annual contributions contract
under this subsection to enter into a housing assistance
payment contract with respect to an existing, newly
constructed, or rehabilitated structure, that is attached to
the structure, subject to the limitations and requirements
of this paragraph.
``(B) Percentage limitation.--Not more than 20 percent
of the funding available for tenant-based assistance under
this section that is administered by the agency may be
attached to structures pursuant to this paragraph.
``(C) Consistency with pha plan and other goals.--A
public housing agency may approve a housing assistance
payment contract pursuant to this paragraph only if the
contract is consistent with--
``(i) the public housing agency plan for the agency approved under
section 5A; and
``(ii) the goal of deconcentrating poverty and expanding housing and
economic opportunities.
``(D) Income mixing requirement.--
``(i) In general.--Not more than 25 percent of the dwelling units in
any building may be assisted under a housing assistance payment contract
for project-based assistance pursuant to this paragraph.
``(ii) Exceptions.--The limitation under clause (i) shall not apply
in the case of assistance under a contract for housing consisting of
single family properties or for dwelling units that are specifically
made available for households comprised of elderly families, disabled
families, and families receiving supportive services.
``(E) Resident choice requirement.--A housing assistance
payment contract pursuant to this paragraph shall provide as
follows:
``(i) Mobility.--Each low-income family occupying a dwelling unit
assisted under the contract may move from the housing at any time after
the family has occupied the dwelling unit for 12 months.
``(ii) Continued assistance.--Upon such a move, the public housing
agency shall provide the low-income family with tenant-based rental
assistance under this section or such other tenant-based rental
assistance that is subject to comparable income, assistance, rent
contribution, affordability, and other requirements, as the Secretary
shall provide by regulation. If such rental assistance is not
immediately available to fulfill the requirement under the preceding
sentence with respect to a low-income family, such requirement may be
met by providing the family priority to receive the next voucher or
other tenant-based rental assistance amounts that become available under
the program used to fulfill such requirement.
``(F) Contract term.--A housing assistance payment
contract pursuant to this paragraph between a public housing
agency and the owner of a structure may have a term of up to
10 years, subject to the availability of sufficient
appropriated funds for the purpose of renewing expiring
contracts for assistance payments, as provided in
appropriations Acts and in the agency's annual contributions
contract with the Secretary, and to annual compliance with
the inspection requirements under paragraph (8), except that
the agency shall not be required to make annual inspections
of each assisted unit in the devel

[[Page 532]]

opment. The contract may specify additional conditions for
its continuation. If the units covered by the contract are
owned by the agency, the term of the contract shall be
agreed upon by the agency and the unit of general local
government or other entity approved by the Secretary in the
manner provided under paragraph (11).
``(G) Extension of contract term.--A public housing
agency may enter into a contract with the owner of a
structure assisted under a housing assistance payment
contract pursuant to this paragraph to extend the term of
the underlying housing assistance payment contract for such
period as the agency determines to be appropriate to achieve
long-term affordability of the housing or to expand housing
opportunities. Such a contract shall provide that the
extension of such term shall be contingent upon the future
availability of appropriated funds for the purpose of
renewing expiring contracts for assistance payments, as
provided in appropriations Acts, and may obligate the owner
to have such extensions of the underlying housing assistance
payment contract accepted by the owner and the successors in
interest of the owner.
``(H) Rent calculation.--A housing assistance payment
contract pursuant to this paragraph shall establish rents
for each unit assisted in an amount that does not exceed 110
percent of the applicable fair market rental (or any
exception payment standard approved by the Secretary
pursuant to paragraph (1)(D)), except that if a contract
covers a dwelling unit that has been allocated low-income
housing tax credits pursuant to section 42 of the Internal
Revenue Code of 1986 (26 U.S.C. 42) and is not located in a
qualified census tract (as such term is defined in
subsection (d) of such section 42), the rent for such unit
may be established at any level that does not exceed the
rent charged for comparable units in the building that also
receive the low-income housing tax credit but do not have
additional rental assistance. The rents established by
housing assistance payment contracts pursuant to this
paragraph may vary from the payment standards established by
the public housing agency pursuant to paragraph (1)(B), but
shall be subject to paragraph (10)(A).
``(I) Rent adjustments.--A housing assistance payments
contract pursuant to this paragraph shall provide for rent
adjustments, except that--
``(i) the adjusted rent for any unit assisted shall be reasonable in
comparison with rents charged for comparable dwelling units in the
private, unassisted, local market and may not exceed the maximum rent
permitted under subparagraph (H); and
``(ii) the provisions of subsection (c)(2)(C) shall not apply.
``(J) Tenant selection.--A public housing agency shall
select families to receive project-based assistance pursuant
to this paragraph from its waiting list for assistance under
this subsection. Eligibility for such project-based
assistance shall be subject to the provisions of section
16(b) that apply to tenant-based assistance. The agency may
establish preferences or criteria for selection for a unit
assisted under this paragraph that are consistent with the
public housing agency plan for the agency approved under
section 5A. Any family that rejects an offer of project-
based assistance under this paragraph or that is rejected
for admission to a structure by the owner or manager of a
structure assisted under this paragraph shall retain its
place on the waiting list as if the offer had not been made.
The owner or manager of a structure assisted under this
paragraph shall not admit any family to a dwelling unit
assisted under a contract pursuant to this paragraph other
than a family referred by the public housing agency from its
waiting list. Subject to its waiting list policies and
selection preferences, a public housing agency may place on
its waiting list a family referred by the owner or manager
of a structure and may maintain a separate waiting list for
assistance under this paragraph, but only if all families on
the agency's waiting list for assistance under this
subsection are permitted to place their names on the
separate list.
``(K) Vacated units.--Notwithstanding paragraph (9), a
housing assistance payment contract pursuant to this
paragraph may provide as follows:
``(i) Payment for vacant units.--That the public housing agency may,
in its discretion, continue to provide assistance under the contract,
for a reasonable period not exceeding 60 days, for a dwelling unit that
becomes vacant, but only (I) if the vacancy was not the fault of the
owner of the dwelling unit, and (II) the agency and the owner take every
reasonable action to minimize the likelihood and extent of any such
vacancy. Rental assistance may not be provided for a vacant unit after
the expiration of such period.
``(ii) Reduction of contract.--That, if despite reasonable efforts
of the agency and the owner to fill a vacant unit, no eligible family
has agreed to rent the unit within 120 days after the owner has notified
the agency of the vacancy, the agency may reduce its housing assistance
payments contract with the owner by the amount equivalent to the
remaining months of subsidy attributable to the vacant unit. Amounts
deobligated pursuant to such a contract provision shall be available to
the agency to provide assistance under this subsection.
Eligible applicants for assistance under this subsection
may enforce provisions authorized by this subparagraph.''.
(b) Applicability.--In the case of any dwelling unit that, upon the
date of the enactment of this Act, is assisted under a housing
assistance payment contract under section 8(o)(13) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) as in effect before such
enactment, such assistance may be extended or renewed notwithstanding
the requirements under subparagraphs (C), (D), and (E) of such section
8(o)(13), as amended by subsection (a).]

[disposition of hud-held and hud-owned multifamily projects for the
elderly or disabled]

[Sec. 233. Notwithstanding any other provision of law, in managing
and disposing of any multifamily property that is owned or held by the
Secretary and is occupied primarily by elderly or disabled families, the
Secretary of Housing and Urban Development shall maintain any rental
assistance payments under section 8 of the United States Housing Act of
1937 that are attached to any dwelling units in the property. To the
extent the Secretary determines that such a multifamily property owned
or held by the Secretary is not feasible for continued rental assistance
payments under such section 8, the Secretary may, in consultation with
the tenants of that property, contract for project-based rental
assistance payments with an owner or owners of other existing housing
properties or provide other rental assistance.]

[family unification program]

[Sec. 234. Section 8(x)(2) of the United States Housing Act of 1937
(42 U.S.C 1437f(x)(2)) is amended--
(1) by striking ``any family (A) who is otherwise eligible for
such assistance, and (B)'' and inserting ``(A) any family (i) who is
otherwise eligible for such assistance, and (ii)''; and
(2) by inserting before the period at the end the following:
``and (B) for a period not to exceed 18 months, otherwise eligible
youths who have attained at least 18 years of age and not more than
21 years of age and who have left foster care at age 16 or older''.]

[permanent extension of fha multifamily mortgage credit demonstrations]

[Sec. 235. Section 542 of the Housing and Community Development Act
of 1992 (12 U.S.C. 1707 note) is amended--
(1) in subsection (a)--
(A) in the first sentence, by striking ``demonstrate the
effectiveness of providing'' and inserting ``provide''; and
(B) in the second sentence, by striking
``demonstration'' and inserting ``the'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``determine the
effectiveness of'' and inserting ``provide''; and
(B) by striking paragraph (5), and inserting the
following new paragraph:
``(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.'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``test the
effectiveness of'' and inserting ``provide''; and
(B) by striking paragraph (4) and inserting the
following new paragraph:
``(4) Insurance authority.--Using any authority provided in
appropriation Acts to insure mortgages under the National Housing

[[Page 533]]

Act, the Secretary may enter into commitments under this subsection
for risk-sharing units.'';
(4) by striking subsection (d);
(5) by striking ``pilot'' and ``Pilot'' each place such terms
appear; and
(6) in the section heading, by striking ``DEMONSTRATIONS'' and
inserting ``PROGRAMS''.]

SEC. 204. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS.

(a) Section 207 Limits.--Section 207(c)(3) of the National Housing
Act (12 U.S.C. 1713(c)(3)) is amended--
(1) by striking ``$30,420'', ``$33,696'', ``$40,248'',
``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'',
``$50,310'', ``$62,010'', and ``$70,200'', respectively;
(2) by striking ``$9,000'' and inserting ``$11,250''; and
(3) by striking ``$35,100'', ``$39,312'', ``$48,204'',
``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'',
``$60,255'', ``$75,465'', and ``$85,328'', respectively.
(b) Section 213 Limits.--Section 213(b)(2) of the National Housing
Act (12 U.S.C. 1715e(b)(2)) is amended--
(1) by striking ``$30,420'', ``$33,696'', ``$40,248'',
``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'',
``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
(2) by striking ``$35,100'', ``$39,312'', ``$48,204'',
``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'',
``$60,255'', ``$75,465'', and ``$85,328'', respectively.
(c) Section 220 Limits.--Section 220(d)(3)(B)(iii) of the National
Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended--
(1) by striking ``$30,420'', ``$33,696'', ``$40,248'',
``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'',
``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
(2) by striking ``$35,100'', ``$39,312'', ``$48,204'',
``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'',
``$60,255'', ``$75,465'', and ``$85,328'', respectively.
(d) Section 221(d)(3) Limits.--Section 221(d)(3)(ii) of the National
Housing Act (12 U.S.C. 1715l(d)(3)(ii)) is amended--
(1) by striking ``$33,638'', ``$38,785'', ``$46,775'',
``$59,872'', and ``$66,700'' and inserting ``$42,048'', ``$48,481'',
``58,469'', ``$74,840'', and ``$83,375'', respectively; and
(2) by striking ``$35,400'', ``$40,579'', ``$49,344'',
``$63,834'', and ``$70,070'' and inserting ``$44,250'', ``$50,724'',
``$61,680'', ``$79,793'', and ``$87,588'', respectively.
(e) Section 221(d)(4) Limits.--Section 221(d)(4)(ii) of the National
Housing Act (12 U.S.C. 1715l(d)(4)(ii)) is amended--
(1) by striking ``$30,274'', ``$34,363'', ``$41,536'',
``$52,135'', and ``$59,077'' and inserting ``$37,843'', ``$42,954'',
``$51,920'', ``$65,169'', and ``73,846'', respectively; and
(2) by striking ``$32,701'', ``$37,487'', ``$45,583'',
``$58,968'', and ``$64,730'' and inserting ``$40,876'', ``$46,859'',
``$56,979'', ``$73,710'', and ``$80,913'', respectively.
(f) Section 231 Limits.--Section 231(c)(2) of the National Housing
Act (12 U.S.C. 1715v(c)(2)) is amended--
(1) by striking ``$28,782'', ``$32,176'', ``$38,423'',
``$46,238'', and ``$54,360'' and inserting ``$35,978'', ``40,220'',
``$48,029'', ``$57,798'', ``$67,950'', respectively; and
(2) by striking ``$32,701'', ``$37,487'', ``$45,583'',
``$58,968'', and ``$64,730'' and inserting ``$40,876'', ``$46,859'',
``$56,979'', ``$73,710'', and ``80,913'', respectively.
(g) Section 234 Limits.--Section 234(e)(3) of the National Housing
Act (12 U.S.C. 1715y(e)(3)) is amended--
(1) by striking ``$30,420'', ``$33,696'', ``$40,248'',
``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'',
``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
(2) by striking ``$35,100'', ``$39,312'', ``$48,204'',
``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'',
``$60,255'', ``$75,465'', and ``$85,328'', respectively.
SEC. 205. CLARIFICATION REGARDING MORTGAGE INSURANCE FOR PURCHASE OF
EXISTING HEALTH CARE FACILITIES.--Section 223(f)(1) of the National
Housing Act is amended by inserting ``purchase or'' immediately before
``refinancing of existing debt''.

EMERGENCY HOMEOWNERSHIP COUNSELING

SEC. 206. Section 106(c)(9) of the Housing and Urban Development
Act of 1968 is repealed.

FHA INSURANCE FOR HYBRID ARMS

SEC. 207. 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.''; and
(2) 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. 208. MORTGAGE INSURANCE PREMIUMS FOR SECTION 203(k) AND SECTION 234
SINGLE FAMILY PROGRAMS.

(a) RISK-BASED PREMIUMS.--Section 203(c) of the National Housing
Act is amended--
(1) in paragraph (1), by striking ``and (k)'' and ``or (k)'';
and
(2) in paragraph (2)--
(A) by inserting immediately after ``subsection (v),''
the following: ``, and each mortgage that is insured under
subsection (k) or section 234(c),''; and
(B) by striking ``and executed on or after October 1,
1994,''.
(b) EFFECTIVE DATE.--The amendments made by subsection (a) shall--
(1) apply only to mortgages that are executed on or after the
date of enactment of this Act or a later date determined by the
Secretary and announced by notice in the Federal Register; and
(2) be implemented in advance of any necessary conforming
changes to regulations.

SEC. 209. STANDARDS AND NEED FOR HOSPITALS WITH MORTGAGE INSURANCE.
Section 242(d)(4) of the National Housing Act is amended to read as
follows:

``(4)(A) The Secretary shall require satisfactory evidence that the
hospital will be located in a State or political subdivision of a State
with reasonable minimum standards of licensure and methods of operation
for hospitals and satisfactory assurance that such standards will be
applied and enforced with respect to the hospital.
``(B) The Secretary shall establish the means for determining need
and feasibility for the hospital. If the State has an official procedure
for determining need for hospitals, the Secretary shall also require
that such procedure be followed before the application for insurance is
submitted, and the application shall document that need has also been
established under that procedure.''.

SEC. 210. STANDARDS AND NEED FOR NURSING HOMES, INTERMEDIATE CARE
FACILITIES, OR COMBINED NURSING HOMES AND INTERMEDIATE CARE
FACILITIES WITH MORTGAGE INSURANCE. Section 232(d)(4)(A) of the
National Housing Act is amended to read as follows:

``(A)(i) The Secretary shall require satisfactory evidence that a
nursing home, intermediate care facility, or combined nursing home and
intermediate care facility will be located in a State or political
subdivision of a State with reasonable minimum standards of licensure
and methods of operation for such homes, facilities, or combined homes
and facilities. The Secretary shall also require satisfactory assurance
that such standards will be applied and enforced with respect to the
home, facility, or combined home or facility.
``(ii) The Secretary shall establish the means for determining need
and feasibility for the home, facility, or combined home and facility.
If the State has an official procedure for determining need for such
homes, facilities, or combined homes and facilities, the Secretary shall
also require that such procedure be followed before the application for
insurance is submitted, and the application shall document that need has
also been established under that procedure.''.

[[Page 534]]

Repeal of Section 236(s) Loan Program

Sec. 211. (a) Section 236(s) of the National Housing Act (12 U.S.C.
1715z-1(s)) is amended--
(1) in the heading by striking ``AND LOANS'';
(2) in paragraph (1), by deleting ``and loans'' after
``grants'';
(3) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``or loan''; and
(B) in subparagraph (E)(i), by striking ``or loan (as
appropriate)'';
(4) in paragraph (3), in the matter that precedes subparagraph
(A), by striking ``or loan'';
(5) in paragraph (4)--
(A) by striking in the paragraph heading ``AND LOAN'';
and
(B) by deleting ``or loan'' after ``grant'', each place
it appears;
(6) in paragraph (6), by deleting ``or loan'' after ``grant'',
each place it appears;
(7) in paragraph (7), by deleting subparagraph (D); and
(8) by deleting paragraph (5) and redesignating paragraphs (6)
and (7) as (5) and (6).
SEC. 212. AUTHORITY FOR HUD TO TERMINATE MORTGAGEE ORIGINATION
APPROVAL FOR POORLY-PERFORMING MORTGAGEES.--Section 533 of the National
Housing Act is amended to read as follows:
``SEC. 533. REVIEW OF MORTGAGEE PERFORMANCE AND AUTHORITY TO
TERMINATE.
``(a) Periodic Review of Mortgagee Performance.--To
reduce losses in connection with single family mortgage
insurance programs under this Act, at least once a year the
Secretary shall review the rate of early defaults and claims
for insured single family mortgages originated or
underwritten by each mortgagee.
``(b) Comparison With Other Mortgagees.--For each
mortgagee, the Secretary shall compare the rate of early
defaults and claims for insured single family mortgage loans
originated or underwritten by the mortgagee in an area with
the rate of early defaults and claims for other mortgagees
originating or underwriting insured single family mortgage
loans in the area. For purposes of this section, the term
``area'' means each geographic area in which the mortgagee
is authorized by the Secretary to originate insured single
family mortgages.
``(c) Termination of Mortgagee Origination Approval.--
(1) Notwithstanding section 202(c) of this Act, the
Secretary may terminate the approval of a mortgagee to
originate or underwrite single family mortgages if the
Secretary determines that the mortgage loans originated or
underwritten by the mortgagee present an unacceptable risk
to the insurance funds. The determination shall be based on
the comparison required under subsection (b) and shall be
made in accordance with regulations of the Secretary. The
Secretary may rely on existing regulations published before
this section takes effect.
``(2) The Secretary shall give a mortgagee at least 60
days prior written notice of any termination under this
subsection. The termination shall take effect at the end of
the notice period, unless the Secretary withdraws the
termination notice or extends the notice period. If
requested in writing by the mortgagee within 30 days of the
date of the notice, the mortgagee shall be entitled to an
informal conference with the official authorized to issue
termination notices on behalf of the Secretary (or a
designee of that official). At the informal conference, the
mortgagee may present for consideration specific factors
that it believes were beyond its control and that caused the
excessive default and claim rate.''.

SEC. 213. REPEAL OF FEDERALIZATION OF PUBLIC HOUSING UNITS.

(a) Section 9(n)(1) of the United States Housing Act of 1937 is
hereby repealed.
(b) Section 226 of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations Act,
1999, is hereby repealed.
(c) The amendment made by subsection (a) shall be deemed to have
taken effect on October 1, 1998.
(d) The amendment made by subsection (b) shall be deemed to have
taken effect on October 21, 1998.

AMENDMENT TO DOWNPAYMENT ASSISTANCE

Sec. 214. Section 8(y)(7)(A) of the United States Housing Act of
1937 is amended by striking ``for fiscal year 2000 and each fiscal year
thereafter to the extent provided in advance in appropriations Acts''.
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2001, as enacted by section
1(a)(1) of P.L. 106-377.)

General Fund Receipt Accounts

(in millions of dollars)

----------------------------------------------------------------------------
2000 actual 2001 est. 2002 est.
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Offsetting receipts from the public:
86-271910 FHA-general and special
risk, Negative subsidies............ 62 103 445
86-271930 FHA-general and special
risk, Downward reestimates of
subsidies........................... 304
86-274330 Indian housing loan
guarantees, downward reestimates of
subsidies........................... 6
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 62 413 445
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