    [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 2003

                   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 2003 Budget for HUD reflects the continuation of a
    multi-year comprehensive reform effort that 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 three years.

        The Department continues to emphasize expanding homeownership
    opportunities for all. Homeownership is addressed through FHA program
    efforts, recent public housing homeownership opportunities, HOPE VI, and
    expanded housing counseling. In addition, the HOME Investment
    Partnerships Program is increased by $238 million. This increase
    includes a four-fold increase for the down payment initiative. The 2003
    budget increases the Self-Help Homeownership Opportunity Program (SHOP)
    three-fold in an effort to accelerate home ownership by lower-income
    families.

        The 2003 budget proposes to allow housing authorities to use up to
    $120 million from the Capital Fund and up to $130 million from the
    Operating Fund for a new initiative to facilitate the financing of
    capital improvements and to encourage development-based financial
    management. This initiative will improve physical conditions for public
    housing residents by enabling housing authorities to attract private
    capital to address the existing $20 billion backlog in capital housing
    improvement needs. It will also put these developments on a sound
    management and financial footing by focusing on property-based planning
    and management. These objectives would be achieved by authorizing HUD to
    approve, on a property-by-property basis, housing authority requests to
    convert public housing developments or portions of developments to
    project-based voucher assistance. Converting to project-based vouchers
    also would relieve housing authorities from many of the complex rules
    governing the public housing programs, and would give residents of
    converted developments additional housing choices, since they could
    choose to move with their vouchers after one year. This initiative will
    make it possible for housing authorities to secure private financing to
    rehabilitate their aging properties by using each property to secure
    private loans for capital improvements. The capital needs of a
    substantial part of the public housing stock may be addressed through
    private financing, without significant annual subsidy increases. The
    initial year of any contract for project-based assistance under this
    proposal may be funded with amounts appropriated for the public housing
    Capital Fund or Operating Fund or from other amounts appropriated for
    this purpose. Any renewal of such contracts would be funded in the
    future with amounts appropriated for Section 8 vouchers.

        The 2003 budget includes 34,000 incremental vouchers. 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 Department will also continue to fully renew
    contracts to assist rental of low-income elderly units in the Housing
    for the Elderly Program (under Section 202 of the Housing Act of 1959).

        This year HUD commits itself to addressing the problem of chronic
    homelessness. The Department is proposing legislative language that
    would consolidate its homeless assistance programs into a single grant
    program. This reform will improve service delivery and further support
    the announced goal of ending chronic homelessness in ten years.

        As part of the 2003 budget, the Administration is transferring
    administration of the Emergency Food and Shelter Program from the
    Federal Emergency Management Agency (FEMA), to HUD. This transfer will
    allow for better coordination of homeless assistance.

        Funding in the 2003 budget 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 2003 to
    both FHIP and FHAP, with emphasis on increasing enforcement efforts and
    addressing accessibility issues.

        The Department proposes a $16 million initiative to improve housing
    and economic conditions in the Colonias area, which is largely funded by
    shifting resources from wealthier communities within the Community
    Development Block Grants program (CDBG).

        HUD is one of five Departments that are leading the Federal
    Government in tapping the potential of faith-based and community
    organizations to improve housing and help develop communities.

        The 2003 budget includes a 20 percent increase in lead hazard
    reduction grants to continue the ten-year program to eradicate lead
    hazards in housing.

        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,
    provide research and analysis of national housing and economic
    conditions, and measure the performance of programs, consistent with the
    Government Performance and Results Act of 1994.

        The Department will continue the management reform effort initiated
    in 2001 and undertake further efforts in 2003 to refocus HUD on its core
    mission and key programs as part of a continuing series of planned
    reforms to improve program performance.

                            PUBLIC AND INDIAN HOUSING

                                  Federal Funds

    General and special funds:

                            Housing Certificate Fund

                  (including transfer and rescission 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,
    $16,280,975,000, of which $640,000,000 shall be from unobligated
    balances from amounts recaptured from fiscal year 2000 and prior years
    pursuant to a reduction in the amounts provided for Annual Contributions
    Contract Reserve Accounts, and amounts that are re

    [[Page 474]]

    captured in this account to remain available until expended: Provided,
    That not later than October 1, 2001, the Department of Housing and Urban
    Development shall reduce from 60 days to 30 days the amount of reserve
    funds made available to public housing authorities: Provided further,
    That of the total amount provided under this heading, $16,071,975,000,
    of which $11,231,975,000 and the aforementioned recaptures shall be
    available on October 1, 2001 and $4,200,000,000 shall be available on
    October 1, 2002, shall be for assistance under the United States Housing
    Act of 1937, as amended (``the Act'' herein) (42 U.S.C. 1437 et seq.):
    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 Act (42 U.S.C.
    1437f(t)), contract administrators, and contracts entered into pursuant
    to section 441 of the McKinney-Vento Homeless Assistance Act: Provided
    further, That amounts available under the second 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 the Omnibus Consolidated
    Rescissions and Appropriations Act of 1996 (Public Law 104-134; Stat.
    1321-269); (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 projects that are
    subject to approved plans 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, no less than $13,400,000 shall
    be transferred to the Working Capital Fund for the development and
    maintenance of information technology systems: Provided further, That of
    the total amount provided under this heading, $143,979,000 shall be made
    available for incremental vouchers under section 8 of the Act, of which
    $103,979,000 shall be made available on a fair share basis to those
    public housing agencies that have no less than a 97 percent occupancy
    rate; and of which $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. 13611), or the restriction of occupancy to
    elderly families in accordance with section 658 of such Act (42 U.S.C.
    13618), 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 up to $195,601,000
    from amounts made available under this heading may be made available for
    contract administrators: 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 Act:]
        For assistance under the United States Housing Act of 1937, as
    amended (42 U.S.C. 1437 et seq.) (``Act'') not otherwise provided for,
    $17,526,559,000 and amounts recaptured in this account, to remain
    available until expended; of which $204,170,000 shall be for vouchers
    under section 8 of the Act, including incremental vouchers (1) to be
    made avaialble on a fair share basis to Public Housing Agencies that
    have no less than a 97 percent utilization rate, (2) to be used for
    down-payment assistance pursuant to section 8(y)(7) of the Act, not to
    exceed $15,000,000, (3) to facilitate community-based living
    alternatives for individuals with disabilities, not to exceed $6,000,000
    (4) to be made avaialble to non-elderly disabled families affected by
    the designation of a public housing development under section 7 of the
    Act, or the establishment of preferences in accordance with section 651
    of the Housing and Community Development Act of 1992 (42 U.S.C. 13611),
    not to exceed $40,000,000, and (5) to be made avaialble to homeless
    veterans in accordance with the Homeless Veterans Comprehensive
    Assistance Act of 2001; of which up to $196,000,000 is for contract
    administrators; of which $3,000,000 shall be transferred to the Working
    Capital fund for development of and modifications to information
    technology systems which serve activities under ``Public and Indian
    Housing.''; and of which $17,123,389,000 is for expiring 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
    Act (42 U.S.C. 1437f(t)), for contracts entered into pursuant to section
    441 of the McKinney-Vento Homeless Assistance Act, and for section 8
    rental assistance, including: (1) relocation and replacement of housing
    units that are demolished or disposed of pursuant to the Omnibus
    Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-
    134); (2) conversion of section 23 projects to assistance under section
    8; (3) to carry out the family unification program; (4) relocation of
    witnesses in connection with efforts to combat crime in public and
    assisted housing pursuant to a request from law enforcement or
    prosecution agency; (5) tenant protection assistance, including
    replacement and relocation assistance; and (6) the 1-year renewal of
    section 8 contracts for units in projects that are subject to approved
    plans of action under Emergency Low-Income Housing Preservation Act of
    1987 or the Low-Income Housing Preservation and Resident Homeownership
    Act of 1990; Provided, That of the $17,123,389,350 herein,
    $4,200,000,000 shall become available on October 1, 2003: Provided
    further, That the fee otherwise authorized under section 8(q) of the 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 [$1,200,000,000]
    $1,100,000,000 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 [2001] 2002 and prior
    years, to be effected by the Secretary no later than September 30, 2003:
    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,
    2002, 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0319-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Contract renewals.................      14,419      15,971      16,864
    00.02 Contract Administrator............         146         241         196
    00.03 Rental Assistance.................         255         274         260
    00.04 Preservation Amendment............                       2
    00.05 Section 514 Technical Assistance..           8          10
    00.06 Non-Elderly Disabled..............          56          40
    00.07 Welfare to Work...................           1
    00.08 Regional Opportunity Counseling...                      10
    00.09 Section 8 Amendment...............         279          77
    00.10 Lead-Based paint..................           2
    00.11 Incremental vouchers..............         452         104         204
    00.12 Other.............................          28           2
    00.13 Job Plus..........................           1           6
    00.14 Working Capital Fund..............          11          13           3
    00.15 Section8 Counseling...............           9           3
    00.16 Relocation/Replacement/Demolition.           2
    00.17 Home (City of New Rochelle).......                       5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................      15,669      16,758      17,527
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,951       1,676
    22.00 New budget authority (gross)......      11,970      14,441      16,427
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       2,578         641       1,100
    22.75 Balance of contract authority
            withdrawn.......................        -154
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      17,345      16,758      17,527
    23.95 Total new obligations.............     -15,669     -16,758     -17,527
    24.40 Unobligated balance carried
            forward, end of year............       1,676
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       9,741      11,441      13,327
    40.35   Appropriation rescinded.........         -31
    40.36   Unobligated balance rescinded...      -1,940      -1,200      -1,100
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       7,770      10,241      12,227

    [[Page 475]]

    55.00   Advance appropriation...........       4,200       4,200       4,200
          Mandatory:

    60.00   Appropriation...................       5,000       5,000       5,000
    60.49   Portion applied to liquidate
              contract authority............      -5,000      -5,000      -5,000
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      11,970      14,441      16,427
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      46,154      42,520      40,866
    73.10 Total new obligations.............      15,669      16,758      17,527
    73.20 Total outlays (gross).............     -16,720     -17,771     -18,339
    73.40 Adjustments in expired accounts
            (net)...........................          -5
    73.45 Recoveries of prior year
            obligations.....................      -2,578        -641      -1,100
    74.40 Obligated balance, end of year....      42,520      40,866      38,954
    75.01 Obligated balance, start of year:
            Contract authority..............      31,583      26,429      21,429
    75.02 Obligated balance, end of year:
            Contract authority..............      26,429      21,429      16,429
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       5,425       6,350       6,840
    86.93 Outlays from discretionary
            balances........................      11,295      11,421      11,499
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      16,720      17,771      18,339
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      11,970      14,441      16,427
    90.00 Outlays...........................      16,720      17,771      18,339
    ---------------------------------------------------------------------------

        The funds requested could support the following activities for 2003,
    as shown in the table below.

                            HOUSING CERTIFICATE FUND

              [Budget Authority Request for FY 2003, $ in Millions]

                                            Units   Per Unit Cost     BA
    FY 2003:
      Incremental Rental Assistance.....      34,000       6,005         204
      Tenant Protections--Housing.......      30,300          NA         182
      Tenant Protections-PIH............      13,000          NA          78
      Contract Administrators...........          NA          NA         196
      Information Technology/Working
        Capital Fund....................          NA                       3
      Contract Renewals:
        PIH.............................   2,077,336       6,005      12,527
        CPD-Mod. Rehab. SRO.............       3,045       4,011          17
        Housing.........................     817,274          NA       4,320
                                        ------------------------------------
          Subtotal, contract renewals...   2,897,655          NA      16,864
      Administrative Fees-PIH [non-add].                 Approx.     [1,100]
          Total, FY 2003 Housing
            Certificate Fund............                              17,527
                                        ====================================

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0319-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............      31,583      26,429      21,429
    0400  Appropriation to liquidate
            contract authority..............      -5,000      -5,000      -5,000
    0600  Balance of contract authority
            withdrawn.......................        -154
    0700  Balance, end of year..............      26,429      21,429      16,429
    ---------------------------------------------------------------------------

        Contract Renewals. Contract renewals provide funding to renew
    expiring Section 8 rental assistance contracts covering certificates,
    vouchers, and moderate rehabilitation (renewed as 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 $52
    million to renew funding for Family self-sufficiency coordinators.

        Incremental Rental Assistance--For 2003, the Department is
    requesting approximately 34,000 vouchers and $204 million in budget
    authority.

        These rental vouchers will address many local needs, including
    assistance to needy families some of which could be transitioning out of
    public assistance, homeless, affected by an ``elderly-only'' designation
    in public housing, or by the recent Olmstead decision requiring
    community living services for disabled families. The rental vouchers may
    also be used for downpayment assistance in those areas that choose to
    offer this assistance.

    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 or
    owners' decision to prepay their mortgage or opt-out of project-based
    section 8 contracts, be aided through the Housing Certificate Fund.

        Verifying the right person gets the right benefit.--HUD research has
    determined that there is a significant error rate in calculating
    subsidies. HUD has established a goal of a 50 percent reduction in the
    frequency of subsidy calculation and processing errors by 2005.

        Since the sources and cause of subsidy payment errors are many and
    often interrelated, a comprehensive corrective action plan is needed.
    HUD's prior corrective action focus has been on developing and
    implementing a large scale computer matching program with IRS and SSA
    data bases to better address the unreported tenant income issue. While
    this and other improvement initiatives are ongoing, a multi-
    organizational HUD Working Group has been tasked with developing viable
    options for a more comprehensive corrective action plan to be considered
    by the new administration. The Working Group is considering options for:
    (1) Program simplification; (2) Structured forms, training, and
    automated tools needed to determine rent correctly; (3) Tenant
    education; (4) Increased use of automated tenant income data sources at
    the local and national level; (5) Improves targeting of on-site
    management and occupancy reviews based on risk indicators; (6)
    Intermediary performance incentives and sanctions; (7) Improved
    automated billing verifications; and (8) An on-going quality control
    program.

                                 Moving to Work

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0331-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           3
    73.20 Total outlays (gross).............          -2          -3
    74.40 Obligated balance, end of year....           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           2           3
    ----------------------------------------------------------------------------

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

    [[Page 476]]

    PHAs may provide 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. 1437g)[, $2,843,400,000] (the ``Act''), $2,425,900,000, to remain
    available until September 30, [2005: Provided, That, hereafter,
    notwithstanding any other provision of law or any failure of the
    Secretary of Housing and Urban Development to issue regulations to carry
    out section 9(j) of the United States Housing Act of 1937 (42 U.S.C.
    1437g(j)), such section is deemed to have taken effect on October 1,
    1998, and, except as otherwise provided in this heading, shall apply to
    all assistance made available under this same heading on or after such
    date: Provided further, That of the total amount provided under this
    heading, in addition to amounts otherwise allocated under this heading,
    $550,000,000 shall be allocated for such capital and management
    activities only among public housing agencies that have obligated all
    assistance for the agency for fiscal years 1998 and 1999 made available
    under this same heading in accordance with the requirements under
    paragraphs (1) and (2) of section 9(j) of such Act: Provided further,
    That notwithstanding any other provision of law or regulation, during
    fiscal year 2002, the Secretary may not delegate to any Department
    official other than the Deputy Secretary any authority under paragraph
    (2) of such section 9(j) regarding the extension of the time periods
    under such section for obligation of amounts made available for fiscal
    year 1998, 1999, 2000, 2001, or 2002: Provided further, That
    notwithstanding the first proviso and paragraphs (3) and (5)(B) of such
    section 9(j), if at any time before the effectiveness of final
    regulations issued by the Secretary under section 6(j) of the United
    States Housing Act of 1937 (42 U.S.C. 1437d(j)) providing for assessment
    of public housing agencies and designation of high-performing agencies,
    any amounts made available under the public housing Capital Fund for
    fiscal year 1999, 2000, 2001, or 2002 remain unobligated in violation of
    paragraph (1) of such section 9(j) or unexpended in violation of
    paragraph (5)(A) of such section 9(j), the Secretary shall recapture any
    such amounts and reallocate such amounts among public housing agencies
    that, at the time of such reallocation, are not in violation of any
    requirement under paragraph (1) or (5)(A) of such section: Provided
    further, That for purposes of this heading, the term ``obligate'' means,
    with respect to amounts, that the amounts are subject to a binding
    agreement that will result in outlays immediately or in the future:
    Provided further, That of the total amount provided under this heading,
    up to $51,000,000 shall be for carrying out activities under section
    9(h) of such Act, of which up to $10,000,000 shall be for the provision
    of remediation services to public housing agencies identified as
    ``troubled'' under the Section 8 Management Assessment Program: Provided
    further, That of the total amount provided under this heading, up to
    $500,000 shall be for lease adjustments to section 23 projects, and no
    less than $52,700,000 shall be transferred to the Working Capital Fund
    for the development and maintenance of information technology systems:
    Provided further, That no funds may be used under this heading for the
    purposes specified in section 9(k) of the United States Housing Act of
    1937, as amended: Provided further, That of the total amount provided
    under this heading, 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 2002: Provided further, That of the
    total amount provided under this heading, $15,000,000 shall be for a
    Neighborhood Networks initiative for activities authorized in section
    9(d)(1)(E) of the United States Housing Act of 1937, as amended:
    Provided further, That notwithstanding any other provision of law,
    amounts made available in the previous proviso shall be awarded to
    public housing agencies on a competitive basis as provided in section
    102 of the Department of Housing and Urban Development Reform Act of
    1989.] 2006; of which up to the specified following amounts shall be
    available as provided herein: for section 9(h) of such Act, $54,000,000,
    of which $13,000,000 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 Act; for the conversion of
    public housing subsidies to project-based voucher assistance where such
    conversion is done in conjunction with financing of any necessary
    capital improvements of properties that will be covered by such
    assistance, $120,000,000; for lease adjustments to section 23 projects,
    $500,000; for the development of and modifications to information
    technology systems which serve programs or activities under Public and
    Indian Housing, $18,600,000 for transfer to the Working Capital Fund; to
    make grants to public housing agencies for emergency capital needs and
    natural disasters in fiscal year 2003, $75,000,000; for Neighborhood
    Networks grants for activities authorized in section 9(d)(1)(E) of the
    Act, awarded to public housing agencies on a competitive basis as
    provided in section 102 of the Department of Housing and Urban
    Development Reform Act of 1989, $15,000,000; for supportive services,
    service coordinators and congregate services as authorized by section 34
    of the Act and the Native American Housing Assistance and Self-
    Determination Act of 1996, $55,000,000: Provided, That no funds may be
    used under this heading for the purposes specified in section 9(k) of
    the Act. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital Grants....................       3,581       2,649       2,208
    00.02 Emergency/Disaster................          28          75          75
    00.03 Technical Assistance..............         150          51          54
    00.04 Working Capital Fund..............                      53          19
    00.05 Neighborhood Network Initiative...                      15          15
    00.06 Resident Opportunities and
            Supportive Services.............                                  55
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       3,759       2,843       2,426
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,536         696         696
    22.00 New budget authority (gross)......       2,993       2,843       2,426
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          50
    22.75 Balance of contract authority
            withdrawn.......................        -124
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,455       3,539       3,122
    23.95 Total new obligations.............      -3,759      -2,843      -2,426
    24.40 Unobligated balance carried
            forward, end of year............         696         696         696
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,000       2,843       2,426
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,993       2,843       2,426
          Mandatory:

    60.00   Appropriation...................         500         589         589
    60.49   Portion applied to liquidate
              contract authority............        -500        -589        -589
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,993       2,843       2,426
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      11,836      11,995      11,182
    73.10 Total new obligations.............       3,759       2,843       2,426
    73.20 Total outlays (gross).............      -3,550      -3,656      -3,553
    73.45 Recoveries of prior year
            obligations.....................         -50
    74.40 Obligated balance, end of year....      11,995      11,182      10,055
    75.01 Obligated balance, start of year:
            Contract authority..............       4,952       4,328       4,352
    75.02 Obligated balance, end of year:
            Contract authority..............       4,328       3,739       3,763
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         136         117         161
    86.93 Outlays from discretionary
            balances........................       3,414       3,539       3,392
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,550       3,656       3,553
    ----------------------------------------------------------------------------

    [[Page 477]]

        Net budget authority and outlays:
    89.00 Budget authority..................       2,993       2,843       2,426
    90.00 Outlays...........................       3,550       3,656       3,553
    ---------------------------------------------------------------------------

        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 $2.426 billion requested for the Public Housing Capital Fund,
    approximately $2.2 billion is provided to cover annual accrual needs. Up
    to $120 million may be used for a new initiative that has the promise to
    address the public housing capital backlog by enabling housing
    authorities to privately finance their properties. Other uses include up
    to $55 million to provide supportive services to public housing
    residents under the Resident Opportunities and Supportive Services
    (ROSS) program, up to $75 million for emergencies or disasters, up to
    $54 million for technical assistance, up to $19 million for the Working
    Capital Fund, and up to $15 million for Neighborhood Networks.

        The budget provides a means by which Public Housing Authorities
    (PHAs) can privately finance the capital needs of properties that can be
    underwritten to market standards. A loan loss reserve would be
    established as a credit enhancement to protect lenders in the case of
    default. Properties recapitalized under this new financing model would
    be converted to project-based vouchers. Conversion would allow capital
    needs to be financed on a property basis as is done in the private
    sector, and the project-based voucher program gives additional choice
    and mobility to residents in the selection of their housing. In
    addition, such conversion will facilitate PHA management and finance on
    a property-by-property basis and thus increase accountability for
    efficient management, and will relate ongoing Federal subsidies more
    closely to the rental market. Many housing authorities should be able to
    take advantage of this voluntary initiative to improve the living
    conditions of their residents and their own management.

        Legislation is being proposed to accompany this proposal. It
    provides changes in the applicability of the project-based voucher so
    that the program is workable for current public housing sites; allows
    for the creation of a loan loss reserve; authorizes the use of up-front
    capital contributions where necessary (for which up to $50 million in
    HOPE VI grants would be made available in FY 2003); and provides other
    necessary details.

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............       4,952       4,328       4,352
    0400  Appropriation to liquidate
            contract authority..............        -500        -589        -589
    0600  Balance of contract authority
            withdrawn.......................        -124
    0700  Balance, end of year..............       4,328       3,739       3,763
    ---------------------------------------------------------------------------

                          Public Housing Operating Fund

                 (including transfer [and rescission] 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(e)),
    [$3,494,868,000] $3,530,000,000, to remain available until September 30,
    [2003: Provided, That of the total amount provided under this heading,
    $5,000,000 shall be provided to the Office of Inspector General:
    Provided further, That of the total amount provided under this heading,]
    2004; of which up to $130,000,000 may be used for the conversion of
    public housing subsidies to project-based voucher assistance where such
    conversion is done in conjunction with the financing of any necessary
    capital improvements of the properties that will be covered by such
    assistance; and of which $10,000,000 shall be for programs, as
    determined appropriate by the Attorney General, which assist in the
    investigation, prosecution, and prevention of violent crimes and drug
    offenses in public and federally-assisted low-income housing, including
    Indian housing[: Provided further, That funds made available in the
    previous proviso], which shall be administered by the Department of
    Justice through a reimbursable agreement with the Department of Housing
    and Urban Development: Provided [further], That no funds may be used
    under this heading for the purposes specified in section 9(k) of the
    United States Housing Act of 1937, as amended[: Provided further, That
    of the unobligated balances remaining from funds appropriated in fiscal
    year 2001 and prior years under the heading ``Drug elimination grants
    for low-income housing'' for activities related to the Operation Safe
    Home Program, $11,000,000 is hereby rescinded]. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0163-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating Subsidy.................       3,152       3,621       3,520
    00.02 Office of Inspector General.......                       5
    00.03 Department of Justice Anti-Drug...                      10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       3,152       3,636       3,530
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          55         141
    22.00 New budget authority (gross)......       3,235       3,495       3,530
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,293       3,636       3,530
    23.95 Total new obligations.............      -3,152      -3,636      -3,530
    24.40 Unobligated balance carried
            forward, end of year............         141
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,242       3,495       3,530
    40.35   Appropriation rescinded.........          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,235       3,495       3,530
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,671       1,683       1,934
    73.10 Total new obligations.............       3,152       3,636       3,530
    73.20 Total outlays (gross).............      -3,137      -3,385      -3,458
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....       1,683       1,934       2,006
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,463       1,616       1,629
    86.93 Outlays from discretionary
            balances........................       1,674       1,769       1,830
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,137       3,385       3,458
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,235       3,495       3,530
    90.00 Outlays...........................       3,137       3,385       3,458
    ---------------------------------------------------------------------------

        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. It is anticipated that $2.4
    billion provides 100 percent of subsidy requirements in 2003.

        The following tables display the sources of housing authorities'
    expected revenue and expenditures by category for 2003. The distribution
    is based on historical data reported by housing authorities to HUD on
    the Statement of Operating Receipts and Expenditures.

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

                    Category                 Annual income    Percent of
                                                                 total
    Operating Subsidies.....................         3,530             53%
    Dwelling Rental.........................         2,598             39%

    [[Page 478]]

    Investment..............................           266              4%
    Other Income............................           266              4%
                                             -------------  --------------

       Total, Operating Revenue.............         6,660            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...............................         1,465             22%
    Administration..........................         1,798             27%
    General Operating Expenses..............           533              8%
    Maintenance.............................         2,397             36%
    Tenant Services.........................           133              2%
    Protective Services.....................           200              3%
    Capital Expenditures....................            67              1%
    Operating Reserve.......................            67              1%
                                             -------------  --------------

       Total, Operating Expenses............         6,660            100%
                                             -------------  --------------

        Utilities.--Includes water, sewer, electricity, gas, and fuel.

        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)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0197-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         292         112
    00.02 Federally Assisted Housing........          17          19
    00.03 Operation Safe Home...............          14           6
    00.04 New Approach Anti-Drug Program....          29          22
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         352         159
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         209         171
    22.00 New budget authority (gross)......         309         -11
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         522         160
    23.95 Total new obligations.............        -352        -159
    24.40 Unobligated balance carried
            forward, end of year............         171
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         310
    40.35   Appropriation rescinded.........          -1
    40.36   Unobligated balance rescinded...                     -11
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         309         -11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         451         490         336
    73.10 Total new obligations.............         352         159
    73.20 Total outlays (gross).............        -309        -312        -247
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.40 Obligated balance, end of year....         490         336          89
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         309         312         247
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         309         -11
    90.00 Outlays...........................         309         312         247
    ---------------------------------------------------------------------------

        The Public Housing Drug Elimination Grants program was terminated in
    the 2002 Budget. 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. PHAs can
    supplement other public housing security efforts using operating funds
    if they choose.

         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, as amended, [$573,735,000] $574,000,000, to remain available
    until September 30, [2003] 2004, of which the Secretary may use up to
    $50,000,000 for grants for capital costs at properties for which public
    housing subsidies are being converted to project-based voucher
    assistance and for which such grants are necessary to permit the
    financing of the remaining capital costs in conjunction with such
    assistance; and up to $6,250,000 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

    [[Page 479]]

    directly or indirectly by granting competitive advantage in awards to
    settle litigation or pay judgments, unless expressly permitted herein:
    Provided further, That of the total amount provided under this heading,
    $5,000,000 shall be for a Neighborhood Networks initiative for
    activities authorized in section 24(d)(1)(G) of the United States
    Housing Act of 1937, as amended: Provided further, That notwithstanding
    any other provision of law, amounts made available in the previous
    proviso shall be awarded to public housing agencies on a competitive
    basis as provided 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0218-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         639       1,137         513
    00.02 Technical Assistance..............          13          11           6
    00.03 Urban Institute Study.............           1
    00.04 Elderly Demolitions...............                       1
    00.05 Neighborhood Networks.............                       5           5
    00.06 Capital Costs Grants..............                                  50
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         653       1,154         574
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         660         581           1
    22.00 New budget authority (gross)......         574         574         574
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,235       1,155         575
    23.95 Total new obligations.............        -653      -1,154        -574
    24.40 Unobligated balance carried
            forward, end of year............         581           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,413       2,579       3,181
    73.10 Total new obligations.............         653       1,154         574
    73.20 Total outlays (gross).............        -487        -552        -608
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....       2,579       3,181       3,147
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           6           6
    86.93 Outlays from discretionary
            balances........................         486         546         602
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         487         552         608
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         574         574         574
    90.00 Outlays...........................         487         552         608
    ---------------------------------------------------------------------------

        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) (25 U.S.C. 4111 et seq.),
    [$648,570,000] $646,600,000, to remain available until expended, of
    which $2,200,000 shall be contracted through the Secretary as technical
    assistance and capacity building to be used by the National American
    Indian Housing Council in support of the implementation of NAHASDA; of
    which [$5,000,000] $3,000,000 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 no less than [$3,000,000] $600,000 shall be
    transferred to the Working Capital Fund for [the development and
    maintenance of information technology systems] development of and
    modifications to information technology systems which serve programs or
    activities under ``Public and Indian Housing'': Provided, That of the
    amount provided under this heading, [$5,987,000] $2,000,000 shall be
    made available for the cost of guaranteed notes and other obligations,
    as authorized by title VI of NAHASDA: Provided further, That such costs,
    including the costs of modifying such notes and other obligations, shall
    be as defined in section 502 of the Congressional Budget Act of 1974, as
    amended: Provided further, That these funds are available to subsidize
    the total principal amount of any notes and other obligations, any part
    of which is to be guaranteed, not to exceed [$52,726,000] $16,657,633:
    Provided further, That the Secretary of Housing and Urban Development
    may provide technical and financial assistance to Indian tribes and
    their tribally-designated housing entities in accordance with the
    provisions of NAHASDA for emergency housing, housing assistance, and
    other assistance to address the problem of mold: Provided further, That
    for administrative expenses to carry out the guaranteed loan program, up
    to [$150,000] $156,000 from amounts in the first proviso, which shall be
    transferred to and merged with the appropriation for ``Salaries and
    expenses'', to be used only for the administrative costs of these
    guarantees. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Indian Housing Block Grants.......         634         635         641
    00.02 Title VI Loan Guarantee Subsidy...           1           6           2
    00.03 Technical Assistance..............           4           5           3
    00.04 Working Capital Fund..............           2           3           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         641         649         647
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         175         187         187
    22.00 New budget authority (gross)......         649         649         647
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         829         836         834
    23.95 Total new obligations.............        -641        -649        -647
    24.40 Unobligated balance carried
            forward, end of year............         187         187         187
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         650         649         647
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         649         649         647
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,082       1,034         972
    73.10 Total new obligations.............         641         649         647
    73.20 Total outlays (gross).............        -684        -711        -740
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.40 Obligated balance, end of year....       1,034         972         878
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         106         113         113
    86.93 Outlays from discretionary
            balances........................         578         598         627
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         684         711         740
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         649         649         647
    90.00 Outlays...........................         684         711         740
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Title VI..........................           9          53          17
                                               ---------   ---------  ----------

    [[Page 480]]

    215901Total loan guarantee levels.......           9          53          17
        Guaranteed loan subsidy (in percent):
    232001Title VI..........................       11.07       11.07       11.07
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       11.07       11.07       11.07
        Guaranteed loan subsidy budget authority:
    233001Title VI..........................           1           6           2
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....           1           6           2
        Guaranteed loan subsidy outlays:
    234001Title VI..........................           1           3           2
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............           1           3           2
    ---------------------------------------------------------------------------

        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.

        The Native American Housing Block Grant program includes a
    guaranteed loan provision (Title VI). A guarantee level of $17 million
    is proposed for this loan guarantee program for 2003. 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.

                       Native Hawaiian Housing Block Grant

        For the Native Hawaiian Housing Block Grant program, as authorized
    under title VIII of the Native American Housing Assistance and Self-
    Determination Act of 1996 (25 U.S.C. 4111 et seq.), $10,000,000, to
    remain available until expended, of which $400,000 shall be for training
    and technical assistance activities.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0235-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Native Hawaiian Housing Block
            Grant...........................                                  10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  10
    23.95 Total new obligations.............                                 -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  10
    73.20 Total outlays (gross).............                                  -1
    74.40 Obligated balance, end of year....                                   9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  10
    90.00 Outlays...........................                                   1
    ---------------------------------------------------------------------------

        The Hawaiian Homelands Homeownership Act of 2000 (P.L. 106-568)
    amended the Native American Housing Assistance and Self-Determination
    Act of 1996 by adding Title VIII, which authorized the Native Hawaiian
    Housing Block Grant program. This program provides an allocation of
    funds to assist and promote affordable housing activities to develop,
    maintain and operate affordable housing for eligible low-income Native
    Hawaiian families.

        It authorizes annual grants to the Department of Hawaiian Home Lands
    (DHHL) for housing and housing-related assistance, pursuant to an annual
    housing plan, within the area in which DHHL is authorized to provide
    that assistance. DHHL uses performance measures and benchmarks that are
    consistent with the national goals of the program, but it can base these
    measures on the needs and priorities that it establishes in its five-
    and one-year housing plans.

    Public enterprise funds:

                Low-Rent Public Housing--Loans and Other Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program: Capital
            investment loans to PHAs........           7          40          40
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................           7          40          40
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          20          20          20
    22.00 New budget authority (gross)......         102         111         114
    22.60 Portion applied to repay debt.....         -94         -71         -71
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          28          60          63
    23.95 Total new obligations.............          -7         -40         -40
    24.40 Unobligated balance carried
            forward, end of year............          20          20          23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          25          40          40
    69.00 Offsetting collections (cash).....          77          71          74
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         102         111         114
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         772         682         611
    73.10 Total new obligations.............           7          40          40
    73.20 Total outlays (gross).............         -97        -111        -114
    74.40 Obligated balance, end of year....         682         611         537
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          77         111         114
    86.98 Outlays from mandatory balances...          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          97         111         114
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -70         -71         -74
    88.40     Non-Federal sources...........          -7
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -77         -71         -74
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          40          40
    90.00 Outlays...........................          21          40          40
    ---------------------------------------------------------------------------

    [[Page 481]]

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,350       1,280       1,210
    1251  Repayments: Repayments and
            prepayments.....................         -70         -70         -70
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,280       1,210       1,140
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       2,742       2,464       2,186
    2251  Repayments and prepayments........        -278        -278        -278
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       2,464       2,186       1,908
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       2,464       2,186       1,908
    ---------------------------------------------------------------------------

        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 by borrowing from the Treasury. Under legislation enacted during
    1986 (Public Law 99-272), amounts borrowed 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
    borrowed from the Treasury was forgiven in 2001, an estimated $40
    million will be borrowed from the Treasury and forgiven in 2002, and an
    estimated $40 million will be borrowed from the Treasury and forgiven in
    2003.

        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 2000, 2001, 2002 and 2003 follows:

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         102             89           100            100
    0102  Expense...........................         -99            -91           -99            -99
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           3             -2             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         792            702           792            792
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       1,359          1,282         1,359          1,359
    1602    Interest receivable.............          85             80            85             85
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -2             -1            -2             -2
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       1,442          1,361         1,442          1,442
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,442          1,361         1,442          1,442
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,234          2,063         2,234          2,234
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         164            151           164            164
    2104    Resources payable to Treasury...       1,348          1,279         1,348          1,348
    2207  Non-Federal liabilities: Other....           2              2             2              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,514          1,432         1,514          1,514
        NET POSITION:
    3100  Appropriated capital..............         705            636           705            705
    3300  Cumulative results of operations..          15             -5            15             15
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         720            631           720            720
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,234          2,063         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 (12 U.S.C. 1715z-13a),
    [$5,987,000] $5,000,000, to remain available until expended: Provided,
    That such costs, including the costs of modifying such loans, shall be
    as defined in section 502 of the Congressional Budget Act of 1974, as
    amended: Provided further, That these funds are available to subsidize
    total loan principal, any part of which is to be guaranteed, not to
    exceed [$234,283,000] $197,242,798.
        In addition, for administrative expenses to carry out the guaranteed
    loan program, up to [$200,000] $207,000 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........           1           6           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           1           6           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          17          22          22
    22.00 New budget authority (gross)......           6           6           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          23          28          27
    23.95 Total new obligations.............          -1          -6          -5
    24.40 Unobligated balance carried
            forward, end of year............          22          22          23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           6           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           3           2
    73.10 Total new obligations.............           1           6           5
    73.20 Total outlays (gross).............          -1          -7          -7
    74.40 Obligated balance, end of year....           3           2           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.93 Outlays from discretionary
            balances........................                       6           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           7           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6           5
    90.00 Outlays...........................           1           7           7
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Indian Housing Loan Guarantee.....          12         234         194
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......          12         234         194
        Guaranteed loan subsidy (in percent):
    232001Loan guarantee levels.............        8.13        2.47        2.43
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        8.13        2.47        2.43

    [[Page 482]]

        Guaranteed loan subsidy budget authority:
    233001Loan guarantee levels.............           1           6           5
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....           1           6           5
        Guaranteed loan subsidy outlays:
    234001Loan guarantee levels.............           1           3           3
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............           1           3           3
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Indian Housing Loan Guarantee.....          -6
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................          -6
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Indian Housing Loan Guarantee.....          -6
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................          -6
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................
    358001Outlays from balances.............
    359001Outlays from new authority........
    ---------------------------------------------------------------------------

        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)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    08.02 Payment of Downward Re-Estimate to
            Receipt Account.................           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8           6           9
    22.00 New financing authority (gross)...           4           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          12           9          12
    23.95 Total new obligations.............          -6
    24.40 Unobligated balance carried
            forward, end of year............           6           9          12
    ----------------------------------------------------------------------------

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

            Discretionary:
    68.00     Federal sources...............           1           3           3
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           3
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           4           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      -3          -3
    73.10 Total new obligations.............           6
    73.20 Total financing disbursements
            (gross).........................          -6
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3
    74.40 Obligated balance, end of year....          -3          -3          -1
    87.00 Total financing disbursements
            (gross).........................           6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources:
              Payments from program account.          -1          -3          -3
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -3
    ----------------------------------------------------------------------------

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          72         234         234
    2121  Limitation available from carry-
            forward.........................         213         272         486
    2143  Uncommitted limitation carried
            forward.........................        -272        -486        -700
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          13          20          20
    2199  Guaranteed amount of guaranteed
            loan commitments................          13          20          20
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          60          66          77
    2231  Disbursements of new guaranteed
            loans...........................          10          20          23
    2251  Repayments and prepayments........          -4          -8          -9
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................                      -1          -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          66          77          89
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          66          77          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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           8              4             6              6
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           8              4             6              6
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           8              4             6              6
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           8              4             6              6
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           8              4             6              6
    -----------------------------------------------------------------------------------------------

           Native Hawaiian Housing Loan Guarantee Fund Program Account

                          (including transfer of funds)

        For the cost of guaranteed loans, as authorized by section 184A of
    the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13b),
    $1,000,000, to remain available until expended: Provided, That such
    costs, including the costs of modifying such loans, shall be as defined
    in section 502 of the Congressional Budget Act of 1974, as amended:
    Provided further, That these funds are available to subsidize total loan
    principal, any part of which is to be guaranteed, not to exceed
    [$40,000,000] $39,711,934.

    [[Page 483]]

        In addition, for administrative expenses to carry out the guaranteed
    loan program, up to $35,000 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0233-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                       1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   1
    ----------------------------------------------------------------------------

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

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

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

    ----------------------------------------------------------------------------
    Identification code 86-0233-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Native Hawaiian Housing...........                      40          40
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                      40          40
        Guaranteed loan subsidy (in percent):
    232001Loan guarantee levels.............                    2.47        2.43
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....                    2.47        2.43
        Guaranteed loan subsidy budget authority:
    233001Loan guarantee levels.............                       1           1
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                       1           1
        Guaranteed loan subsidy outlays:
    234001Native Hawaiian Housing...........                                   1
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                                   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 2001 and beyond (including modifications of
    guarantees that resulted from obligations in any year). The subsidy
    amounts are estimated on a net present value. The administrative
    expenses are shown on a cash basis.

        This program provides access to sources of private financing to
    eligible Native Hawaiian families who reside on the Hawaiian Home Lands
    and who otherwise could not acquire private financing because of the
    unique legal status of the Hawaiian Home Lands.

          Native Hawaiian Housing Loan Guarantee Fund Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4351-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                   1
    24.40 Unobligated balance carried
            forward, end of year............                                   1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Federal sources......                                   1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources:
              Payments from program account.                                  -1
    ----------------------------------------------------------------------------

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4351-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                      40          40
    2121  Limitation available from carry-
            forward.........................                                  40
    2143  Uncommitted limitation carried
            forward.........................                     -40         -70
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                                  10
    2199  Guaranteed amount of guaranteed
            loan commitments................                                  10
    ----------------------------------------------------------------------------

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

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4351-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           8                                           1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           8                                           1
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           8                                           1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           8                                           1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           8                                           1
    -----------------------------------------------------------------------------------------------

        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 2001 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.

              Title VI Indian Federal Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1           4
    22.00 New financing authority (gross)...           1           3           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           4           6
    24.40 Unobligated balance carried
            forward, end of year............           1           4           7
    ----------------------------------------------------------------------------

    [[Page 484]]

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............           1           3           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -3          -2
    ----------------------------------------------------------------------------

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          53          53          17
    2121  Limitation available from carry-
            forward.........................         151         194         221
    2143  Uncommitted limitation carried
            forward.........................        -194        -221        -198
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          10          26          40
    2199  Guaranteed amount of guaranteed
            loan commitments................           8          21          32
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           1          10          30
    2231  Disbursements of new guaranteed
            loans...........................           9          23          36
    2251  Repayments and prepayments........                      -3          -2
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................                                  -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          10          30          63
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           8          24          50
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4244-0-3-604    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           1              1             3              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1              1             3              3
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           1              1             3              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              1             3              3
        NET POSITION:
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1              1             3              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 et seq.), [$277,432,000] $292,000,000, to remain available until
    September 30, [2003] 2004: Provided, That the Secretary shall renew all
    expiring contracts for permanent supportive housing 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
    $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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0308-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing for Persons with HIV/AIDS.         239         277         292
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         239         277         292
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          69          88          88
    22.00 New budget authority (gross)......         257         277         292
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         326         365         380
    23.95 Total new obligations.............        -239        -277        -292
    24.40 Unobligated balance carried
            forward, end of year............          88          88          88
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         258         277         292
    40.35   Appropriation rescinded.........          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         257         277         292
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         441         439         466
    73.10 Total new obligations.............         239         277         292
    73.20 Total outlays (gross).............        -241        -250        -260
    74.40 Obligated balance, end of year....         439         466         498
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1          11          12
    86.93 Outlays from discretionary
            balances........................         240         239         248
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         241         250         260
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         257         277         292
    90.00 Outlays...........................         241         250         260
    ---------------------------------------------------------------------------

        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 and
    project sponsors to strengthen management of programs and ensure
    responsiveness in meeting client needs. States and metropolitan areas
    receive 90 percent of the remaining funds by formula based on the number
    of cases of AIDS and, for metropolitan areas, the incidence of AIDS in
    that area. The final 10 percent is awarded competitively to States,
    local governments, and private nonprofit entities, including faith-based
    organizations, for projects of national significance with priority for
    renewal of the projects providing permanent supportive housing. 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 2003 will support an additional 3,800 households,
    for a total of approximately 55,900 housing units for persons with HIV/
    AIDS and their families.

    [[Page 485]]

                    Community Development [Fund] Block Grants

                         (including transfers of funds)

        For assistance to units of State and local government, and to other
    entities, for economic and community development activities, and for
    other purposes, [$5,000,000,000] $4,715,500,000, to remain available
    until September 30, [2004] 2005: Provided, That of the amount provided,
    [$4,341,000,000] $4,436,000,000 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 et seq.): Provided further, That for entitlement communities
    with per capita income two or more times the national average, the
    formula funding otherwise available will be reduced by fifty percent and
    the resulting savings will be redistributed to the other entitlement
    communities under the formula: Provided further, That [$70,000,000]
    $72,500,000 shall be for grants to Indian tribes notwithstanding section
    106(a)(1) of such Act, of which up to $1,500,000 shall be for the Native
    American Economic Development Access Center; [$3,300,000] $3,000,000
    shall be [available as] for a grant to the Housing Assistance Council;
    [$2,600,000] $2,200,000 shall be [available as] for a grant to the
    National American Indian Housing Council; [$5,000,000 shall 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; $5,000,000 shall be
    available as a grant to the National Council of La Raza for the HOPE
    Fund, of which $500,000 is for technical assistance and fund management,
    and $4,500,000 is for investments in the HOPE Fund and financing to
    affiliated organizations;] and [$42,500,000] $38,900,000 shall be for
    grants pursuant to section 107 of the Act of which [$4,000,000]
    $2,400,000 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] for tribal colleges and universities to build,
    expand, renovate and equip their facilities: [Provided further, That
    $9,600,000 shall be made available to the Department of Hawaiian
    Homelands to provide assistance as authorized under title VIII of the
    Native American Housing Assistance and Self-Determination Act of 1996
    (22 U.S.C. 4221 et seq.) (with no more than 5 percent of such funds
    being available for administrative costs):] Provided further, That no
    less than [$13,800,000] $3,400,000 shall be transferred to the Working
    Capital Fund for the development [and maintenance] of and modification
    to information technology systems: which serve programs or activities
    under ``Community Planning and Development'' Provided further, That
    [$22,000,000] $65,000,000 shall be for grants pursuant to the Self Help
    [Housing] Homeownership Opportunity Program: Provided further, That not
    to exceed 20 percent of any grant made with funds appropriated under
    this heading (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 Act)
    shall be expended for ``Planning and Management Development'' and
    ``Administration'', as defined in regulations promulgated by the
    Department.
        Of the amount [made available] under this heading, [$29,000,000]
    $29,500,000 shall be [made available] for capacity building, of which
    $25,000,000 shall be [made available] for Capacity Building for
    Community Development and Affordable Housing for LISC and the Enterprise
    Foundation for activities as authorized by section 4 of the HUD
    Demonstration Act of 1993 (42 U.S.C. 9816 note), as in effect
    immediately before June 12, 1997, with not less than $5,000,000 of the
    funding to be used in rural areas, including tribal areas, and of which
    [$4,000,000] $4,500,000 shall be 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 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, $42,000,000 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 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, notwithstanding any
    other provision of law, $65,000,000 shall be available for YouthBuild
    program activities authorized by subtitle D of title IV of the Cranston-
    Gonzalez National Affordable Housing Act, as amended, and such
    activities shall be an eligible activity with respect to any funds made
    available under this heading: Provided, That local YouthBuild programs
    that demonstrate an ability to leverage private and nonprofit funding
    shall be given a priority for YouthBuild funding: Provided further, That
    no more than 10 percent of any grant award may be used for
    administrative costs: Provided further, That not less than $10,000,000
    shall be available for grants to establish YouthBuild programs in
    underserved and rural areas: Provided further, That of the amount
    provided under this paragraph, $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 amount made available under this heading, $294,200,000 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.] (Departments of Veterans Affairs
    and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2002.)
        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Community Development
    Fund'', $2,000,000,000, to remain available until expended, to be
    obligated from amounts made available in Public Law 107-38: Provided,
    That such funds shall be subject to the first through sixth provisos in
    section 434 of Public Law 107-73: Provided further, That the State of
    New York, in conjunction with the City of New York, shall, through the
    Lower Manhattan Redevelopment Corporation (``the corporation''): (1)
    distribute the funds provided for the ``Community Development Fund'';
    (2) within 45 days of enactment of this Act, issue the initial criteria
    and requirements necessary to accept applications from individuals,
    nonprofits, and small businesses for economic losses from the September
    11, 2001, terrorist attacks; and (3) begin processing such applications:
    Provided further, That the corporation shall expeditiously respond to
    any application from an individual, non-profit, or small business for
    economic losses under this heading: Provided further, That of the total
    amount made available for the ``Community Development Fund'', including
    amounts previously made available by transfer pursuant to the fifth
    proviso of Public Law 107-38, no less than $500,000,000 shall be made
    available for individuals, nonprofits, or small businesses described in
    the prior three provisos, with a limit of $500,000 per small business
    for economic losses: Provided further, That amounts made available in
    the previous proviso shall only be available for individuals,
    nonprofits, or small businesses located in New York City in the area
    located on or south of West 14th Street (west of its intersection with
    5th Avenue), or on or south of East 14th street (east of its
    intersection with 5th Street): Provided further, That, of the amount
    provided in this paragraph, $10,000,000 shall be used for a program to
    aid the travel and tourism industry in New York City.] (Emergency
    Supplemental Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Community Development Grants......       4,953       6,012       4,713
    00.02 World Trade Center Response.......                   2,700
    00.03 Working Capital Fund..............          15          14           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       4,968       8,726       4,716
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         883       1,026
    22.00 New budget authority (gross)......       5,112       7,000       4,716
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.22 Unobligated balance transferred
            from other accounts.............                     700
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,999       8,726       4,716

    [[Page 486]]

    23.95 Total new obligations.............      -4,968      -8,726      -4,716
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    24.40 Unobligated balance carried
            forward, end of year............       1,026
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................       5,602       5,000       4,716
    40.00     Appropriation--pursuant to
                Defense Supp (HR 3338)......                   2,000
    40.36   Unobligated balance rescinded...        -479
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............         -11
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       5,112       7,000       4,716
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       9,074       9,091      12,582
    73.10 Total new obligations.............       4,968       8,726       4,716
    73.20 Total outlays (gross).............      -4,939      -5,235      -5,878
    73.40 Adjustments in expired accounts
            (net)...........................          -8
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.40 Obligated balance, end of year....       9,091      12,582      11,420
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         136         300          94
    86.93 Outlays from discretionary
            balances........................       4,803       4,935       5,784
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,939       5,235       5,878
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       5,112       7,000       4,716
    90.00 Outlays...........................       4,939       5,235       5,878
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Enacted/requested:
      Budget Authority..................       5,112       7,000       4,716
      Outlays...........................       4,939       5,235       5,878
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  16
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................       5,112       7,000       4,732
      Outlays...........................       4,939       5,235       5,878
                                        ====================================

        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 2003 Budget allocates $72.5 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. Up to $1,500,000 is for the continuing operation of
    the Native American Economic Development Access Center. Unemployment on
    Indian reservations and other Indian areas is extremely high. This
    Federal interagency project provides economic development information to
    Indian and non-Indian individuals and enterprises.

        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 budget proposes to reduce by fifty percent the
    formula funds which would otherwise be available for entitlement
    communities that have a per capita income two or more times the national
    average. These savings allow for the funding of a $16 million Colonias
    Gateway Initiative which will help direct considerable assistance to
    very low income communities. The proposed level of funding for CDBG and
    the Section 108 Loan Guarantee Program will support an estimated 122,987
    and 15,000 jobs, respectively. These funds will also help to
    rehabilitate 180,260 housing units.

        Section 107 Grants include funding for technical assistance to
    support local and State grantees, management information systems
    support, Historically Black Colleges and Universities, Hispanic serving
    Institutions, the Community Development Work Study, Community Outreach
    Partnership Centers (COPC), Tribal Colleges and Universities and Alaska
    Native and Native Hawaiian Serving Institutions programs. There is also
    a legislative proposal to move the funding for the Insular areas out of
    Section 107 and into Section 106, the Formula program.

        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 2003
    Budget includes $25 million for this program. In addition, $4.5 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 families and individuals. 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 2003 request for $65 million
    will provide more than 3,774 young people with skills they need to
    obtain jobs. Funding of $65 million is provided for the Self-Help
    Homeownership Opportunity Program (Shop) which is targeted at very low-
    income populations. The three-fold increase reflects the growing
    capacity of self-help housing organizations to expand upon recent
    successes in making home ownership a viable option. In addition, $3
    million is provided for the Housing Assistance Council as well as $2.2
    million for the Native American Indian Housing Council to meet unserved
    rural and Native American housing needs.

        The 2003 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, $2.4 million is
    provided to assist Alaska Native and Native Hawaiian Serving
    institutions.

                   (Legislative proposal not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-2-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Colonias Gateway Initiative.......                                  16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  16
    ----------------------------------------------------------------------------

    [[Page 487]]

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  16
    74.40 Obligated balance, end of year....                                  16
    ----------------------------------------------------------------------------

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

        The Budget also provides $16 million for the Colonias Gateway
    Initiative to enhance the availability of affordable housing, economic
    opportunity, and infrastructure in the Colonias by establishing a non-
    profit entity with the mission of improving the coordination of public,
    private, and community-based resources in the Colonias. Colonias are
    rural communities within 150 miles of the U.S. Mexican border that lack
    adequate infrastructure and other basic services.

                   [Empowerment Zones/Enterprise Communities]

        [For grants in connection with a second round of empowerment zones
    and enterprise communities, $45,000,000, to remain available until
    expended, for ``Urban Empowerment Zones'', as authorized in section
    1391(g) of the Internal Revenue Code of 1986 (26 U.S.C. 1391(g)),
    including $3,000,000 for each empowerment zone for use in conjunction
    with economic development activities consistent with the strategic plan
    of each empowerment zone.] (Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act,
    2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0315-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Develop urban sites...............         185          45
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         185          45
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         185          45
    23.95 Total new obligations.............        -185         -45
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         185          45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          93         246         202
    73.10 Total new obligations.............         185          45
    73.20 Total outlays (gross).............         -31         -89        -104
    74.40 Obligated balance, end of year....         246         202          98
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1
    86.93 Outlays from discretionary
            balances........................          31          89         104
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          31          89         104
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         185          45
    90.00 Outlays...........................          31          89         104
    ---------------------------------------------------------------------------

        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. Empowerment
    Zone principles 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 VA
    HUD Appropriations Act of 2002 (P.L. 107-73) provided $45 million for
    Round II Urban Empowerment Zones that will bring the total funding for
    Round II urban EZs through 2002 to $330 million. No new funding is
    proposed for EZ's in FY 2003.

        Funding provides 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 includes 40 competitively selected communities.

                            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 available
    until September 30, [2003] 2004: 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: Provided further, That notwithstanding
    section 108(q) of the Housing and Community Development Act of 1974,
    recipients of funding made available under this heading may, at the
    discretion of the Secretary, also apply for funding under section 108.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0314-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Cleanup and develop contaminated
            sites...........................          49          26          25
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          49          26          25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          25           1
    22.00 New budget authority (gross)......          25          25          25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          50          26          25
    23.95 Total new obligations.............         -49         -26         -25
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          46          91          91
    73.10 Total new obligations.............          49          26          25
    73.20 Total outlays (gross).............          -4         -26         -31
    74.40 Obligated balance, end of year....          91          91          85
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            balances........................           4          25          30
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4          26          31
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          25          25

    [[Page 488]]

    90.00 Outlays...........................           4          26          31
    ---------------------------------------------------------------------------

        The Brownfields Redevelopment initiative provides competitive
    economic development grants, which may be done in conjunction with
    Section 108 loan guarantees, for qualified brownfield projects.
    Previously Brownfields grants had to be used with section 108 loan
    guarantees. 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 2003
    request of $25 million will enable communities to reclaim and redevelop
    approximately 19 Brownfield sites.

                               Youthbuild Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0219-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1
    73.20 Total outlays (gross).............                      -1
    74.40 Obligated balance, end of year....           1
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                       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 Youthbuild program has been funded as a set-aside
    within the CDBG program since 1996. The 2003 set aside request of $65
    million will provide more than 3,774 young people with skills they need
    to get jobs. The obligated balance and outlays 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, [$1,846,040,000] $2,084,100,000, to remain available until
    September 30, [2004: Provided, That of the total amount provided under
    this heading, $50,000,000] 2005, of which $200,000,000 shall be
    available for the Downpayment Assistance Initiative[, subject to the
    enactment of subsequent legislation authorizing such initiative:
    Provided further, That should legislation authorizing such initiative
    not be enacted by June 30, 2002, amounts designated in the previous
    proviso shall become available for any such purpose authorized under
    title II of the Cranston-Gonzalez National Affordable Housing Act, as
    amended: Provided further, That of the total amount provided under this
    heading, up to $20,000,000 shall be available for housing counseling
    under section 106 of the Housing and Urban Development Act of 1968;
    and]; and no less than [$17,000,000] $1,100,000 shall be transferred to
    the Working Capital Fund for the development of and maintenance of, and
    modification to information technology systems which serve Programs or
    activities under ``Community Planning and Development''. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0205-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 HOME grants.......................       1,706       1,846       2,084
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,706       1,846       2,084
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         189         284         284
    22.00 New budget authority (gross)......       1,796       1,846       2,084
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,990       2,130       2,368
    23.95 Total new obligations.............      -1,706      -1,846      -2,084
    24.40 Unobligated balance carried
            forward, end of year............         284         284         284
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,800       1,846       2,084
    40.35   Appropriation rescinded.........          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,796       1,846       2,084
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       4,107       4,383       4,678
    73.10 Total new obligations.............       1,706       1,846       2,084
    73.20 Total outlays (gross).............      -1,424      -1,551      -1,600
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.40 Obligated balance, end of year....       4,383       4,678       5,162
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          38          37          42
    86.93 Outlays from discretionary
            balances........................       1,386       1,514       1,558
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,424       1,551       1,600
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,796       1,846       2,084
    90.00 Outlays...........................       1,424       1,551       1,600
    ---------------------------------------------------------------------------

        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, expanding the supply and affordability of housing. Eligible
    activities include acquisition, rehabilitation, and new construction of
    housing and tenant-based rental assistance. The 2003 request will result
    in the production of 104,000 units of affordable housing through new
    construction, rehabilitation, or acquisition. In addition, tenant-based
    rental assistance will be provided for 12,700 units.

        The HOME request also includes up to $1.1 million for information
    technology related projects, funding for technical assistance, and $1
    million for program management and analytical support.

                           Homeless Assistance Grants

                          (including transfer of funds)

        For the emergency shelter grants program as authorized under
    subtitle B of title IV of the McKinney-Vento Homeless Assistance

    [[Page 489]]

    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 McKinney-Vento Homeless
    Assistance Act; and the shelter plus care program as authorized under
    subtitle F of title IV of such Act, [$1,122,525,000] $1,129,500,000, to
    remain available until September 30, [2004] 2005: Provided, That not
    less than 30 percent of funds made available, excluding amounts provided
    for renewals under the shelter plus care program, shall be used for
    permanent housing: Provided further, That all funds awarded for services
    shall be matched by 25 percent in funding by each grantee: Provided
    further, That the Secretary shall renew on an annual basis expiring
    contracts or amendments to contracts funded under the shelter plus care
    program if the program is determined to be needed under the applicable
    continuum of care and meets appropriate program requirements and
    financial standards, as determined by the Secretary: 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 [$2,000,000] $11,000,000 of the funds
    appropriated under this heading shall be available for the national
    homeless data analysis project: Provided further, That $6,600,000 of the
    funds appropriated under this heading shall be available for technical
    assistance: Provided further, That no less than [$5,600,000] $1,500,000
    of the funds appropriated under this heading shall be transferred to the
    Working Capital Fund: for the development of and modifications to
    information technology systems which serve activities under ``Community
    Planning and Development'': Provided further, That [$500,000] $1,000,000
    shall be made available to the Interagency Council on the Homeless for
    administrative needs. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0192-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Homeless assistance grants........         999       2,531       1,130
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         999       2,531       1,130
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,340       1,408
    22.00 New budget authority (gross)......       1,023       1,123       1,130
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,407       2,531       1,130
    23.95 Total new obligations.............        -999      -2,531      -1,130
    24.40 Unobligated balance carried
            forward, end of year............       1,408
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,025       1,123       1,130
    40.35   Appropriation rescinded.........          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,023       1,123       1,130
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,510       2,500       3,969
    73.10 Total new obligations.............         999       2,531       1,130
    73.20 Total outlays (gross).............        -965      -1,062      -1,199
    73.45 Recoveries of prior year
            obligations.....................         -44
    74.40 Obligated balance, end of year....       2,500       3,969       3,900
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          12          34          34
    86.93 Outlays from discretionary
            balances........................         953       1,028       1,165
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         965       1,062       1,199
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,023       1,123       1,130
    90.00 Outlays...........................         965       1,062       1,199
    ---------------------------------------------------------------------------

        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 approaches to solving rather than institutionalizing
    homelessness. In fact, in recent years, many communities have made great
    strides in developing holistic approaches to solving homelessness.
    Requested funding would be available for a wide range of activities to
    assist homeless persons and prevent future homelessness and will support
    the Department's effort to end chronic homelessness in 10 years. The
    Administration will propose legislation to combine HUD's three
    competitive programs, Shelter Plus Care, Supportive Housing, and Section
    8 Moderate Rehabilitation Single Room Occupany into a single program
    with enough flexibility to meet community needs. The Department is also
    continuing to pursue expanded interagency efforts to meet the needs of
    the homeless. The 2003 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.

                       Emergency Food and Shelter Program

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0230-2-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................                                 153
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 153
    23.95 Total new obligations.............                                -153
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 153
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 153
    73.20 Total outlays (gross).............                                -153
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 153
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 153
    90.00 Outlays...........................                                 153
    ---------------------------------------------------------------------------

        Legislation will be submitted to transfer this program from the
    Federal Emergency Management Agency to HUD. This transfer reduces the
    number of Federal agencies administering homeless programs--for HUD,
    ending chronic homelessness is part of its core mission. The Emergency
    Food and Shelter program distributes funds rapidly and equitably to
    local jurisdictions to supplement community efforts to provide emergency
    food and shelter services. Funds will be obligated to a National Board,
    which will be chaired by HUD and whose non-profit partners (American Red
    Cross, The Salvation Army, United Way of America, and others) provide
    professional expertise. This National Board then works through similarly
    composed local boards to advertise the avaialbility of funds, assess
    community needs, and make allocation choices. These community-based
    Local Boards also assure coordination of effort and development of
    systems to

    [[Page 490]]

    prevent duplication of benefits. The Budget proposes no changes in the
    program's design or operation. The 2003 Budget includes $153 million, a
    $13 million increase.

                     Rural Housing and Economic Development

        [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, 2002,
    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
    Department of Housing and Urban Development Reform Act of 1989.]
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0324-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural Housing.....................          25          51
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          25          51
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          23          31          57
    73.10 Total new obligations.............          25          51
    73.20 Total outlays (gross).............         -17         -25         -25
    74.40 Obligated balance, end of year....          31          57          32
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1
    86.93 Outlays from discretionary
            balances........................          17          24          25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          17          25          25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          25
    90.00 Outlays...........................          17          25          25
    ---------------------------------------------------------------------------

        The 2002 VA-HUD and Independent Agencies Appropriations Act (P.L.
    107-73) 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 2003 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          68          67          52
    73.20 Total outlays (gross).............          -1         -15         -15
    74.40 Obligated balance, end of year....          67          52          37
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1          15          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1          15          15
    ---------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7           2
    73.20 Total outlays (gross).............          -5          -2
    74.40 Obligated balance, end of year....           2
    ----------------------------------------------------------------------------

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

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

        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. Funding of $28 million was provided for this
    program in 2001 in Public Law 106-377 as a set-aside within the CDBG
    program. P.L. 107-73 provided $29 million for this program in 2002.
    $29.5 million is being requested in 2003, again as a set-aside within
    CDBG.

                           Shelter Plus Care Renewals

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0232-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Renewal of Expiring Contracts.....          24          76
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          24          76
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      76
    22.00 New budget authority (gross)......         100
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         100          76
    23.95 Total new obligations.............         -24         -76
    24.40 Unobligated balance carried
            forward, end of year............          76
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      22          52
    73.10 Total new obligations.............          24          76
    73.20 Total outlays (gross).............          -2         -46         -52

    [[Page 491]]

    74.40 Obligated balance, end of year....          22          52
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2
    86.93 Outlays from discretionary
            balances........................                      46          52
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2          46          52
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         100
    90.00 Outlays...........................           2          46          52
    ---------------------------------------------------------------------------

        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 renews contracts on a one-year
    basis and provides funding to amend contracts that were previously
    extended but which will run out of funding. The FY 2002 VA HUD
    Appropriations Act (P.L. 107-73) provided funding for Shelter Plus Care
    in the Homeless Assistance Grants account. Amounts provided in FY 2002
    are sufficient to cover Shelter Plus Care Renewals in 2003. In the
    future, Shelter Plus Care Renewals will be funded in the Homeless
    Assistance Grants account.

    Public enterprise funds:

                      Revolving Fund (Liquidating Programs)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Loan servicing....................           5           4
    09.03 Administrative expenses...........           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           6           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          76          31          13
    22.00 New budget authority (gross)......          81           1           1
    22.40 Capital transfer to general fund..        -120         -15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          37          17          14
    23.95 Total new obligations.............          -6          -4
    24.40 Unobligated balance carried
            forward, end of year............          31          13          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          81           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6           7           7
    73.10 Total new obligations.............           6           4
    73.20 Total outlays (gross).............          -5          -4          -3
    74.40 Obligated balance, end of year....           7           7           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           5           4           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -81          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -76           3           2
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         142          19          16
    1251  Repayments: Repayments and
            prepayments.....................         -76          -1          -1
    1263  Write-offs for default: Direct
            loans...........................         -47          -2          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          19          16          13
    ---------------------------------------------------------------------------

        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. The account's largest influx of funds in fiscal
    year 2001 resulted from the sale of most of the section 312 loan
    portfolio to the private sector for $64 million.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4015-0-3-451    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           5              4             5              5
    0102  Expense...........................          -4           -183            -4             -4
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           1           -179             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4015-0-3-451    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          82             38            38             38
          Non-Federal assets:

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

    1601    Direct loans, gross.............         142             19            19             19
    1602    Interest receivable.............          12              4             4              4
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -19             -8            -8             -8
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............         135             15            15             15
    1606    Foreclosed property.............           1              3             3              3
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         136             18            18             18
    1801  Other Federal assets: Cash and
            other monetary assets...........           1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         237             57            57             57
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................           1
    2207    Other...........................           8              9             9              9
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           9              9             9              9
        NET POSITION:
    3100  Appropriated capital..............          10              3             3              3
    3300  Cumulative results of operations..         218             45            45             45
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         228             48            48             48
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         237             57            57             57
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           4           4
    32.0  Land and structures...............           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           6           4
    ---------------------------------------------------------------------------

    [[Page 492]]

    Credit accounts:

              Community Development Loan Guarantees Program Account

                          (including transfer of funds)

        For the cost of guaranteed loans, [$14,000,000] $6,325,000, to
    remain available until September 30, [2003] 2004, as authorized by
    section 108 of the Housing and Community Development Act of 1974, as
    amended: 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] $275,000,000, notwithstanding
    any aggregate limitation on outstanding obligations guaranteed in
    section 108(k) of the Housing and Community Development Act of 1974, as
    amended[: Provided further, That in]. In addition, for administrative
    expenses to carry out the guaranteed loan program, [$1,000,000]
    $1,040,000, 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Community development loan
            guarantee credit subsidy........           6          14           6
    00.09 Administrative expense............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................           7          15           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          30          15           7
    23.95 Total new obligations.............          -7         -15          -7
    23.98 Unobligated balance expiring or
            withdrawn.......................         -23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          30          15           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          22          18          22
    73.10 Total new obligations.............           7          15           7
    73.20 Total outlays (gross).............          -7         -11         -15
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    74.40 Obligated balance, end of year....          18          22          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           3           2
    86.93 Outlays from discretionary
            balances........................           5           8          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7          11          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          15           7
    90.00 Outlays...........................           7          11          15
    ---------------------------------------------------------------------------

        Guaranteed Loans.--The Community Development Loan Guarantee program
    (Section 108) has a proposed commitment level of $275 million in 2003.
    The credit subsidy/administrative cost estimate for the guaranteed loan
    program is $7 million in 2003.

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Community development loan
            guarantee levels................       1,258         609         275
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       1,258         609         275
        Guaranteed loan subsidy (in percent):
    232001Subsidy rate......................        2.30        2.30        2.30
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        2.30        2.30        2.30
        Guaranteed loan subsidy budget authority:
    233001Loan guarantee levels.............          29          14           6
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          29          14           6
        Guaranteed loan subsidy outlays:
    234001Loan guarantee levels.............           6          10          14
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............           6          10          14
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           1           1           1
    359001Outlays from new authority........           1           1           1
    ---------------------------------------------------------------------------

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

             Community Development Loan Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          22          48          60
    22.00 New financing authority (gross)...          26          12          17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          48          60          77
    24.40 Unobligated balance carried
            forward, end of year............          48          60          78
    ----------------------------------------------------------------------------

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

            Discretionary:
    68.00     Offsetting collections (cash).           8          12          17
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          18
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          26          12          17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                     -18         -18
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -18
    74.40 Obligated balance, end of year....         -18         -18         -18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -7         -10         -14
    88.25     Interest on uninvested funds..          -1          -2          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -8         -12         -17
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -18
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -8         -12         -17
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       1,258         609         275
    2121  Limitation available from carry-
            forward.........................
    2142  Uncommitted loan guarantee
            limitation......................      -1,014
    2143  Uncommitted limitation carried
            forward.........................
                                               ---------   ---------  ----------

    [[Page 493]]

    2150    Total guaranteed loan
              commitments...................         244         609         275
    2199  Guaranteed amount of guaranteed
            loan commitments................         244         609         275
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       1,692       1,887       2,087
    2231  Disbursements of new guaranteed
            loans...........................         335         400         400
    2251  Repayments and prepayments........        -140        -200        -200
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       1,887       2,087       2,287
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       1,887       2,087       2,287
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4096-0-3-451    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          22             30            50             60
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          22             30            50             60
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.          22             30            50             60
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          22             30            50             60
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          22             30            50             60
    -----------------------------------------------------------------------------------------------

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

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

            Community Development Loan Guarantees Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      16
    22.00 New budget authority (gross)......          19           2           2
    22.40 Capital transfer to general fund..                     -16
    22.60 Portion applied to repay debt.....          -3          -2          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16
    24.40 Unobligated balance carried
            forward, end of year............          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          20           2           2
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          19           2           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      -5          -4
    73.20 Total outlays (gross).............          -5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
    74.40 Obligated balance, end of year....          -5          -4          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           5
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3
    88.40     Non-Federal sources...........         -17          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -20          -2          -2
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -15          -2          -2
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          11           8           6
    1251  Repayments: Repayments and
            prepayments.....................          -3          -2          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           8           6           4
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         107          81          52
    2251  Repayments and prepayments........         -26         -29          -6
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          81          52          46
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          81          52          46
    ---------------------------------------------------------------------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4097-0-3-451    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           2              1             1              1
    0102  Expense...........................          -2             -1            -1             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4097-0-3-451    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                         11            12             13
            Investments in US securities:
    1106      Receivables, net..............                          5             5              5
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1701    Defaulted guaranteed loans,
              gross.........................          11              8             6              4
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............          11              8             6              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          11             24            23             22
        LIABILITIES:
    2103  Federal liabilities: Debt.........          11              8             7              6
    2207  Non-Federal liabilities: Other....                         16            16             16
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          11             24            23             22
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          11             24            23             22
    -----------------------------------------------------------------------------------------------

        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.

    [[Page 494]]

        Guaranteed loans.--Guaranteed loan assistance under the Community
    Development Loan Guarantees program was 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.

                                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, $1,024,151,000, to remain
    available until September 30, [2004] 2005: Provided, That [$783,286,000]
    $773,636,000, plus recaptures or cancelled commitments, 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 for the elderly
    under section 202(c)(2) of such Act, including amendments to contracts
    for such assistance and renewal of expiring contracts for such
    assistance for up to a 1-year term, which shall remain available for
    disbursement until September 30, 2015, and for supportive services
    associated with the housing, of which amount [$50,000,000] $44,000,000
    plus up to $9,000,000 of amounts recaptured or commitments cancelled
    under this heading, shall be for service coordinators and the
    continuation of existing congregate service grants for residents of
    assisted housing projects, and of which amount [$50,000,000] $30,000,000
    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, [$240,865,000] $250,515,000 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 supportive housing for persons with
    disabilities under section 811(d)(2) of such Act, including amendments
    to contracts for such assistance and renewal of expiring contracts for
    such assistance for up to a 1-year term, which shall remain available
    for disbursement until September 30, 2015, and for supportive services
    associated with the housing for persons with disabilities as authorized
    by section 811(b)(1) of such Act, and for tenant-based rental assistance
    contracts entered into pursuant to section 811 of such Act: Provided
    further, That no less than [$1,200,000] $500,000, 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 information technology systems] of and modifications
    to information technology systems which serve activities under ``Housing
    Programs'' or ``Federal Housing Administration,'': Provided further,
    That, in addition to amounts made available for renewal of tenant-based
    rental assistance contracts pursuant to the second proviso of this
    paragraph, 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: Provided further,
    That all balances and recaptures, as of October 1, 2002, remaining in
    the ``Congregate Housing Services'' account as authorized by the Housing
    and Community Development Amendments of 1978, as amended, shall be
    transferred to and merged with the amounts for those purposes under this
    heading. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0320-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Elderly and disabled housing
            grants..........................         917       1,024       1,024
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         917       1,024       1,024
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,760       2,896       2,896
    22.00 New budget authority (gross)......         994       1,024       1,024
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          59
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,813       3,920       3,920
    23.95 Total new obligations.............        -917      -1,024      -1,024
    24.40 Unobligated balance carried
            forward, end of year............       2,896       2,896       2,896
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         996       1,024       1,024
    40.35   Appropriation rescinded.........          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         994       1,024       1,024
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,978       4,062       4,239
    73.10 Total new obligations.............         917       1,024       1,024
    73.20 Total outlays (gross).............        -774        -847        -885
    73.45 Recoveries of prior year
            obligations.....................         -59
    74.40 Obligated balance, end of year....       4,062       4,239       4,378
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         774         847         885
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         994       1,024       1,024
    90.00 Outlays...........................         774         847         885
    ---------------------------------------------------------------------------

        This account consolidates activity under the Section 202 Housing for
    the Elderly Program and the Section 811 Housing for the Disabled
    Program. In 2003, $1,024 million is requested for the Housing for
    Special Populations account, the same amount as was appropriated in
    2002.

        Housing for the Disabled.--$250 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 $774 million is proposed for
    housing for the elderly. Of this amount $30 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.

        $44.0 million is provided for a service coordinator program that
    will serve both residents of HUD-assisted elderly housing, other
    eligible elderly residing in the neighborhood in which such projects are
    located on an exception basis, and residents of projects assisted under
    section 811.

    [[Page 495]]

                          Housing Counseling Assistance

        For contracts, grants and other assistance other than loans, as
    authorized under Section 106 of the Housing and Urban Development Act of
    1968, as amended, $35,000,000, to remain available until September 30,
    2004: Provided, That funds shall be used for providing counseling and
    advice to tenants and homeowners both current and prospective with
    respect to property maintenance, financial management, and such other
    matters as may be appropriate to assist them in improving their housing
    conditions and meeting the responsibilities of tenancy or homeownership,
    including provisions for training and for support of voluntary agencies
    and services.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0156-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing Assistance................                                  35
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  35
    23.95 Total new obligations.............                                 -35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  35
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  35
    73.20 Total outlays (gross).............                                  -9
    74.40 Obligated balance, end of year....                                  26
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                  35
    90.00 Outlays...........................                                   9
    ---------------------------------------------------------------------------

        The Housing Counseling Assistance Program provides comprehensive
    housing counseling services to eligible homeowners and tenants,
    including home purchase, financial management, and rental counseling.
    This program has been funded through a set-aside under the HOME program
    appropriation for the past several years.

        The Housing Counseling Assistance Program supports the delivery of a
    wide variety of housing counseling services to homebuyers, homeowners,
    low-to moderate-income renters and the homeless. The primary objectives
    of the program are to expand homeownership opportunities, improve access
    to affordable housing and aid in HUD's commitment to bridging the gap of
    homeownership of minorities and other select groups in comparison to the
    National homeownership rate.

                         Other Assisted Housing Programs

                            Rental Housing Assistance

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rent supplement...................          10          17          29
    00.02 Homeownership and rental housing
            assistance (Sections 235 and
            236)............................          36          60          60
    00.04 IRP Rehab Grants/Loans............                     300         100
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          46         377         189
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          30
    21.49 Unobligated balance carried
            forward, start of year: Contract
            authority.......................       1,025       1,044       1,044
                                               ---------   ---------  ----------
    21.99   Total unobligated balance
              carried forward, start of year       1,055       1,044       1,044
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         430         377         189
    22.75 Balance of contract authority
            withdrawn.......................        -395
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,090       1,421       1,233
    23.95 Total new obligations.............         -46        -377        -189
    24.49 Unobligated balance carried
            forward, end of year: Contract
            authority.......................       1,044       1,044       1,044
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         672         672         672
    40.49   Portion applied to liquidate
              contract authority............        -672        -672        -672
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      10,775       9,719       9,047
    73.10 Total new obligations.............          46         377         189
    73.20 Total outlays (gross).............        -672        -672        -672
    73.45 Recoveries of prior year
            obligations.....................        -430        -377        -189
    74.40 Obligated balance, end of year....       9,719       9,047       8,375
    75.01 Obligated balance, start of year:
            Contract authority..............      10,705       9,619       8,947
    75.02 Obligated balance, end of year:
            Contract authority..............       9,619       8,947       8,275
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         672         672         672
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         672         672         672
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............      11,730      10,663       9,991
    0400  Appropriation to liquidate
            contract authority..............        -672        -672        -672
    0600  Balance of contract authority
            withdrawn.......................        -395
    0700  Balance, end of year..............      10,663       9,991       9,319
    ---------------------------------------------------------------------------

                             OTHER ASSISTED HOUSING

                      Summary of Administrative Commitments

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Assistance contracts:
      Rent supplement...................          10          17          29
      Homeownership and rental housing
        assistance (sections 235 and
        236)............................          36          60          60
    IRP Rehab Grants....................                     300         100
    Administrative commitments, start of
    year................................          16          16          16
    Administrative commitments, end of
    year................................         -16         -16         -16
                                        ------------------------------------
          Total obligations.............          46         377         189
                                        ====================================

        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 2002 and $100 million in 2003.

        The table below reflects the consolidated outlay total for: the
    Housing Certificate Fund; the Public Housing Capital

    [[Page 496]]

    Fund; and the Other Assisted Housing account, for 2001, 2002 and 2003.

                             SUMMARY OF OUTLAYS \1\

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Subsidized housing programs, total..      20,942      22,099      22,564
    Low-income housing assistance (sec.
    8)..................................      16,720      17,771      18,339
    Public housing capital fund.........       3,550       3,656       3,553
    Rent supplement.....................          54          54          54
    Homeownership assistance (sec. 235).          14          14          14
    Rental housing assistance (sec. 236)         591         591         591
    College housing grants..............          13          13          13

        \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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1
    22.00 New budget authority (gross)......          -3
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       1
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...          -3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          51          26           1
    73.20 Total outlays (gross).............         -21         -25          -1
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....          26           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          21          25           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -3
    90.00 Outlays...........................          21          25           1
    ---------------------------------------------------------------------------

        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 2003. This schedule reflects the liquidation of prior year balances.

                   Manufactured Home Inspection and Monitoring

                         (including transfers of funds)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Manufactured home inspection and
            monitoring......................           2
        Appropriations:
    05.00 Manufactured home inspection and
            monitoring......................          -2
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Other program costs...............           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           1
    22.00 New budget authority (gross)......           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           1
    23.95 Total new obligations.............          -6
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2
    73.10 Total new obligations.............           6
    73.20 Total outlays (gross).............          -8          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           2
    86.98 Outlays from mandatory balances...           6           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2
    90.00 Outlays...........................           8           1
    ---------------------------------------------------------------------------

        This account provided spending for HUD and its agents for
    development of manufactured housing standards. Consistent with the
    Manufactured Housing Improvement Act of 2000, spending for 2003 on these
    activities is proposed in the discretionary 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Refunds of Excess Income..........           1           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           1           5           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1          10          21
    22.00 New budget authority (gross)......          10          16          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          11          26          37
    23.95 Total new obligations.............          -1          -5          -5
    24.40 Unobligated balance carried
            forward, end of year............          10          21          32
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          10          16          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          19           7          -5
    73.10 Total new obligations.............           1           5           5
    73.20 Total outlays (gross).............         -13         -16         -16
    74.40 Obligated balance, end of year....           7          -5         -16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          13          16          16
    ----------------------------------------------------------------------------

    [[Page 497]]

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -10         -16         -16
    ----------------------------------------------------------------------------

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

        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, with the exception of amounts
    required to make refunds of excess income remittances as authorized by
    Public Law 106-569.

                              Flexible Subsidy Fund

                               (transfer of funds)

        From the Rental Housing Assistance Fund, all uncommitted balances of
    excess rental charges as of September 30, [2001] 2002, and any
    collections made during fiscal year [2002] 2003 (with the exception of
    amounts required to make refunds of excess income remittances as
    authorized by Public Law 106-569), 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          14           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          14           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         279         282         300
    22.00 New budget authority (gross)......          15          20          20
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         296         302         320
    23.95 Total new obligations.............         -14          -2
    24.40 Unobligated balance carried
            forward, end of year............         282         300         320
    ----------------------------------------------------------------------------

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

            Discretionary:
    68.00     Offsetting collections (cash).          27          20          20
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -12
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          15          20          20
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2          13           3
    73.10 Total new obligations.............          14           2
    73.20 Total outlays (gross).............         -14         -12
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          12
    74.40 Obligated balance, end of year....          13           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          14          12
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -12         -12         -12
    88.20     Interest on Federal securities          -9
    88.40     Non-Federal sources...........          -6          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -27         -20         -20
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -14          -8         -20
    ----------------------------------------------------------------------------

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         703         648         585
    1231  Disbursements: Direct loan
            disbursements...................          20          12
    1251  Repayments: Repayments and
            prepayments.....................          -4          -4          -4
    1263  Write-offs for default: Direct
            loans...........................         -71         -71         -71
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         648         585         510
    ---------------------------------------------------------------------------

        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 2001, 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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         -15              1            13             13
    0102  Expense...........................         -31            -20
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         -46            -19            13             13
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         281            295           278            278
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         760            711           784            784
    1602    Interest receivable.............                         65
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -678           -528          -705           -705
                                            ------------ --------------  ------------  -------------

    [[Page 498]]

    1699      Value of assets related to
                direct loans................          82            248            79             79
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         363            543           357            357
        LIABILITIES:
    2207  Non-Federal liabilities: Other....           3              2             3              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           3              2             3              3
        NET POSITION:
    3100  Appropriated capital..............         217            217           217            217
    3300  Cumulative results of operations..         143            324           137            137
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         360            541           354            354
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         363            543           357            357
    -----------------------------------------------------------------------------------------------

                          Homeownership Assistance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        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...........................          -1
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-604      2001 actual   2002 est.   2003 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          13           5
    73.20 Total outlays (gross).............          -3          -8          -5
    74.40 Obligated balance, end of year....          13           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           3           8           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           3           8           5
    ---------------------------------------------------------------------------

        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:

                         Federal Housing Administration

                    mutual mortgage insurance program account

                         (including transfers of funds)

        During fiscal year [2002] 2003, 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 [2002] 2003, 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] $50,000,000: Provided, That the
    foregoing amount shall be for loans to nonprofit and governmental
    entities in connection with sales of single family real properties owned
    by the Secretary and formerly insured under the Mutual Mortgage
    Insurance Fund.
        For administrative expenses necessary to carry out the guaranteed
    and direct loan program, [$336,700,000] $362,746,000, of which not to
    exceed [$332,678,000] $358,593,000 shall be transferred to the
    appropriation for ``Salaries and expenses''; and not to exceed
    [$4,022,000] $4,153,000 shall be transferred to the appropriation for
    ``Office of Inspector General''. In addition, for administrative
    contract expenses, [$160,000,000] $85,720,000, of which no less than
    [$118,400,000] $21,360,000 shall be transferred to the Working Capital
    Fund for the development [and maintenance of] of and modifications to
    information technology systems which serve programs or activities under
    ``Housing Programs'' or ``Federal Housing Administration'': Provided,
    That to the extent guaranteed loan commitments exceed $65,500,000,000 on
    or before April 1, [2002] 2003, 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,
    2002; additional authorizing legislation required. )

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.22 Subsidy balance transfer..........       4,026         909
        Appropriations:
    05.00 FHA mutual mortgage insurance
            program account.................      -4,026        -909
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.07 Reestimates of loan guarantee
            negative subsidy................       3,049         808
    00.08 Interest on reestimates of loan
            guarantee subsidy...............         977         101
    00.09 Administrative expenses, salaries
            & expenses transfer.............         344         353         363
    00.12 Non-overhead administrative
            expenses for FHA contracts......         150         160          86
                                               ---------   ---------  ----------

    [[Page 499]]

    10.00   Total new obligations...........       4,520       1,422         449
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       4,532       1,422         449
    23.95 Total new obligations.............      -4,520      -1,422        -449
    23.98 Unobligated balance expiring or
            withdrawn.......................         -12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         507         513         449
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         506         513         449
          Mandatory:

    60.20   Appropriation (special fund)....       4,026         909
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,532       1,422         449
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         128         120          90
    73.10 Total new obligations.............       4,520       1,422         449
    73.20 Total outlays (gross).............      -4,548      -1,452        -443
    73.40 Adjustments in expired accounts
            (net)...........................          22
    74.40 Obligated balance, end of year....         120          90          96
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         454         503         433
    86.93 Outlays from discretionary
            balances........................          68          40          10
    86.97 Outlays from new mandatory
            authority.......................       4,026         909
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,548       1,452         443
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,532       1,422         449
    90.00 Outlays...........................       4,548       1,452         443
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,516       1,406         434
    90.00 Outlays...........................       4,532       1,436         428
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001MMI Fund, Direct loans............           1         250          50
                                               ---------   ---------  ----------
    115901Total direct loan levels..........           1         250          50
        Direct loan subsidy (in percent):
    132001MMI Fund, Direct loans............        0.00        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.00        0.00        0.00
        Direct loan subsidy budget authority:
    133001Direct loan levels................
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....
        Direct loan subsidy outlays:
    134001Direct loan levels................
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001MMI Fund, Section 203(b)..........     134,841     147,339     142,441
    215003Standby commitment authority......      25,159      12,661      17,559
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......     160,000     160,000     160,000
        Guaranteed loan subsidy (in percent):
    232001MMI Fund, Section 203(b)..........       -2.15       -2.07       -2.53
    232003Standby commitment authority......        0.00        0.00        0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       -2.15       -2.07       -2.53
        Guaranteed loan subsidy budget authority:
    233001MMI Fund, Section 203(b)..........      -2,246      -2,791      -2,938
    233003Standby commitment authority......
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....      -2,246      -2,791      -2,938
        Guaranteed loan subsidy outlays:
    234001MMI Fund, Section 203(b)..........      -2,246      -2,791      -2,938
    234003Standby commitment authority......
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............      -2,246      -2,791      -2,938
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001MMI Fund, Section 203(b)..........       4,026         909
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................       4,026         909
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001MMI Fund, Section 203(b)..........       4,026         909
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................       4,026         909
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001MMI Fund, Section 203(b)..........        -676      -2,675
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................        -676      -2,675
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001MMI Fund, Section 203(b)..........        -676      -2,675
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................        -676      -2,675
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         490         497         434
    358001Outlays from balances.............          68          40          10
    359001Outlays from new authority........         438         487         418
    ---------------------------------------------------------------------------

        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 an aggregate limitation of $160 billion on
    commitments to guarantee loans in 2003.

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          54          42          65
    25.3  Other purchases of goods and
            services from Government
            accounts........................         440         471         384
    41.0  Grants, subsidies, and
            contributions...................       3,049         808
    43.0  Interest and dividends............         977         101
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,520       1,422         449
    ---------------------------------------------------------------------------

          FHA--Mutual Mortgage Insurance Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           1         125          50
    00.02 Interest paid to Treasury.........                      12           5
    00.03 Claims & other....................                      11           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1         148          60
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9           8           8
    22.00 New financing authority (gross)...           1         155          55
    22.60 Portion applied to repay debt.....          -2          -7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           8         156          63
    23.95 Total new obligations.............          -1        -148         -60
    24.40 Unobligated balance carried
            forward, end of year............           8           8           3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                     125          50

    [[Page 500]]

          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).           1          80          55
    68.47     Portion applied to repay debt.                     -50         -50
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           1          30           5
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           1         155          55
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           4           6
    73.10 Total new obligations.............           1         148          60
    73.20 Total financing disbursements
            (gross).........................          -1        -146         -60
    74.40 Obligated balance, end of year....           4           6           6
    87.00 Total financing disbursements
            (gross).........................           1         146          60
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..                      -1          -1
              Non-Federal sources:
    88.40       Repayment of principal......          -1         -73         -50
    88.40       Repayment of interest.......                      -6          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -1         -80         -55
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      75
    90.00 Financing disbursements...........                      66           5
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and thereafter (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

        The $50 million in 2003 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         250         250          50
    1142  Unobligated direct loan limitation
            (-).............................        -249        -125
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           1         125          50
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                       1          52
    1231  Disbursements: Direct loan
            disbursements...................           1         125          50
          Repayments:

    1251    Repayments and prepayments......                     -73         -50
    1252    Proceeds from loan asset sales
              to the public or discounted...
          Write-offs for default:

    1263    Direct loans....................                      -1          -9
    1264    Other adjustments, net..........
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1          52          43
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4242-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          13             11            10              7
    1206  Non-Federal assets: Receivables,
            net.............................
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          -1              1            52             43
    1405    Allowance for subsidy cost (-)..          -1             -2
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          -2             -1            52             43
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          11             10            62             50
        LIABILITIES:
          Federal liabilities:

    2103    Treasury borrowing..............          10              5            62             50
    2105    Other liabilites--
              intragovernmental.............                          4
          Non-Federal liabilities:

    2201    Accounts payable................           1              1
    2202    Interest payable................
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          11             10            62             50
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          11             10            62             50
    -----------------------------------------------------------------------------------------------

        FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Interest payments to Treasury.....         424         556         607
    00.11 Default claims and other..........       4,825       4,395       3,964
                                               ---------   ---------  ----------
    00.91   Subtotal, capital/operating
              expenses......................       5,249       4,951       4,571
          Negative Subsidy Activity:

    08.01   Payment of negative subsidy to
              liquidating account for new
              business......................       2,246       2,791       2,938
    08.02   Reestimate of loan guarantee
              subsidy (downward reestimates)         636       2,194
    08.04   Interest on reestimates of loan
              guarantee subsidy.............          40         481
                                               ---------   ---------  ----------
    08.91   Subtotal, subsidy activity......       2,922       5,466       2,938
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       8,171      10,417       7,509
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,659       2,717       1,118
    22.00 New financing authority (gross)...      11,242       9,018       7,847
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           7
    22.60 Portion applied to repay debt.....      -3,020        -200        -500
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      10,888      11,535       8,465
    23.95 Total new obligations.............      -8,171     -10,417      -7,509
    24.40 Unobligated balance carried
            forward, end of year............       2,717       1,118         957
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         500       1,500       1,000
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...      10,711       7,518       6,847
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          31
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......      10,742       7,518       6,847
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................      11,242       9,018       7,847
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         312           6           6
    73.10 Total new obligations.............       8,171      10,417       7,509
    73.20 Total financing disbursements
            (gross).........................      -8,439     -10,417      -7,509
    73.45 Recoveries of prior year
            obligations.....................          -7
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -31

    [[Page 501]]

    74.40 Obligated balance, end of year....           6           6           6
    87.00 Total financing disbursements
            (gross).........................       8,439      10,417       7,509
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Transfer of Reestimates from
                reserves in Liquidating
                account.....................      -4,026        -909
    88.25     Interest on uninvested funds..        -306        -133         -48
              Non-Federal sources:
    88.40       Fees and premiums...........      -2,975      -3,118      -3,639
    88.40       Recoveries on defaults......      -3,404      -3,358      -3,160
    88.40       Gross proceeds from asset
                  sales.....................
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -10,711      -7,518      -6,847
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -31
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         500       1,500       1,000
    90.00 Financing disbursements...........      -2,272       2,899         662
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     160,000     160,000     160,000
    2142  Uncommitted loan guarantee
            limitation......................     -25,159     -12,661     -17,559
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................     134,841     147,339     142,441
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     401,960     419,313     452,487
    2231  Disbursements of new guaranteed
            loans...........................     107,449     133,557     121,674
    2251  Repayments and prepayments........     -85,530     -96,824     -57,789
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....          -1        -377        -671
    2262    Terminations for default that
              result in acquisition of
              property......................      -4,515      -3,138      -2,828
    2263    Terminations for default that
              result in claim payments......         -50         -44         -44
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     419,313     452,487     512,829
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     419,313     452,487     512,829
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         102           4
    2331    Disbursements for guaranteed
              loan claims...................           1         377         671
    2351    Repayments of loans receivable..
    2364    Other adjustments, net..........         -99        -381        -671
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......           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 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          2000
                                               actual\1\    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       2,971          2,723         5,995          5,834
            Investments in US securities:
    1106      Receivables, net..............       3,802            118
    1206  Non-Federal assets: Receivables,
            net.............................          26            172
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............          92              4
    1502    Interest receivable.............           3              4
    1504    Foreclosed property.............       2,052          1,858         2,052          2,052
    1505    Allowance for subsidy cost......        -929           -861          -861           -861
                                            ------------ --------------  ------------  -------------
    1599      Net value of assets related to
                defaulted guaranteed loan...       1,218          1,005         1,191          1,191
    1901  Other Federal assets: Other assets                        118           132            148
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,017          4,136         7,318          7,173
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       2,853             41            41             41
    2103    Federal liabilities, Debt.......       6,182          3,662         4,962          5,462
    2105    Other...........................         203
          Non-Federal liabilities:

    2201    Accounts payable................        -257            -67           -67            -67
    2204    Liabilities for loan guarantees.        -969            462         2,212          1,551
    2207    Other...........................           5             38           170            186
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,017          4,136         7,318          7,173
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,017          4,136         7,318          7,173
    -----------------------------------------------------------------------------------------------

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.03   Other operating costs...........          11          11          11
          Capital investment:

    01.02   Assignment of defaulted
              mortgages.....................                      28          31
    01.03   Acquisition of real properties..         419         186         119
    01.05   Other obligations...............          49
    01.07   Capitalized property expenses...          66          33          12
    01.08   Loss mitigation activities......           8           8           3
    01.09   Preforeclosure sale claims......           2           3           3
                                               ---------   ---------  ----------
    01.91     Total capital investment......         544         258         168
          Upward Re-estimates of Subsidy Activity:

    08.07   Reestimate of loan guarantee
              subsidy- upward re-estimates
              from MMI reserves.............       3,049         807
    08.08   Interest on reestimates of loan
              guarantee subsidy.............         977         102
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............       4,026         909
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,581       1,178         179
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      17,744      17,749      23,784
    22.00 New budget authority (gross)......       4,577       7,213       4,817
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      22,330      24,962      28,601
    23.95 Total new obligations.............      -4,581      -1,178        -179
    24.40 Unobligated balance carried
            forward, end of year............      17,749      23,784      28,422
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       2,246       2,791       2,938
          Mandatory:

    69.00   Offsetting collections (cash)...       2,481       4,422       1,879
    69.10   Change in uncollected acounts
              receivable from Federal
              sources.......................        -150
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       2,331       4,422       1,879
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,577       7,213       4,817
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         394         540         540
    73.10 Total new obligations.............       4,581       1,178         179
    73.20 Total outlays (gross).............      -4,576      -1,178        -179
    73.45 Recoveries of prior year
            obligations.....................          -9
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         150
    74.40 Obligated balance, end of year....         540         540         540
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         158         213          60

    [[Page 502]]

    86.98 Outlays from mandatory balances...       4,418         965         119
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,576       1,178         179
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Payment from financing account      -2,922      -5,466      -2,938
    88.20     Interest on Federal securities      -1,240      -1,363      -1,689
              Non-Federal sources:
    88.40       Fees and premiums...........         -15         -35         -32
    88.40       Proceeds from sale of real
                  property..................        -488        -332        -123
    88.40       Proceeds from sale of
                  mortgage notes............                     -17         -35
    88.40       Interest and operating
                  income....................         -53
    88.40       Recoveries of prior year
                  obligations...............          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -4,727      -7,213      -4,817
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         150
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -151      -6,035      -4,638
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      17,260      17,282      24,282
    92.02 Total investments, end of year:
            Federal securities: Par value...      17,282      24,282      28,782
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           3           3
    1251  Repayments: Repayments and
            prepayments.....................                      -1
    1264  Write-offs for default: Other
            adjustments, net................                      -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           3
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      47,619      39,963      33,339
    2251  Repayments and prepayments........      -7,235      -6,398      -3,116
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....                     -35         -34
    2262    Terminations for default that
              result in acquisition of
              property......................        -419        -186        -119
    2263    Terminations for default that
              result in claim payments......          -2          -5          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      39,963      33,339      30,067
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      39,963      33,339      30,067
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......          46           4
    2331    Disbursements for guaranteed
              loan claims...................                      35          34
    2351    Repayments of loans receivable..          -1
    2361    Write-offs of loans receivable..         -39         -18
    2364    Other adjustments, net..........          -2         -21         -34
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......           4
    ---------------------------------------------------------------------------

        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)

                                         2001 actual  2002 est.   2003 est.
    Insurance initiation:
      Mortgage insurance commitments
        (units).........................   1,191,631   1,245,755   1,175,604
                                        ====================================
    Mortgage insurance written (in
        fiscal year):
      Units.............................   1,007,472   1,198,842   1,160,355
      Amount............................    $107,449    $133,557    $121,674
                                        ====================================
    Insurance maintenance: Outstanding
        balance of insurance in force,
        end of year:
      Mortgage insurance................    $459,523    $485,826    $542,896
                                        ====================================

        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          2000
                                               actual\1\ 2001 actual\2\     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,737          1,265         4,672          4,720
    0102  Expense...........................        -531           -244           -61            -82
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............       1,206          1,021         4,611          4,638
    0108  Other comprehensive income........       1,118            182         2,791          2,938
    -----------------------------------------------------------------------------------------------
        \1\ Estimated result on GAAP basis pending final audit.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4070-0-3-371          2000
                                               actual\1\    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,139          1,269         1,165          1,495
            Investments in US securities:
              Treasury securities, par:
    1102        Treasury securities, par....      17,260         17,282        21,282         25,282
    1102        Unamortized net premium/
                  discount..................        -208           -177          -219           -177
    1106      Receivables, net..............       3,311            335           335            335
          Non-Federal assets:

    1206    Receivables, net................          34             57            57             57
    1207    Advances and prepayments........

    [[Page 503]]

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

    1601    Direct loans, gross.............           4              3
    1602    Interest receivable.............           2              2
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -3             -3
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           3              2
    1701    Defaulted guaranteed loans,
              gross.........................          34             12            12             12
    1702    Interest receivable.............          31             16            16             16
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -45            -25           -25            -25
                                            ------------ --------------  ------------  -------------
    1704      Defaulted guaranteed loans and
                interest receivable, net....          20              3             3              3
    1705    Allowance for uncollectables
              from foreclosed property......
    1706    Foreclosed property.............         275            175           107             66
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............         295            178           110             69
    1901  Other Federal assets: Other assets          14             14            14             14
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      21,848         18,960        22,744         27,075
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       3,802             87            87             87
    2105    Other Intragovernmental
              liabilites....................
          Non-Federal liabilities:

    2201    Accounts payable................         727            721           721            721
    2204    Liabilities for loan guarantees.         462            462           462            462
    2207    Unearned revenue and advances,
              and other.....................         576            569           569            569
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       5,567          1,839         1,839          1,839
        NET POSITION:
    3300  Cumulative results of operations..      16,281         17,121        20,905         25,236
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      16,281         17,121        20,905         25,236
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      21,848         18,960        22,744         27,075
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          60          11          11
    32.0  Land and structures...............         488         219         131
    33.0  Investments and loans.............           4          35          34
    41.0  Grants, subsidies, and
            contributions...................       3,049         808
    42.0  Insurance claims and indemnities..           3           3           3
    43.0  Interest and dividends............         977         102
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,581       1,178         179
    ---------------------------------------------------------------------------

                    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,
    $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, [$216,100,000] $233,091,400, of
    which [$197,779,000] $213,186,400, shall be transferred to the
    appropriation for ``Salaries and expenses''; and of which [$18,321,000]
    $19,905,000 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] $93,780,000, of which no less than [$41,000,000]
    $14,240,000 shall be transferred to the Working Capital Fund for the
    development [and maintenance of information technology systems]: of and
    modifications to information technology systems which serve activities
    under ``Housing Programs'' or ``Federal Housing Administration''
    Provided, That to the extent guaranteed loan commitments exceed
    $8,426,000,000 on or before April 1, [2002] 2003, an additional $1,980
    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, 2002; additional authorizing
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........          99          15          15
    00.07 Reestimate of credit subsidy......         206         688
    00.08 Interest on reestimates of loan
            guarantee subsidy...............          40         307
    00.09 Administrative expenses, salaries
            & expenses transfer.............         221         226         233
    00.10 Administrative contract expenses..          95         144          94
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         661       1,380         342
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          39          75          45
    22.00 New budget authority (gross)......         751       1,380         342
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         785       1,455         387
    23.95 Total new obligations.............        -661      -1,380        -342
    23.98 Unobligated balance expiring or
            withdrawn.......................         -49         -30
    24.40 Unobligated balance carried
            forward, end of year............          75          45          45
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         466         385         342
    40.15   Appropriation (emergency).......          40
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         505         385         342
          Mandatory:

    60.00   Appropriation...................         246         995
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         751       1,380         342
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         128         112          91
    73.10 Total new obligations.............         661       1,380         342
    73.20 Total outlays (gross).............        -687      -1,401        -354
    73.40 Adjustments in expired accounts
            (net)...........................           5
    73.45 Recoveries of prior year
            obligations.....................           5
    74.40 Obligated balance, end of year....         112          91          78
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         374         345         315
    86.93 Outlays from discretionary
            balances........................          67          61          40
    86.97 Outlays from new mandatory
            authority.......................         246         995
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         687       1,401         354
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         751       1,380         342
    90.00 Outlays...........................         687       1,401         354
    ---------------------------------------------------------------------------

    [[Page 504]]

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         741       1,370         333
    90.00 Outlays...........................         677       1,391         345
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Single-family PMMs................                       2           2
    115002Multifamily bridge loans..........                       2           2
    115003Unused Limitation Authority.......          50          46          46
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          50          50          50
        Direct loan subsidy (in percent):
    132001Single-family PMMs................        0.00        0.00        0.00
    132002Multifamily bridge loans..........        0.00        0.00        0.00
    132003Unused Limitation Authority.......        0.00        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.00        0.00        0.00
        Direct loan subsidy budget authority:
    133001Single-family PMMs................
    133002Multifamily bridge loans..........
    133003Unused Limitation Authority.......
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....
        Direct loan subsidy outlays:
    134001Single-family PMMs................
    134002Multifamily bridge loans..........
    134003Unused Limitation Authority.......
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Apartments NC/SC..................       1,507       3,000       3,500
    215003221d3 NP/Coop owned apts..........         252          67         200
    215004Tax Credits NC....................         610         500         500
    215005Mixed Income (Hope d4)............                       9          50
    215006Apartments Refinance..............         646         951         960
    215007241a Supplemental Loans for Apts..          13          18          50
    215008Operating Loss Loans for Apts
            (plus 232)......................           8           4           9
    215009HFA Risk Sharing..................         324         650         650
    215012GSE Risk Sharing..................           1         100         105
    215013FHA Full Insurance for Health Care
            Facilities (plus 241/232).......       1,317       1,000       1,300
    215014Health Care Refinances............         141         500         500
    215015Hospitals.........................         279         100         500
    215016Other Rental (incl
            207(mhp),220,231)...............                                 300
    215017Section 234: Condominiums.........       9,153       8,482       8,482
    215018Section 203(k): Rehabilitation
            Mortgages.......................         995       1,395       1,395
    215019Section 221(d)(2): Low Income
            Housing.........................           4
    215021Title 1 Property Improvement......         120         216         118
    215022Title 1 Manufactured Housing......          47          11          70
    215023Standby authority.................       5,583       3,997       2,311
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......      21,000      21,000      21,000
        Guaranteed loan subsidy (in percent):
    232001Apartments NC/SC..................        3.35       -0.14       -0.06
    232003221d3 NP/Coop owned apts..........       17.22        8.89        3.93
    232004Tax Credits NC....................       -1.75       -2.50       -0.65
    232005Mixed Income (Hope d4)............        3.35       -0.14       -0.33
    232006Apartments Refinance..............       -1.11       -0.97       -2.17
    232007241a Supplemental Loans for Apts..       22.08       28.16        6.35
    232008Operating Loss Loans for Apts
            (plus 232)......................       22.55       19.34       18.69
    232009HFA Risk Sharing..................       -1.14       -1.55       -1.37
    232012GSE Risk Sharing..................       -1.52       -0.57       -1.36
    232013FHA Full Insurance for Health Care
            Facilities (plus 241/232).......       -2.07       -2.21       -1.19
    232014Health Care Refinances............       -1.38       -2.54       -1.97
    232015Hospitals.........................       -1.77       -0.36       -2.76
    232016Other Rental (incl
            207(mhp),220,231)...............        0.00        0.00       -0.07
    232017Section 234: Condominiums.........       -0.69       -1.99       -1.08
    232018Section 203(k): Rehabilitation
            Mortgages.......................       -0.11       -1.53       -0.46
    232019Section 221(d)(2): Low Income
            Housing.........................        4.49        0.00        0.00
    232021Title 1 Property Improvement......       -0.06        0.96        2.02
    232022Title 1 Manufactured Housing......        0.14       -0.84       -0.47
    232023Standby authority.................        0.00        0.00        0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       -0.14       -1.46       -0.85
        Guaranteed loan subsidy budget authority:
    233001Apartments NC/SC..................          52          -4          -3
    233003221d3 NP/Coop owned apts..........          43           6           8
    233004Tax Credits NC....................          -6          -9          -6
    233005Mixed Income (Hope d4)............
    233006Apartments Refinance..............          -6          -7         -18
    233007241a Supplemental Loans for Apts..           2           6           3
    233008Operating Loss Loans for Apts
            (plus 232)......................           2           1           2
    233009HFA Risk Sharing..................          -2          -8          -9
    233012GSE Risk Sharing..................                                  -1
    233013FHA Full Insurance for Health Care
            Facilities (plus 241/232).......         -27         -17         -17
    233014Health Care Refinances............          -2         -10         -11
    233015Hospitals.........................          -2                     -10
    233016Other Rental (incl
            207(mhp),220,231)...............
    233017Section 234: Condominiums.........         -57        -181         -92
    233018Section 203(k): Rehabilitation
            Mortgages.......................          -1         -21          -6
    233019Section 221(d)(2): Low Income
            Housing.........................
    233021Title 1 Property Improvement......
    233022Title 1 Manufactured Housing......                       2           2
    233023Standby authority.................
    233024Emergency Appropriation...........          40
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          36        -242        -158
        Guaranteed loan subsidy outlays:
    234001Apartments NC/SC..................          52           8          -3
    234003221d3 NP/Coop owned apts..........          46          17           8
    234004Tax Credits NC....................          -6          -9          -6
    234005Mixed Income (Hope d4)............
    234006Apartments Refinance..............          -6          -7         -18
    234007241a Supplemental Loans for Apts..           2           4           3
    234008Operating Loss Loans for Apts
            (plus 232)......................                       1           2
    234009HFA Risk Sharing..................          -2          -8          -9
    234012GSE Risk Sharing..................                                  -1
    234013FHA Full Insurance for Health Care
            Facilities (plus 241/232).......         -27         -17         -17
    234014Health Care Refinances............          -2         -10         -11
    234015Hospitals.........................          -2                     -10
    234016Other Rental (incl
            207(mhp),220,231)...............
    234017Section 234: Condominiums.........         -57        -181         -92
    234018Section 203(k): Rehabilitation
            Mortgages.......................          -1         -21          -6
    234019Section 221(d)(2): Low Income
            Housing.........................
    234021Title 1 Property Improvement......                       2           2
    234022Title 1 Manufactured Housing......
    234023Standby authority.................
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............          -3        -221        -158
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235024General and Special Risk..........         246         995
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................         246         995
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236024General and Special Risk..........         246         995
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................         246         995
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237024General and Special Risk..........        -517      -1,542
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................        -517      -1,542
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238024General and Special Risk..........        -517      -1,542
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................        -517      -1,542
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority, S&E Transfer....         221         226         233
    351001Budget authority..................         144         144          94
    358001Outlays from balances.............          52          36          36
    359001Outlays from new authority........         289         334         304
    ---------------------------------------------------------------------------

        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.

        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

    [[Page 505]]

    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 a reduction in the annual premium rate of
    multifamily Section 221(d)(4) loan guarantees from 80 basis points to 57
    basis points. This reflects improved estimates of these loan guarantee
    subsidy cost.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..          62         103          80
    25.2  Other services....................          33          41          14
    25.3  Other purchases of goods and
            services from Government
            accounts........................         221         226         233
    41.0  Grants, subsidies, and
            contributions...................         345       1,010          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         661       1,380         342
    ---------------------------------------------------------------------------

         FHA--General and Special Risk Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

    00.01   Default claims and other........         782       1,095       1,140
    00.05   Interest paid to Treasury.......          87         130         130
    00.08   Asset sale negative subsidy
              payment to the receipt account                     113          40
    00.10   Value paid to liquidating
              account for guarantees
              refinanced under 223(a)(7)....                       3           3
    00.11   Mark-to-Market Legislative
              Savings.......................                     218
    00.14   Contract Costs..................          12          20          20
                                               ---------   ---------  ----------
    00.91     Direct Program by Activities--
                Subtotal (1 level)..........         881       1,579       1,333
    08.01   Payment of negative subsidy to
              receipt account...............         103         257         173
    08.02   Downward subsidy rate reestimate         423       1,091
    08.04   Interest on subsidy rate
              reestimates...................          94         451
                                               ---------   ---------  ----------
    08.91     Direct Program by Activities--
                Subtotal (1 level)..........         620       1,799         173
                                               ---------   ---------  ----------
    10.00     Total new obligations.........       1,501       3,378       1,506
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,801       1,768         494
    22.00 New financing authority (gross)...       1,957       2,554       1,631
    22.60 Portion applied to repay debt.....        -490        -450        -450
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,268       3,872       1,675
    23.95 Total new obligations.............      -1,501      -3,378      -1,506
    24.40 Unobligated balance carried
            forward, end of year............       1,768         494         169
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         400         400         400
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,542       2,154       1,231
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          15
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       1,557       2,154       1,231
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,957       2,554       1,631
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..        -103        -124         227
    73.10 Total new obligations.............       1,501       3,378       1,506
    73.20 Total financing disbursements
            (gross).........................      -1,507      -3,027      -1,506
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -15
    74.40 Obligated balance, end of year....        -124         227         227
    87.00 Total financing disbursements
            (gross).........................       1,507       3,027       1,506
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................         -99         -36         -15
    88.00       Repayment of principal and
                  interest from liquidating
                  account...................        -176         -16         -16
    88.00       Subsidy reestimate from
                  program account...........        -246        -995
    88.25     Interest on uninvested funds..        -128        -135        -135
              Non-Federal sources:
    88.40       Fees and premiums...........        -439        -418        -496
    88.40       Recoveries on defaulted
                  mortgages.................         -10          -5         -10
    88.40       Title I recoveries..........         -25         -47         -43
    88.40       Single family property
                  recoveries................        -315        -274        -330
    88.40       Gross Proceeds from sale of
                  mortgage notes
                  (liquidating).............                    -113         -40
    88.40       Gross Proceeds from Mortgage
                  Note Sales................        -102        -112        -142
    88.40       Multifamily property
                  recoveries................          -1          -3          -4
    88.40       Rounding Error Adjustment...          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,542      -2,154      -1,231
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -15
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         400         400         400
    90.00 Financing disbursements...........         -35         873         275
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      21,000      21,000      21,000
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      21,000      21,000      21,000
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      69,128      73,376      75,998
    2231  Disbursements of new guaranteed
            loans...........................      15,238      17,027      19,892
    2251  Repayments and prepayments........     -10,232     -13,377      -6,214
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -295        -418        -460
    2262    Terminations for default that
              result in acquisition of
              property......................        -414        -602        -609
    2263    Terminations for default that
              result in claim payments......         -49          -8          -8
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      73,376      75,998      88,599
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      73,376      75,998      88,599
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         552         618         650
    2331    Disbursements for guaranteed
              loan claims...................         295         418         460
    2351    Repayments of loans receivable..        -124        -386        -435
    2361    Write-offs of loans receivable..        -105
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         618         650         675
    ---------------------------------------------------------------------------

        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.

    [[Page 506]]

                               Balance Sheet\1\ (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4077-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,698          1,643         1,663          1,663
            Investments in US securities:
    1106      Receivables, net..............         576            332
    1107      Borrowings receivable from
                liquidating account.........                                      202            202
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............           7
    1206    Receivables, net................           3             16
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         552            618           650            675
    1502    Interest receivable.............           8             84
    1504    Foreclosed property.............         226            187           598            598
    1505    Allowance for subsidy cost......        -289           -362        -1,061         -1,061
                                            ------------ --------------  ------------  -------------
    1599      Net value of assets related to
                defaulted guaranteed loan...         497            527           187            212
    1702  Net value of assets related to
            pre-1992 direct loans receivable
            and acquired defaulted
            guaranteed loans receivable:
            Interest receivable.............                         18
          Other Federal assets:

    1801    Cash and other monetary assets..                          1
    1901    Other assets....................          -8            -17
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,773          2,520         2,052          2,077
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable
              Intragovernmental.............           6            190
    2103    Debt............................         966            877           738            738
    2105    Payable to Special Receipt
              Account for Subsidy Reestimate         517             12
          Non-Federal liabilities:

    2201    Accounts payable................         -17
    2202    Interest payable................                          6
    2203    Debt............................          -2             -2
    2204    Liabilities for loan guarantees.       1,297          1,428         1,314          1,339
    2207    Other...........................           6              9
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,773          2,520         2,052          2,077
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,773          2,520         2,052          2,077
    -----------------------------------------------------------------------------------------------

           FHA--General and Special Risk Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        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......                       4           3
    23.95 Total new obligations.............                      -4          -4
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                       3           3
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).                       4           4
    68.47     Portion applied to repay debt.                      -4          -4
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                       3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                       4           4
    73.20 Total financing disbursements
            (gross).........................          -1          -4          -4
    87.00 Total financing disbursements
            (gross).........................           1           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          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                      -4          -4
    ----------------------------------------------------------------------------

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          50          50          50
    1142  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           2           2
    1231  Disbursements: Direct loan
            disbursements...................           1           4           4
    1251  Repayments: Repayments and
            prepayments.....................                      -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           2           2           2
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 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
    2104    Resources payable to Treasury...                          1             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                          1             2              2
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                          1             2              2
    -----------------------------------------------------------------------------------------------

    [[Page 507]]

              FHA--Loan Guarantee Recovery Fund--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           3           5
    22.00 New financing authority (gross)...           2           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           5           7
    24.40 Unobligated balance carried
            forward, end of year............           3           5           7
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

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

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2121  Limitation available from carry-
            forward.........................           4           4
    2143  Uncommitted limitation carried
            forward.........................          -2
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................           2           4
    2199  Guaranteed amount of guaranteed
            loan commitments................           2           4
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           3           4           5
    2231  Disbursements of new guaranteed
            loans...........................           2           4
    2251  Repayments and prepayments........          -1          -3          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           4           5           2
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           4           5           2
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4106-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102    Federal assets: Treasury
              securities, par...............           1              3             5              7
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1              3             5              7
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           1              3             5              7
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              3             5              7
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1              3             5              7
    -----------------------------------------------------------------------------------------------

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

        FHA--General and Special Risk Insurance Funds Liquidating Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           7           7           7
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           7           7           7
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Interest on debentures..........          23          22          22
    00.03   Other operating costs...........          53          20          20
    00.05   Legislative savings repayments..         176          16          16
    00.06   PAE & 3rd party restructuring
              fees..........................         106          82          62
                                               ---------   ---------  ----------
    00.91     Total operating expenses......         358         140         120
          Capital investment: Claims and other:

    01.01   Acquisition of defaulted Title I
              notes.........................          -5           6           5
    01.02   Assignment of mortgages.........         125         265         318
    01.03   Assignments per 221 G4..........         205         177         212
    01.05   Mark-To-Market Restructures.....         293         534         700
    01.07   Loss on defaulted guaranteed
              loans.........................           1           3           3
    01.08   Tax advances on held mortgages..          38          39          41
    01.09   Acquisition of real properties..          49          54          42
    01.10   Capitalized property expenses...         177         154         136
    01.11   Rehabilitation of real
              properties....................          10          14          11
    01.12   Upfront Grants..................          20          93          75
    01.13   Other...........................          94           5           5
    01.14   M&M Contract....................           2           2           2
    01.15   Prior Year Contract Adjustments.          10
    01.16   Payment to the Financing
              Account-Asset Sale............                     113          40
                                               ---------   ---------  ----------
    01.91     Total capital investment......       1,019       1,459       1,590
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,377       1,599       1,710
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,245       1,986
    22.00 New budget authority (gross)......       3,460       1,729       1,835
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          27
    22.40 Capital transfer to general fund..      -1,245      -1,986
    22.60 Portion applied to repay debt.....        -123        -130        -125
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,364       1,599       1,710
    23.95 Total new obligations.............      -1,377      -1,599      -1,710
    24.40 Unobligated balance carried
            forward, end of year............       1,986
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       2,346         879         898
    67.10   Authority to borrow.............         128         130         125
    69.00 Offsetting collections (cash).....       1,025         720         812
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -39
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         986         720         812
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,460       1,729       1,835
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         511         802         402
    73.10 Total new obligations.............       1,377       1,599       1,710
    73.20 Total outlays (gross).............      -1,098      -1,999      -1,770
    73.45 Recoveries of prior year
            obligations.....................         -27
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          39
    74.40 Obligated balance, end of year....         802         402         342
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,059       1,598       1,368
    86.98 Outlays from mandatory balances...          39         400         402
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,098       1,999       1,770
    ----------------------------------------------------------------------------

    [[Page 508]]

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -37
              Non-Federal sources:
    88.40       Fees and premiums...........        -104        -122        -110
    88.40       Rebates of insurance
                  premiums..................                       2           2
    88.40       Multifamily foreclosure
                  sales.....................         -22         -89         -88
    88.40       Proceeds from sale of real
                  property..................         -67         -60         -46
    88.40       Proceeds from sale of
                  mortgage notes............        -393        -163        -208
    88.40       MTM second mortgage
                  repayments................          -1         -23         -64
    88.40       Recoveries on defaulted
                  mortgages.................        -160        -118        -156
    88.40       Interest....................         -81         -79         -74
    88.40       Other interest, dividends
                  and revenue...............         -15         -15         -15
    88.40       Modification subsidy &
                  transfers from financing
                  acct......................                      -3          -3
    88.40       Other collections...........        -122         -50         -50
    88.40       Prior Year Recoveries.......         -23
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,025        -720        -812
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          39
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,474       1,009       1,023
    90.00 Outlays...........................          73       1,279         958
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           7           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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          44          38          33
    1251  Repayments: Repayments and
            prepayments.....................          -6          -5         -10
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          38          33          23
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      29,761      25,370      23,381
    2251  Repayments and prepayments........      -3,723        -910        -842
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -618        -981      -1,235
    2262    Terminations for default that
              result in acquisition of
              property......................         -49         -54         -42
    2263    Terminations for default that
              result in claim payments......          -1         -44         -55
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      25,370      23,381      21,207
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      25,370      23,381      21,207
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,960       1,999       2,446
    2331    Disbursements for guaranteed
              loan claims...................         618         981       1,235
    2351    Repayments of loans receivable..        -590        -439        -510
    2361    Write-offs of loans receivable..        -372         -95        -388
    2364    Other adjustments, net..........         383
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,999       2,446       2,783
    ---------------------------------------------------------------------------

        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
    2006 except for binding commitments entered into prior to October 1,
    2006.

        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          2000
                                               actual\1\ 2001 actual\2\     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         230            430
    0102  Expense...........................        -544           -503
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............        -314            -73
    0108  Other comprehensive income........        -277           -598
    -----------------------------------------------------------------------------------------------
        \1\ Preliminary results pending final audit.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4072-0-3-371          2000
                                               actual\1\    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,749          2,782
            Investments in US securities:
    1102      Treasury securities, par......           8              7
    1106      Receivables, net..............          47              9             3              3
    1107      Advances and prepayments......          20             20
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............          -6
    1206    Receivables, net................         113            124            86             86
    1207    Advances and prepayments........
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          44             39            33             23
    1602    Interest receivable.............           1             -1
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -22            -21           -47            -47
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          23             17           -14            -24
    1701    Defaulted guaranteed loans,
              gross.........................       1,981          2,006         1,707          1,707
    1702    Interest receivable.............         216            130
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,605         -1,126        -1,208         -1,208
                                            ------------ --------------  ------------  -------------
    1704      Defaulted guaranteed loans and
                interest receivable, net....         592          1,010           499            499

    [[Page 509]]

    1705    Allowance for uncollectables
              from foreclosed property......         763                         -150           -150
    1706    Foreclosed property.............        -668             84           244            244
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............         687          1,094           593            593
          Other Federal assets:

    1801    Funds held by the Public........          74            109
    1901    Other assets....................           9             18
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,724          4,180           668            658
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         204             52           363            363
    2105    Other Liabilities...............          20            127
          Non-Federal liabilities:

    2201    Accounts payable................         354            444           443            443
    2202    Interest payable................          12             -4
    2203    Debt............................         220            223
    2204    Liabilities for loan guarantees.       6,732          6,732
    2206    Pension and other actuarial
              liabilities...................                                    5,960          5,960
    2207    Unearned revenue and advances...         390            384           124            124
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       7,932          7,958         6,890          6,890
        NET POSITION:
    3100  Appropriated capital..............         921          1,826         8,532          8,532
    3300  Cumulative results of operations..      -6,129         -5,604       -14,754        -14,764
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -5,208         -3,778        -6,222         -6,232
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,724          4,180           668            658
    -----------------------------------------------------------------------------------------------
        \1\ Preliminary pending final audit.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         282         109          89
    32.0  Land and structures...............         256         315         264
    33.0  Investments and loans.............         618         982       1,234
    42.0  Insurance claims and indemnities..          39          42          44
    43.0  Interest and dividends............           6          22          22
    44.0  Repayments to financing account...         176         129          57
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,377       1,599       1,710
    ---------------------------------------------------------------------------

         Housing for the Elderly or Handicapped Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.02   Maintenance security and
              collateral....................           5           5           5
    01.01 Operating expenses: Interest on
            borrowings......................         299         230         198
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         304         235         203
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         116          26
    22.00 New budget authority (gross)......         322         426         296
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           7           5          10
    22.40 Capital transfer to general fund..        -116        -222        -103
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         329         235         203
    23.95 Total new obligations.............        -304        -235        -203
    24.40 Unobligated balance carried
            forward, end of year............          26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation (Indefinite)......          87
    69.00 Offsetting collections (cash).....         785         751         751
    69.47 Portion applied to repay debt.....        -550        -325        -455
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         235         426         296
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         322         426         296
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         178         152         115
    73.10 Total new obligations.............         304         235         203
    73.20 Total outlays (gross).............        -323        -267        -222
    73.45 Recoveries of prior year
            obligations.....................          -7          -5         -10
    74.40 Obligated balance, end of year....         152         115          85
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         304         265         222
    86.98 Outlays from mandatory balances...          19           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         323         267         222
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -785        -751        -751
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -463        -325        -455
    90.00 Outlays...........................        -462        -484        -529
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       7,923       7,805       7,623
    1231  Disbursements: Direct loan
            disbursements...................           4           5           1
    1251  Repayments: Repayments and
            prepayments.....................        -122        -187        -221
    1264  Write-offs for default: Other
            adjustments, net................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       7,805       7,623       7,403
    ---------------------------------------------------------------------------
        Note.--Amounts for direct loan obligations reflect reservations of
    section 202 funds. Loan obligations shown under the program and
    financing schedule reflect loans that have reached the initial closing
    stage of processing.

        The Housing for the Elderly or Handicapped Fund was established
    pursuant to section 202 of the Housing Act of 1959, as amended. The fund
    provided direct loans to nonprofit organizations building and managing
    housing projects for lower income persons who are elderly or disabled.

        Projects included an assured range of necessary services for the
    occupants of such projects. In addition, the section 8 lower income
    housing assistance payments program has been used in conjunction with
    the section 202 program. Applications under the two programs have been
    processed simultaneously.

        The data included in these schedules represent direct loan
    activities funded under the Housing for the Elderly or Handicapped Loan
    Fund. Further, activities in support of the needs of the elderly and
    disabled have been carried out under a grant program funded in the 1991
    Appropriations Act (P.L. 101-507) and authorized in the National
    Affordable Housing Act (P.L. 101-625).

        After April 1, 1992, all projects for which there were
    administrative reservations converted to the capital advance assistance
    program.

        The program and financing schedule for this account summarizes the
    Federal government's obligations for this loan program.

        Financing.--Repayments and interest income from loans continue to be
    available to pay for commitments of the fund.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         674            659           563            530
    0102  Expense...........................        -345           -294          -235           -203
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         329            365           328            327
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         294            178           115             85
    1207  Non-Federal assets: Advances and
            prepayments.....................

    [[Page 510]]

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

    1601    Direct loans, gross.............       7,923          7,804         7,623          7,403
    1602    Interest receivable.............          83             98            98             98
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -23            -20           -22            -21
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       7,983          7,882         7,699          7,480
    1606    Acquired Real Property..........           8              9             8              8
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       7,991          7,891         7,707          7,488
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,285          8,069         7,822          7,573
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         171            150           115            100
    2103    Debt............................       3,653          3,103         2,778          2,323
    2104    Resources payable to Treasury...       4,451          4,407         4,710          5,036
    2207  Non-Federal liabilities: Other....          10             22            22             22
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,285          7,682         7,625          7,481
        NET POSITION:
    3100  Unexpended Appropriations.........                         22            12              6
    3300  Revolving Fund: Cumulative results
            of operations...................                        365           185             86
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                        387           197             92
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,285          8,069         7,822          7,573
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    32.0  Land and structures...............           5           5           5
    43.0  Interest and dividends............         299         230         198
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         304         235         203
    ---------------------------------------------------------------------------

                Nonprofit Sponsor Assistance Liquidating Account

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4042-0-3-604      2001 actual   2002 est.   2003 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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          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
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................
    -----------------------------------------------------------------------------------------------

                      Manufactured Housing Fees Trust Fund

        For necessary expenses as authorized by the National Manufactured
    Housing Construction and Safety Standards Act of 1974, as amended (42
    U.S.C. 5401 et seq.), [$13,566,000] $13,000,000, to remain available
    until expended, to be derived from the Manufactured Housing Fees Trust
    Fund: Provided, That not to exceed the total amount appropriated under
    this heading 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 pursuant to section 620 of such
    Act: Provided further, That the amount made available under this heading
    from the general fund shall be reduced as such collections are received
    during fiscal year [2002] 2003 so as to result in a final fiscal year
    [2002] 2003 appropriation from the general fund estimated at not more
    than $0 and fees pursuant to such section 620 shall be modified as
    necessary to ensure such a final fiscal year [2002] 2003 appropriation.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2002.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-8119-0-7-376      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Manufactured home inspection and
            monitoring......................           6          14          13
        Appropriations:
    05.00 Manufactured home inspection and
            monitoring......................          -6         -14         -13
                                               ---------   ---------  ----------
    05.99   Total appropriations............          -6         -14         -13
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-8119-0-7-376      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Transfer to salaries and expenses.           1           1           1
    00.02 Other program costs...............           4          13          12
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           5          14          13
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1           1
    22.00 New budget authority (gross)......           6          14          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6          15          14
    23.95 Total new obligations.............          -5         -14         -13
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund)......                      14          13
          Mandatory:

    60.26   Appropriation (trust fund)......           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           6          14          13
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       3           3
    73.10 Total new obligations.............           5          14          13
    73.20 Total outlays (gross).............          -2         -14         -13
    74.40 Obligated balance, end of year....           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      11          10
    86.93 Outlays from discretionary
            balances........................                       3           3
    86.97 Outlays from new mandatory
            authority.......................           2
    86.98 Outlays from mandatory balances...           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2          14          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6          14          13
    90.00 Outlays...........................           2          14          13
    ---------------------------------------------------------------------------

    [[Page 511]]

        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 2001, an estimated 338,565 transportable
    sections were produced, for a total of 191,249 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 with
    a cost of $350,000.

                    GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

                                  Federal Funds

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

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

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $834 million in 2002 and $808 million in
    2003.

    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, [2003] 2004.
        For administrative expenses necessary to carry out the guaranteed
    mortgage-backed securities program, [$9,383,000] $10,761,000, to be
    derived from the GNMA guarantees of mortgage-backed securities
    guaranteed loan receipt account, of which not to exceed [$9,383,000]
    $10,761,000, shall be transferred to the appropriation for ``Salaries
    and expenses''. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............       1,004       1,351       1,740
        Receipts:
    02.20 Negative subsidies................         356         398         398
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       1,360       1,749       2,138
        Appropriations:
    05.00 Guarantees of mortgage-backed
            securities loan guarantee
            program account.................          -9          -9         -10
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............       1,351       1,740       2,128
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative expenses, salaries
            and expenses....................           9           9          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................           9           9          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9           9          10
    23.95 Total new obligations.............          -9          -9         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....           9           9          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           9           9          10
    73.20 Total outlays (gross).............          -9          -9         -10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9           9          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9           9          10
    90.00 Outlays...........................           9           9          10
    ----------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Ginnie Mae mortgage-backed
            securities......................     153,798     120,000     120,000
    215002Standby commitment authority......      46,202      80,000      80,000
                                               ---------   ---------  ----------

    [[Page 512]]

    215901Total loan guarantee levels.......     200,000     200,000     200,000
        Guaranteed loan subsidy (in percent):
    232001Loan guarantee levels.............       -0.36       -0.33       -0.33
    232002Standby commitment authority......       -0.36       -0.33       -0.33
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       -0.36       -0.33       -0.33
        Guaranteed loan subsidy budget authority:
    233001Loan guarantee levels.............        -356        -398        -398
    233002Standby commitment authority......
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....        -356        -398        -398
        Guaranteed loan subsidy outlays:
    234001Loan guarantee levels.............        -356        -398        -398
    234002Standby commitment authority......
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............        -356        -398        -398
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           9           9          10
    359001Outlays from new authority........           9           9          10
    ---------------------------------------------------------------------------

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

           Guarantees of Mortgage-Backed Securities Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating expenses................          40          43           3
    00.02 Capital investment................          52          95          63
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating expenses and
              capital investment............          92         138          66
    08.01 Payment to receipt account for
            negative subsidy................         356         398         398
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         448         536         464
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         598         666         675
    22.00 New financing authority (gross)...         516         545         548
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,114       1,211       1,223
    23.95 Total new obligations.............        -448        -536        -464
    24.40 Unobligated balance carried
            forward, end of year............         666         675         759
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............         516         545         548
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          26          28
    73.10 Total new obligations.............         448         536         464
    73.20 Total financing disbursements
            (gross).........................        -437        -534        -464
    74.40 Obligated balance, end of year....          26          28          28
    87.00 Total financing disbursements
            (gross).........................         437         534         464
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..         -47         -38         -38
              Non-Federal sources:
    88.40       Guarantee Fees..............        -383        -383        -398
    88.40       Commitment and other fees...         -48         -72         -42
    88.40       Multiclass fees.............         -18         -21         -21
    88.40       Repayment of advances.......         -20         -31         -49
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -516        -545        -548
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         -79         -11         -84
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      2001 actual   2002 est.   2003 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
    2121  Limitation available from carry-
            forward.........................                  38,343
    2143  Uncommitted limitation carried
            forward.........................     -38,343
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................     161,657     238,343     200,000
    2199  Guaranteed amount of guaranteed
            loan commitments................     161,657     238,343     200,000
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     602,741     604,309     627,619
    2231  Disbursements of new guaranteed
            loans...........................     153,798     120,000     120,000
    2251  Repayments and prepayments........    -152,230     -96,689     -72,168
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     604,309     627,619     675,451
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     604,309     627,619     675,451
    ---------------------------------------------------------------------------

        Operating Results.--Fee collections, interest, and other income are
    expected to exceed expenses by $76 million in 2001; $37 million in 2002
    and $95 million in 2003. 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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         614            693           703            747
    1206  Non-Federal assets: Receivables,
            net.............................          31             32            32             33
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............                          3            10             11
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................                          2            11             10
    1803  Other Federal assets: Property,
            plant and equipment, net........           5              8            12             15
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         650            736           757            806
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................          47             59            59             61
    2207    Other...........................          22             21
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          69             80            59             61
        NET POSITION:
    3300  Cumulative results of operations..         581            656           698            745
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         581            656           698            745
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         650            736           757            806
    -----------------------------------------------------------------------------------------------
        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............

    [[Page 513]]

        Receipts:
    02.80 Guarantees of mortgage-backed
            securities liquidating account,
            offsetting collections..........         402         420         425
        Appropriations:
    05.00 Guarantees of mortgage-backed
            securities liquidating account..        -402        -420        -425
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative contract expenses..                                  40
          Operating expenses:

    00.02   Default expenses................           1           1           1
    00.03   Servicing expenses..............           2           1           1
                                               ---------   ---------  ----------
    00.91     Total operating expenses......           3           2          42
          Capital investment:

    01.01   Advances of guaranty payments...          47          46          45
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          50          48          87
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       6,237       6,589       6,961
    22.00 New budget authority (gross)......         402         420         465
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       6,639       7,009       7,426
    23.95 Total new obligations.............         -50         -48         -87
    24.40 Unobligated balance carried
            forward, end of year............       6,589       6,961       7,339
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                  40
    69.00 Offsetting collections (cash).....         402         420         425
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         402         420         465
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of
            year\1\.........................         -79         -66         -59
    73.10 Total new obligations.............          50          48          87
    73.20 Total outlays (gross).............         -37         -42         -89
    74.40 Obligated balance, end of year....         -66         -59         -61
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          37          42          89
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities        -356        -378        -389
              Non-Federal sources:
    88.40       Repayments of guaranteed
                  payments..................         -42         -39         -35
    88.40       Servicing income............          -3          -2          -1
    88.40       Repayments on mortgages.....          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -402        -420        -425
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  40
    90.00 Outlays...........................        -365        -378        -336
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       6,190       6,575       6,838
    92.02 Total investments, end of year:
            Federal securities: Par value...       6,575       6,838       7,111
    ---------------------------------------------------------------------------
        \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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         109         110          90
    1232  Disbursements: Purchase of loans
            assets from the public..........          47          46          45
    1252  Repayments: Proceeds from loan
            asset sales to the public or
            discounted......................         -42         -39         -35
    1263  Write-offs for default: Direct
            loans...........................          -4         -27         -25
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         110          90          75
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         146         134         122
    2251  Repayments and prepayments........         -12         -12         -12
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         134         122         110
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         134         122         110
    ---------------------------------------------------------------------------

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $378 million in 2002 and $348 million in
    2003. These amounts will be retained to cover future year expenses and
    as a reserve against losses that may be incurred on guarantees.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         370            383           381            390
    0102  Expense...........................                                       -3            -42
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         370            383           378            348
                                            ------------ --------------  ------------  -------------
    0199  Total comprehensive income........         370            383           378            348
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....
            Investments in US securities:
    1102      Treasury securities, par......       6,171          6,557         6,838          7,111
    1106      Receivables, net..............          89             85            57             58
    1206  Non-Federal assets: Receivables,
            net.............................           3              2             2              1
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         109            110            89             75
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -105            -99           -79            -65
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           4             11            10             10
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       6,267          6,655         6,907          7,180
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................          20             20             1
    2207    Other...........................         513            515           514            514
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         533            535           515            514
        NET POSITION:
    3300  Cumulative results of operations..       5,734          6,120         6,392          6,666
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       5,734          6,120         6,392          6,666
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       6,267          6,655         6,907          7,180
    -----------------------------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           3           2          42
    33.0  Investments and loans.............          47          46          45
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          50          48          87
    ---------------------------------------------------------------------------

    [[Page 514]]

                         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, [$50,250,000]
    $47,000,000, to remain available until September 30, [2003: Provided,
    That $1,500,000 shall be for necessary expenses of the Millennial
    Housing Commission, as authorized by section 206 of Public Law 106-74,
    with the final report due no later than May 30, 2002 and a termination
    date of August 30, 2002, notwithstanding section 206(f) and (g) of
    Public Law 106-74: Provided further, That $1,000,000 shall be for
    necessary expenses of the commission established under section 525 of
    the Preserving Affordable Housing for Senior Citizens and Families in
    the 21st Century Act, with the final report due no later than June 30,
    2002 and a termination date of September 30, 2002, notwithstanding
    section 525(f) and (g) of Public Law 106-74: Provided further, That of
    the total amount provided under this heading, $8,750,000 shall be for
    the Partnership for Advancing Technology in Housing (PATH) Initiative]
    2004. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing Research..................          41          41          47
    00.02 PATH..............................           9          10
    00.05 Strategic Planning Performance
            Measurement.....................           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          53          51          47
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           3
    22.00 New budget authority (gross)......          53          48          47
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          55          51          47
    23.95 Total new obligations.............         -53         -51         -47
    24.40 Unobligated balance carried
            forward, end of year............           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          53          50          47
    41.00   Transferred to other accounts...                      -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          53          48          47
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          63          51          40
    73.10 Total new obligations.............          53          51          47
    73.20 Total outlays (gross).............         -64         -60         -51
    74.40 Obligated balance, end of year....          51          40          37
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          25          19          19
    86.93 Outlays from discretionary
            balances........................          39          41          33
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          64          60          51
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          53          48          47
    90.00 Outlays...........................          63          60          51
    ---------------------------------------------------------------------------

        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 2003, the research program will expand funding for program
    evaluations and cover some of the increased costs associated with
    analyzing newly available 2000 census data to determine their
    implications for HUD programs. National Housing Surveys will continue in
    2003. 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          47          45          42
    41.0  Grants, subsidies, and
            contributions...................           6           6           5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          53          51          47
    ---------------------------------------------------------------------------

                       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,
    $45,899,000, to remain available until September 30, [2003] 2004, of
    which $20,250,000 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0144-0-1-751      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fair housing assistance...........          21          26          26
    00.02 Fair housing initiatives..........          24          20          20
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          45          46          46
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          30          31          31
    22.00 New budget authority (gross)......          46          46          46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          76          77          77
    23.95 Total new obligations.............         -45         -46         -46
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          31          31          31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          39          45          54
    73.10 Total new obligations.............          45          46          46
    73.20 Total outlays (gross).............         -39         -37         -46
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          45          54          54
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1
    86.93 Outlays from discretionary
            balances........................          38          37          46
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          39          37          46
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          46          46          46
    90.00 Outlays...........................          39          37          46
    ---------------------------------------------------------------------------

        The Budget proposes an appropriation of $46 million in 2003 to fund
    fair housing activities that support efforts to end housing
    discrimination. Of the amount requested, $26 million is for the Fair
    Housing Assistance Program and $20 million is for the Fair Housing
    Initiatives Program.

    [[Page 515]]

        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 98 in 2003 from 96
    in 2002.

        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

                                  Federal Funds

    General and Special Funds:

                              Lead Hazard Reduction

        For the Lead Hazard Reduction Program, as authorized by section 1011
    of the Residential Lead-Based Paint Hazard Reduction Act of 1992,
    [$109,758,000] $126,000,000, to remain available until September 30,
    [2003] 2004, of which $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 diseases and
    hazards[: Provided, That of the amounts provided under this heading,
    $3,500,000 shall be for a one-time grant to the National Center for
    Lead-Safe Housing]. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0174-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Lead abatement....................          90         196         126
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          90         196         126
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          72          86
    22.00 New budget authority (gross)......         100         110         126
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         176         196         126
    23.95 Total new obligations.............         -90        -196        -126
    24.40 Unobligated balance carried
            forward, end of year............          86
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         100         110         126
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         196         196         297
    73.10 Total new obligations.............          90         196         126
    73.20 Total outlays (gross).............         -86         -95        -101
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.40 Obligated balance, end of year....         196         297         322
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           2           3
    86.93 Outlays from discretionary
            balances........................          81          93          98
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          86          95         101
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         100         110         126
    90.00 Outlays...........................          85          95         101
    ---------------------------------------------------------------------------

        Title X of the Housing and Community Development Act of 1992 (Public
    Law 102-550), known as the Residential Lead-Based Paint Hazard Reduction
    Act, authorized the Secretary to establish the Lead-Based Paint Hazard
    Control Grant Program. The primary purpose of the program is to reduce
    the exposure of young children to lead-based paint hazards in their
    homes.

        The program is a major part of a 10-year strategy to eliminate lead
    poisoning in children. The 2003 Budget includes a $16 million increase
    to $96 million for HUD's Lead Hazard Control Program competitive grants,
    and $10 million for the Healthy Homes Initiative. A request of $10
    million to continue Operation LEAP is also included. These funds will be
    used to leverage the lead hazard control grant program.

        The Lead Hazard Control Grant Program provides grants of $1 to $2.5
    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 housing maintenance and rehabilitation workforce
    trained in lead-safe work practices and a certified hazard evaluation
    and control industry. 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 Support 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.

                          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 $25,000 for official reception and
    representation expenses, [$1,097,292,000] $1,120,871,000, of which
    [$530,457,000] $571,779,000 shall be provided from the various funds of
    the Federal Housing Administration, [$9,383,000] [$10,000,000]
    $10,761,000 shall be provided from funds of the Government National
    Mortgage Association, [$1,000,000] $1,040,000 shall be provided from the
    ``Community development loan guarantees program'' account, [$150,000]
    $156,000 shall be provided by transfer from the ``Native American
    housing block grants'' account, [$200,000] $207,000 shall be provided by
    transfer from the ``Indian housing loan guarantee fund program'' account
    and $35,000 shall be transferred from the ``Native Hawaiian housing loan
    guarantee fund'' account: Provided, That no less than [$85,000,000]
    $10,500,000 shall be transferred to the Working Capital Fund for the
    development [and maintenance of] of and modifications to information
    technology

    [[Page 516]]

    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 Public Law 106-
    377 by 2\1/2\ percent: Provided further, That the Secretary shall submit
    a staffing plan for the Department by January 15, 2002]. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2002; additional authorizing legislation
    required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Housing, mortgage credit,
              regulatory and energy
              conservation..................         222         231         213
    00.02   Community planning and
              development programs..........          37          38          35
    00.03   Equal opportunity and research
              programs......................          40          41          38
    00.04   Departmental management, legal
              and audit services............          36          36          34
    00.05   Field direction and
              administration................         228         236         217
    09.01 Reimbursable program..............         557         566         584
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......         557         566         584
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,120       1,148       1,121
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,126       1,148       1,121
    23.95 Total new obligations.............      -1,120      -1,148      -1,121
    23.98 Unobligated balance expiring or
            withdrawn.......................          -5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         569         582         537
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         568         582         537
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         558         566         584
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,126       1,148       1,121
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         194         174         174
    73.10 Total new obligations.............       1,120       1,148       1,121
    73.20 Total outlays (gross).............      -1,137      -1,148      -1,128
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    74.40 Obligated balance, end of year....         174         174         167
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,045       1,054       1,034
    86.93 Outlays from discretionary
            balances........................          92          94          94
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,137       1,148       1,128
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -558        -566        -584
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         568         582         537
    90.00 Outlays...........................         579         582         544
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         542         556         510
    90.00 Outlays...........................         553         556         517
    ---------------------------------------------------------------------------

        This appropriation finances all salaries and related costs
    associated with administering the programs of the Department of Housing
    and Urban Development, including: housing and mortgage credit programs;
    community planning and development programs; equal opportunity,
    research, regulatory and insurance programs; departmental management,
    and legal services; and, field direction and administration.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         282         313         329
    11.3      Other than full-time permanent           1           2           2
    11.5      Other personnel compensation..           2           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         285         318         334
    12.1    Civilian personnel benefits.....         100         100         102
    21.0    Travel and transportation of
              persons.......................           8           8          12
    23.1    Rental payments to GSA..........          46          46          48
    23.3    Communications, utilities, and
              miscellaneous charges.........          14          14          14
    24.0    Printing and reproduction.......           3           3           3
    25.1    Advisory and assistance services          74          63
    25.2    Other services..................           3           3           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................          20          20          12
    25.4    Operation and maintenance of
              facilities....................           3           3           3
    25.7    Operation and maintenance of
              equipment.....................           1           1           2
    26.0    Supplies and materials..........           3           2           2
    31.0    Equipment.......................           3           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         563         582         537
    99.0  Reimbursable obligations..........         557         566         584
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,120       1,148       1,121
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       4,552       4,641       4,641
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       4,374       4,459       4,459
    ---------------------------------------------------------------------------

                           Office of Inspector General

        For necessary expenses of the Office of Inspector General in
    carrying out the Inspector General Act of 1978, as amended,
    [$93,898,000] $101,595,000, of which [$22,343,000] $24,058,000 shall be
    provided from the various funds of the Federal Housing Administration
    [and $5,000,000 shall be provided from the appropriation for the
    ``Public housing operating fund'': Provided, That the Inspector General
    shall have independent authority over all personnel issues within] :
    Provided, that no less than $300,000 shall be transferred to the Working
    Capital Fund for the development of and modifications to information
    technology systems for the Office of Inspector General. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2002; additional authorizing legislation
    required.)
        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Office of Inspector
    General'', $1,000,000, to remain available until expended, to be
    obligated from amounts made available in Public Law 107-38.] (Emergency
    Supplemental Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          62          71          77
    09.01 Reimbursable program..............          33          28          24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          95          99         101
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6
    22.00 New budget authority (gross)......          89          99         101
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          95          99         101

    [[Page 517]]

    23.95 Total new obligations.............         -95         -99        -101
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          56          71          77
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          33          28          24
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          89          99         101
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          27          26          26
    73.10 Total new obligations.............          95          99         101
    73.20 Total outlays (gross).............         -95         -98        -101
    74.40 Obligated balance, end of year....          26          26          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          79          84          84
    86.93 Outlays from discretionary
            balances........................          15          15          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          95          98         101
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -33         -28         -24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          56          71          77
    90.00 Outlays...........................          61          70          77
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          53          68          74
    90.00 Outlays...........................          58          67          74
    ---------------------------------------------------------------------------

        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)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          31          41          48
    11.5      Other personnel compensation..           2           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          33          43          50
    12.1    Civilian personnel benefits.....          10          11          11
    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           3           3
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           2           2
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           2           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          61          71          77
    99.0  Reimbursable obligations..........          34          28          24
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          95          99         101
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         438         443         443
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         246         232         232
    ---------------------------------------------------------------------------

                              Consolidated Fee Fund

                                  (rescission)

        [Of the] All unobligated balances remaining available from fees and
    charges under section 7(j) of the Department of Housing and Urban
    Development Act[, $6,700,000 is] on October 1, 2002 are rescinded.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5486-0-2-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          16           8
    22.00 New budget authority (gross)......                      -7          -8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16           9
    23.95 Total new obligations.............          -1          -1
    24.40 Unobligated balance carried
            forward, end of year............          16           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...                      -7          -8
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           1           1
    73.20 Total outlays (gross).............          -1          -1
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                      -7          -8
    90.00 Outlays...........................           1           1
    ---------------------------------------------------------------------------

        Section 7(j) of the Department of Housing and Urban Development Act
    established 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 funds are no
    longer needed. In 2003, the budget proposes a rescission of all
    unobligated funds.

                 Office of Federal Housing Enterprise Oversight

                              Salaries and Expenses

                          (including transfer of funds)

        [For carrying out the Federal Housing Enterprises Financial Safety
    and Soundness Act of 1992, including not to exceed $500 for official
    reception and representation expenses, $27,000,000, to remain available
    until expended, to be derived from the Federal Housing Enterprises
    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: Provided further, That this Office shall submit a
    staffing plan to the House and Senate Committees on Appropriations no
    later than January 30, 2002]. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2002.)

    [[Page 518]]

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.60 Office of federal housing
            enterprise oversight............          22          27          31
        Appropriations:
    05.00 Office of federal housing
            enterprise oversight............         -22         -27         -31
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          23          27          31
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          23          27          31
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          22          27          31
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          23          27          31
    23.95 Total new obligations.............         -23         -27         -31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....          22          27          31
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6           5           6
    73.10 Total new obligations.............          23          27          31
    73.20 Total outlays (gross).............         -23         -26         -30
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....           5           6           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          19          22          25
    86.93 Outlays from discretionary
            balances........................           4           4           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          23          26          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          22          27          31
    90.00 Outlays...........................          23          26          30
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          22          27          30
    90.00 Outlays...........................          23          26          29
    ---------------------------------------------------------------------------

        This appropriation funds the Office of Federal Housing Enterprise
    Oversight (the Office), which was established in 1992 to regulate the
    financial safety and soundness of two housing Government Sponsored
    Enterprises (GSEs)--Fannie Mae and Freddie Mac. The Office was
    authorized in the Federal Housing Enterprise Safety and Soundness Act of
    1992, which also instituted a risk-based capital standard for the GSEs,
    and gave the regulator enhanced authority to enforce those standards.
    The office is also required by statute to conduct on-site annual
    examinations at the GSEs to determine the condition of each enterprise
    for the purpose of ensuring their financial safety and soundness.

        In order to treat OFHEO similarly to other financial regulators,
    including the regulator of the Federal Home Loan Bank System, the Budget
    proposes legislation that would provide direct funding of OFHEO's
    activities with mandatory assessments on Fannie Mae and Freddie Mac.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation:
              Personnel Compensation........          12          14          16
    12.1    Civilian personnel benefits.....           3           3           5
    23.2    Rental payments to others.......           3           3           3
    25.2    Other services..................           3           2           5
    31.0    Equipment.......................           1           4           1
    32.0    Land and structures.............           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          23          26          30
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          23          27          31
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         105         118         142
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

        For additional capital for Working Capitol Fund (42 U.S.C. 3535) for
    the development of, modifications to, and infrastructure for Department-
    wide Information technology systems, and for the continuing operation of
    both Department-wide and program-specific information systems,
    $278,737,000 to remain available until September 30, 2004: Provided,
    That any amounts transferred to this Fund under this Act shall remain
    available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........                                 278
    09.01 Reimbursable program..............         340         351          75
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         340         351         353
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          25          24          24
    22.00 New budget authority (gross)......         336         351         353
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         363         375         377
    23.95 Total new obligations.............        -340        -351        -353
    24.40 Unobligated balance carried
            forward, end of year............          24          24          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 278
          Mandatory:

    69.00   Offsetting collections (cash)...         398         351          75
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -62
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         336         351          75
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         336         351         353
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -17          71          71
    73.10 Total new obligations.............         340         351         353
    73.20 Total outlays (gross).............        -310        -351        -325
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          62
    74.40 Obligated balance, end of year....          71          71          99
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 250
    86.97 Outlays from new mandatory
            authority.......................         310         351          75
                                               ---------   ---------  ----------

    [[Page 519]]

    87.00   Total outlays (gross)...........         310         351         325
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -398        -351         -75
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          62
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 278
    90.00 Outlays...........................         -87                     250
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 276
    90.00 Outlays...........................         -87                     248
    ---------------------------------------------------------------------------

        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. In 2001 and 2002 the fund was financed from fees
    charged for services performed. In 2003, a direct appropriation is
    requested for the operations of the computer system and for development
    and modifications of Department-wide systems. Fees will continue for
    services to develop and modify systems where the benefit is limited to a
    specific program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                                  32
    12.1    Civilian personnel benefits.....                                   8
    21.0    Travel and transportation of
              persons.......................                                   1
    23.3    Communications, utilities, and
              miscellaneous charges.........                                  43
    25.1    Advisory and assistance services                                 176
    26.0    Supplies and materials..........                                   1
    31.0    Equipment.......................                                  17
                                               ---------   ---------  ----------
    99.0      Direct obligations............                                 278
          Reimbursable obligations:

    11.1    Personnel compensation: Full-
              time permanent................          26          30
    12.1    Civilian personnel benefits.....           5           6
    21.0    Travel and transportation of
              persons.......................           1           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          35          40           9
    25.1    Advisory and assistance services         223         237          58
    26.0    Supplies and materials..........           1           1
    31.0    Equipment.......................          49          35           8
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......         340         351          75
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         340         351         353
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......                                 380
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         354         380
    ---------------------------------------------------------------------------

                            Administrative Provisions

        Sec. 201. Fifty percent of the amounts of budget authority, or in
    lieu thereof 50 percent of the cash amounts associated with such budget
    authority, that are recaptured from projects described in section
    1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of
    1988 (42 U.S.C. 1437 note) 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.
        [Sec. 202. None of the amounts made available under this Act may be
    used during fiscal year 2002 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.]
        Sec. [203] 202. (a) Notwithstanding section 854(c)(1)(A) of the AIDS
    Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts
    made available under this title for fiscal year [2002] 2003 that are
    allocated under such section, the Secretary of Housing and Urban
    Development shall allocate and make a grant, in the amount determined
    under subsection (b), for any State that--
            (1) received an allocation in a prior fiscal year under clause
        (ii) of such section; and
            (2) is not otherwise eligible for an allocation for fiscal year
        [2002] 2003 under such clause (ii) because the areas in the State
        outside of the metropolitan statistical areas that qualify under
        clause (i) in fiscal year [2002] 2003 do not have the number of
        cases of acquired immunodeficiency syndrome (AIDS) required under
        such clause.
        (b) 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 [2002] 2003, 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).
        Sec. [204] 203. (a) Section 225(a) of the Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2000, Public Law 106-74 (113 Stat. 1076), is amended
    by [inserting ``and fiscal year 2002'' after ``fiscal year 2001'']
    striking ``year 2000, and the amounts that would otherwise be allocated
    for fiscal year 2001 and fiscal year 2002'', and inserting ``years 2000,
    2001, 2002, and 2003''.
        (b) Notwithstanding any other provision of law, the Secretary of
    Housing and Urban Development shall allocate to Wake County, North
    Carolina, the amounts that otherwise would be allocated for fiscal year
    [2002] 2003 under section 854(c) of the AIDS Housing Opportunity Act (42
    U.S.C. 12903(c)) to the City of Raleigh, North Carolina, on behalf of
    the Raleigh-Durham-Chapel Hill, North Carolina Metropolitan Statistical
    Area. Any amounts allocated to Wake County shall be used to carry out
    eligible activities under section 855 of such Act (42 U.S.C. 12904)
    within such metropolitan statistical area.
        [Sec. 205. Section 106(c)(9) of the Housing and Urban Development
    Act of 1968 (12 U.S.C. 1701x(c)(9)) is repealed.]
        [Sec. 206. Section 251 of the National Housing Act (12 U.S.C. 1715z-
    16) 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 five or fewer years.

    [[Page 520]]

        ``(2) The disclosure required under subsection (b) shall be required
    for a mortgage insured under this subsection.''.]
        [Sec. 207. (a) Section 203(c) of the National Housing Act (12 U.S.C.
    1709(c)) is amended--
            (1) in paragraph (1), by striking ``and (k)'' and inserting ``or
        (k)''; and
            (2) in paragraph (2)--
                    (A) by inserting 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) 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; and
            (2) be implemented in advance of any necessary conforming
        changes to regulations.]
        Sec. [208] 204. (a) During fiscal year [2002] 2003, in the provision
    of rental assistance under section 8(o) of the United States Housing Act
    of 1937 (42 U.S.C. 1437f(o)) in connection with a program to demonstrate
    the economy and effectiveness of providing such assistance for use in
    assisted living facilities that is carried out in the counties of the
    State of Michigan specified in subsection (b) of this section,
    notwithstanding paragraphs (3) and (18)(B)(iii) of such section 8(o), a
    family residing in an assisted living facility in any such county, on
    behalf of which a public housing agency provides assistance pursuant to
    section 8(o)(18) of such Act, may be required, at the time the family
    initially receives such assistance, to pay rent in an amount exceeding
    40 percent of the monthly adjusted income of the family by such a
    percentage or amount as the Secretary of Housing and Urban Development
    determines to be appropriate.
        (b) The counties specified in this subsection are Oakland County,
    Macomb County, Wayne County, and Washtenaw County, in the State of
    Michigan.
        [Sec. 209. Section 533 of the National Housing Act (12 U.S.C. 1735f-
    11) 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. 210. Except as explicitly provided in law, any grant or
    assistance made pursuant to title II of this Act shall be made on a
    competitive basis in accordance with section 102 of the Department of
    Housing and Urban Development Reform Act of 1989.]
        [Sec. 211. Public housing agencies in the States of Alaska, Iowa,
    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 2002.]
        [Sec. 212. Notwithstanding any other provision of law, in fiscal
    year 2002, 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.]
        [Sec. 213. (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. 214. Of the amounts appropriated in the Consolidated
    Appropriations Act, 2001 (Public Law 106-554), for the operation of an
    historical archive at the University of South Carolina, Department of
    Archives, South Carolina, such funds shall be available to the

    [[Page 521]]

    University of South Carolina to fund an endowment for the operation of
    an historical archive at the University of South Carolina, without
    fiscal year limitation.]
        [Sec. 215. Section 247 of the National Housing Act (12 U.S.C. 1715z-
    12) is amended--
            (1) in subsection (d), by striking paragraphs (1) and (2) and
        inserting the following:
            ``(1) Native hawaiian.--The term `native Hawaiian' means any
        descendant of not less than one-half part of the blood of the races
        inhabiting the Hawaiian Islands before January 1, 1778, or, in the
        case of an individual who is awarded an interest in a lease of
        Hawaiian home lands through transfer or succession, such lower
        percentage as may be established for such transfer or succession
        under section 208 or 209 of the Hawaiian Homes Commission Act of
        1920 (42 Stat. 111), or under the corresponding provision of the
        Constitution of the State of Hawaii adopted under section 4 of the
        Act entitled `An Act to provide for the admission of the State of
        Hawaii into the Union', approved March 18, 1959 (73 Stat. 5).
            ``(2) Hawaiian home lands.--The term `Hawaiian home lands' means
        all lands given the status of Hawaiian home lands under section 204
        of the Hawaiian Homes Commission Act of 1920 (42 Stat. 110), or
        under the corresponding provision of the Constitution of the State
        of Hawaii adopted under section 4 of the Act entitled `An Act to
        provide for the admission of the State of Hawaii into the Union',
        approved March 18, 1959 (73 Stat. 5).''; and
            (2) by adding at the end the following:
        ``(e) Certification of Eligibility for Existing Lessees.--Possession
    of a lease of Hawaiian home lands issued under section 207(a) of the
    Hawaiian Homes Commission Act of 1920 (42 Stat. 110), shall be
    sufficient to certify eligibility to receive a mortgage under this
    section.''.]
        [Sec. 216. Notwithstanding the requirement regarding commitment of
    funds in the first sentence of section 288(b) of the HOME Investment
    Partnerships Act (42 U.S.C. 12838(b)), the Secretary of Housing and
    Urban Development (in this section referred to as the ``Secretary'')
    shall approve the release of funds under that section to the Arkansas
    Development Finance Authority (in this section referred to as the
    ``ADFA'') for projects, if--
            (1) funds were committed to those projects on or before June 12,
        2001;
            (2) those projects had not been completed as of June 12, 2001;
            (3) the ADFA has fully carried out its responsibilities as
        described in section 288(a); and
            (4) the Secretary has approved the certification that meets the
        requirements of section 288(c) with respect to those projects.]
        [Sec. 217. Notwithstanding any other provision of law with respect
    to this or any other fiscal year, the Housing Authority of Baltimore
    City may use the remaining balance of 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 the rehabilitation of the Claremont
    Homes project and for the provision of affordable housing in areas
    within the City of Baltimore either: (1) designated by the partial
    consent decree in Thompson v. HUD as nonimpacted census tracts; or (2)
    designated by said authority as either strong neighborhoods experiencing
    private investment or dynamic growth areas where public and/or private
    commercial or residential investment is occurring.] (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2002.)
        Sec. 205. Service Coordinators for Section 811 Housing.--Section
    683(2) of the Housing and Community Development Act of 1992 is amended--
            (1) in subparagraph (F), by striking ``and'';
            (2) in subparagraph (G), by striking ``section.'' and inserting
        ``section; and''; and
            (3) by adding the following new subparagraph at the end:
                ``(H) housing that is assisted under section 811 of the
            Cranston-Gonzalez National Affordable Housing Act.''.
        Sec. 206. Section 1316 of the Federal Housing Enterprises Financial
    Safety and Soundness Act of 1992 (12 U.S.C. 4516) is amended in
    subsection (a) in the first sentence by striking ``, to the extent
    provided in appropriation Acts,'' and in subsection (f) in the third
    sentence by striking ``, to the extent provided in appropriation Acts
    and subsection (e),''.
        Sec. 207. Repeal of Section 236(s) Loan Program.--
        (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 striking ``and loans'';
            (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) in the paragraph heading, by striking ``and loan''; and
                (B) by striking ``or loans'' after ``grants'' each place it
            appears;
            (6) in paragraph (7), by deleting subparagraph (D); and
            (7) by deleting paragraph (5) and redesignating paragraphs (6)
        and (7) as (5) and (6).
        Sec. 208. Section 9 of the United States Housing Act of 1937 is
    amended--
        by inserting at the end the following new subsection:
        ``(o) Development-Based Subsidies.--(1) In order to facilitate the
    financing of capital needs and development-based financial management
    and accountability, the Secretary may approve, on a project by project
    basis, the conversion of a public housing project or a portion of a
    public housing project to project-based voucher assistance, which
    assistance may be on-site or off-site, provided that the number of
    public housing units converted under this subsection shall be equal to
    the number of units receiving project-based voucher assistance pursuant
    to this subsection, and that a commitment has first been obtained from
    an approved lender for a mortgage loan secured by the property to
    finance qualified necessary capital improvements under terms established
    by the Secretary.
        ``(2) The initial year of any contract for project-based voucher
    assistance under this subsection may be funded with amounts made
    available in an appropriations Act under the headings making amounts
    available for the purposes set forth in subsections (d) or (e) of this
    section, or with any other amounts appropriated for this purpose. Any
    renewal of such contracts shall be funded with amounts made available
    under the heading making amounts available for the renewal of assistance
    under section 8.
        ``(3) Project-based voucher assistance provided pursuant to this
    subsection shall be administered under section 8(o)(13), except that--
            ``(A) subparagraphs (C)(ii) and (D) of such section shall not
        apply;
            ``(B)(i) any units converted to project-based voucher assistance
        under this subsection shall be maintained as assisted housing and
        provided project-based voucher assistance for the same length of
        time as the housing would have been required under section 9(d)(3)
        to be operated and maintained as public housing absent such
        conversion, subject to the availability of sufficient appropriated
        funds for the purpose of renewing expiring contracts for assistance
        payments, as provided in appropriations Acts;
            ``(ii) notwithstanding clause (i), when dwelling units which are
        receiving project-based voucher assistance pursuant to a conversion
        under this subsection and which are not located in developments or
        portions of developments which house only elderly persons or persons
        with disabilities, or both, become vacant, the public housing agency
        may rent up to one-third of such units to unassisted families
        (except that the Secretary may permit the agency under such special
        local circumstances as are determined by the Secretary to rent more
        than one-third of such units to unassisted families), and for each
        unit so rented for the duration of such rental may use the
        assistance otherwise associated with that unit to provide tenant-
        based voucher assistance under section 8; and
            ``(iii)(I) notwithstanding clause (i), if the Secretary
        determines that such action would further the purposes of this
        subsection, the Secretary may provide for termination of the
        restricted use period set forth in clause (i) in the event that any
        units converted to project-based voucher assistance under this
        subsection are foreclosed upon (or otherwise disposed of pursuant to
        an instrument in lieu of foreclosure), on the date the units are
        acquired by foreclosure (or instrument in lieu of foreclosure),
        unless--
                ``(aa) the Secretary determines that the foreclosure is part
            of an arrangement the purpose of which is to terminate the
            restricted use period; or
                ``(bb) a bona fide and reasonable contract acceptable to the
            Secretary to purchase such units is presented by a person who is
            willing to continue such use restrictions; and

    [[Page 522]]

            ``(II) if the Secretary provides for termination of the
        restricted use period pursuant to subclause (I), the Secretary shall
        provide enhanced voucher assistance under section 8(t) to any family
        occupying an assisted unit at the time of such termination;
            ``(C) any units converted to project-based voucher assistance
        under this subsection shall remain covered by and subject to the
        provisions in the public housing cooperation agreement entered into
        between the city and the public housing agency;
            ``(D) any units converted to project-based voucher assistance
        under this subsection shall not be included as tenant-based
        assistance that is attached to a structure for the purposes of the
        20 percent limitation set forth in section 8(o)(13)(B);
            ``(E) the Secretary may set the rent level for a unit converted
        to project-based voucher assistance under this subsection at a level
        lower than the level at which such rent would otherwise be set
        pursuant to section 8(o)(13)(H), provided such lower level is
        sufficient, in the determination of the Secretary, to cover debt
        service payments on obligations to finance the cost of any necessary
        rehabilitation, contributions to a capital reserve, amounts
        necessary for adequate debt service coverage, the cost of the
        subsequent operation of the housing as project-based voucher
        assistance, and any other necessary costs;
            ``(F) where units converted to project-based voucher assistance
        under this subsection are owned by the public housing agency or an
        entity controlled by such agency, the Secretary may administer or
        make alternative arrangements to administer the obligations
        otherwise required of the public housing agency under the annual
        contributions contract; and
            ``(G) the Secretary may waive or make alternative arrangements
        regarding any other provision of law or regulation that the
        Secretary finds to be inconsistent with accomplishing the purposes
        of this subsection.
        ``(4) The conversion of a public housing project to project-based
    voucher assistance under this subsection shall not be considered a
    disposition under section 18 of this Act as long as the public housing
    agency or an entity controlled by the agency retains ownership of the
    project.
        ``(5)(A) The Secretary may establish a common loan loss reserve
    account to which public housing agencies converting public housing units
    to project-based voucher assistance under this subsection may contribute
    a percentage of amounts available for such conversion, which percentage
    shall be specified by the Secretary. The Secretary may establish the
    terms and conditions applicable to this loan loss reserve account and
    any contributions to it, and may select an entity or entities on a
    competitive or noncompetitive basis to develop, maintain, and administer
    this account.
        ``(B) Amounts contributed to the account established under this
    paragraph shall be available without fiscal year limitation to reimburse
    any mortgagor that provides financing to a public housing agency for
    necessary renovations to any project converted pursuant to this
    subsection if the public housing agency defaults on the repayment of
    such debt.'';
        (b) in subsection (d)(1)(I), by striking ``; and'' and inserting a
    semicolon;
        (c) in subsection (d)(1)(J), by striking the period and inserting
    ``; and''; and
        (d) in subsection (d)(1), by inserting at the end the following new
    subparagraph:
        ``(K) assistance in the financing for necessary renovations to or
    other capital expenses for any project receiving project-based voucher
    assistance pursuant to subsection (o) of this section, including the
    making of upfront capital contributions to such projects where needed to
    make financing feasible and the purchase or provision of letters of
    credit or other credit enhancements necessary to carry out such
    subsection, contributions to a common loan loss reserve account as
    established by subsection (o)(5) of this section, and any contributions
    that the Secretary may require for the initial administration of such
    subsection (o) with respect to such project.''.
        Sec. 209. 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 Department 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.
        Sec. 210. 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''.

                          General Fund Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      86-271910  FHA-general and special
        risk, Negative subsidies............         103         588         213
      86-271930  FHA-general and special
        risk, Downward reestimates of
        subsidies...........................         517       1,542
      86-274330  Indian housing loan
        guarantees, downward reestimates of
        subsidies...........................           6
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................         626       2,130         213
    ---------------------------------------------------------------------------