Appendix - Department of Housing and Urban Development

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

THE BUDGET FOR FISCAL YEAR 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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

Program and Financing (in millions of dollars)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

Program and Financing (in millions of dollars)

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)

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)

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)

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)

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)

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)

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)

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)

[[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)

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)

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)

[[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)

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)

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)

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)

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)

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)

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)

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)

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)

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