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


                     THE BUDGET FOR FISCAL YEAR 2003


 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

    This chapter presents the budget estimates and program 
justifications for the Department of Housing and Urban Development 
(HUD). HUD's core mission is to promote adequate and affordable housing, 
economic opportunity and a suitable living environment free from 
discrimination. The 2003 Budget for HUD reflects the continuation of a 
multi-year comprehensive reform effort that will enhance the 
effectiveness of programs, reduce high unobligated and obligated 
balances, and return HUD to its core mission. Congress has provided 
significant increases in several HUD programs over the past three years.

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

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

    The 2003 budget includes 34,000 incremental vouchers. In addition, 
this Administration reaffirms the long-held commitment to renew all 
expiring Section 8 contracts, to protect residents from displacement by 
substantially increasing funding for Section 8 renewals, to provide 
Section 8 tenant-based assistance for displaced families, and for the 
replacement of affordable housing due to opt-outs from the project-based 
Section 8 program. The Department will also continue to fully renew 
contracts to assist rental of low-income elderly units in the Housing 
for the Elderly Program (under Section 202 of the Housing Act of 1959).

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

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

    Funding in the 2003 budget for the Fair Housing Assistance and Fair 
Housing Initiatives programs (FHAP and FHIP) will strengthen the ability 
of public and private fair housing groups, and partnerships between 
them, to enforce the laws protecting all Americans against illegal 
housing discrimination. Funds dedicated in past budgets to completing a 
national survey of housing discrimination will be redirected in 2003 to 
both FHIP and FHAP, with emphasis on increasing enforcement efforts and 
addressing accessibility issues.

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

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

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

    In order to ensure the effective implementation of its programs, the 
Department's Office of Policy Development and Research (PD&R) will be 
provided with funds necessary to ensure timely provision of data, 
provide research and analysis of national housing and economic 
conditions, and measure the performance of programs, consistent with the 
Government Performance and Results Act of 1994.

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

                                


 
                        PUBLIC AND INDIAN HOUSING

                              Federal Funds

General and special funds:

                        Housing Certificate Fund

              (including transfer and rescission of funds)

    [For activities and assistance to prevent the involuntary 
displacement of low-income families, the elderly and the disabled 
because of the loss of affordable housing stock, expiration of subsidy 
contracts (other than contracts for which amounts are provided under 
another heading in this Act) or expiration of use restrictions, or other 
changes in housing assistance arrangements, and for other purposes, 
$16,280,975,000, of which $640,000,000 shall be from unobligated 
balances from amounts recaptured from fiscal year 2000 and prior years 
pursuant to a reduction in the amounts provided for Annual Contributions 
Contract Reserve Accounts, and amounts that are re

[[Page 474]]

captured in this account to remain available until expended: Provided, 
That not later than October 1, 2001, the Department of Housing and Urban 
Development shall reduce from 60 days to 30 days the amount of reserve 
funds made available to public housing authorities: Provided further, 
That of the total amount provided under this heading, $16,071,975,000, 
of which $11,231,975,000 and the aforementioned recaptures shall be 
available on October 1, 2001 and $4,200,000,000 shall be available on 
October 1, 2002, shall be for assistance under the United States Housing 
Act of 1937, as amended (``the Act'' herein) (42 U.S.C. 1437 et seq.): 
Provided further, That the foregoing amounts shall be for use in 
connection with expiring or terminating section 8 subsidy contracts, for 
amendments to section 8 subsidy contracts, for enhanced vouchers 
(including amendments and renewals) under any provision of law 
authorizing such assistance under section 8(t) of the Act (42 U.S.C. 
1437f(t)), contract administrators, and contracts entered into pursuant 
to section 441 of the McKinney-Vento Homeless Assistance Act: Provided 
further, That amounts available under the second proviso under this 
heading shall be available for section 8 rental assistance under the 
Act: (1) for the relocation and replacement of housing units that are 
demolished or disposed of pursuant to the Omnibus Consolidated 
Rescissions and Appropriations Act of 1996 (Public Law 104-134; Stat. 
1321-269); (2) for the conversion of section 23 projects to assistance 
under section 8; (3) for funds to carry out the family unification 
program; (4) for the relocation of witnesses in connection with efforts 
to combat crime in public and assisted housing pursuant to a request 
from a law enforcement or prosecution agency; (5) for tenant protection 
assistance, including replacement and relocation assistance; and (6) for 
the 1-year renewal of section 8 contracts for units in projects that are 
subject to approved plans of action under the Emergency Low Income 
Housing Preservation Act of 1987 or the Low-Income Housing Preservation 
and Resident Homeownership Act of 1990: Provided further, That of the 
total amount provided under this heading, no less than $13,400,000 shall 
be transferred to the Working Capital Fund for the development and 
maintenance of information technology systems: Provided further, That of 
the total amount provided under this heading, $143,979,000 shall be made 
available for incremental vouchers under section 8 of the Act, of which 
$103,979,000 shall be made available on a fair share basis to those 
public housing agencies that have no less than a 97 percent occupancy 
rate; and of which $40,000,000 shall be made available to nonelderly 
disabled families affected by the designation of a public housing 
development under section 7 of the Act, the establishment of preferences 
in accordance with section 651 of the Housing and Community Development 
Act of 1992 (42 U.S.C. 13611), or the restriction of occupancy to 
elderly families in accordance with section 658 of such Act (42 U.S.C. 
13618), and to the extent the Secretary determines that such amount is 
not needed to fund applications for such affected families, to other 
nonelderly disabled families: Provided further, That up to $195,601,000 
from amounts made available under this heading may be made available for 
contract administrators: Provided further, That amounts available under 
this heading may be made available for administrative fees and other 
expenses to cover the cost of administering rental assistance programs 
under section 8 of the Act:]
    For assistance under the United States Housing Act of 1937, as 
amended (42 U.S.C. 1437 et seq.) (``Act'') not otherwise provided for, 
$17,526,559,000 and amounts recaptured in this account, to remain 
available until expended; of which $204,170,000 shall be for vouchers 
under section 8 of the Act, including incremental vouchers (1) to be 
made avaialble on a fair share basis to Public Housing Agencies that 
have no less than a 97 percent utilization rate, (2) to be used for 
down-payment assistance pursuant to section 8(y)(7) of the Act, not to 
exceed $15,000,000, (3) to facilitate community-based living 
alternatives for individuals with disabilities, not to exceed $6,000,000 
(4) to be made avaialble to non-elderly disabled families affected by 
the designation of a public housing development under section 7 of the 
Act, or the establishment of preferences in accordance with section 651 
of the Housing and Community Development Act of 1992 (42 U.S.C. 13611), 
not to exceed $40,000,000, and (5) to be made avaialble to homeless 
veterans in accordance with the Homeless Veterans Comprehensive 
Assistance Act of 2001; of which up to $196,000,000 is for contract 
administrators; of which $3,000,000 shall be transferred to the Working 
Capital fund for development of and modifications to information 
technology systems which serve activities under ``Public and Indian 
Housing.''; and of which $17,123,389,000 is for expiring section 8 
subsidy contracts, for amendments to section 8 subsidy contracts, for 
enhanced vouchers (including amendments and renewals) under any 
provision of law authorizing such assistance under section 8(t) of the 
Act (42 U.S.C. 1437f(t)), for contracts entered into pursuant to section 
441 of the McKinney-Vento Homeless Assistance Act, and for section 8 
rental assistance, including: (1) relocation and replacement of housing 
units that are demolished or disposed of pursuant to the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-
134); (2) conversion of section 23 projects to assistance under section 
8; (3) to carry out the family unification program; (4) relocation of 
witnesses in connection with efforts to combat crime in public and 
assisted housing pursuant to a request from law enforcement or 
prosecution agency; (5) tenant protection assistance, including 
replacement and relocation assistance; and (6) the 1-year renewal of 
section 8 contracts for units in projects that are subject to approved 
plans of action under Emergency Low-Income Housing Preservation Act of 
1987 or the Low-Income Housing Preservation and Resident Homeownership 
Act of 1990; Provided, That of the $17,123,389,350 herein, 
$4,200,000,000 shall become available on October 1, 2003: Provided 
further, That the fee otherwise authorized under section 8(q) of the Act 
shall be determined in accordance with section 8(q), as in effect 
immediately before the enactment of the Quality Housing and Work 
Responsibility Act of 1998: Provided further, That [$1,200,000,000] 
$1,100,000,000 is rescinded from unobligated balances remaining from 
funds appropriated to the Department of Housing and Urban Development 
under this heading or the heading ``Annual contributions for assisted 
housing'' or any other heading for fiscal year [2001] 2002 and prior 
years, to be effected by the Secretary no later than September 30, 2003: 
Provided further, That any such balances governed by reallocation 
provisions under the statute authorizing the program for which the funds 
were originally appropriated shall not be available for this rescission: 
[Provided further, That the Secretary shall have until September 30, 
2002, to meet the rescission in the proviso preceding the immediately 
preceding proviso:] Provided further, That any obligated balances of 
contract authority that have been terminated shall be canceled. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

[[Page 475]]

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

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

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

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

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

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

                        HOUSING CERTIFICATE FUND

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

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

            Status of Contract Authority (in millions of dollars)

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

    Contract Renewals. Contract renewals provide funding to renew 
expiring Section 8 rental assistance contracts covering certificates, 
vouchers, and moderate rehabilitation (renewed as vouchers), Loan 
Management, New Construction/Substantial Rehabilitation, Property 
Disposition, and Preservation, and contracts authorized under section 
441 of the McKinney-Vento Homeless Assistance Act. It also includes $52 
million to renew funding for Family self-sufficiency coordinators.

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

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

Public and Indian Housing

    Tenant Protection Vouchers. The Housing Certificate fund supports 
families living in public and assisted housing units affected by changes 
in the status of the units. Income-eligible families who are affected by 
the demolition, disposition, revitalization or other capital improvement 
through no fault of their own, receive relocation/replacement vouchers 
through the Housing Certificate Fund.

Housing

    Tenant Protection Set-Asides. The Housing Certificate Fund also 
serves a role in supporting families in FHA-insured, privately owned 
assisted housing projects affected by changes in project status. It is 
intended that income-eligible families who, through no fault of their 
own, are affected by HUD's management of the multifamily inventory or 
owners' decision to prepay their mortgage or opt-out of project-based 
section 8 contracts, be aided through the Housing Certificate Fund.

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

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

                                

                             Moving to Work

               Program and Financing (in millions of dollars)

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

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

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

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

    The Moving-to-Work demonstration provides unprecedented autonomy and 
flexibility to a select group of high-performing public housing 
authorities (PHAs) in order to assess the potential impacts of Federal 
deregulation on resident households, housing developments, and local 
housing programs. Through waivers of requirements of the 1937 Housing 
Act, as amended, and related Federal regulations, participating PHAs can 
combine Federal funding allocated for public housing operating subsidy, 
capital subsidy, and Section 8 certificates and vouchers into a flexible 
housing assistance fund.

[[Page 476]]

PHAs may provide incentives to families that work, are seeking work, or 
are preparing for work, PHAs are also allowed to change administrative 
procedures and management policies so they can reallocate resources to 
better address local housing needs and priorities. No additional funding 
is being requested for this demonstration.

                                

                       Public Housing Capital Fund

                     (including transfers of funds)

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

[[Page 477]]



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

    The Public Housing Capital Fund, a comprehensive formula-driven 
program based on need, is designed to respond to the capital and 
management improvement requirements of public housing. The fund is a 
consolidation of the following programs: public housing modernization; 
public housing development; Major Reconstruction of Obsolete Public 
Housing Projects (MROP); and public housing amendments.

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

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

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

            Status of Contract Authority (in millions of dollars)

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

                                

                      Public Housing Operating Fund

             (including transfer [and rescission] of funds)

    For payments to public housing agencies for the operation and 
management of public housing, as authorized by section 9(e) of the 
United States Housing Act of 1937, as amended (42 U.S.C. 1437g(e)), 
[$3,494,868,000] $3,530,000,000, to remain available until September 30, 
[2003: Provided, That of the total amount provided under this heading, 
$5,000,000 shall be provided to the Office of Inspector General: 
Provided further, That of the total amount provided under this heading,] 
2004; of which up to $130,000,000 may be used for the conversion of 
public housing subsidies to project-based voucher assistance where such 
conversion is done in conjunction with the financing of any necessary 
capital improvements of the properties that will be covered by such 
assistance; and of which $10,000,000 shall be for programs, as 
determined appropriate by the Attorney General, which assist in the 
investigation, prosecution, and prevention of violent crimes and drug 
offenses in public and federally-assisted low-income housing, including 
Indian housing[: Provided further, That funds made available in the 
previous proviso], which shall be administered by the Department of 
Justice through a reimbursable agreement with the Department of Housing 
and Urban Development: Provided [further], That no funds may be used 
under this heading for the purposes specified in section 9(k) of the 
United States Housing Act of 1937, as amended[: Provided further, That 
of the unobligated balances remaining from funds appropriated in fiscal 
year 2001 and prior years under the heading ``Drug elimination grants 
for low-income housing'' for activities related to the Operation Safe 
Home Program, $11,000,000 is hereby rescinded]. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    Operating subsidies are provided to public housing authorities 
(PHAs) to assist in funding the operation and maintenance expenses of 
public housing units in accordance with Section 9(e) of the United 
States Housing Act of 1937, as amended. It is anticipated that $2.4 
billion provides 100 percent of subsidy requirements in 2003.

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

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

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

[[Page 478]]

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

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

    Operating Subsidies.--Represent HUD's contributions to a housing 
authority's operating budget. Under the current formula-based approach, 
HUD sets a formula-determined allowable expense level (AEL) for each PHA 
and separately computes utility and audit costs. The PHA's dwelling 
rental income is also projected and the subsidy is the difference 
between the projected AEL, utility, and audit expenses and projected 
dwelling rental income.

    Dwelling Rental.--Income derived from tenants' rents.

    Investment Income.--Income from interest earned on general fund 
investments.

    Other Income.--Includes income from other sources such as renting 
rooftop space for signs or broadcasting and from operating services for 
tenants, such as laundromats or day care centers.

 Table 2. Housing Authorities' Operating Expenditures (in millions of 
                               dollars)

                Category                    Annual 
                                          expenditures    Percent of 
                                                             total
Utilities...............................         1,465             22%
Administration..........................         1,798             27%
General Operating Expenses..............           533              8%
Maintenance.............................         2,397             36%
Tenant Services.........................           133              2%
Protective Services.....................           200              3%
Capital Expenditures....................            67              1%
Operating Reserve.......................            67              1%
                                         -------------  --------------

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

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

    Administration.--Includes administrative salaries, legal expenses, 
staff training, travel, accounting fees, auditing fees, sundry, and 
outside management costs.

    General Operating Expenses.--Includes insurance, payments made to 
local governments in lieu of taxes, terminal leave payments, employees 
benefit contributions, collection losses, interest on administrative and 
sundry notes, and other general expenses.

    Ordinary Maintenance and Operations.--Consists of expenses for 
labor, materials, contracts and garbage fees associated with the day-to-
day operation of the public housing authority.

    Tenant Services.--Cover salaries, recreation, publication, contract 
costs, training, and other expenses.

    Protective Services.--Includes expenses for labor, materials, and 
contract costs.

    Capital Expenditures.--Includes extraordinary maintenance, casualty 
losses, and property betterments (e.g. roofs and furnaces).

    Operating reserves.--Provides working capital funds and is a reserve 
for emergencies.

                                

             Drug Elimination Grants for Low-Income Housing

                     (including transfers of funds)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    The Public Housing Drug Elimination Grants program was terminated in 
the 2002 Budget. The program was found to have limited impact; current 
regulatory tools, such as eviction, are effective in reducing drug-
related crime in public housing; and finally, fighting crime and drugs 
is not directly related to HUD's core mission--it is the mission of 
federal law enforcement and other agencies whose programs help combat 
illegal drugs and crime in public housing communities. PHAs can 
supplement other public housing security efforts using operating funds 
if they choose.

                                

     Revitalization of Severely Distressed Public Housing (Hope VI)

    For grants to public housing agencies for demolition, site 
revitalization, replacement housing, and tenant-based assistance grants 
to projects as authorized by section 24 of the United States Housing Act 
of 1937, as amended, [$573,735,000] $574,000,000, to remain available 
until September 30, [2003] 2004, of which the Secretary may use up to 
$50,000,000 for grants for capital costs at properties for which public 
housing subsidies are being converted to project-based voucher 
assistance and for which such grants are necessary to permit the 
financing of the remaining capital costs in conjunction with such 
assistance; and up to $6,250,000 for technical assistance and contract 
expertise, to be provided directly or indirectly by grants, contracts or 
cooperative agreements, including training and cost of necessary travel 
for participants in such training, by or to officials and employees of 
the department and of public housing agencies and to residents: 
Provided, That none of such funds shall be used

[[Page 479]]

directly or indirectly by granting competitive advantage in awards to 
settle litigation or pay judgments, unless expressly permitted herein: 
Provided further, That of the total amount provided under this heading, 
$5,000,000 shall be for a Neighborhood Networks initiative for 
activities authorized in section 24(d)(1)(G) of the United States 
Housing Act of 1937, as amended: Provided further, That notwithstanding 
any other provision of law, amounts made available in the previous 
proviso shall be awarded to public housing agencies on a competitive 
basis as provided in section 102 of the Department of Housing and Urban 
Development Reform Act of 1989. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    This program utilizes Federal resources to rehabilitate and restore 
severely distressed public housing projects, thereby expanding the 
supply of decent, safe, and affordable housing for low-income renters. 
The funds will be used for project demolition, hard replacement units, 
as well as tenant-based rental assistance.

                                

                  Native American Housing Block Grants

                      (including transfer of funds)

    For the Native American Housing Block Grants program, as authorized 
under title I of the Native American Housing Assistance and Self-
Determination Act of 1996 (NAHASDA) (25 U.S.C. 4111 et seq.), 
[$648,570,000] $646,600,000, to remain available until expended, of 
which $2,200,000 shall be contracted through the Secretary as technical 
assistance and capacity building to be used by the National American 
Indian Housing Council in support of the implementation of NAHASDA; of 
which [$5,000,000] $3,000,000 shall be to support the inspection of 
Indian housing units, contract expertise, training, and technical 
assistance in the training, oversight, and management of Indian housing 
and tenant-based assistance, including up to $300,000 for related 
travel; and of which no less than [$3,000,000] $600,000 shall be 
transferred to the Working Capital Fund for [the development and 
maintenance of information technology systems] development of and 
modifications to information technology systems which serve programs or 
activities under ``Public and Indian Housing'': Provided, That of the 
amount provided under this heading, [$5,987,000] $2,000,000 shall be 
made available for the cost of guaranteed notes and other obligations, 
as authorized by title VI of NAHASDA: Provided further, That such costs, 
including the costs of modifying such notes and other obligations, shall 
be as defined in section 502 of the Congressional Budget Act of 1974, as 
amended: Provided further, That these funds are available to subsidize 
the total principal amount of any notes and other obligations, any part 
of which is to be guaranteed, not to exceed [$52,726,000] $16,657,633: 
Provided further, That the Secretary of Housing and Urban Development 
may provide technical and financial assistance to Indian tribes and 
their tribally-designated housing entities in accordance with the 
provisions of NAHASDA for emergency housing, housing assistance, and 
other assistance to address the problem of mold: Provided further, That 
for administrative expenses to carry out the guaranteed loan program, up 
to [$150,000] $156,000 from amounts in the first proviso, which shall be 
transferred to and merged with the appropriation for ``Salaries and 
expenses'', to be used only for the administrative costs of these 
guarantees. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

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

[[Page 480]]


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

    Title I of the Native American Housing Assistance and Self-
Determination Act (NAHASDA) of 1996 (P.L. 104-330) authorized the Native 
American Housing Block Grant program. This program provides an 
allocation of funds on a formula basis to Indian tribes and their 
tribally designated housing entities to help them address housing needs 
within their communities.

    The Native American Housing Block Grant program includes a 
guaranteed loan provision (Title VI). A guarantee level of $17 million 
is proposed for this loan guarantee program for 2003. The subsidy rate 
for this program is set at 11.07 percent with a federal guarantee of 80 
percent. A primary goal of the Title VI program is to encourage private 
lenders to provide financing in Indian country. Therefore, the program 
provides for the federal guarantee of notes or other obligations issued 
by Indian tribes or tribally designated housing entities for the purpose 
of financing affordable housing activities described in section 202 of 
the Act.

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, the subsidy costs associated with the loan 
guarantees committed in 1998 and beyond (including modifications of 
guarantees that resulted from obligations in any given year), as well as 
administrative expenses of this program. The subsidy amounts are 
estimated on a present value basis; the administrative expenses are 
estimated on a cash basis.

                                

                   Native Hawaiian Housing Block Grant

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

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

                                

Public enterprise funds:

            Low-Rent Public Housing--Loans and Other Expenses

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Mandatory:

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

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

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

    Offsets:
      Against gross budget authority and outlays:

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

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

[[Page 481]]



               Status of Direct Loans (in millions of dollars)

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

    The Low-Rent Public Housing Loan Fund provides direct Federal loans 
to fund remaining Public Housing Agency and Indian Housing Authority 
construction, acquisition, and modernization activities reserved under 
the Annual Contributions appropriation through 1986. These loans are 
made by borrowing from the Treasury. Under legislation enacted during 
1986 (Public Law 99-272), amounts borrowed from the Treasury are 
forgiven at the end of each fiscal year and the loans to PHAs/IHAs are 
forgiven as construction, acquisition, and modernization activities are 
completed. Under the provisions of this legislation, $25 million 
borrowed from the Treasury was forgiven in 2001, an estimated $40 
million will be borrowed from the Treasury and forgiven in 2002, and an 
estimated $40 million will be borrowed from the Treasury and forgiven in 
2003.

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

    Operating results.--The actual and estimated net operating income 
for 2000, 2001, 2002 and 2003 follows:

                        Statement of Operations (in millions of dollars)

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

                             Balance Sheet (in millions of dollars)

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

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

2102    Interest payable................         164            151           164            164
2104    Resources payable to Treasury...       1,348          1,279         1,348          1,348
2207  Non-Federal liabilities: Other....           2              2             2              2
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,514          1,432         1,514          1,514
    NET POSITION:
3100  Appropriated capital..............         705            636           705            705
3300  Cumulative results of operations..          15             -5            15             15
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         720            631           720            720
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,234          2,063         2,234          2,234
-----------------------------------------------------------------------------------------------

                                

Credit accounts:

           Indian Housing Loan Guarantee Fund Program Account

                      (including transfer of funds)

    For the cost of guaranteed loans, as authorized by section 184 of 
the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a), 
[$5,987,000] $5,000,000, to remain available until expended: Provided, 
That such costs, including the costs of modifying such loans, shall be 
as defined in section 502 of the Congressional Budget Act of 1974, as 
amended: Provided further, That these funds are available to subsidize 
total loan principal, any part of which is to be guaranteed, not to 
exceed [$234,283,000] $197,242,798.
    In addition, for administrative expenses to carry out the guaranteed 
loan program, up to [$200,000] $207,000 from amounts in the first 
paragraph, which shall be transferred to and merged with the 
appropriation for ``Salaries and expenses'', to be used only for the 
administrative costs of these guarantees. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

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

[[Page 482]]

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

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

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

    This program provides access to sources of private financing for 
Indian families, Indian tribes, and their tribally designated housing 
entities who otherwise could not acquire housing financing because of 
the unique legal status of Indian trust land.

                                

          Indian Housing Loan Guarantee Fund Financing Account

               Program and Financing (in millions of dollars)

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

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

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

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

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

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          66          77          89
---------------------------------------------------------------------------

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4104-0-3-604    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           8              4             6              6
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           8              4             6              6
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           8              4             6              6
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           8              4             6              6
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           8              4             6              6
-----------------------------------------------------------------------------------------------

                                

       Native Hawaiian Housing Loan Guarantee Fund Program Account

                      (including transfer of funds)

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

[[Page 483]]

    In addition, for administrative expenses to carry out the guaranteed 
loan program, up to $35,000 from amounts in the first paragraph, which 
shall be transferred to and merged with the appropriation for ``Salaries 
and expenses'', to be used only for the administrative costs of these 
guarantees. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

----------------------------------------------------------------------------
Identification code 86-0233-0-1-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Native Hawaiian Housing...........                      40          40
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......                      40          40
    Guaranteed loan subsidy (in percent):
232001Loan guarantee levels.............                    2.47        2.43
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....                    2.47        2.43
    Guaranteed loan subsidy budget authority:
233001Loan guarantee levels.............                       1           1
                                           ---------   ---------  ----------
233901Total subsidy budget authority....                       1           1
    Guaranteed loan subsidy outlays:
234001Native Hawaiian Housing...........                                   1
                                           ---------   ---------  ----------
234901Total subsidy outlays.............                                   1
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, the subsidy costs associated with the loan 
guarantees committed in 2001 and beyond (including modifications of 
guarantees that resulted from obligations in any year). The subsidy 
amounts are estimated on a net present value. The administrative 
expenses are shown on a cash basis.

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

                                

      Native Hawaiian Housing Loan Guarantee Fund Financing Account

               Program and Financing (in millions of dollars)

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

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

    New financing authority (gross), detail:
      Discretionary:

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

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

                             Balance Sheet (in millions of dollars)

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

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the government 
resulting from the loan guarantees committed in 2001 and beyond 
(including modifications of loan guarantees that resulted from 
obligations in any year). The amounts in this account are a means of 
financing and are not included in the budget totals. As required by the 
Federal Credit Reform Act of 1990, no administrative expenses can be 
recorded in the financing account.

                                

          Title VI Indian Federal Guarantees Financing Account

               Program and Financing (in millions of dollars)

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

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

[[Page 484]]



    New financing authority (gross), detail:
      Discretionary:

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4244-0-3-604    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           1              1             3              3
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           1              1             3              3
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           1              1             3              3
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           1              1             3              3
    NET POSITION:
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           1              1             3              3
-----------------------------------------------------------------------------------------------

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

                                


 
                   COMMUNITY PLANNING AND DEVELOPMENT

                              Federal Funds

General and special funds:

               Housing Opportunities for Persons with AIDS

    For carrying out the Housing Opportunities for Persons with AIDS 
program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 
12901 et seq.), [$277,432,000] $292,000,000, to remain available until 
September 30, [2003] 2004: Provided, That the Secretary shall renew all 
expiring contracts for permanent supportive housing that were funded 
under section 854(c)(3) of such Act that meet all program requirements 
before awarding funds for new contracts and activities authorized under 
this section: Provided further, That the Secretary may use up to 
$2,000,000 of the funds under this heading for training, oversight, and 
technical assistance activities. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    The Housing Opportunities for Persons with AIDS program provides 
States and localities with resources and incentives to devise long-term 
comprehensive strategies for meeting the housing needs of persons with 
HIV/AIDS and their families.

    Up to $2 million is used for technical assistance to grantees and 
project sponsors to strengthen management of programs and ensure 
responsiveness in meeting client needs. States and metropolitan areas 
receive 90 percent of the remaining funds by formula based on the number 
of cases of AIDS and, for metropolitan areas, the incidence of AIDS in 
that area. The final 10 percent is awarded competitively to States, 
local governments, and private nonprofit entities, including faith-based 
organizations, for projects of national significance with priority for 
renewal of the projects providing permanent supportive housing. Awards 
are also made to States and local governments for projects in 
jurisdictions which do not qualify for a formula allocation. The 
requested funding for 2003 will support an additional 3,800 households, 
for a total of approximately 55,900 housing units for persons with HIV/
AIDS and their families.

[[Page 485]]

                                

                Community Development [Fund] Block Grants

                     (including transfers of funds)

    For assistance to units of State and local government, and to other 
entities, for economic and community development activities, and for 
other purposes, [$5,000,000,000] $4,715,500,000, to remain available 
until September 30, [2004] 2005: Provided, That of the amount provided, 
[$4,341,000,000] $4,436,000,000 is for carrying out the community 
development block grant program under title I of the Housing and 
Community Development Act of 1974, as amended (the ``Act'' herein) (42 
U.S.C. 5301 et seq.): Provided further, That for entitlement communities 
with per capita income two or more times the national average, the 
formula funding otherwise available will be reduced by fifty percent and 
the resulting savings will be redistributed to the other entitlement 
communities under the formula: Provided further, That [$70,000,000] 
$72,500,000 shall be for grants to Indian tribes notwithstanding section 
106(a)(1) of such Act, of which up to $1,500,000 shall be for the Native 
American Economic Development Access Center; [$3,300,000] $3,000,000 
shall be [available as] for a grant to the Housing Assistance Council; 
[$2,600,000] $2,200,000 shall be [available as] for a grant to the 
National American Indian Housing Council; [$5,000,000 shall be available 
as a grant to the National Housing Development Corporation, for 
operating expenses not to exceed $2,000,000 and for a program of 
affordable housing acquisition and rehabilitation; $5,000,000 shall be 
available as a grant to the National Council of La Raza for the HOPE 
Fund, of which $500,000 is for technical assistance and fund management, 
and $4,500,000 is for investments in the HOPE Fund and financing to 
affiliated organizations;] and [$42,500,000] $38,900,000 shall be for 
grants pursuant to section 107 of the Act of which [$4,000,000] 
$2,400,000 shall be [made available] to support Alaska Native serving 
institutions and Native Hawaiian serving institutions as defined under 
the Higher Education Act, as amended, and of which $3,000,000 shall be 
[made available to] for tribal colleges and universities to build, 
expand, renovate and equip their facilities: [Provided further, That 
$9,600,000 shall be made available to the Department of Hawaiian 
Homelands to provide assistance as authorized under title VIII of the 
Native American Housing Assistance and Self-Determination Act of 1996 
(22 U.S.C. 4221 et seq.) (with no more than 5 percent of such funds 
being available for administrative costs):] Provided further, That no 
less than [$13,800,000] $3,400,000 shall be transferred to the Working 
Capital Fund for the development [and maintenance] of and modification 
to information technology systems: which serve programs or activities 
under ``Community Planning and Development'' Provided further, That 
[$22,000,000] $65,000,000 shall be for grants pursuant to the Self Help 
[Housing] Homeownership Opportunity Program: Provided further, That not 
to exceed 20 percent of any grant made with funds appropriated under 
this heading (other than a grant made available in this paragraph to the 
Housing Assistance Council or the National American Indian Housing 
Council, or a grant using funds under section 107(b)(3) of the Act) 
shall be expended for ``Planning and Management Development'' and 
``Administration'', as defined in regulations promulgated by the 
Department.
    Of the amount [made available] under this heading, [$29,000,000] 
$29,500,000 shall be [made available] for capacity building, of which 
$25,000,000 shall be [made available] for Capacity Building for 
Community Development and Affordable Housing for LISC and the Enterprise 
Foundation for activities as authorized by section 4 of the HUD 
Demonstration Act of 1993 (42 U.S.C. 9816 note), as in effect 
immediately before June 12, 1997, with not less than $5,000,000 of the 
funding to be used in rural areas, including tribal areas, and of which 
[$4,000,000] $4,500,000 shall be for capacity building activities 
administered by Habitat for Humanity International.
    [Of the amount made available under this heading, the Secretary of 
Housing and Urban Development may use up to $55,000,000 for supportive 
services for public housing residents, as authorized by section 34 of 
the United States Housing Act of 1937, as amended, and for residents of 
housing assisted under the Native American Housing Assistance and Self-
Determination Act of 1996 (NAHASDA) and for grants for service 
coordinators and congregate services for the elderly and disabled 
residents of public and assisted housing and housing assisted under 
NAHASDA.]
    [Of the amount made available under this heading, $42,000,000 shall 
be available for neighborhood initiatives that are utilized to improve 
the conditions of distressed and blighted areas and neighborhoods, to 
stimulate investment, economic diversification, and community 
revitalization in areas with population outmigration or a stagnating or 
declining economic base, or to determine whether housing benefits can be 
integrated more effectively with welfare reform initiatives: Provided, 
That these grants shall be provided in accord with the terms and 
conditions specified in the statement of managers accompanying this 
conference report.]
    Of the amount made available under this heading, notwithstanding any 
other provision of law, $65,000,000 shall be available for YouthBuild 
program activities authorized by subtitle D of title IV of the Cranston-
Gonzalez National Affordable Housing Act, as amended, and such 
activities shall be an eligible activity with respect to any funds made 
available under this heading: Provided, That local YouthBuild programs 
that demonstrate an ability to leverage private and nonprofit funding 
shall be given a priority for YouthBuild funding: Provided further, That 
no more than 10 percent of any grant award may be used for 
administrative costs: Provided further, That not less than $10,000,000 
shall be available for grants to establish YouthBuild programs in 
underserved and rural areas: Provided further, That of the amount 
provided under this paragraph, $2,000,000 shall be set aside and made 
available for a grant to YouthBuild USA for capacity building for 
community development and affordable housing activities as specified in 
section 4 of the HUD Demonstration Act of 1993, as amended.
    [Of the amount made available under this heading, $294,200,000 shall 
be available for grants for the Economic Development Initiative (EDI) to 
finance a variety of targeted economic investments in accordance with 
the terms and conditions specified in the statement of managers 
accompanying this conference report.] (Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2002.)
    [For emergency expenses to respond to the September 11, 2001, 
terrorist attacks on the United States, for ``Community Development 
Fund'', $2,000,000,000, to remain available until expended, to be 
obligated from amounts made available in Public Law 107-38: Provided, 
That such funds shall be subject to the first through sixth provisos in 
section 434 of Public Law 107-73: Provided further, That the State of 
New York, in conjunction with the City of New York, shall, through the 
Lower Manhattan Redevelopment Corporation (``the corporation''): (1) 
distribute the funds provided for the ``Community Development Fund''; 
(2) within 45 days of enactment of this Act, issue the initial criteria 
and requirements necessary to accept applications from individuals, 
nonprofits, and small businesses for economic losses from the September 
11, 2001, terrorist attacks; and (3) begin processing such applications: 
Provided further, That the corporation shall expeditiously respond to 
any application from an individual, non-profit, or small business for 
economic losses under this heading: Provided further, That of the total 
amount made available for the ``Community Development Fund'', including 
amounts previously made available by transfer pursuant to the fifth 
proviso of Public Law 107-38, no less than $500,000,000 shall be made 
available for individuals, nonprofits, or small businesses described in 
the prior three provisos, with a limit of $500,000 per small business 
for economic losses: Provided further, That amounts made available in 
the previous proviso shall only be available for individuals, 
nonprofits, or small businesses located in New York City in the area 
located on or south of West 14th Street (west of its intersection with 
5th Avenue), or on or south of East 14th street (east of its 
intersection with 5th Street): Provided further, That, of the amount 
provided in this paragraph, $10,000,000 shall be used for a program to 
aid the travel and tourism industry in New York City.] (Emergency 
Supplemental Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

[[Page 486]]

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

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

    Title I of the Housing and Community Development Act of 1974, as 
amended, authorizes the Secretary to make grants to units of general 
local government under the Community Development Block Grant (CDBG) 
program and States to fund local community development programs.

    The 2003 Budget allocates $72.5 million to Indian tribes as 
authorized by Section 106(a)(1) of the Housing and Community Development 
Act of 1974. Since its inception, funds made available to Native 
American communities have supported a wide variety of community 
development activities, predominantly, but not exclusively, community 
facilities, infrastructure and buildings to help meet the basic needs of 
low and moderate income community members. Since the vast majority of 
eligible tribes and Alaska Native Villages have non-existent tax bases, 
this program has helped to finance those public facilities needed to 
maintain or establish community viability. While it has had a 
significant impact on many Native American communities throughout the 
Nation, basic community development needs throughout Indian Country 
remain substantial. Up to $1,500,000 is for the continuing operation of 
the Native American Economic Development Access Center. Unemployment on 
Indian reservations and other Indian areas is extremely high. This 
Federal interagency project provides economic development information to 
Indian and non-Indian individuals and enterprises.

    Seventy percent of CDBG formula funds are allocated to metropolitan 
cities and urban counties that receive their grants using the higher of 
two objective formulas. States and small cities receive 30 percent of 
the formula funds. The budget proposes to reduce by fifty percent the 
formula funds which would otherwise be available for entitlement 
communities that have a per capita income two or more times the national 
average. These savings allow for the funding of a $16 million Colonias 
Gateway Initiative which will help direct considerable assistance to 
very low income communities. The proposed level of funding for CDBG and 
the Section 108 Loan Guarantee Program will support an estimated 122,987 
and 15,000 jobs, respectively. These funds will also help to 
rehabilitate 180,260 housing units.

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

    As authorized by Section 4 of the HUD Demonstration Act of 1993, the 
National Community Development Initiative (NCDI) helps build capacity of 
community-based development corporations and housing development 
organizations, and assist such corporations and organizations to carry 
out community development and affordable housing activities. The 2003 
Budget includes $25 million for this program. In addition, $4.5 million 
is set aside for Habitat for Humanity capacity building programs. Both 
programs will target their efforts to increasing minority homeownership.

    The Youthbuild program provides resources to educate, train and 
supply stipends for economically disadvantaged young adults through 
their participation in the construction and rehabilitation of housing 
for low-income and homeless families and individuals. The program 
expands the supply of affordable housing and, at the same time, enables 
high school drop-outs to obtain the education and employment skills 
necessary to achieve self-sufficiency. The 2003 request for $65 million 
will provide more than 3,774 young people with skills they need to 
obtain jobs. Funding of $65 million is provided for the Self-Help 
Homeownership Opportunity Program (Shop) which is targeted at very low-
income populations. The three-fold increase reflects the growing 
capacity of self-help housing organizations to expand upon recent 
successes in making home ownership a viable option. In addition, $3 
million is provided for the Housing Assistance Council as well as $2.2 
million for the Native American Indian Housing Council to meet unserved 
rural and Native American housing needs.

    The 2003 Budget also includes $3 million in competitive grants to 
Tribal Colleges and Universities (TCU) to provide resources to build, 
expand, renovate and equip facilities. In addition, $2.4 million is 
provided to assist Alaska Native and Native Hawaiian Serving 
institutions.

               (Legislative proposal not subject to PAYGO)

               Program and Financing (in millions of dollars)

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

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

[[Page 487]]



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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

                                

               [Empowerment Zones/Enterprise Communities]

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    The goal of the Empowerment Zone (EZ) initiative is to revitalize 
city neighborhoods by attracting business development and providing 
employment opportunities to residents of empowerment zones. Empowerment 
Zone principles include a strategic vision for change, a community-based 
partnership, providing economic opportunity and sustainable community 
development.

    The VA HUD Appropriations Act of 2001 (P.L. 106-377 and P.L. 106-
554) provided $185 million for Round II Urban Empowerment Zones. The VA 
HUD Appropriations Act of 2002 (P.L. 107-73) provided $45 million for 
Round II Urban Empowerment Zones that will bring the total funding for 
Round II urban EZs through 2002 to $330 million. No new funding is 
proposed for EZ's in FY 2003.

    Funding provides for a broad range of activities aimed at assisting 
residents, businesses and organizations in urban EZs, including: 
community policing; health care; neighborhood development; brownfields 
clean-up and redevelopment; support for financing of capital projects; 
education; work force preparation and job creation efforts linked to 
welfare reform; leveraging private sector resources, repayment of debt 
financing by municipal bonds; financing of projects in conjunction with 
the Section 108 loan guarantee program and other economic development 
projects; support for project-based rental assistance; and, financing 
other housing activities.

    EZs are helping to stimulate billions of dollars in private 
investment, reviving inner city neighborhoods and supporting jobs, and 
helping families move from welfare to work.

    The Community Renewal and Tax Relief Act of 2000 (P.L. 106-554) 
authorized the designation of a third round of 7 urban and 2 rural 
empowerment zones. The Community Renewal and Tax Relief Act of 2000 also 
authorized the creation of a Renewal Communities program to be 
administered by HUD that includes 40 competitively selected communities.

                                

                        Brownfields Redevelopment

    For Economic Development Grants[, as authorized by section 108(q) of 
the Housing and Community Development Act of 1974, as amended,] for 
Brownfields redevelopment projects, $25,000,000, to remain available 
until September 30, [2003] 2004: Provided, That the Secretary of Housing 
and Urban Development shall make these grants available on a competitive 
basis as specified in section 102 of the Department of Housing and Urban 
Development Reform Act of 1989: Provided further, That notwithstanding 
section 108(q) of the Housing and Community Development Act of 1974, 
recipients of funding made available under this heading may, at the 
discretion of the Secretary, also apply for funding under section 108. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

[[Page 488]]

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

    The Brownfields Redevelopment initiative provides competitive 
economic development grants, which may be done in conjunction with 
Section 108 loan guarantees, for qualified brownfield projects. 
Previously Brownfields grants had to be used with section 108 loan 
guarantees. Eligible communities are invited to submit proposals to 
return contaminated sites to productive and employment-generating uses, 
with an emphasis on creating substantial numbers of jobs for lower-
income people in physically and economically distressed neighborhoods.

    Grants are made in accordance with section 108(q) selection criteria 
and such other criteria deemed appropriate for brownfield projects, 
including the extent to which an applicant is currently operating a 
brownfields program and is working with appropriate environmental 
regulatory agencies.

    The Brownfields Redevelopment initiative has received annual 
appropriations of $25 million since its inception in 1998. The 2003 
request of $25 million will enable communities to reclaim and redevelop 
approximately 19 Brownfield sites.

                                

                           Youthbuild Program

               Program and Financing (in millions of dollars)

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

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

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

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

    This program provides resources to educate, train, and provide 
stipends for economically disadvantaged young adults through their 
participation in the construction and rehabilitation of housing for low-
income and homeless persons. The program expands the supply of 
affordable housing and, at the same time, enables high school dropouts 
to obtain the education and employment skills necessary to achieve self-
sufficiency. The Youthbuild program has been funded as a set-aside 
within the CDBG program since 1996. The 2003 set aside request of $65 
million will provide more than 3,774 young people with skills they need 
to get jobs. The obligated balance and outlays represent activity in the 
separate youthbuild account.

                                

                  HOME Investment Partnerships Program

                      (including transfer of funds)

      For the HOME investment partnerships program, as authorized under 
title II of the Cranston-Gonzalez National Affordable Housing Act, as 
amended, [$1,846,040,000] $2,084,100,000, to remain available until 
September 30, [2004: Provided, That of the total amount provided under 
this heading, $50,000,000] 2005, of which $200,000,000 shall be 
available for the Downpayment Assistance Initiative[, subject to the 
enactment of subsequent legislation authorizing such initiative: 
Provided further, That should legislation authorizing such initiative 
not be enacted by June 30, 2002, amounts designated in the previous 
proviso shall become available for any such purpose authorized under 
title II of the Cranston-Gonzalez National Affordable Housing Act, as 
amended: Provided further, That of the total amount provided under this 
heading, up to $20,000,000 shall be available for housing counseling 
under section 106 of the Housing and Urban Development Act of 1968; 
and]; and no less than [$17,000,000] $1,100,000 shall be transferred to 
the Working Capital Fund for the development of and maintenance of, and 
modification to information technology systems which serve Programs or 
activities under ``Community Planning and Development''. (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    The HOME Investment Partnerships program is authorized by the 
National Affordable Housing Act (P.L. 101-625). This program provides 
assistance to States and units of local government, through formula 
allocation, expanding the supply and affordability of housing. Eligible 
activities include acquisition, rehabilitation, and new construction of 
housing and tenant-based rental assistance. The 2003 request will result 
in the production of 104,000 units of affordable housing through new 
construction, rehabilitation, or acquisition. In addition, tenant-based 
rental assistance will be provided for 12,700 units.

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

                                

                       Homeless Assistance Grants

                      (including transfer of funds)

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

[[Page 489]]

Act, as amended; the supportive housing program as authorized under 
subtitle C of title IV of such Act; the section 8 moderate 
rehabilitation single room occupancy program as authorized under the 
United States Housing Act of 1937, as amended, to assist homeless 
individuals pursuant to section 441 of the McKinney-Vento Homeless 
Assistance Act; and the shelter plus care program as authorized under 
subtitle F of title IV of such Act, [$1,122,525,000] $1,129,500,000, to 
remain available until September 30, [2004] 2005: Provided, That not 
less than 30 percent of funds made available, excluding amounts provided 
for renewals under the shelter plus care program, shall be used for 
permanent housing: Provided further, That all funds awarded for services 
shall be matched by 25 percent in funding by each grantee: Provided 
further, That the Secretary shall renew on an annual basis expiring 
contracts or amendments to contracts funded under the shelter plus care 
program if the program is determined to be needed under the applicable 
continuum of care and meets appropriate program requirements and 
financial standards, as determined by the Secretary: Provided further, 
That all awards of assistance under this heading shall be required to 
coordinate and integrate homeless programs with other mainstream health, 
social services, and employment programs for which homeless populations 
may be eligible, including Medicaid, State Children's Health Insurance 
Program, Temporary Assistance for Needy Families, Food Stamps, and 
services funding through the Mental Health and Substance Abuse Block 
Grant, Workforce Investment Act, and the Welfare-to-Work grant program: 
Provided further, That [$2,000,000] $11,000,000 of the funds 
appropriated under this heading shall be available for the national 
homeless data analysis project: Provided further, That $6,600,000 of the 
funds appropriated under this heading shall be available for technical 
assistance: Provided further, That no less than [$5,600,000] $1,500,000 
of the funds appropriated under this heading shall be transferred to the 
Working Capital Fund: for the development of and modifications to 
information technology systems which serve activities under ``Community 
Planning and Development'': Provided further, That [$500,000] $1,000,000 
shall be made available to the Interagency Council on the Homeless for 
administrative needs. (Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    The Homeless Assistance Grants program funds the Shelter Plus Care, 
Supportive Housing, Emergency Shelter Grants, and Section 8 Moderate 
Rehabilitation Single Room Occupancy programs. These funds will enable 
localities to continue to shape and implement comprehensive, flexible, 
coordinated approaches to solving rather than institutionalizing 
homelessness. In fact, in recent years, many communities have made great 
strides in developing holistic approaches to solving homelessness. 
Requested funding would be available for a wide range of activities to 
assist homeless persons and prevent future homelessness and will support 
the Department's effort to end chronic homelessness in 10 years. The 
Administration will propose legislation to combine HUD's three 
competitive programs, Shelter Plus Care, Supportive Housing, and Section 
8 Moderate Rehabilitation Single Room Occupany into a single program 
with enough flexibility to meet community needs. The Department is also 
continuing to pursue expanded interagency efforts to meet the needs of 
the homeless. The 2003 request will fund over 50,000 new and renewal 
transitional and permanent beds, all linked to supportive services.

    Funding is also requested for technical assistance to provide needed 
assistance to grantees to resolve problems that hinder successful 
project completion and implementation, and for management information 
systems support, including the continuing operation of tracking systems 
required by House Report 105-610.

                                

                   Emergency Food and Shelter Program

              (Legislative proposal, not subject to PAYGO) 

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

[[Page 490]]

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

                 Rural Housing and Economic Development

    [For the Office of Rural Housing and Economic Development in the 
Department of Housing and Urban Development, $25,000,000 to remain 
available until expended, which amount shall be awarded by June 1, 2002, 
to Indian tribes, State housing finance agencies, State community and/or 
economic development agencies, local rural nonprofits and community 
development corporations to support innovative housing and economic 
development activities in rural areas: Provided, That all grants shall 
be awarded on a competitive basis as specified in section 102 of the 
Department of Housing and Urban Development Reform Act of 1989.] 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    The 2002 VA-HUD and Independent Agencies Appropriations Act (P.L. 
107-73) provided $25 million to the Rural Housing and Economic 
Development program. This program is located in the Office of Community 
Planning and Development and is used to encourage new and innovative 
approaches to serving the housing and economic development needs of the 
nation's rural communities. The 2003 Budget proposes no new funding for 
this program.

                                

                     Urban Development Action Grants

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0170-0-1-451      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

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

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

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

    Title I of the Housing and Community Development Act of 1974, as 
amended, authorized grants to distressed cities and distressed urban 
counties to fund economic development projects. The program was 
terminated in 1990.

                                

   Capacity Building for Community Development and Affordable Housing

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0222-0-1-451      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

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

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

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

    As authorized by section 4 of the HUD Demonstration Act of 1993, 
this program provides funding to the National Community Development 
Initiative to build the capacity of community-based development 
corporations and housing development organizations and to assist such 
corporations and organizations to carry out community development and 
affordable housing activities. Funding for this program was provided 
under the Annual Contributions for Assisted Housing account in 1996. 
Public Law 105-18 amended authorizing legislation to include additional 
eligible recipients and provided funding for this program through a 
transfer from the Homeownership and Opportunity for People Everywhere 
Grants account in 1997. Funding of $28 million was provided for this 
program in 2001 in Public Law 106-377 as a set-aside within the CDBG 
program. P.L. 107-73 provided $29 million for this program in 2002. 
$29.5 million is being requested in 2003, again as a set-aside within 
CDBG.

                                

                       Shelter Plus Care Renewals

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

[[Page 491]]

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

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

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

    Shelter Plus Care provides rental assistance that, when combined 
with social services, supplies supportive housing for homeless people 
with disabilities and their families. Homeless people with disabilities 
often need more than shelter to live independently, such as medical care 
or other social services. Shelter Plus Care provides for a variety of 
housing choices such as group homes or individual units, coupled with a 
range of supportive services (which are funded by other sources). 
Grantees must match the rental assistance with supportive services that 
are at least equal in value to the amount of HUD's rental assistance. 
The Shelter Plus Care renewal funding renews contracts on a one-year 
basis and provides funding to amend contracts that were previously 
extended but which will run out of funding. The FY 2002 VA HUD 
Appropriations Act (P.L. 107-73) provided funding for Shelter Plus Care 
in the Homeless Assistance Grants account. Amounts provided in FY 2002 
are sufficient to cover Shelter Plus Care Renewals in 2003. In the 
future, Shelter Plus Care Renewals will be funded in the Homeless 
Assistance Grants account.

                                

Public enterprise funds:

                  Revolving Fund (Liquidating Programs)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Mandatory:

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

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

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

    Offsets:
      Against gross budget authority and outlays:

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

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

               Status of Direct Loans (in millions of dollars)

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

    The Revolving fund (liquidating programs) was established by the 
Independent Offices Appropriations Act of 1955 for the efficient 
liquidation of assets acquired under a number of housing and urban 
development programs. The account's largest influx of funds in fiscal 
year 2001 resulted from the sale of most of the section 312 loan 
portfolio to the private sector for $64 million.

                        Statement of Operations (in millions of dollars)

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

                             Balance Sheet (in millions of dollars)

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

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

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

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

               Object Classification (in millions of dollars)

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

[[Page 492]]



                                

Credit accounts:

          Community Development Loan Guarantees Program Account

                      (including transfer of funds)

    For the cost of guaranteed loans, [$14,000,000] $6,325,000, to 
remain available until September 30, [2003] 2004, as authorized by 
section 108 of the Housing and Community Development Act of 1974, as 
amended: Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974, as amended: Provided further, That these funds are 
available to subsidize total loan principal, any part of which is to be 
guaranteed, not to exceed [$608,696,000] $275,000,000, notwithstanding 
any aggregate limitation on outstanding obligations guaranteed in 
section 108(k) of the Housing and Community Development Act of 1974, as 
amended[: Provided further, That in]. In addition, for administrative 
expenses to carry out the guaranteed loan program, [$1,000,000] 
$1,040,000, which shall be transferred to and merged with the 
appropriation for ``Salaries and expenses''. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

    Section 108 loan guarantees are used by Community Development Block 
Grant entitlement and nonentitlement communities (assisted by their 
State) to cover the cost of: acquiring real property; rehabilitating 
publicly owned real property; housing rehabilitation; and, certain other 
economic development activities. In addition, Section 108 has, in some 
cases, been used to finance the construction of housing by nonprofit 
organizations.

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

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Community development loan 
        guarantee levels................       1,258         609         275
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......       1,258         609         275
    Guaranteed loan subsidy (in percent):
232001Subsidy rate......................        2.30        2.30        2.30
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        2.30        2.30        2.30
    Guaranteed loan subsidy budget authority:
233001Loan guarantee levels.............          29          14           6
                                           ---------   ---------  ----------
233901Total subsidy budget authority....          29          14           6
    Guaranteed loan subsidy outlays:
234001Loan guarantee levels.............           6          10          14
                                           ---------   ---------  ----------
234901Total subsidy outlays.............           6          10          14
----------------------------------------------------------------------------

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

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

                                

         Community Development Loan Guarantees Financing Account

               Program and Financing (in millions of dollars)

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

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

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

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

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

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

             Status of Guaranteed Loans (in millions of dollars)

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

[[Page 493]]


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

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

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

                             Balance Sheet (in millions of dollars)

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

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

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

                                

        Community Development Loan Guarantees Liquidating Account

               Program and Financing (in millions of dollars)

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

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

    New budget authority (gross), detail:
      Mandatory:

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

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

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

    Offsets:
      Against gross budget authority and outlays:

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

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

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

               Status of Direct Loans (in millions of dollars)

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

                        Statement of Operations (in millions of dollars)

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

                             Balance Sheet (in millions of dollars)

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

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

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

    As required by the Federal Credit Reform Act of 1990, this account 
records all cash flows to and from the Government resulting from Federal 
Financing Bank (FFB) direct loans for which loan guarantees were 
committed prior to 1992. This account is shown on a cash basis.

[[Page 494]]

    Guaranteed loans.--Guaranteed loan assistance under the Community 
Development Loan Guarantees program was provided to eligible communities 
to finance economic development activities, housing rehabilitation, 
development or expansion of public facilities, acquisition of real 
property, rehabilitation of publicly owned real property, and certain 
related expenses. In the past, the FFB financed these guaranteed loans. 
The Consolidated Omnibus Budget Reconciliation Act of 1985 required 
private financing of all loan guarantees committed after July 1, 1986. 
FFB will continue disbursing loans for commitments approved prior to 
July 1, 1986. The activity shown in the above account reflects privately 
financed guaranteed loans for which commitments were made prior to 1992.

                                


 
                            HOUSING PROGRAMS

                              Federal Funds

General and special funds:

                     Housing for Special Populations

                      (including transfer of funds)

    For assistance for the purchase, construction, acquisition, or 
development of additional public and subsidized housing units for low 
income families not otherwise provided for, $1,024,151,000, to remain 
available until September 30, [2004] 2005: Provided, That [$783,286,000] 
$773,636,000, plus recaptures or cancelled commitments, shall be for 
capital advances, including amendments to capital advance contracts, for 
housing for the elderly, as authorized by section 202 of the Housing Act 
of 1959, as amended, and for project rental assistance for the elderly 
under section 202(c)(2) of such Act, including amendments to contracts 
for such assistance and renewal of expiring contracts for such 
assistance for up to a 1-year term, which shall remain available for 
disbursement until September 30, 2015, and for supportive services 
associated with the housing, of which amount [$50,000,000] $44,000,000 
plus up to $9,000,000 of amounts recaptured or commitments cancelled 
under this heading, shall be for service coordinators and the 
continuation of existing congregate service grants for residents of 
assisted housing projects, and of which amount [$50,000,000] $30,000,000 
shall be for grants under section 202b of the Housing Act of 1959 (12 
U.S.C. 1701q-2) for conversion of eligible projects under such section 
to assisted living or related use: Provided further, That of the amount 
under this heading, [$240,865,000] $250,515,000 shall be for capital 
advances, including amendments to capital advance contracts, for 
supportive housing for persons with disabilities, as authorized by 
section 811 of the Cranston-Gonzalez National Affordable Housing Act, 
for project rental assistance for supportive housing for persons with 
disabilities under section 811(d)(2) of such Act, including amendments 
to contracts for such assistance and renewal of expiring contracts for 
such assistance for up to a 1-year term, which shall remain available 
for disbursement until September 30, 2015, and for supportive services 
associated with the housing for persons with disabilities as authorized 
by section 811(b)(1) of such Act, and for tenant-based rental assistance 
contracts entered into pursuant to section 811 of such Act: Provided 
further, That no less than [$1,200,000] $500,000, to be divided evenly 
between the appropriations for the section 202 and section 811 programs, 
shall be transferred to the Working Capital Fund for the development 
[and maintenance of information technology systems] of and modifications 
to information technology systems which serve activities under ``Housing 
Programs'' or ``Federal Housing Administration,'': Provided further, 
That, in addition to amounts made available for renewal of tenant-based 
rental assistance contracts pursuant to the second proviso of this 
paragraph, the Secretary may designate up to 25 percent of the amounts 
earmarked under this paragraph for section 811 of such Act for tenant-
based assistance, as authorized under that section, including such 
authority as may be waived under the next proviso, which assistance is 5 
years in duration: Provided further, That the Secretary may waive any 
provision of such section 202 and such section 811 (including the 
provisions governing the terms and conditions of project rental 
assistance and tenant-based assistance) that the Secretary determines is 
not necessary to achieve the objectives of these programs, or that 
otherwise impedes the ability to develop, operate, or administer 
projects assisted under these programs, and may make provision for 
alternative conditions or terms where appropriate: Provided further, 
That all balances and recaptures, as of October 1, 2002, remaining in 
the ``Congregate Housing Services'' account as authorized by the Housing 
and Community Development Amendments of 1978, as amended, shall be 
transferred to and merged with the amounts for those purposes under this 
heading. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

    Housing for the Disabled.--$250 million is proposed for housing for 
persons with disabilities, including language to permit up to 25 percent 
of these funds to be earmarked for tenant-based assistance which 
increases the number of persons that can be assisted by maximizing the 
use of the private market.

    Housing for the Elderly.--A total of $774 million is proposed for 
housing for the elderly. Of this amount $30 million is for the capital 
grant program to convert existing 202 properties to assisted living 
under appropriate conditions. These funds for capital grants are 
available to existing HUD elderly subsidized (Section 202) projects that 
convert some or all units to Assisted Living.

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

[[Page 495]]

                                

                      Housing Counseling Assistance

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

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

                                

                     Other Assisted Housing Programs

                        Rental Housing Assistance

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

            Status of Contract Authority (in millions of dollars)

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

                         OTHER ASSISTED HOUSING

                  Summary of Administrative Commitments

                        (in millions of dollars)

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

    The Other Assisted Housing Account contains the programs listed 
below:

    Rent supplement.--Rent supplement assistance payments will continue 
to be made on behalf of qualified low-income tenants in approximately 
20,000 units which have not converted to section 8.

    Section 235.--The Housing and Urban-Rural Recovery Act of 1983 
(Public Law 98-181) authorized a restructured section 235 (Homeownership 
Assistance) program based on a 10-year interest reduction subsidy. This 
replaced earlier versions of the program, the original and the revised 
versions. All were below interest rate mortgages for single family 
homes.

    Section 236.--The Housing and Urban Development Act of 1968, as 
amended, authorizes the section 236 Rental Housing Assistance Program 
which subsidizes the monthly mortgage payment that an owner of a rental 
or cooperative project is required to make. This interest subsidy 
reduces rents for lower income tenants.

    IRP Rehab Grants.--Title V of the 1998 Appropriations Act (P.L. 105-
65) establishes a program of rehabilitation grants for owners of 
eligible projects. An estimated $300 million of such grants are expected 
in 2002 and $100 million in 2003.

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

[[Page 496]]

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

                         SUMMARY OF OUTLAYS \1\

                        (in millions of dollars)

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

    \1\ Includes outlays for contract renewals.

                                

Homeownership and Opportunity for People Everywhere Grants (HOPE Grants)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0196-0-1-604      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    The Homeownership and Opportunity for People Everywhere Program 
provided affordable homeownership opportunities for low-income families. 
Units were converted to homeownership from public and Indian housing 
properties in HOPE 1, from FHA-insured and Government-held multifamily 
properties in HOPE 2, and from Government-owned or -held single family 
properties in HOPE 3. HOPE Grants were used for property acquisition, 
rehabilitation, mortgage subsidies, security measures, and technical 
assistance. In addition, grants have been devoted to counseling and 
training of residents, and other activities intended to help them become 
economically self-sufficient homeowners. No funding is being requested 
for 2003. This schedule reflects the liquidation of prior year balances.

                                

               Manufactured Home Inspection and Monitoring

                     (including transfers of funds)

              Unavailable Collections (in millions of dollars)

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Mandatory:

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

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

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

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

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

                                

Public enterprise funds:

                     Rental Housing Assistance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4041-0-3-604      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

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

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

    New budget authority (gross), detail:
      Mandatory:

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

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

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

[[Page 497]]



    Offsets:
      Against gross budget authority and outlays:

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

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

    The Housing and Urban Development Act of 1968 authorized the 
Secretary to establish a revolving fund into which rental collections in 
excess of the established basic rents for units in section 236 
subsidized projects would be deposited.

    The Housing and Community Development Amendment of 1978 authorized 
the Secretary, subject to approval in appropriation acts, to transfer 
excess rent collections received after 1978 to the Troubled Projects 
Operating Subsidy program, renamed the Flexible Subsidy Fund. Prior to 
that time, collections were used for paying tax and utility increases in 
section 236 projects. The Housing and Community Development Act of 1980 
amended the 1978 Act by authorizing the transfer of excess rent 
collections regardless of when collected. This Budget proposes that the 
resources from the Rental Housing Assistance Fund continue to be 
transferred to the Flexible Subsidy Fund, with the exception of amounts 
required to make refunds of excess income remittances as authorized by 
Public Law 106-569.

                                

                          Flexible Subsidy Fund

                           (transfer of funds)

    From the Rental Housing Assistance Fund, all uncommitted balances of 
excess rental charges as of September 30, [2001] 2002, and any 
collections made during fiscal year [2002] 2003 (with the exception of 
amounts required to make refunds of excess income remittances as 
authorized by Public Law 106-569), shall be transferred to the Flexible 
Subsidy Fund, as authorized by section 236(g) of the National Housing 
Act, as amended. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

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

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

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

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

    Offsets:
      Against gross budget authority and outlays:

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

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

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

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

               Status of Direct Loans (in millions of dollars)

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

    The Flexible Subsidy Fund assisted financially troubled subsidized 
projects under certain FHA authorities. The subsidies were intended to 
prevent potential losses to the FHA fund resulting from project 
insolvency and to preserve these projects as a viable source of housing 
for low and moderate-income tenants. Priority was given to projects with 
Federal insurance-in-force and then to those with mortgages that had 
been assigned to the Department of Housing and Urban Development.

    The budget assumes that the account will continue to serve as a 
repository of excess rental charges appropriated from the Rental Housing 
Assistance Fund. Since 1996, these resources have not been used for new 
reservations but they continue to offset Flexible Subsidy outlays and 
other discretionary expenditures. In 2001, Congress enacted legislation 
which permits excess income balances in the Rental Housing Assistance 
Fund or transferred to the Flexible Subsidy Fund to be used for refunds 
of prior excess income remittances, as permitted by law.

      

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4044-0-3-604    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         -15              1            13             13
0102  Expense...........................         -31            -20
                                        ------------ --------------  ------------  -------------
0105  Net income or loss (-)............         -46            -19            13             13
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

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

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

[[Page 498]]


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

                                

                      Homeownership Assistance Fund

               Program and Financing (in millions of dollars)

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

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

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

            Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4043-0-3-604      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
0100  Balance, start of year............          61          61          61
0700  Balance, end of year..............          61          61          61
---------------------------------------------------------------------------

    The Homeownership Assistance Fund was established by the Housing and 
Urban-Rural Recovery Act of 1983. It provided for the receipt of 
recaptures of budget authority, cash, and interest earnings under the 
restructured section 235 program. The funds were authorized to be used, 
to the extent approved in Appropriation Acts, by the Secretary to 
provide additional section 235 assistance payments for mortgagors who 
are unable to assume the full payment due under the mortgage after the 
termination of the original 10-year assistance payments contract.

      

                                

                    Nehemiah Housing Opportunity Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4071-0-3-604      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

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

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

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

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

    The Nehemiah grants program was authorized by the Housing and 
Community Development Act of 1987 to provide loans to eligible families 
to assist in the purchase of new or substantially rehabilitated units. 
This schedule reflects the liquidation of remaining reserved and 
obligated balances.

      

                                

Credit accounts:

                     Federal Housing Administration

                mutual mortgage insurance program account

                     (including transfers of funds)

    During fiscal year [2002] 2003, commitments to guarantee loans to 
carry out the purposes of section 203(b) of the National Housing Act, as 
amended, shall not exceed a loan principal of $160,000,000,000.
    During fiscal year [2002] 2003, obligations to make direct loans to 
carry out the purposes of section 204(g) of the National Housing Act, as 
amended, shall not exceed [$250,000,000] $50,000,000: Provided, That the 
foregoing amount shall be for loans to nonprofit and governmental 
entities in connection with sales of single family real properties owned 
by the Secretary and formerly insured under the Mutual Mortgage 
Insurance Fund.
    For administrative expenses necessary to carry out the guaranteed 
and direct loan program, [$336,700,000] $362,746,000, of which not to 
exceed [$332,678,000] $358,593,000 shall be transferred to the 
appropriation for ``Salaries and expenses''; and not to exceed 
[$4,022,000] $4,153,000 shall be transferred to the appropriation for 
``Office of Inspector General''. In addition, for administrative 
contract expenses, [$160,000,000] $85,720,000, of which no less than 
[$118,400,000] $21,360,000 shall be transferred to the Working Capital 
Fund for the development [and maintenance of] of and modifications to 
information technology systems which serve programs or activities under 
``Housing Programs'' or ``Federal Housing Administration'': Provided, 
That to the extent guaranteed loan commitments exceed $65,500,000,000 on 
or before April 1, [2002] 2003, an additional $1,400 for administrative 
contract expenses shall be available for each $1,000,000 in additional 
guaranteed loan commitments (including a pro rata amount for any amount 
below $1,000,000), but in no case shall funds made available by this 
proviso exceed $16,000,000. (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
2002; additional authorizing legislation required. )

              Unavailable Collections (in millions of dollars)

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

               Program and Financing (in millions of dollars)

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

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

[[Page 499]]


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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

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

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

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

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

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

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

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

    The Federal Housing Administration (FHA) provides mortgage insurance 
to encourage lenders to make credit available to expand homeownership 
and to predominantly serve borrowers that the conventional market does 
not adequately provide for including: first-time homebuyers; minorities; 
lower-income families; and, residents of underserved areas (central 
cities and rural areas).

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

    As required by the Federal Credit Reform Act of 1990, this account 
records administrative expenses for this program, as well as the subsidy 
costs, if any, associated with the loan guarantees committed in 1992 and 
thereafter. The subsidy amounts are estimated on a present value basis; 
the administrative expenses are estimated on a cash basis.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.2  Other services....................          54          42          65
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         440         471         384
41.0  Grants, subsidies, and 
        contributions...................       3,049         808
43.0  Interest and dividends............         977         101
                                           ---------   ---------  ----------
99.9    Total new obligations...........       4,520       1,422         449
---------------------------------------------------------------------------

                                

      FHA--Mutual Mortgage Insurance Direct Loan Financing Account

               Program and Financing (in millions of dollars)

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

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

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

    New financing authority (gross), detail:
      Mandatory:

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

[[Page 500]]

      Spending authority from offsetting 
          collections:

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

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

                                                                


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

    The $50 million in 2003 direct loan limitation in the MMI Fund would 
permit the Department to use Purchase Money Mortgages (PMMs) to help 
finance the sale of acquired single family properties. HUD would extend 
credit for these single-family homes to community nonprofit 
organizations or local government entities who would be expected to sell 
the properties to low- and moderate-income buyers. The use of PMMs 
provides a tool for State and local nonprofit organizations to use in 
revitalizing communities, and creates enhanced homeownership 
opportunities for low- and moderate-income families.

      

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         250         250          50
1142  Unobligated direct loan limitation 
        (-).............................        -249        -125
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           1         125          50
----------------------------------------------------------------------------

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

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

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

                             Balance Sheet (in millions of dollars)

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

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

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

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

                                

    FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

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

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

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

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

    New financing authority (gross), detail:
      Discretionary:

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

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

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

[[Page 501]]

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

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

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

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

2310    Outstanding, start of year......         102           4
2331    Disbursements for guaranteed 
          loan claims...................           1         377         671
2351    Repayments of loans receivable..
2364    Other adjustments, net..........         -99        -381        -671
                                           ---------   ---------  ----------
2390      Outstanding, end of year......           4
---------------------------------------------------------------------------

                                                                


    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from loans insured in 1992 and thereafter. The amounts in this 
account are considered a means of financing and are not included in the 
budget totals.

      

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4587-0-3-371          2000 
                                           actual\1\    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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

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

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

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

                                

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

               Program and Financing (in millions of dollars)

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

    Obligations by program activity:
      Operating expenses:

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

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

[[Page 502]]

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

    Offsets:
      Against gross budget authority and outlays:

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

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

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

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

               Status of Direct Loans (in millions of dollars)

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

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

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

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

    The Federal Housing Administration Fund currently consists of four 
separate insurance funds.

    In order to present more clearly the operations of the various 
funds, FHA's budget transactions are separated into two major business 
segments. The basic single-family insurance programs in the Mutual 
Mortgage Insurance (MMI) fund and the multifamily Cooperative Management 
Housing Insurance (CMHI) funds form one segment. All other multifamily 
and other specialized insurance programs in the General Insurance and 
Special Risk Insurance funds (GI/SRI) form the other segment.

    The Federal Credit Reform Act of 1990 creates a structure of three 
accounts for existing credit program. For each of the FHA business 
segments (MMI/CMHI and GI/SRI) there is a liquidating account, which 
records the revenues and costs associated with loan insurance committed 
prior to October 1, 1991, a financing account which records the revenues 
and costs associated with commitments to insure loans made after 
September 30, 1991, and, a program account which records the 
transactions associated with the program subsidy costs, if any, and the 
costs of administering the program.

    This liquidating account records, for this program, all cash flows 
to and from the Government resulting from MMI/CMHI loans insured prior 
to 1992 and is shown on a cash basis. All new activity in this program 
in 1992 and thereafter (including modifications of loans insured in any 
year) is recorded in the corresponding program (86-0183) and financing 
(86-4587 and 86-4242) accounts.

    The program activity in the ``Program Highlights'' table shown below 
reflects only the activity in the MMI/CMHI liquidating and financing 
accounts. The GI/SRI program activity can be found with the GI/SRI 
liquidating account (86-4072).

                           PROGRAM HIGHLIGHTS

                        (in millions of dollars)

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

    Financial condition.--The following tables reflect the revenues, 
expenses and financial condition of the MMI/CMHI liquidating funds based 
on Generally Accepted Accounting Principles.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4070-0-3-371          2000 
                                           actual\1\ 2001 actual\2\     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................       1,737          1,265         4,672          4,720
0102  Expense...........................        -531           -244           -61            -82
                                        ------------ --------------  ------------  -------------
0105  Net income or loss (-)............       1,206          1,021         4,611          4,638
0108  Other comprehensive income........       1,118            182         2,791          2,938
-----------------------------------------------------------------------------------------------
    \1\ Estimated result on GAAP basis pending final audit.

                             Balance Sheet (in millions of dollars)

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

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

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

[[Page 503]]

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

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

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

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

               Object Classification (in millions of dollars)

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

                                

                General and Special Risk Program Account

                     (including transfers of funds)

    For the cost of guaranteed loans, as authorized by sections 238 and 
519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including 
the cost of loan guarantee modifications, as that term is defined in 
section 502 of the Congressional Budget Act of 1974, as amended, 
$15,000,000, to remain available until expended: Provided, That these 
funds are available to subsidize total loan principal, any part of which 
is to be guaranteed, of up to $21,000,000,000[: Provided further, That 
any amounts made available in any prior appropriations Act for the cost 
(as such term is defined in section 502 of the Congressional Budget Act 
of 1974) of guaranteed loans that are obligations of the funds 
established under section 238 or 519 of the National Housing Act that 
have not been obligated or that are deobligated shall be available to 
the Secretary of Housing and Urban Development in connection with the 
making of such guarantees and shall remain available until expended, 
notwithstanding the expiration of any period of availability otherwise 
applicable to such amounts].
    Gross obligations for the principal amount of direct loans, as 
authorized by sections 204(g), 207(l), 238, and 519(a) of the National 
Housing Act, shall not exceed $50,000,000, of which not to exceed 
$30,000,000 shall be for bridge financing in connection with the sale of 
multifamily real properties owned by the Secretary and formerly insured 
under such Act; and of which not to exceed $20,000,000 shall be for 
loans to nonprofit and governmental entities in connection with the sale 
of single-family real properties owned by the Secretary and formerly 
insured under such Act.
    In addition, for administrative expenses necessary to carry out the 
guaranteed and direct loan programs, [$216,100,000] $233,091,400, of 
which [$197,779,000] $213,186,400, shall be transferred to the 
appropriation for ``Salaries and expenses''; and of which [$18,321,000] 
$19,905,000 shall be transferred to the appropriation for ``Office of 
Inspector General''. In addition, for administrative contract expenses 
necessary to carry out the guaranteed and direct loan programs, 
[$144,000,000] $93,780,000, of which no less than [$41,000,000] 
$14,240,000 shall be transferred to the Working Capital Fund for the 
development [and maintenance of information technology systems]: of and 
modifications to information technology systems which serve activities 
under ``Housing Programs'' or ``Federal Housing Administration'' 
Provided, That to the extent guaranteed loan commitments exceed 
$8,426,000,000 on or before April 1, [2002] 2003, an additional $1,980 
for administrative contract expenses shall be available for each 
$1,000,000 in additional guaranteed loan commitments over $8,426,000,000 
(including a pro rata amount for any increment below $1,000,000), but in 
no case shall funds made available by this proviso exceed $14,400,000. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2002; additional authorizing 
legislation required.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

[[Page 504]]



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

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

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

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

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

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

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

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

    As required by the Federal Credit Reform Act of 1990, this account 
records, for the single family, multifamily, hospital, and Title I 
insurance programs of FHA's General Insurance and Special Risk Insurance 
Funds, the subsidy costs

[[Page 505]]

associated with the loan guarantees committed or direct loans obligated 
in 1992 and thereafter (including modifications of loan guarantees or 
direct loans that resulted from obligations or commitments in any year), 
as well as administrative expenses of these programs. The subsidy 
amounts are estimated on a present value basis; the administrative 
expenses are accounted for on a cash basis.

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

               Object Classification (in millions of dollars)

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

                                

     FHA--General and Special Risk Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

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

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

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

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

    New financing authority (gross), detail:
      Discretionary:

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

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

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

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

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

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

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

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

[[Page 506]]

                           Balance Sheet\1\ (in millions of dollars)

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

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

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

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

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

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

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

                                

       FHA--General and Special Risk Direct Loan Financing Account

               Program and Financing (in millions of dollars)

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

    Obligations by program activity:
00.01 Direct loans......................                       3           3
00.02 Interest paid to Treasury.........                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........                       4           4
----------------------------------------------------------------------------

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

    New financing authority (gross), detail:
      Mandatory:

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

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

    Change in obligated balances:
73.10 Total new obligations.............                       4           4
73.20 Total financing disbursements 
        (gross).........................          -1          -4          -4
87.00 Total financing disbursements 
        (gross).........................           1           4           4
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          50          50          50
1142  Unobligated direct loan limitation 
        (-).............................         -50         -46         -46
                                           ---------   ---------  ----------
1150    Total direct loan obligations...                       4           4
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           1           2           2
1231  Disbursements: Direct loan 
        disbursements...................           1           4           4
1251  Repayments: Repayments and 
        prepayments.....................                      -4          -4
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           2           2           2
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and thereafter (including 
loan modifications) for FHA's General Insurance and Special Risk 
Insurance Fund programs. The amounts in this account are a means of 
financing and are not included in the budget totals. As required by the 
Federal Credit Reform Act of 1990, no administrative expenses can be 
recorded in the financing account.

    This schedule includes two direct loan programs. One provides bridge 
loan financing to facilitate the disposition of multifamily housing 
owned by the Department to non-profit organizations who agree to 
preserve it as affordable rental or cooperative housing. The second is a 
single-family direct loan program for purchase money mortgages, as 
discussed in the preceding section for the Mutual Mortgage Insurance 
Fund.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4105-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

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

2103    Treasury borrowing..............                                        1              1
2104    Resources payable to Treasury...                          1             1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                          1             2              2
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                          1             2              2
-----------------------------------------------------------------------------------------------

[[Page 507]]



                                

          FHA--Loan Guarantee Recovery Fund--Financing Account

               Program and Financing (in millions of dollars)

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

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

    New financing authority (gross), detail:
      Discretionary:

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

             Status of Guaranteed Loans (in millions of dollars)

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

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

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

                             Balance Sheet (in millions of dollars)

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

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

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

                                

    FHA--General and Special Risk Insurance Funds Liquidating Account

              Unavailable Collections (in millions of dollars)

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

               Program and Financing (in millions of dollars)

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

    Obligations by program activity:
      Operating expenses:

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

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

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

    New budget authority (gross), detail:
      Mandatory:

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

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

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

[[Page 508]]



    Offsets:
      Against gross budget authority and outlays:

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

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

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

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

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          44          38          33
1251  Repayments: Repayments and 
        prepayments.....................          -6          -5         -10
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          38          33          23
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

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

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

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

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

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

    The General Insurance fund provides for a large number of 
specialized mortgage insurance programs, including the in- surance of 
loans for property improvements as well as for cooperatives, 
condominiums, nursing homes, rental housing and nonprofit hospitals.

    The Special Risk Insurance fund provides insurance on behalf of 
mortgagors who otherwise would not be eligible for mortgage insurance. 
In addition, the fund provides insurance on mortgages covering 
experimental housing where strict adherence to State or local building 
regulations was not observed.

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, all cash flows to and from the Government 
resulting from loan guarantees committed and direct loans obligated 
prior to 1992. This account is shown on a cash basis. New insurance and 
direct loan activity in 1992 and thereafter in the GI/SRI programs is 
recorded in corresponding program (86-0200) and financing (86-4077 and 
86-4105) accounts.

    Section 571 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1998 
established the Office of Multifamily Housing Assistance Restructuring 
within HUD to administer the program of mortgage and rental assistance 
restructuring. Included in the budget estimates for this account are 
projections for the financial operations of the office.

    Restructuring authorities under the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 expire at the end of fiscal year 
2006 except for binding commitments entered into prior to October 1, 
2006.

    Financial Condition.--The following tables reflect the revenues, 
expenses, and financial condition of the GI/SRI Liquidating Account 
based on Generally Accepted Accounting Principles.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4072-0-3-371          2000 
                                           actual\1\ 2001 actual\2\     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         230            430
0102  Expense...........................        -544           -503
                                        ------------ --------------  ------------  -------------
0105  Net income or loss (-)............        -314            -73
0108  Other comprehensive income........        -277           -598
-----------------------------------------------------------------------------------------------
    \1\ Preliminary results pending final audit.

                             Balance Sheet (in millions of dollars)

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

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

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

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

[[Page 509]]

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

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

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

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

               Object Classification (in millions of dollars)

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

                                

     Housing for the Elderly or Handicapped Fund Liquidating Account

               Program and Financing (in millions of dollars)

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

    Obligations by program activity:
      Capital investment:

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

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

    New budget authority (gross), detail:
      Mandatory:

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

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

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

    Offsets:
      Against gross budget authority and outlays:

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

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

               Status of Direct Loans (in millions of dollars)

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

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

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

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

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

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

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

                        Statement of Operations (in millions of dollars)

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

                             Balance Sheet (in millions of dollars)

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

[[Page 510]]

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

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

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

               Object Classification (in millions of dollars)

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

                                

            Nonprofit Sponsor Assistance Liquidating Account

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4042-0-3-604      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           1           1           1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           1           1           1
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, all cash flows to and from the Government 
resulting from direct loans obligated prior to 1992. This account is 
shown on a cash basis.

    The Nonprofit Sponsor Assistance fund provided interest-free loans 
to nonprofit organizations to plan housing projects to be financed under 
the section 202 housing for the elderly or disabled program.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4042-0-3-604    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............                          1             1              1
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................                         -1            -1             -1
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................
                                        ------------ --------------  ------------  -------------
1999    Total assets....................
-----------------------------------------------------------------------------------------------

                                

                  Manufactured Housing Fees Trust Fund

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

              Unavailable Collections (in millions of dollars)

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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



[[Page 511]]



    The National Manufactured Housing Construction and Safety Standards 
Act of 1974, as amended by the Manufactured Housing Improvement Act of 
2000, authorizes development and enforcement of appropriate standards 
for the construction, design, and performance of manufactured homes to 
assure their quality, durability, affordability, and safety. All 
manufactured homes produced since the standards took effect on June 15, 
1976 must comply with Federal construction and safety standards. The 
States are actively encouraged to participate in the program under 
compliance plans approved by HUD. New program requirements mandated by 
the Manufactured Housing Improvement Act of 2000 include procurement of 
an Administering Organization, formation of a Consensus Committee to 
recommend revisions to and interpretations of the manufactured housing 
standards, development and implementation of standards for installation 
of manufactured housing, and development and implementation of a dispute 
resolution program. 

    Fees are charged to the manufacturers for each manufactured home 
transportable section produced and will be used to fund the costs of all 
authorized activities necessary for the consensus committee, HUD, and 
its agents to carry out all aspects of the manufactured housing 
legislation. Fees are deposited in a trust fund administered by the 
Department, and a portion of the fee receipts are transferred to the 
salaries and expenses account to defray the direct administrative 
expenses of the program. In 2001, an estimated 338,565 transportable 
sections were produced, for a total of 191,249 manufactured homes.

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

    This account also presents activities formerly shown under the 
Interstate Land Sales account.

    The Interstate Land Sales Full Disclosure Act provides protection to 
the public with respect to purchases or leases of subdivision lots. 
Statements of record must be filed with the Secretary before 
subdivisions with 100 or more lots may be sold in interstate commerce, 
except when the subdivision is eligible for exemption.

    The Secretary is authorized to charge a fee, to be paid by the 
developer when filing a statement of record. The fee receipts are 
permanently appropriated and have helped finance a portion of the direct 
administrative expenses incurred in program operations.

    The estimated annual program activity level will continue at 1,020 
filings, approximately the same estimated level as in recent years with 
a cost of $350,000.

                                


 
                GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

                              Federal Funds

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

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

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

                                

Credit accounts:

 Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

                      (including transfer of funds)

    New commitments to issue guarantees to carry out the purposes of 
section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)), 
shall not exceed $200,000,000,000, to remain available until September 
30, [2003] 2004.
    For administrative expenses necessary to carry out the guaranteed 
mortgage-backed securities program, [$9,383,000] $10,761,000, to be 
derived from the GNMA guarantees of mortgage-backed securities 
guaranteed loan receipt account, of which not to exceed [$9,383,000] 
$10,761,000, shall be transferred to the appropriation for ``Salaries 
and expenses''. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002.)

              Unavailable Collections (in millions of dollars)

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

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

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

[[Page 512]]


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

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

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

                                

       Guarantees of Mortgage-Backed Securities Financing Account

               Program and Financing (in millions of dollars)

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

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

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

    New financing authority (gross), detail:
      Discretionary:

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

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........     200,000     200,000     200,000
2121  Limitation available from carry-
        forward.........................                  38,343
2143  Uncommitted limitation carried 
        forward.........................     -38,343
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................     161,657     238,343     200,000
2199  Guaranteed amount of guaranteed 
        loan commitments................     161,657     238,343     200,000
----------------------------------------------------------------------------

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

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

    Operating Results.--Fee collections, interest, and other income are 
expected to exceed expenses by $76 million in 2001; $37 million in 2002 
and $95 million in 2003. These amounts will be retained against losses 
that may be incurred on guarantees.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4240-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         614            693           703            747
1206  Non-Federal assets: Receivables, 
        net.............................          31             32            32             33
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

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

2201    Accounts payable................          47             59            59             61
2207    Other...........................          22             21
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          69             80            59             61
    NET POSITION:
3300  Cumulative results of operations..         581            656           698            745
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         581            656           698            745
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         650            736           757            806
-----------------------------------------------------------------------------------------------
    Note.--Ginnie Mae guarantees the timely payment of principal and 
interest installments on securities which are backed by FHA-insured, 
Rural Housing Service-insured, and VA-guaranteed mortgages. Such 
guarantees are excluded from the Government total of guaranteed 
obligations duplicating FHA, Rural Housing Service, and VA guarantees.

                                

      Guarantees of Mortgage-Backed Securities Liquidating Account

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............

[[Page 513]]

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

               Program and Financing (in millions of dollars)

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

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

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

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

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

    New budget authority (gross), detail:
      Mandatory:

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

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

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

    Offsets:
      Against gross budget authority and outlays:

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

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

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...       6,190       6,575       6,838
92.02 Total investments, end of year: 
        Federal securities: Par value...       6,575       6,838       7,111
---------------------------------------------------------------------------
    \1\ This line nets unpaid obligations and offsetting collections 
from new Federal sources.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         109         110          90
1232  Disbursements: Purchase of loans 
        assets from the public..........          47          46          45
1252  Repayments: Proceeds from loan 
        asset sales to the public or 
        discounted......................         -42         -39         -35
1263  Write-offs for default: Direct 
        loans...........................          -4         -27         -25
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         110          90          75
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

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

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

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

                        Statement of Operations (in millions of dollars)

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

                             Balance Sheet (in millions of dollars)

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

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

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

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

    Note.--Ginnie Mae guarantees the timely payment of principal and 
interest installments on securities which are backed by FHA-insured, 
Rural Housing Service, and VA-guaranteed mortgages. Such guarantees are 
excluded from the Government total of guaranteed obligations duplicating 
FHA, Rural Housing Service, and VA guarantees.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.2  Other services....................           3           2          42
33.0  Investments and loans.............          47          46          45
                                           ---------   ---------  ----------
99.9    Total new obligations...........          50          48          87
---------------------------------------------------------------------------

[[Page 514]]



                                


 
                     POLICY DEVELOPMENT AND RESEARCH

                              Federal Funds

General and special funds:

                         Research and Technology

    For contracts, grants, and necessary expenses of programs of 
research and studies relating to housing and urban problems, not 
otherwise provided for, as authorized by title V of the Housing and 
Urban Development Act of 1970, as amended (12 U.S.C. 1701z-1 et seq.), 
including carrying out the functions of the Secretary under section 
1(a)(1)(i) of Reorganization Plan No. 2 of 1968, [$50,250,000] 
$47,000,000, to remain available until September 30, [2003: Provided, 
That $1,500,000 shall be for necessary expenses of the Millennial 
Housing Commission, as authorized by section 206 of Public Law 106-74, 
with the final report due no later than May 30, 2002 and a termination 
date of August 30, 2002, notwithstanding section 206(f) and (g) of 
Public Law 106-74: Provided further, That $1,000,000 shall be for 
necessary expenses of the commission established under section 525 of 
the Preserving Affordable Housing for Senior Citizens and Families in 
the 21st Century Act, with the final report due no later than June 30, 
2002 and a termination date of September 30, 2002, notwithstanding 
section 525(f) and (g) of Public Law 106-74: Provided further, That of 
the total amount provided under this heading, $8,750,000 shall be for 
the Partnership for Advancing Technology in Housing (PATH) Initiative] 
2004. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    The Housing and Urban Development Act of 1970 directs the Secretary 
to undertake programs of research, studies, testing, and demonstrations 
related to the HUD mission. These functions are carried out internally 
and through con- tracts with industry, nonprofit research organizations, 
and educational institutions, and through agreements with State and 
local governments and other Federal agencies.

    In 2003, the research program will expand funding for program 
evaluations and cover some of the increased costs associated with 
analyzing newly available 2000 census data to determine their 
implications for HUD programs. National Housing Surveys will continue in 
2003. Research and evaluation activities will also support the 
Department in carrying out its responsibilities under the Government 
Performance and Results Act.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.2  Other services....................          47          45          42
41.0  Grants, subsidies, and 
        contributions...................           6           6           5
                                           ---------   ---------  ----------
99.9    Total new obligations...........          53          51          47
---------------------------------------------------------------------------

                                


 
                   FAIR HOUSING AND EQUAL OPPORTUNITY

                              Federal Funds

General and special funds:

                         Fair Housing Activities

    For contracts, grants, and other assistance, not otherwise provided 
for, as authorized by title VIII of the Civil Rights Act of 1968, as 
amended by the Fair Housing Amendments Act of 1988, and section 561 of 
the Housing and Community Development Act of 1987, as amended, 
$45,899,000, to remain available until September 30, [2003] 2004, of 
which $20,250,000 shall be to carry out activities pursuant to such 
section 561: Provided, That no funds made available under this heading 
shall be used to lobby the executive or legislative branches of the 
Federal Government in connection with a specific contract, grant or 
loan. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

[[Page 515]]

    The Fair Housing Assistance Program (FHAP), authorized by title VIII 
of the Civil Rights Act of 1968 as amended, provides funding to State 
and local agencies to assure prompt and effective processing of Title 
VIII (Civil Rights Act of 1968) complaints.

    The funding requested for FHAP will support fair housing enforcement 
by increasing funding to support additional State and local fair housing 
organizations to meet the needs of currently underserved populations. It 
is estimated that the number of new State and local agencies with laws 
equivalent to the Fair Housing Act will increase to 98 in 2003 from 96 
in 2002.

    The Fair Housing Initiatives Program (FHIP), authorized by the 
Housing and Community Development Act of 1987, as amended by the Housing 
and Community Development Act of 1992, provides support to public and 
private organizations for the purpose of eliminating or preventing 
discrimination in housing and for enhancing fair housing opportunities. 
FHIP provides funding for projects that inform and educate the public, 
including housing providers, on the rights and obligations of the Fair 
Housing Act and about substantially equivalent state and local fair 
housing laws.

                                


 
                      OFFICE OF LEAD HAZARD CONTROL

                              Federal Funds

General and Special Funds:

                          Lead Hazard Reduction

    For the Lead Hazard Reduction Program, as authorized by section 1011 
of the Residential Lead-Based Paint Hazard Reduction Act of 1992, 
[$109,758,000] $126,000,000, to remain available until September 30, 
[2003] 2004, of which $10,000,000 shall be for the Healthy Homes 
Initiative, pursuant to sections 501 and 502 of the Housing and Urban 
Development Act of 1970 that shall include research, studies, testing, 
and demonstration efforts, including education and outreach concerning 
lead-based paint poisoning and other housing-related diseases and 
hazards[: Provided, That of the amounts provided under this heading, 
$3,500,000 shall be for a one-time grant to the National Center for 
Lead-Safe Housing]. (Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

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

    The Lead Hazard Control Grant Program provides grants of $1 to $2.5 
million to State and local governments and Indian tribes for control of 
lead-based paint hazards in privately owned, low-income owner-occupied 
and rental housing. The grants are also designed to stimulate the 
development of a housing maintenance and rehabilitation workforce 
trained in lead-safe work practices and a certified hazard evaluation 
and control industry. In awarding grants, HUD promotes the use of new, 
low cost approaches to hazard control that can be replicated across the 
nation.

    The Healthy Homes Initiative will enable the Department to control 
additional childhood diseases and injuires that are caused by housing 
related factors. The initative will allow for a demonstration that 
evaluates the methods of controlling two or more housing related 
diseases through a single intervention. A public education/outreach 
effort, to enable the public to act effectively to protect their 
children, will also be conducted.

    The Office of Healthy Homes and Lead Hazard Control will continue 
its Technical Support program, which will include public education; 
technical assistance for State and local agencies, private property 
owners, HUD programs and field offices and professional organizations; 
quality control to ensure that the evaluation and control of lead-based 
paint hazards is done properly in HUD-assisted housing; development of 
standards, technical guidance, regulations and improved testing; and 
hazard control methods.

                                


 
                      MANAGEMENT AND ADMINISTRATION

                              Federal Funds

General and special funds:

                          Salaries and Expenses

                      (including transfer of funds)

    For necessary administrative and non-administrative expenses of the 
Department of Housing and Urban Development, not otherwise provided for, 
including not to exceed $25,000 for official reception and 
representation expenses, [$1,097,292,000] $1,120,871,000, of which 
[$530,457,000] $571,779,000 shall be provided from the various funds of 
the Federal Housing Administration, [$9,383,000] [$10,000,000] 
$10,761,000 shall be provided from funds of the Government National 
Mortgage Association, [$1,000,000] $1,040,000 shall be provided from the 
``Community development loan guarantees program'' account, [$150,000] 
$156,000 shall be provided by transfer from the ``Native American 
housing block grants'' account, [$200,000] $207,000 shall be provided by 
transfer from the ``Indian housing loan guarantee fund program'' account 
and $35,000 shall be transferred from the ``Native Hawaiian housing loan 
guarantee fund'' account: Provided, That no less than [$85,000,000] 
$10,500,000 shall be transferred to the Working Capital Fund for the 
development [and maintenance of] of and modifications to information 
technology

[[Page 516]]

systems[: Provided further, That the Secretary shall fill 7 out of 10 
vacancies at the GS-14 and GS-15 levels until the total number of GS-14 
and GS-15 positions in the Department has been reduced from the number 
of GS-14 and GS-15 positions on the date of enactment of Public Law 106-
377 by 2\1/2\ percent: Provided further, That the Secretary shall submit 
a staffing plan for the Department by January 15, 2002]. (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2002; additional authorizing legislation 
required.)

               Program and Financing (in millions of dollars)

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

    Obligations by program activity:
      Direct program:

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

    Offsets:
      Against gross budget authority and outlays:

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

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

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

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

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

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

               Object Classification (in millions of dollars)

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

      Direct obligations:

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

                              Personnel Summary

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


                                                                


                                

                       Office of Inspector General

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

               Program and Financing (in millions of dollars)

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

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

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

[[Page 517]]

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

    Offsets:
      Against gross budget authority and outlays:

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

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

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

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

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

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

      

               Object Classification (in millions of dollars)

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

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          31          41          48
11.5      Other personnel compensation..           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          33          43          50
12.1    Civilian personnel benefits.....          10          11          11
21.0    Travel and transportation of 
          persons.......................           4           4           4
23.1    Rental payments to GSA..........           5           4           4
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.1    Advisory and assistance services           4           3           3
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           2           2           2
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           1           2           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          61          71          77
99.0  Reimbursable obligations..........          34          28          24
                                           ---------   ---------  ----------
99.9    Total new obligations...........          95          99         101
---------------------------------------------------------------------------

                              Personnel Summary

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

                                

                          Consolidated Fee Fund

                              (rescission)

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

    Section 7(j) of the Department of Housing and Urban Development Act 
established fees and charges from selected programs to offset the costs 
of audits, inspections and other related expenses that may be incurred 
by the Department in monitoring these programs. These funds are no 
longer needed. In 2003, the budget proposes a rescission of all 
unobligated funds.

                                

             Office of Federal Housing Enterprise Oversight

                          Salaries and Expenses

                      (including transfer of funds)

    [For carrying out the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992, including not to exceed $500 for official 
reception and representation expenses, $27,000,000, to remain available 
until expended, to be derived from the Federal Housing Enterprises 
Oversight Fund: Provided, That not to exceed such amount shall be 
available from the general fund of the Treasury to the extent necessary 
to incur obligations and make expenditures pending the receipt of 
collections to the Fund: Provided further, That the general fund amount 
shall be reduced as collections are received during the fiscal year so 
as to result in a final appropriation from the general fund estimated at 
not more than $0: Provided further, That this Office shall submit a 
staffing plan to the House and Senate Committees on Appropriations no 
later than January 30, 2002]. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 2002.)

[[Page 518]]

              Unavailable Collections (in millions of dollars)

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

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

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

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

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

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

               Object Classification (in millions of dollars)

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

      Direct obligations:

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

                              Personnel Summary

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

                                

Intragovernmental funds:

                          Working Capital Fund

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

               Program and Financing (in millions of dollars)

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

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

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

    New budget authority (gross), detail:
      Discretionary:

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

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

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

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

[[Page 519]]


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

    Offsets:
      Against gross budget authority and outlays:

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

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

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

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

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

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

    The Working Capital Fund, authorized by the Department of Housing 
and Urban Development Act of 1965, finances information technology and 
office automation initiatives which can be performed more efficiently on 
a centralized basis. In 2001 and 2002 the fund was financed from fees 
charged for services performed. In 2003, a direct appropriation is 
requested for the operations of the computer system and for development 
and modifications of Department-wide systems. Fees will continue for 
services to develop and modify systems where the benefit is limited to a 
specific program.

               Object Classification (in millions of dollars)

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

      Direct obligations:

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

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

                              Personnel Summary

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

                                

                        Administrative Provisions

    Sec. 201. Fifty percent of the amounts of budget authority, or in 
lieu thereof 50 percent of the cash amounts associated with such budget 
authority, that are recaptured from projects described in section 
1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 
1988 (42 U.S.C. 1437 note) shall be rescinded, or in the case of cash, 
shall be remitted to the Treasury, and such amounts of budget authority 
or cash recaptured and not rescinded or remitted to the Treasury shall 
be used by State housing finance agencies or local governments or local 
housing agencies with projects approved by the Secretary of Housing and 
Urban Development for which settlement occurred after January 1, 1992, 
in accordance with such section. Notwithstanding the previous sentence, 
the Secretary may award up to 15 percent of the budget authority or cash 
recaptured and not rescinded or remitted to the Treasury to provide 
project owners with incentives to refinance their project at a lower 
interest rate.
    [Sec. 202. None of the amounts made available under this Act may be 
used during fiscal year 2002 to investigate or prosecute under the Fair 
Housing Act any otherwise lawful activity engaged in by one or more 
persons, including the filing or maintaining of a non-frivolous legal 
action, that is engaged in solely for the purpose of achieving or 
preventing action by a Government official or entity, or a court of 
competent jurisdiction.]
    Sec. [203] 202. (a) Notwithstanding section 854(c)(1)(A) of the AIDS 
Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts 
made available under this title for fiscal year [2002] 2003 that are 
allocated under such section, the Secretary of Housing and Urban 
Development shall allocate and make a grant, in the amount determined 
under subsection (b), for any State that--
        (1) received an allocation in a prior fiscal year under clause 
    (ii) of such section; and
        (2) is not otherwise eligible for an allocation for fiscal year 
    [2002] 2003 under such clause (ii) because the areas in the State 
    outside of the metropolitan statistical areas that qualify under 
    clause (i) in fiscal year [2002] 2003 do not have the number of 
    cases of acquired immunodeficiency syndrome (AIDS) required under 
    such clause.
    (b) The amount of the allocation and grant for any State described 
in subsection (a) shall be an amount based on the cumulative number of 
AIDS cases in the areas of that State that are outside of metropolitan 
statistical areas that qualify under clause (i) of such section 
854(c)(1)(A) in fiscal year [2002] 2003, in proportion to AIDS cases 
among cities and States that qualify under clauses (i) and (ii) of such 
section and States deemed eligible under subsection (a).
    Sec. [204] 203. (a) Section 225(a) of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2000, Public Law 106-74 (113 Stat. 1076), is amended 
by [inserting ``and fiscal year 2002'' after ``fiscal year 2001''] 
striking ``year 2000, and the amounts that would otherwise be allocated 
for fiscal year 2001 and fiscal year 2002'', and inserting ``years 2000, 
2001, 2002, and 2003''.
    (b) Notwithstanding any other provision of law, the Secretary of 
Housing and Urban Development shall allocate to Wake County, North 
Carolina, the amounts that otherwise would be allocated for fiscal year 
[2002] 2003 under section 854(c) of the AIDS Housing Opportunity Act (42 
U.S.C. 12903(c)) to the City of Raleigh, North Carolina, on behalf of 
the Raleigh-Durham-Chapel Hill, North Carolina Metropolitan Statistical 
Area. Any amounts allocated to Wake County shall be used to carry out 
eligible activities under section 855 of such Act (42 U.S.C. 12904) 
within such metropolitan statistical area.
    [Sec. 205. Section 106(c)(9) of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701x(c)(9)) is repealed.]
    [Sec. 206. Section 251 of the National Housing Act (12 U.S.C. 1715z-
16) is amended--
        (1) in subsection (b), by striking ``issue regulations'' and all 
    that follows and inserting the following: ``require that the 
    mortgagee make available to the mortgagor, at the time of loan 
    application, a written explanation of the features of an adjustable 
    rate mortgage consistent with the disclosure requirements applicable 
    to variable rate mortgages secured by a principal dwelling under the 
    Truth in Lending Act.''; and
        (2) by adding the following new subsection at the end:
    ``(d)(1) The Secretary may insure under this subsection a mortgage 
that meets the requirements of subsection (a), except that the effective 
rate of interest--
        ``(A) shall be fixed for a period of not less than the first 3 
    years of the mortgage term;
        ``(B) shall be adjusted by the mortgagee initially upon the 
    expiration of such period and annually thereafter; and
        ``(C) in the case of the initial interest rate adjustment, is 
    subject to the 1 percent limitation only if the interest rate 
    remained fixed for five or fewer years.

[[Page 520]]

    ``(2) The disclosure required under subsection (b) shall be required 
for a mortgage insured under this subsection.''.]
    [Sec. 207. (a) Section 203(c) of the National Housing Act (12 U.S.C. 
1709(c)) is amended--
        (1) in paragraph (1), by striking ``and (k)'' and inserting ``or 
    (k)''; and
        (2) in paragraph (2)--
                (A) by inserting after ``subsection (v)'' the following: 
            ``and each mortgage that is insured under subsection (k) or 
            section 234(c),''; and
                (B) by striking ``and executed on or after October 1, 
            1994,''.
    (b) The amendments made by subsection (a) shall--
        (1) apply only to mortgages that are executed on or after the 
    date of enactment of this Act; and
        (2) be implemented in advance of any necessary conforming 
    changes to regulations.]
    Sec. [208] 204. (a) During fiscal year [2002] 2003, in the provision 
of rental assistance under section 8(o) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)) in connection with a program to demonstrate 
the economy and effectiveness of providing such assistance for use in 
assisted living facilities that is carried out in the counties of the 
State of Michigan specified in subsection (b) of this section, 
notwithstanding paragraphs (3) and (18)(B)(iii) of such section 8(o), a 
family residing in an assisted living facility in any such county, on 
behalf of which a public housing agency provides assistance pursuant to 
section 8(o)(18) of such Act, may be required, at the time the family 
initially receives such assistance, to pay rent in an amount exceeding 
40 percent of the monthly adjusted income of the family by such a 
percentage or amount as the Secretary of Housing and Urban Development 
determines to be appropriate.
    (b) The counties specified in this subsection are Oakland County, 
Macomb County, Wayne County, and Washtenaw County, in the State of 
Michigan.
    [Sec. 209. Section 533 of the National Housing Act (12 U.S.C. 1735f-
11) is amended to read as follows:
    ``Sec. 533. Review of Mortgagee Performance and Authority to 
Terminate.--
    ``(a) Periodic Review of Mortgagee Performance.--To reduce losses in 
connection with single family mortgage insurance programs under this 
Act, at least once a year the Secretary shall review the rate of early 
defaults and claims for insured single family mortgages originated or 
underwritten by each mortgagee.
    ``(b) Comparison With Other Mortgagees.--For each mortgagee, the 
Secretary shall compare the rate of early defaults and claims for 
insured single family mortgage loans originated or underwritten by the 
mortgagee in an area with the rate of early defaults and claims for 
other mortgagees originating or underwriting insured single family 
mortgage loans in the area. For purposes of this section, the term 
`area' means each geographic area in which the mortgagee is authorized 
by the Secretary to originate insured single family mortgages.
    ``(c) Termination of Mortgagee Origination Approval.--(1) 
Notwithstanding section 202(c) of this Act, the Secretary may terminate 
the approval of a mortgagee to originate or underwrite single family 
mortgages if the Secretary determines that the mortgage loans originated 
or underwritten by the mortgagee present an unacceptable risk to the 
insurance funds. The determination shall be based on the comparison 
required under subsection (b) and shall be made in accordance with 
regulations of the Secretary. The Secretary may rely on existing 
regulations published before this section takes effect.
    ``(2) The Secretary shall give a mortgagee at least 60 days prior 
written notice of any termination under this subsection. The termination 
shall take effect at the end of the notice period, unless the Secretary 
withdraws the termination notice or extends the notice period. If 
requested in writing by the mortgagee within 30 days of the date of the 
notice, the mortgagee shall be entitled to an informal conference with 
the official authorized to issue termination notices on behalf of the 
Secretary (or a designee of that official). At the informal conference, 
the mortgagee may present for consideration specific factors that it 
believes were beyond its control and that caused the excessive default 
and claim rate.''.]
    [Sec. 210. Except as explicitly provided in law, any grant or 
assistance made pursuant to title II of this Act shall be made on a 
competitive basis in accordance with section 102 of the Department of 
Housing and Urban Development Reform Act of 1989.]
    [Sec. 211. Public housing agencies in the States of Alaska, Iowa, 
and Mississippi shall not be required to comply with section 2(b) of the 
United States Housing Act of 1937, as amended, during fiscal year 2002.]
    [Sec. 212. Notwithstanding any other provision of law, in fiscal 
year 2002, in managing and disposing of any multifamily property that is 
owned or held by the Secretary and is occupied primarily by elderly or 
disabled families, the Secretary of Housing and Urban Development shall 
maintain any rental assistance payments under section 8 of the United 
States Housing Act of 1937 that are attached to any dwelling units in 
the property. To the extent the Secretary determines that such a 
multifamily property owned or held by the Secretary is not feasible for 
continued rental assistance payments under such section 8, the Secretary 
may, in consultation with the tenants of that property, contract for 
project-based rental assistance payments with an owner or owners of 
other existing housing properties or provide other rental assistance.]
    [Sec. 213. (a) Section 207 Limits.--Section 207(c)(3) of the 
National Housing Act (12 U.S.C. 1713(c)(3)) is amended--
        (1) by striking ``$30,420'', ``$33,696'', ``$40,248'', 
    ``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'', 
    ``$50,310'', ``$62,010'', and ``$70,200'', respectively;
        (2) by striking ``$9,000'' and inserting ``$11,250''; and
        (3) by striking ``$35,100'', ``$39,312'', ``$48,204'', 
    ``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'', 
    ``$60,255'', ``$75,465'', and ``$85,328'', respectively.
    (b) Section 213 Limits.--Section 213(b)(2) of the National Housing 
Act (12 U.S.C. 1715e(b)(2)) is amended--
        (1) by striking ``$30,420'', ``$33,696'', ``$40,248'', 
    ``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'', 
    ``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
        (2) by striking ``$35,100'', ``$39,312'', ``$48,204'', 
    ``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'', 
    ``$60,255'', ``$75,465'', and ``$85,328'', respectively.
    (c) Section 220 Limits.--Section 220(d)(3)(B)(iii) of the National 
Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended--
        (1) by striking ``$30,420'', ``$33,696'', ``$40,248'', 
    ``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'', 
    ``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
        (2) by striking ``$35,100'', ``$39,312'', ``$48,204'', 
    ``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'', 
    ``$60,255'', ``$75,465'', and ``$85,328'', respectively.
    (d) Section 221(d)(3) Limits.--Section 221(d)(3)(ii) of the National 
Housing Act (12 U.S.C. 1715l(d)(3)(ii)) is amended--
        (1) by striking ``$33,638'', ``$38,785'', ``$46,775'', 
    ``$59,872'', and ``$66,700'' and inserting ``$42,048'', ``$48,481'', 
    ``58,469'', ``$74,840'', and ``$83,375'', respectively; and
        (2) by striking ``$35,400'', ``$40,579'', ``$49,344'', 
    ``$63,834'', and ``$70,070'' and inserting ``$44,250'', ``$50,724'', 
    ``$61,680'', ``$79,793'', and ``$87,588'', respectively.
    (e) Section 221(d)(4) Limits.--Section 221(d)(4)(ii) of the National 
Housing Act (12 U.S.C. 1715l(d)(4)(ii)) is amended--
        (1) by striking ``$30,274'', ``$34,363'', ``$41,536'', 
    ``$52,135'', and ``$59,077'' and inserting ``$37,843'', ``$42,954'', 
    ``$51,920'', ``$65,169'', and ``$73,846'', respectively; and
        (2) by striking ``$32,701'', ``$37,487'', ``$45,583'', 
    ``$58,968'', and ``$64,730'' and inserting ``$40,876'', ``$46,859'', 
    ``$56,979'', ``$73,710'', and ``$80,913'', respectively.
    (f) Section 231 Limits.--Section 231(c)(2) of the National Housing 
Act (12 U.S.C. 1715v(c)(2)) is amended--
        (1) by striking ``$28,782'', ``$32,176'', ``$38,423'', 
    ``$46,238'', and ``$54,360'' and inserting ``$35,978'', ``$40,220'', 
    ``$48,029'', ``$57,798'', ``$67,950'', respectively; and
        (2) by striking ``$32,701'', ``$37,487'', ``$45,583'', 
    ``$58,968'', and ``$64,730'' and inserting ``$40,876'', ``$46,859'', 
    ``$56,979'', ``$73,710'', and ``$80,913'', respectively.
    (g) Section 234 Limits.--Section 234(e)(3) of the National Housing 
Act (12 U.S.C. 1715y(e)(3)) is amended--
        (1) by striking ``$30,420'', ``$33,696'', ``$40,248'', 
    ``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'', 
    ``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
        (2) by striking ``$35,100'', ``$39,312'', ``$48,204'', 
    ``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'', 
    ``$60,255'', ``$75,465'', and ``$85,328'', respectively.]
    [Sec. 214. Of the amounts appropriated in the Consolidated 
Appropriations Act, 2001 (Public Law 106-554), for the operation of an 
historical archive at the University of South Carolina, Department of 
Archives, South Carolina, such funds shall be available to the

[[Page 521]]

University of South Carolina to fund an endowment for the operation of 
an historical archive at the University of South Carolina, without 
fiscal year limitation.]
    [Sec. 215. Section 247 of the National Housing Act (12 U.S.C. 1715z-
12) is amended--
        (1) in subsection (d), by striking paragraphs (1) and (2) and 
    inserting the following:
        ``(1) Native hawaiian.--The term `native Hawaiian' means any 
    descendant of not less than one-half part of the blood of the races 
    inhabiting the Hawaiian Islands before January 1, 1778, or, in the 
    case of an individual who is awarded an interest in a lease of 
    Hawaiian home lands through transfer or succession, such lower 
    percentage as may be established for such transfer or succession 
    under section 208 or 209 of the Hawaiian Homes Commission Act of 
    1920 (42 Stat. 111), or under the corresponding provision of the 
    Constitution of the State of Hawaii adopted under section 4 of the 
    Act entitled `An Act to provide for the admission of the State of 
    Hawaii into the Union', approved March 18, 1959 (73 Stat. 5).
        ``(2) Hawaiian home lands.--The term `Hawaiian home lands' means 
    all lands given the status of Hawaiian home lands under section 204 
    of the Hawaiian Homes Commission Act of 1920 (42 Stat. 110), or 
    under the corresponding provision of the Constitution of the State 
    of Hawaii adopted under section 4 of the Act entitled `An Act to 
    provide for the admission of the State of Hawaii into the Union', 
    approved March 18, 1959 (73 Stat. 5).''; and
        (2) by adding at the end the following:
    ``(e) Certification of Eligibility for Existing Lessees.--Possession 
of a lease of Hawaiian home lands issued under section 207(a) of the 
Hawaiian Homes Commission Act of 1920 (42 Stat. 110), shall be 
sufficient to certify eligibility to receive a mortgage under this 
section.''.]
    [Sec. 216. Notwithstanding the requirement regarding commitment of 
funds in the first sentence of section 288(b) of the HOME Investment 
Partnerships Act (42 U.S.C. 12838(b)), the Secretary of Housing and 
Urban Development (in this section referred to as the ``Secretary'') 
shall approve the release of funds under that section to the Arkansas 
Development Finance Authority (in this section referred to as the 
``ADFA'') for projects, if--
        (1) funds were committed to those projects on or before June 12, 
    2001;
        (2) those projects had not been completed as of June 12, 2001;
        (3) the ADFA has fully carried out its responsibilities as 
    described in section 288(a); and
        (4) the Secretary has approved the certification that meets the 
    requirements of section 288(c) with respect to those projects.]
    [Sec. 217. Notwithstanding any other provision of law with respect 
to this or any other fiscal year, the Housing Authority of Baltimore 
City may use the remaining balance of the grant award of $20,000,000 
made to such authority for development efforts at Hollander Ridge in 
Baltimore, Maryland with funds appropriated for fiscal year 1996 under 
the heading ``Public Housing Demolition, Site Revitalization, and 
Replacement Housing Grants'' for the rehabilitation of the Claremont 
Homes project and for the provision of affordable housing in areas 
within the City of Baltimore either: (1) designated by the partial 
consent decree in Thompson v. HUD as nonimpacted census tracts; or (2) 
designated by said authority as either strong neighborhoods experiencing 
private investment or dynamic growth areas where public and/or private 
commercial or residential investment is occurring.] (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2002.)
    Sec. 205. Service Coordinators for Section 811 Housing.--Section 
683(2) of the Housing and Community Development Act of 1992 is amended--
        (1) in subparagraph (F), by striking ``and'';
        (2) in subparagraph (G), by striking ``section.'' and inserting 
    ``section; and''; and
        (3) by adding the following new subparagraph at the end:
            ``(H) housing that is assisted under section 811 of the 
        Cranston-Gonzalez National Affordable Housing Act.''.
    Sec. 206. Section 1316 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 4516) is amended in 
subsection (a) in the first sentence by striking ``, to the extent 
provided in appropriation Acts,'' and in subsection (f) in the third 
sentence by striking ``, to the extent provided in appropriation Acts 
and subsection (e),''.
    Sec. 207. Repeal of Section 236(s) Loan Program.--
    (a) Section 236(s) of the National Housing Act (12 U.S.C. 1715z-
1(s)) is amended--
        (1) in the heading by striking ``AND LOANS'';
        (2) in paragraph (1), by striking ``and loans'';
        (3) in paragraph (2)--
            (A) in the matter preceding subparagraph (A), by striking 
        ``or loan''; and
            (B) in subparagraph (E)(i), by striking ``or loan (as 
        appropriate)'';
        (4) in paragraph (3), in the matter that precedes subparagraph 
    (A), by striking ``or loan'';
        (5) in paragraph (4)--
            (A) in the paragraph heading, by striking ``and loan''; and
            (B) by striking ``or loans'' after ``grants'' each place it 
        appears;
        (6) in paragraph (7), by deleting subparagraph (D); and
        (7) by deleting paragraph (5) and redesignating paragraphs (6) 
    and (7) as (5) and (6).
    Sec. 208. Section 9 of the United States Housing Act of 1937 is 
amended--
    by inserting at the end the following new subsection:
    ``(o) Development-Based Subsidies.--(1) In order to facilitate the 
financing of capital needs and development-based financial management 
and accountability, the Secretary may approve, on a project by project 
basis, the conversion of a public housing project or a portion of a 
public housing project to project-based voucher assistance, which 
assistance may be on-site or off-site, provided that the number of 
public housing units converted under this subsection shall be equal to 
the number of units receiving project-based voucher assistance pursuant 
to this subsection, and that a commitment has first been obtained from 
an approved lender for a mortgage loan secured by the property to 
finance qualified necessary capital improvements under terms established 
by the Secretary.
    ``(2) The initial year of any contract for project-based voucher 
assistance under this subsection may be funded with amounts made 
available in an appropriations Act under the headings making amounts 
available for the purposes set forth in subsections (d) or (e) of this 
section, or with any other amounts appropriated for this purpose. Any 
renewal of such contracts shall be funded with amounts made available 
under the heading making amounts available for the renewal of assistance 
under section 8.
    ``(3) Project-based voucher assistance provided pursuant to this 
subsection shall be administered under section 8(o)(13), except that--
        ``(A) subparagraphs (C)(ii) and (D) of such section shall not 
    apply;
        ``(B)(i) any units converted to project-based voucher assistance 
    under this subsection shall be maintained as assisted housing and 
    provided project-based voucher assistance for the same length of 
    time as the housing would have been required under section 9(d)(3) 
    to be operated and maintained as public housing absent such 
    conversion, subject to the availability of sufficient appropriated 
    funds for the purpose of renewing expiring contracts for assistance 
    payments, as provided in appropriations Acts;
        ``(ii) notwithstanding clause (i), when dwelling units which are 
    receiving project-based voucher assistance pursuant to a conversion 
    under this subsection and which are not located in developments or 
    portions of developments which house only elderly persons or persons 
    with disabilities, or both, become vacant, the public housing agency 
    may rent up to one-third of such units to unassisted families 
    (except that the Secretary may permit the agency under such special 
    local circumstances as are determined by the Secretary to rent more 
    than one-third of such units to unassisted families), and for each 
    unit so rented for the duration of such rental may use the 
    assistance otherwise associated with that unit to provide tenant-
    based voucher assistance under section 8; and
        ``(iii)(I) notwithstanding clause (i), if the Secretary 
    determines that such action would further the purposes of this 
    subsection, the Secretary may provide for termination of the 
    restricted use period set forth in clause (i) in the event that any 
    units converted to project-based voucher assistance under this 
    subsection are foreclosed upon (or otherwise disposed of pursuant to 
    an instrument in lieu of foreclosure), on the date the units are 
    acquired by foreclosure (or instrument in lieu of foreclosure), 
    unless--
            ``(aa) the Secretary determines that the foreclosure is part 
        of an arrangement the purpose of which is to terminate the 
        restricted use period; or
            ``(bb) a bona fide and reasonable contract acceptable to the 
        Secretary to purchase such units is presented by a person who is 
        willing to continue such use restrictions; and

[[Page 522]]

        ``(II) if the Secretary provides for termination of the 
    restricted use period pursuant to subclause (I), the Secretary shall 
    provide enhanced voucher assistance under section 8(t) to any family 
    occupying an assisted unit at the time of such termination;
        ``(C) any units converted to project-based voucher assistance 
    under this subsection shall remain covered by and subject to the 
    provisions in the public housing cooperation agreement entered into 
    between the city and the public housing agency;
        ``(D) any units converted to project-based voucher assistance 
    under this subsection shall not be included as tenant-based 
    assistance that is attached to a structure for the purposes of the 
    20 percent limitation set forth in section 8(o)(13)(B);
        ``(E) the Secretary may set the rent level for a unit converted 
    to project-based voucher assistance under this subsection at a level 
    lower than the level at which such rent would otherwise be set 
    pursuant to section 8(o)(13)(H), provided such lower level is 
    sufficient, in the determination of the Secretary, to cover debt 
    service payments on obligations to finance the cost of any necessary 
    rehabilitation, contributions to a capital reserve, amounts 
    necessary for adequate debt service coverage, the cost of the 
    subsequent operation of the housing as project-based voucher 
    assistance, and any other necessary costs;
        ``(F) where units converted to project-based voucher assistance 
    under this subsection are owned by the public housing agency or an 
    entity controlled by such agency, the Secretary may administer or 
    make alternative arrangements to administer the obligations 
    otherwise required of the public housing agency under the annual 
    contributions contract; and
        ``(G) the Secretary may waive or make alternative arrangements 
    regarding any other provision of law or regulation that the 
    Secretary finds to be inconsistent with accomplishing the purposes 
    of this subsection.
    ``(4) The conversion of a public housing project to project-based 
voucher assistance under this subsection shall not be considered a 
disposition under section 18 of this Act as long as the public housing 
agency or an entity controlled by the agency retains ownership of the 
project.
    ``(5)(A) The Secretary may establish a common loan loss reserve 
account to which public housing agencies converting public housing units 
to project-based voucher assistance under this subsection may contribute 
a percentage of amounts available for such conversion, which percentage 
shall be specified by the Secretary. The Secretary may establish the 
terms and conditions applicable to this loan loss reserve account and 
any contributions to it, and may select an entity or entities on a 
competitive or noncompetitive basis to develop, maintain, and administer 
this account.
    ``(B) Amounts contributed to the account established under this 
paragraph shall be available without fiscal year limitation to reimburse 
any mortgagor that provides financing to a public housing agency for 
necessary renovations to any project converted pursuant to this 
subsection if the public housing agency defaults on the repayment of 
such debt.'';
    (b) in subsection (d)(1)(I), by striking ``; and'' and inserting a 
semicolon;
    (c) in subsection (d)(1)(J), by striking the period and inserting 
``; and''; and
    (d) in subsection (d)(1), by inserting at the end the following new 
subparagraph:
    ``(K) assistance in the financing for necessary renovations to or 
other capital expenses for any project receiving project-based voucher 
assistance pursuant to subsection (o) of this section, including the 
making of upfront capital contributions to such projects where needed to 
make financing feasible and the purchase or provision of letters of 
credit or other credit enhancements necessary to carry out such 
subsection, contributions to a common loan loss reserve account as 
established by subsection (o)(5) of this section, and any contributions 
that the Secretary may require for the initial administration of such 
subsection (o) with respect to such project.''.
    Sec. 209. Repeal of Federalization of Public Housing Units.
    (a) Section 9(n)(1) of the United States Housing Act of 1937 is 
hereby repealed.
    (b) Section 226 of the Department of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1999, is hereby repealed.
    (c) The amendment made by subsection (a) shall be deemed to have 
taken effect on October 1, 1998.
    (d) The amendment made by subsection (b) shall be deemed to have 
taken effect on October 21, 1998.
    Sec. 210. Section 8(y)(7)(A) of the United States Housing Act of 
1937 is amended by striking ``for fiscal year 2000 and each fiscal year 
thereafter to the extent provided in advance in appropriations Acts''.

                                

                      General Fund Receipt Accounts

                           (in millions of dollars)

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                                         2001 actual   2002 est.   2003 est.
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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
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