Appendix - Department of Housing and Urban Development

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

THE BUDGET FOR FISCAL YEAR 2004

[[Page 475]]

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 increase homeownership, support
community development, and increase access to affordable housing free
from discrimination. The 2004 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 several
years.

The Department continues to emphasize expanding homeownership
opportunities for all. In addition, borrowers who because of poor credit
would be served at higher cost by the conventional market or not at all
may take advantage of a new FHA mortgage product that rewards ``good
behavior'' by reducing borrower mortage insurance premiums by one
percentage point after a series of consecutive on-time mortgage
payments. Housing counseling increases by $10 million. Also, the HOME
Investment Partnerships Program is increased by $113 million. This
increase includes $200 million for the down payment initiative. The 2004
budget continues the expanded Self-Help Homeownership Opportunity
Program (SHOP) in an effort to accelerate home ownership by lower-income
families.

The 2004 budget proposes to allow housing authorities to use up to
$131 million to reform the public housing subsidy system in a manner
similar to the President's 2003 proposal.

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 guarantee of up to 80 percent
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. Many housing authorities will take advantage of
this voluntary initiative to improve living conditions for their
residents.

The 2004 Budget proposes the Housing Assistance for Needy Families
(HANF) program. Housing vouchers will be converted to a State run block
grant and will continue to assist at least the same number of low-income
families. Administration by states will better assist low-income
households to locate decent, safe, and affordable housing by allowing
them to tailor programs to fit the needs of particular communities.
Coordination by states with Temporary Assistance for Needy Families
(TANF) programs will be encouraged to better reach families
transitioning from welfare to work. States will provide better program
administration adapted to their needs, leading to better utilization of
funds to help more low-income households secure housing. 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).

HUD continues to focus on combating homelessness and in addition
eliminating chronic homelessness over a ten-year period with $1.375
billion for the Homeless Assistance program overall. The effort includes
a $50 million Samaritan housing program that will be jointly
administered with the Departments of Health and Human Services and
Veterans Affairs focused on compassionate and effective assistance for
chronically homeless persons. Funding also supports a consolidated
comprehensive homeless effort, including Shelter Plus Care renewals, and
support for the leadership of the Interagency Council on Homelessness.

The transfer of the Emergency Food and Shelter Program from the
Federal Emergency Management Agency (FEMA), to HUD contributes to the
ongoing effort to better coordinate overall homeless program efforts.

Funding in the 2004 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.

With the publication of the National Discrimination Study HUD now
has the information necessary to improve enforcement, reduce
discrimination and address accessibility issues.

The Community Development Block Grant program is funded at $4.7
billion with $4.4 billion for formula grants. The CDBG Formula is
significantly impacted by the Census and other factors. The Department
is pursuing proposals that would better reflect current data, fiscal
need, levels of poverty, and effective use of funds.

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 2004 budget includes a 10 percent increase in lead hazard
reduction grants to continue the 10-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 2004 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 Assistance For Needy Families

For activities and assistance under the United States Housing Act of
1937, as amended (42 U.S.C. 1437 et seq.) (the ``Act''), $8,335,201,000
to remain available until expended: Provided, That $4,200,000,000
appropriated under the heading ``Housing Certificate Fund'' for fiscal
year 2003 that become available on October 1, 2003 shall be transferred
to and merged with such amounts. Provided further, That the total of
such amounts are available as follows:
(1) $11,481,616,000 for renewals of expiring section 8 subsidy
contracts (including amendments and renewals of enhanced vouchers under
any provision of law authorizing such assistance under section 8(t) of
the Act (42 U.S.C. 1437f(t)): Provided, That notwithstanding

[[Page 476]]

any other provision of law, the Secretary shall renew expiring section 8
subsidy contracts for each public housing agency (PHA) based on the most
recent information the Secretary determines to be available and reliable
regarding the total number of unit months under lease (and including (A)
unit months representing units to be leased under existing contracts or
agreements to enter into contracts for PHA project-based assistance, and
(B) for agencies participating in the Moving to Work demonstration, unit
months representing section 8 subsidy contracts committed to fulfill
requirements for specific numbers of vouchers specified in existing
agreements), and by applying an inflation factor based on local or
regional factors to the actual per unit cost reported.
(2) $609,000,000 for a central fund to be allocated by the Secretary
for the support of section 8 subsidy contracts or amendments to such
contracts, and for such other purposes as are set forth in this
paragraph: Provided, That the Secretary may use amounts in such fund, as
necessary, for contracts or contract amendments resulting from a
significant change in the total number of unit months under lease, a
significant change in per-unit costs, or otherwise to provide funds so
that public housing agencies may lease units up to their allocation
baselines: Provided further, That the Secretary shall use amounts in
such fund to provide States with up to $100,000,000 as determined by the
Secretary, for costs associated with developing the capacity of States
to assume the administration of the Housing Assistance for Needy
Families program: Provided further, That the Secretary shall use up to
$36,000,000 in such fund for incremental vouchers under section 8 of the
Act to be used for non-elderly 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): Provided further, That to the extent
the Secretary determines that amounts in such fund are sufficient for
purposes set forth in the three immediately preceding provisos, the
Secretary may make any remaining amounts in such fund available to
States for section 8 tenant-based rental and homeownership assistance:
Provided further, That any State using amounts pursuant to the preceding
proviso for section 8 tenant-based rental and homeownership assistance,
shall administer such assistance in accordance with section 8 statutory
and regulatory requirements: Provided further, That a State may petition
the Secretary, and the Secretary may waive any statutory or regulatory
provision pertaining to such rental or homeownership assistance and may
make provision for alternative conditions or terms where appropriate
where the Secretatry determines that such waiver will improve
performance relative to the objectives of such assitance when
administered by a State: Provided further, That a State may petition the
Secretary with respect to rental or homeownership assistance
administered by a public housing agency in the State, and the Secretary
may waive any regulation pertaining to such assistance and may make
provision for alternative conditions or terms where appropriate where
the Secretary determines that such waiver will improve performance
relative to the objectives of such assistance: Provided further, That
the Secretary may allocate and distribute any such remaining amounts to
States or public housing agencies notwithstanding section 213(d) of the
Housing and Community Development Act of 1974.
(3) $252,203,000 for section 8 rental assistance for relocation and
replacement of housing units that are demolished or disposed of pursuant
to the Omnibus Consolidated Recissions and Appropriations Act of 1996
(Public Law 104-134), conversion of section 23 projects to assistance
under section 8, the family unification program under section 8(x) of
the Act, 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, enhanced vouchers under any provision
of law authorizing such assistance under section 8(t) of the Act (42
U.S.C. 1437f(t)), and tenant protection assistance, including
replacement and relocaiton assistance.
(4) $72,000,000 for Family Self-Sufficiency Coordinators.
(5) $1,192,382,000 for administrative and other expenses of public
housing agencies in administering the section 8 tenant-based rental
assistance program: Provided, That, notwithstanding any other provision
of law, administrative fees shall be paid only for dwelling untis
covered by a section 8 housing assistance payments contract and such
fees shall be paid at a rate that for each public housing agency shall
not exceed 10 percent of the total annual budget authority applicable
for rental and homeownership assistance to such units leased by the
public housing agency: Provided further, That all such administrative
fee amounts provided under this paragraph shall be only for activities
related to the provision of rental and homeownership assistance under
section 8:
Provided further, That upon advance notice to the Committees on
Appropriations the Secretary may transfer funds provided under
paragraphs (1), (2) or (5) among such paragraphs, if the Secretary
determines that such action is necessary because the funding authorized
under one such paragraph otherwise would be depleted and as a result,
the maximum utilization of section 8 tenant-based assistance with the
funds appropriated for this purpose by this Act would not be feasible:
Provided further, That, hereafter, the Secretary shall require public
housing agencies to submit accounting data for funds disbursed under
this heading by source of funds: Provided further, That an additional
$4,200,000,000 shall be available on October 1, 2004 and remain
available until expended: Provided further, That $1,072,000,000 from
unobligated balances remaining from funds appropriated to the Department
of Housing and Urban Development under the heading ``Housing certificate
fund'' or the heading ``Annual contribution for assisted housing'' shall
be transferred to and merged with the amounts provided under this
heading.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0332-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Rental assistance Block Grant..... 13,607
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 13,607
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 12,535
22.22 Unobligated balance transferred
from other accounts............. 1,072
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13,607
23.95 Total new obligations............. -13,607
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 8,335
55.00 Advance appropriation........... 4,200
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 12,535
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 13,607
73.20 Total outlays (gross)............. -6,086
74.40 Obligated balance, end of year.... 7,521
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5,014
86.93 Outlays from discretionary
balances........................ 1,072
--------- --------- ----------
87.00 Total outlays (gross)........... 6,086
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 12,535
90.00 Outlays........................... 6,086
---------------------------------------------------------------------------

Housing Assistance for Needy Families. This proposal establishes a
new block grant program to States called Housing Assistance for Needy
Families (HANF). The Department will be submitting a comprehensive
legislative proposal to authorize this proposal. When the proposed
legislation is adopted, this block grant program will replace the
current tenant-based Housing Choice Voucher Program. Converting the
current program to a block grant approach is necessary to improve the
delivery of rental and homeownership subsidies for low-income families
and eliminate the significant utilization and recapture problems that
plague the current tenant-based program.

Fiscal year 2004 will be a transitional year in which HUD will
provide voucher payments directly to Public Housing Agencies (PHAs)
currently managing the program to cover units leased. HUD will also
remit payment to PHAs for ad

[[Page 477]]

ministrative fees. States will use fiscal year 2004 as the transition
year to ramp up with staff and systems.

A Central Fund will be available for use to: (1) fund State start-up
costs; (2) support leasing up to the baseline; (3) and fund additional
units in PHAs or States that have utilized one hundred percent of
allocated funds.

Contract Renewals. Contract renewals provide funding to renew
expiring rental assistance contracts covering certificates, vouchers
(including project-based vouchers), and moderate rehabilitation. The
account also includes $72 million in funding for Family Self-Sufficiency
Coordinators.

Incremental Rental Assistance.--For 2004, the Department is
requesting $36 million in budget authority for approximately 5,500
vouchers for persons with disabilities. Additional funding for tenant-
based housing assistance may become available in the central reserve
fund.

PIH Tenant Protection Vouchers.--The Housing Assistance for Needy
Families account will continue to support 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 improvements through no
fault of their own, will continue to be eligible to receive relocation/
replacement vouchers.

Housing Tenant Protection Vouchers.--The Housing Assistance for
Needy Families account will also continue 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 owner's decision to prepay their mortgage or
opt-out of project-based section 8 contracts, be aided through HANF.

Proposed minimum rent.--A new minimum rent of $50 a month is
proposed for recipients of low-income housing assistance. This would
apply to households headed by an able-bodied working age individual. It
is intended to promote work and increase equity in the treatment of
recipient households with similar needs.

Project-based Rental Assistance

(including transfer and rescission of funds)

For assistance under the United States Housing Act of 1937, as
amended (42 U.S.C. 1437 et seq.) (``Act'') not otherwise provided for,
$4,823,405,379 and amounts recaptured in this account, to remain
available until expended; of which up to $100,000,000 is for contract
administrators; of which no less than $3,010,000 shall be transferred to
the Working Capital fund for development of and modifications to
information technology systems which serve programs or activities under
this heading and under ``Housing Assistance for Needy Families''; and of
which $4,720,395,379 is for expiring project-based section 8 subsidy
contracts, for amendments to project-based section 8 subsidy contracts,
and for contracts entered into pursuant to section 441 of the McKinney-
Vento Homeless Assistance Act, and for 1-year renewals 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, That $300,000,000 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 2003 and prior
years, to be effected by the Secretary no later than September 30, 2004:
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 any obligated balances of contract authority that
have been terminated shall be canceled.

Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Contract renewals................. 15,573 17,272 4,720
00.02 Contract Administrator............ 148 289 100
00.03 Rental Assistance................. 145 388
00.04 Preservation Amendment............ 2
00.05 Section 514 Technical Assistance.. 8
00.06 Non-Elderly Disabled.............. 40 40
00.08 Regional Opportunity Counseling... 10
00.09 Section 8 Amendment............... 359 23
00.11 Incremental vouchers.............. 104 164
00.12 Other............................. 2
00.13 Job Plus.......................... 6
00.14 Working Capital Fund.............. 13 3 3
00.15 Section 8 Counseling.............. 1 2
00.17 Home (City of New Rochelle)....... 6
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 16,407 18,191 4,823
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,676 1,738 1,072
22.00 New budget authority (gross)...... 13,948 16,427 4,523
22.10 Resources available from
recoveries of prior year
obligations..................... 2,539 1,100 300
22.21 Unobligated balance transferred to
other accounts.................. -1,072
22.75 Balance of contract authority
withdrawn....................... -17
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 18,146 19,265 4,823
23.95 Total new obligations............. -16,407 -18,191 -4,823
24.40 Unobligated balance carried
forward, end of year............ 1,738 1,072
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 11,336 13,327 4,823
40.36 Unobligated balance rescinded... -1,588 -1,100 -300
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 9,748 12,227 4,523
55.00 Advance appropriation........... 4,200 4,200
Mandatory:

60.00 Appropriation................... 5,105 5,000 5,000
60.49 Portion applied to liquidate
contract authority............ -5,105 -5,000 -5,000
--------- --------- ----------
62.50 Appropriation (total
mandatory)..................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 13,948 16,427 4,523
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 42,520 37,889 35,106
73.10 Total new obligations............. 16,407 18,191 4,823
73.20 Total outlays (gross)............. -18,499 -19,874 -14,369
73.45 Recoveries of prior year
obligations..................... -2,539 -1,100 -300
74.40 Obligated balance, end of year.... 37,889 35,106 25,260
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,917 623
86.93 Outlays from discretionary
balances........................ 18,499 17,957 13,746
--------- --------- ----------
87.00 Total outlays (gross)........... 18,499 19,874 14,369
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 13,948 16,427 4,523
90.00 Outlays........................... 18,499 19,874 14,369
---------------------------------------------------------------------------

This account was formerly known as the Housing Certificate Fund.
Beginning in 2004, all new activity under the Housing Choice Voucher
Program is funded under ``Housing Assistance for Needy Families.''
Funding requested in 2004 under this account is only for project-based
rental assistance contract renewals and supporting activities in
contract administration and information technology spending under the
Working Capital Fund. Spending from obligated balances resulting from
Housing Certificate Fund appropriations in 2003 and prior will continue
to be shown under this account.

Contract Renewals. Contract renewals provide funding to renew
expiring Section 8 rental assistance contracts covering Loan Management,
New Construction/Substantial Rehabilitation, Property Disposition, and
Preservation, and contracts authorized under section 441 of the
McKinney-Vento Homeless Assistance Act.

[[Page 478]]

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0319-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
0400 Appropriation to liquidate
contract authority.............. -5,105 -5,000 -5,000
0600 Balance of contract authority
withdrawn....................... -17
---------------------------------------------------------------------------

Moving to Work

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0331-0-1-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

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

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

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

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 vouchers into a flexible housing
assistance fund. 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) (the ``Act''), $2,641,000,000, to remain available until
September 30, 2007; of which up to the specified following amounts shall
be available as provided herein: for section 9(h) of such Act,
$50,000,000, 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 partial guarantees of loans to finance 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, $131,000,000; 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, no less than $10,610,000 to be transferred to the
Working Capital Fund; to make grants to public housing agencies for
emergency capital needs and natural disasters in fiscal year 2004,
$40,000,000; 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,
$40,000,000; for demolition, site revitalization, replacement housing,
and tenant-based assistance grants, $30,000,000: Provided, That no funds
may be used under this heading for the purposes specified in section
9(k) of the Act.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Capital Grants.................... 2,678 2,891 2,577
00.02 Emergency/Disaster................ 12 40 40
00.03 Technical Assistance.............. 37 45 50
00.04 Working Capital Fund.............. 53 19 11
00.05 Neighborhood Network Initiative... 12 10
00.06 Resident Opportunities and
Supportive Services............. 55 40
00.07 Tenant Opportunity Programs....... 8
00.08 Public Housing Amendments......... 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 2,801 3,060 2,718
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 696 751 117
22.00 New budget authority (gross)...... 2,843 2,426 2,641
22.10 Resources available from
recoveries of prior year
obligations..................... 35
22.75 Balance of contract authority
withdrawn....................... -22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,552 3,177 2,758
23.95 Total new obligations............. -2,801 -3,060 -2,718
24.40 Unobligated balance carried
forward, end of year............ 751 117 40
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2,843 2,426 2,641
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)....................... 2,843 2,426 2,641
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 11,996 10,995 10,454
73.10 Total new obligations............. 2,801 3,060 2,718
73.20 Total outlays (gross)............. -3,767 -3,601 -3,808
73.45 Recoveries of prior year
obligations..................... -35
74.40 Obligated balance, end of year.... 10,995 10,454 9,362
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 164 161 172
86.93 Outlays from discretionary
balances........................ 3,603 3,440 3,636
--------- --------- ----------
87.00 Total outlays (gross)........... 3,767 3,601 3,808
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,843 2,426 2,641
90.00 Outlays........................... 3,767 3,601 3,808
---------------------------------------------------------------------------

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 $2.6 billion requested for the Public Housing Capital Fund,
approximately $2.3 billion is provided to cover annual accrual needs. Up
to $131 million may be used for partial loan guarantees 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 $40 million to provide supportive
services to public housing residents under the Resident Opportunities
and Supportive Services (ROSS) program, up to $40 million for
emergencies or disasters, up to $50 million

[[Page 479]]

for technical assistance, up to $30 million for demolition, site
revitalization, replacement housing, and tenant based assistance grants,
and no less than $10.61 million for the Working Capital Fund.

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 guarantee of 80 percent 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 partial loan guarantees; and authorizes the use of up-front capital
contributions where necessary.

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0304-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
0400 Appropriation to liquidate
contract authority.............. -500 -589 -589
0600 Balance of contract authority
withdrawn....................... -22
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0304-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Public Housing Reform Initiative.. 1,715
--------- --------- ----------
215901Total loan guarantee levels....... 1,715
Guaranteed loan subsidy (in percent):
232001Public Housing Reform Initiative.. 7.66
--------- --------- ----------
232901Weighted average subsidy rate..... 7.66
Guaranteed loan subsidy budget authority:
233001Public Housing Reform Initiative.. 131
--------- --------- ----------
233901Total subsidy budget authority.... 131
Guaranteed loan subsidy outlays:
234001Public Housing Reform Initiative.. 7
--------- --------- ----------
234901Total subsidy outlays............. 7
---------------------------------------------------------------------------

Public Housing Operating Fund

(including transfer of funds)

For 2004 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)),
$3,574,000,000, to remain available until September 30, 2005; of which
$15,000,000 shall be 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:
Provided, That in 2004 and hereafter, no amounts provided under this
header may be used for payments to public housing agencies for the costs
of operation and management of public housing in any year prior to the
current year.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0163-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Operating Subsidy................. 3,621 3,546 3,574
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)................... 3,636 3,556 3,574
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 141 26
22.00 New budget authority (gross)...... 3,495 3,530 3,574
22.10 Resources available from
recoveries of prior year
obligations..................... 26
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,662 3,556 3,574
23.95 Total new obligations............. -3,636 -3,556 -3,574
24.40 Unobligated balance carried
forward, end of year............ 26
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3,495 3,530 3,574
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,683 1,658 1,757
73.10 Total new obligations............. 3,636 3,556 3,574
73.20 Total outlays (gross)............. -3,635 -3,457 -3,565
73.45 Recoveries of prior year
obligations..................... -26
74.40 Obligated balance, end of year.... 1,658 1,757 1,766
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,842 1,805 1,823
86.93 Outlays from discretionary
balances........................ 1,793 1,652 1,742
--------- --------- ----------
87.00 Total outlays (gross)........... 3,635 3,457 3,565
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,495 3,530 3,574
90.00 Outlays........................... 3,635 3,457 3,565
---------------------------------------------------------------------------

Operating subsidies are provided to public housing authorities
(PHAs) to assist in funding the operation and maintenance expenses of
public housing units in accordance with Section 9(e) of the United
States Housing Act of 1937, as amended.

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

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

Category Annual income Percent of
total
Operating Subsidies..................... $3,559 53%
Dwelling Rental......................... 2,618 39%
Investment.............................. 269 4%
Other Income............................ 269 4%
------------- --------------

Total, Operating Revenue............. 6,715 100%
------------- --------------

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.

[[Page 480]]

Housing Authorities' Operating Expenditures (in millions of dollars)

Category Annual
expenditures Percent of
total
Utilities............................... 1,477 22%
Administration.......................... 1,813 27%
General Operating Expenses.............. 537 8%
Maintenance............................. 2,417 36%
Tenant Services......................... 134 2%
Protective Services..................... 201 3%
Capital Expenditures.................... 67 1%
Operating Reserve....................... 67 1%
------------- --------------

Total, Operating Expenses............ 6,715 100%
------------- --------------

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 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 92 24
00.02 Federally Assisted Housing........ 17 3
00.03 Operation Safe Home............... 9
00.04 New Approach Anti-Drug Program.... 21 3
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 130 39
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 171 39
22.00 New budget authority (gross)...... -11
22.10 Resources available from
recoveries of prior year
obligations..................... 9
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 169 39
23.95 Total new obligations............. -130 -39
24.40 Unobligated balance carried
forward, end of year............ 39
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescinded... -11
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 490 286 125
73.10 Total new obligations............. 130 39
73.20 Total outlays (gross)............. -325 -200 -74
73.45 Recoveries of prior year
obligations..................... -9
74.40 Obligated balance, end of year.... 286 125 51
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 325 200 74
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -11
90.00 Outlays........................... 325 200 74
---------------------------------------------------------------------------

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)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0218-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 569 580 557
00.02 Technical Assistance.............. 7 6 6
00.05 Neighborhood Networks............. 5 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 576 591 568
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 581 587 570
22.00 New budget authority (gross)...... 574 574
22.10 Resources available from
recoveries of prior year
obligations..................... 8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,163 1,161 570
23.95 Total new obligations............. -576 -591 -568
24.40 Unobligated balance carried
forward, end of year............ 587 570 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 574 574
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,579 2,681 2,726
73.10 Total new obligations............. 576 591 568
73.20 Total outlays (gross)............. -466 -546 -609
73.45 Recoveries of prior year
obligations..................... -8
74.40 Obligated balance, end of year.... 2,681 2,726 2,685
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 6
86.93 Outlays from discretionary
balances........................ 465 540 609
--------- --------- ----------
87.00 Total outlays (gross)........... 466 546 609
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 574 574
90.00 Outlays........................... 466 546 609
---------------------------------------------------------------------------

No additional funds are requested for this program in 2004. This
program utilized Federal resources to rehabilitate and restore severely
distressed public housing projects, thereby expanding the supply of
decent, safe, and affordable housing for low-income individuals and
families. The funds were used for project demolition, hard replacement
units, and tenant-based rental assistance.

[[Page 481]]

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.),
$646,600,000, to remain available until expended, of which $5,000,000
shall be to support the inspection of Indian housing units, contract
expertise, training, and technical assistance in the training,
oversight, and management of Indian housing and tenant-based assistance,
including up to $300,000 for related travel; and of which no less than
$2,720,000 shall be transferred to the Working Capital Fund for
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, $1,000,000
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
$8,049,242: 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 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.

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
0100 Negative subsidies/subsidy
reestimates..................... 1
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Indian Housing Block Grants....... 691 641 641
00.02 Title VI Loan Guarantee Subsidy... 6 2 2
00.03 Technical Assistance.............. 4 3 3
00.04 Working Capital Fund.............. 3 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 704 647 647
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 187 139 139
22.00 New budget authority (gross)...... 649 647 647
22.10 Resources available from
recoveries of prior year
obligations..................... 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 843 786 786
23.95 Total new obligations............. -704 -647 -647
24.40 Unobligated balance carried
forward, end of year............ 139 139 139
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 649 647 647
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,034 1,018 925
73.10 Total new obligations............. 704 647 647
73.20 Total outlays (gross)............. -713 -740 -820
73.45 Recoveries of prior year
obligations..................... -7
74.40 Obligated balance, end of year.... 1,018 925 752
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 113 113 113
86.93 Outlays from discretionary
balances........................ 600 627 707
--------- --------- ----------
87.00 Total outlays (gross)........... 713 740 820
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 649 647 647
90.00 Outlays........................... 713 740 820
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Title VI.......................... 53 17 8
--------- --------- ----------
215901Total loan guarantee levels....... 53 17 8
Guaranteed loan subsidy (in percent):
232001Title VI.......................... 11.07 11.07 10.56
--------- --------- ----------
232901Weighted average subsidy rate..... 11.07 11.07 10.56
Guaranteed loan subsidy budget authority:
233001Title VI.......................... 6 2 1
--------- --------- ----------
233901Total subsidy budget authority.... 6 2 1
Guaranteed loan subsidy outlays:
234001Title VI.......................... 6 3 2
--------- --------- ----------
234901Total subsidy outlays............. 6 3 2
Guaranteed loan downward reestimate subsidy
budget authority:
237001Title VI.......................... -1
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -1
Guaranteed loan downward reestimate subsidy
outlays:
238001Title VI.......................... -1
--------- --------- ----------
238901Total downward reestimate subsidy
outlays......................... -1
---------------------------------------------------------------------------

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 $8 million is
proposed for this loan guarantee program for 2004. The subsidy rate for
this program is set at 10.56 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.

[[Page 482]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0235-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

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

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

New budget authority (gross), detail:
Discretionary:

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 10
73.10 Total new obligations............. 10 10
73.20 Total outlays (gross)............. -11
74.40 Obligated balance, end of year.... 10 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1
86.93 Outlays from discretionary
balances........................ 10
--------- --------- ----------
87.00 Total outlays (gross)........... 11
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 10 10
90.00 Outlays........................... 11
---------------------------------------------------------------------------

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

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

Public enterprise funds:

Low-Rent Public Housing--Loans and Other Expenses

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Reimbursable program: Capital
investment loans to PHAs........ 7 40 30
--------- --------- ----------
10.00 Total new obligations (object
class 33.0)................... 7 40 30
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 20 20 21
22.00 New budget authority (gross)...... 97 115 114
22.60 Portion applied to repay debt..... -90 -74 -79
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 27 61 56
23.95 Total new obligations............. -7 -40 -30
24.40 Unobligated balance carried
forward, end of year............ 20 21 26
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 25 40 30
69.00 Offsetting collections (cash)..... 72 75 84
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 97 115 114
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 682 597 522
73.10 Total new obligations............. 7 40 30
73.20 Total outlays (gross)............. -92 -115 -114
74.40 Obligated balance, end of year.... 597 522 438
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 92 115 114
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -71 -75 -84
88.40 Non-Federal sources........... -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -72 -75 -84
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25 40 30
90.00 Outlays........................... 20 40 30
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,280 1,209 1,134
1251 Repayments: Repayments and
prepayments..................... -71 -75 -84
--------- --------- ----------
1290 Outstanding, end of year........ 1,209 1,134 1,050
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2,464 2,189 1,909
2251 Repayments and prepayments........ -275 -280 -280
--------- --------- ----------
2290 Outstanding, end of year........ 2,189 1,909 1,629
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,189 1,909 1,629
---------------------------------------------------------------------------

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 2002, an estimated $40
million will be borrowed from the Treasury and forgiven in 2003, and an
estimated $30 million will be borrowed from the Treasury and forgiven in
2004.

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 2001, 2002, 2003 and 2004 follows:

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4098-0-3-604 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 89 92 92 92
0102 Expense........................... -91 -91 -91 -91
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -2 1 1 1
-----------------------------------------------------------------------------------------------

[[Page 483]]

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4098-0-3-604 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 702 617 617 617
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 1,282 1,210 1,210 1,210
1602 Interest receivable............. 80 75 75 75
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -1
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 1,361 1,285 1,285 1,285
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 1,361 1,285 1,285 1,285
------------ -------------- ------------ -------------
1999 Total assets.................... 2,063 1,902 1,902 1,902
LIABILITIES:
Federal liabilities:

2102 Interest payable................ 151 147 147 147
2104 Resources payable to Treasury... 1,279 1,207 1,207 1,207
2207 Non-Federal liabilities: Other.... 2 2 2 2
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,432 1,356 1,356 1,356
NET POSITION:
3100 Appropriated capital.............. 636 551 551 551
3300 Cumulative results of operations.. -5 -5 -5 -5
------------ -------------- ------------ -------------
3999 Total net position.............. 631 546 546 546
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,063 1,902 1,902 1,902
-----------------------------------------------------------------------------------------------

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),
$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
$27,472,528.
In addition, for administrative expenses to carry out the guaranteed
loan program, up to $250,000 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.

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
0101 Indian housing loan guarantee
fund, downward reestimates of
subsidies....................... 1
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 1 9 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1 9 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 22 29 25
22.00 New budget authority (gross)...... 6 5 1
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30 34 26
23.95 Total new obligations............. -1 -9 -1
24.40 Unobligated balance carried
forward, end of year............ 29 25 25
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 5 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 1 5
73.10 Total new obligations............. 1 9 1
73.20 Total outlays (gross)............. -1 -4 -5
73.45 Recoveries of prior year
obligations..................... -2
74.40 Obligated balance, end of year.... 1 5 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1
86.93 Outlays from discretionary
balances........................ 1 3 5
--------- --------- ----------
87.00 Total outlays (gross)........... 1 4 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 5 1
90.00 Outlays........................... 1 4 5
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Indian Housing Loan Guarantee..... 234 197 27
--------- --------- ----------
215901Total loan guarantee levels....... 234 197 27
Guaranteed loan subsidy (in percent):
232001Indian Housing Loan Guarantee..... 2.47 2.43 2.73
--------- --------- ----------
232901Weighted average subsidy rate..... 2.47 2.43 2.73
Guaranteed loan subsidy budget authority:
233001Indian Housing Loan Guarantee..... 6 5 1
--------- --------- ----------
233901Total subsidy budget authority.... 6 5 1
Guaranteed loan subsidy outlays:
234001Indian Housing Loan Guarantee..... 1 3 3
--------- --------- ----------
234901Total subsidy outlays............. 1 3 3
Guaranteed loan downward reestimate subsidy
budget authority:
237001Indian Housing Loan Guarantee..... 1
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ 1
Guaranteed loan downward reestimate subsidy
outlays:
238001Indian Housing Loan Guarantee..... 1
--------- --------- ----------
238901Total downward reestimate 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 1992 and beyond (including modifications of
guarantees that resulted from obligations in any year). The subsidy
amounts are estimated on a net present value basis. The administrative
expenses are shown on a cash basis.

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

Indian Housing Loan Guarantee Fund Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity (Default
Claims)......................... 1
08.02 Downward subsidy rate reestimate.. 1
--------- --------- ----------
10.00 Total new obligations (object
class 33.0)................... 1 1
----------------------------------------------------------------------------

[[Page 484]]

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 6 5 7
22.00 New financing authority (gross)... -1 3 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 8 10
23.95 Total new obligations............. -1 -1
24.40 Unobligated balance carried
forward, end of year............ 5 7 10
----------------------------------------------------------------------------

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)......... -2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... -1 3 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -3 -1 -1
73.10 Total new obligations............. 1 1
73.20 Total financing disbursements
(gross)......................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 2
74.40 Obligated balance, end of year.... -1 -1 -1
87.00 Total financing disbursements
(gross)......................... 1
----------------------------------------------------------------------------

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.............. 2
----------------------------------------------------------------------------

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 234 197 27
2121 Limitation available from carry-
forward......................... 272 505 682
2143 Uncommitted limitation carried
forward......................... -505 -682 -686
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 1 20 23
2199 Guaranteed amount of guaranteed
loan commitments................ 1 20 23
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 66 58 57
2231 Disbursements of new guaranteed
loans........................... 1 10 19
2251 Repayments and prepayments........ -8 -9 -11
2263 Adjustments: Terminations for
default that result in claim
payments........................ -1 -2 -2
--------- --------- ----------
2290 Outstanding, end of year........ 58 57 63
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 58 57 63
---------------------------------------------------------------------------

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 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 4 5 6 6
------------ -------------- ------------ -------------
1999 Total assets.................... 4 5 6 6
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 4 5 6 6
------------ -------------- ------------ -------------
2999 Total liabilities............... 4 5 6 6
------------ -------------- ------------ -------------
4999 Total liabilities and net position 4 5 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
$35,347,985.
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.

Program and Financing (in millions of dollars)

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

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

New budget authority (gross), detail:
Discretionary:

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

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

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

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

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

----------------------------------------------------------------------------
Identification code 86-0233-0-1-371 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Native Hawaiian Housing........... 40 40 35
--------- --------- ----------
215901Total loan guarantee levels....... 40 40 35
Guaranteed loan subsidy (in percent):
232001Native Hawaiian Housing........... 2.47 2.43 2.73
--------- --------- ----------

[[Page 485]]

232901Weighted average subsidy rate..... 2.47 2.43 2.73
Guaranteed loan subsidy budget authority:
233001Native Hawaiian Housing........... 1 1 1
--------- --------- ----------
233901Total subsidy budget authority.... 1 1 1
Guaranteed loan subsidy outlays:
234001Native Hawaiian Housing........... 1 1
--------- --------- ----------
234901Total subsidy outlays............. 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 2001 and beyond (including modifications of
guarantees that resulted from obligations in any year). The subsidy
amounts are estimated on a net present value. The administrative
expenses are shown on a cash basis.

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

Native Hawaiian Housing Loan Guarantee Fund Financing Account

Program and Financing (in millions of dollars)

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

New financing authority (gross), detail:
Discretionary:

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

Offsets:
Against gross financing authority and
financing disbursements:

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

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4351-0-3-371 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 40 40 35
2121 Limitation available from carry-
forward......................... 40 79
2143 Uncommitted limitation carried
forward......................... -40 -79 -112
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 1 2
2199 Guaranteed amount of guaranteed
loan commitments................ 1 2
----------------------------------------------------------------------------

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

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

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4351-0-3-371 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1
------------ -------------- ------------ -------------
1999 Total assets.................... 1
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 1
------------ -------------- ------------ -------------
4999 Total liabilities and net position 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)

Obligations by program activity:
08.02 Downward Reestimate............... 1
--------- --------- ----------
10.00 Total new obligations........... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 8 10
22.00 New financing authority (gross)... 6 3 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7 11 12
23.95 Total new obligations............. -1
24.40 Unobligated balance carried
forward, end of year............ 8 10 12
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 6 3 2
----------------------------------------------------------------------------

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

Offsets:
Against gross financing authority and
financing disbursements:

88.00 Offsetting collections (cash)
from: Federal sources......... -6 -3 -2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -6 -3 -2
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4244-0-3-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 53 17 8
2121 Limitation available from carry-
forward......................... 193 191 191
2143 Uncommitted limitation carried
forward......................... -191 -191 -187
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 55 17 12
2199 Guaranteed amount of guaranteed
loan commitments................ 44 14 10
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 10 65 76
2231 Disbursements of new guaranteed
loans........................... 55 14 10
2251 Repayments and prepayments........ -2 -5

[[Page 486]]

2263 Adjustments: Terminations for
default that result in claim
payments........................ -1 -1
--------- --------- ----------
2290 Outstanding, end of year........ 65 76 80
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 52 61 64
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4244-0-3-604 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1 8 3
------------ -------------- ------------ -------------
1999 Total assets.................... 1 8 3
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1 8 3
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 8 3
NET POSITION:
------------ -------------- ------------ -------------
3999 Total net position..............
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 8 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.

Public Housing, Reform Initiative Guaranteed Loan Financing Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 7
24.40 Unobligated balance carried
forward, end of year............ 7
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

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

Offsets:
Against gross financing authority and
financing disbursements:

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

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

This proposal is described under the Public Housing Capital Fund.

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4352-2-3-371 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 1,715
2121 Limitation available from carry-
forward.........................
2143 Uncommitted limitation carried
forward.........................
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 1,715
2199 Guaranteed amount of guaranteed
loan commitments................ 1,372
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2231 Disbursements of new guaranteed
loans........................... 86
2251 Repayments and prepayments........ -2
2263 Adjustments: Terminations for
default that result in claim
payments........................
--------- --------- ----------
2290 Outstanding, end of year........ 84
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 67
---------------------------------------------------------------------------

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.), $297,000,000, to remain available until September 30,
2005: 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 $3,000,000 of the
funds under this heading for training, oversight, and technical
assistance activities.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0308-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Housing for Persons with HIV/AIDS. 276 383 297
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 276 383 297
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 88 91
22.00 New budget authority (gross)...... 277 292 297
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 366 383 297
23.95 Total new obligations............. -276 -383 -297
24.40 Unobligated balance carried
forward, end of year............ 91
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 277 292 297
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 439 399 490
73.10 Total new obligations............. 276 383 297
73.20 Total outlays (gross)............. -314 -292 -311
73.45 Recoveries of prior year
obligations..................... -1
74.40 Obligated balance, end of year.... 399 490 476
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 12 12
86.93 Outlays from discretionary
balances........................ 312 280 299
--------- --------- ----------

[[Page 487]]

87.00 Total outlays (gross)........... 314 292 311
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 277 292 297
90.00 Outlays........................... 314 292 311
---------------------------------------------------------------------------

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 $3 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 2004 will support an additional 1,250 households,
for a total of approximately 74,250 housing units for persons with HIV/
AIDS and their families.

Community Development 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, $4,716,000,000, to remain available until September 30,
2006, of which Provided, That of the amount provided, $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.); $72,500,000 shall be for
grants to Indian tribes notwithstanding section 106(a)(1) of such Act;
$3,000,000 shall be for a grant to the Housing Assistance Council;
$2,200,000 shall be for a grant to the National American Indian Housing
Council; and $37,900,000 shall be for grants pursuant to section 107 of
the Act, of which $2,400,000 shall be to support Alaska Native serving
institutions and Native Hawaiian serving institutions as defined under
the Higher Education Act, as amended, $3,000,000 shall be for tribal
colleges and universities to build, expand, renovate and equip their
facilities, and not less than $3,000,000 shall be for technical
assistance pursuant to section 107(b)(4) of the Act; of which no less
than $4,900,000 shall be transferred to the Working Capital Fund for the
development of and modification to information technology systems: which
serve programs or activities under ``Community Planning and
Development''; and of which $65,000,000 shall be for grants pursuant to
the Self Help Homeownership Opportunity Program, including $3,000,000
shall be for technical assistance: Provided, 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 under this heading, $29,500,000 shall be for capacity
building, of which $25,000,000 shall be 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
$4,500,000 shall be for capacity building activities administered by
Habitat for Humanity International.
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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-0-1-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Community Development Grants...... 5,042 4,742 4,746
00.02 World Trade Center Response....... 2,700 783
00.03 Working Capital Fund.............. 14 3 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 7,756 5,528 4,751
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,026 1,747 935
22.00 New budget authority (gross)...... 7,783 4,716 4,716
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.22 Unobligated balance transferred
from other accounts............. 700
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9,512 6,463 5,651
23.95 Total new obligations............. -7,756 -5,528 -4,751
23.98 Unobligated balance expiring or
withdrawn....................... -9
24.40 Unobligated balance carried
forward, end of year............ 1,747 935 900
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

Appropriation:
40.00 Appropriation................. 5,000 4,716 4,716
40.00 Appropriation................. 2,783
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 7,783 4,716 4,716
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 9,091 11,409 10,287
73.10 Total new obligations............. 7,756 5,528 4,751
73.20 Total outlays (gross)............. -5,429 -6,650 -6,124
73.40 Adjustments in expired accounts
(net)........................... -6
73.45 Recoveries of prior year
obligations..................... -3
74.40 Obligated balance, end of year.... 11,409 10,287 8,914
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 111 94 94
86.93 Outlays from discretionary
balances........................ 5,318 6,556 6,030
--------- --------- ----------
87.00 Total outlays (gross)........... 5,429 6,650 6,124
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 7,783 4,716 4,716
90.00 Outlays........................... 5,429 6,650 6,124
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 7,783 4,716 4,716
Outlays........................... 5,429 6,650 6,124
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 16 16
Outlays........................... 5
------------------------------------
Total:
Budget Authority.................. 7,783 4,732 4,732
Outlays........................... 5,429 6,650 6,129
====================================

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.

[[Page 488]]

The 2004 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.

Seventy percent of CDBG formula funds are allocated to metropolitan
cities and urban counties that receive their grants using the higher of
two objective formulas. States and small cities receive 30 percent of
the formula funds. The proposed level of funding for CDBG will support
an estimated 90,000 jobs. These funds will also help to rehabilitate an
estimated 185,000 housing units.

Section 107 Grants include funding for technical assistance to
support local and State grantees including efforts to streamline the
Consolidated Plan, program management and analytical support of
information technology projects such as enhancements to the Integrated
Disbursement and Information System (IDIS). 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 2004
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 2004 request for $65 million
will provide more than 3,728 young people with skills they need to
obtain jobs. Funding of $65 million is provided for the Self-Help
Homeownership Opportunity Program (Shop) including $3 million for
technical assistance 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 2004 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. A transfer of $4.9 million to the Working Capital Fund is
included.

Community Development Block Grants

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-2-1-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

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

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

New budget authority (gross), detail:
Discretionary:

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 16
73.10 Total new obligations............. 16 16
73.20 Total outlays (gross)............. -5
74.40 Obligated balance, end of year.... 16 27
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 16 16
90.00 Outlays........................... 5
---------------------------------------------------------------------------

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

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0315-0-1-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Develop urban sites............... 42 3
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 42 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3
22.00 New budget authority (gross)...... 45
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 45 3
23.95 Total new obligations............. -42 -3
24.40 Unobligated balance carried
forward, end of year............ 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 246 231 159
73.10 Total new obligations............. 42 3
73.20 Total outlays (gross)............. -57 -75 -70
74.40 Obligated balance, end of year.... 231 159 89
----------------------------------------------------------------------------

[[Page 489]]

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 57 75 70
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 45
90.00 Outlays........................... 57 75 70
---------------------------------------------------------------------------

The Empowerment Zone (EZ) initiative helps 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 which brought the total funding for
Round II urban EZs through 2002 to $330 million. No new funding is
proposed for EZ's in FY 2004.

Funding has provided 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 and 40 competitively selected Renewal Communities
administered by HUD.

Brownfields Redevelopment

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0314-0-1-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Cleanup and develop contaminated
sites........................... 22 29
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 22 29
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 4
22.00 New budget authority (gross)...... 25 25
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 26 29
23.95 Total new obligations............. -22 -29
24.40 Unobligated balance carried
forward, end of year............ 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 91 109 128
73.10 Total new obligations............. 22 29
73.20 Total outlays (gross)............. -5 -10 -13
74.40 Obligated balance, end of year.... 109 128 115
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1
86.93 Outlays from discretionary
balances........................ 5 9 13
--------- --------- ----------
87.00 Total outlays (gross)........... 5 10 13
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25 25
90.00 Outlays........................... 5 10 13
---------------------------------------------------------------------------

The 2004 Budget proposes no new funding for this program. The
Brownfields Redevelopment initiative provided competitive economic
development grants, in conjunction with Section 108 loan guarantees, for
the redevelopment of qualified brownfield projects.

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.

Youthbuild Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0219-0-1-604 2002 actual 2003 est. 2004 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 life 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 2004 CDBG set aside
request of $65 million will provide more than 3,728 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, $2,197,400,000, to remain available until September 30, 2006,
of which $200,000,000 shall be available for the Downpayment Assistance
Initiative; of which $25,000,000 shall be for a lead hazard reduction
demonstration; and no less than $2,100,000 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''.

[[Page 490]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0205-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 HOME grants....................... 1,827 2,089 2,199
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,827 2,089 2,199
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 284 256 251
22.00 New budget authority (gross)...... 1,796 2,084 2,197
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,083 2,340 2,448
23.95 Total new obligations............. -1,827 -2,089 -2,199
24.40 Unobligated balance carried
forward, end of year............ 256 251 249
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,846 2,084 2,197
40.35 Appropriation rescinded......... -50
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,796 2,084 2,197
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4,383 4,667 5,156
73.10 Total new obligations............. 1,827 2,089 2,199
73.20 Total outlays (gross)............. -1,540 -1,600 -1,700
73.45 Recoveries of prior year
obligations..................... -3
74.40 Obligated balance, end of year.... 4,667 5,156 5,655
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 27 42 44
86.93 Outlays from discretionary
balances........................ 1,513 1,558 1,656
--------- --------- ----------
87.00 Total outlays (gross)........... 1,540 1,600 1,700
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,796 2,084 2,197
90.00 Outlays........................... 1,540 1,600 1,700
---------------------------------------------------------------------------

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 2004 request will result
in the production of 109,200 units of affordable housing through new
construction, rehabilitation, or acquisition. In addition, tenant-based
rental assistance will be provided for 13,335 units.

Funding of $25 million is included for a new competitive set-aside
to demonstrate innovative local strategies targeted at making homes lead
safe for low-income children. This initiative will involve private
sector matching funds and will be evaluated so the lessons learned can
be extended to the Lead Hazard Reduction program.

The HOME request also includes up to $2.1 million for systems
development and related projects including improvements to the
Integrated Disbursement and Information System (IDIS), 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 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,
$1,325,000,000, to remain available until September 30, 2006: 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 funded through the Mental Health and
Substance Abuse Block Grant, Workforce Investment Act, and the Welfare-
to-Work grant program: Provided further, That $12,000,000 of the funds
appropriated under this heading shall be available for the national
homeless data analysis project and technical assistance: Provided
further, That no less than $2,580,000 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 $1,500,000 shall be made available to the Interagency
Council on the Homeless for administrative needs.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0192-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Homeless assistance grants........ 994 1,138 1,365
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 994 1,138 1,365
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,408 1,583 1,575
22.00 New budget authority (gross)...... 1,123 1,130 1,325
22.10 Resources available from
recoveries of prior year
obligations..................... 47
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,578 2,713 2,900
23.95 Total new obligations............. -994 -1,138 -1,365
24.40 Unobligated balance carried
forward, end of year............ 1,583 1,575 1,535
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,123 1,130 1,325
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,500 2,428 2,509
73.10 Total new obligations............. 994 1,138 1,365
73.20 Total outlays (gross)............. -1,019 -1,057 -1,174
73.45 Recoveries of prior year
obligations..................... -47
74.40 Obligated balance, end of year.... 2,428 2,509 2,700
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 12 34 40
86.93 Outlays from discretionary
balances........................ 1,007 1,023 1,134
--------- --------- ----------
87.00 Total outlays (gross)........... 1,019 1,057 1,174
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,123 1,130 1,325
90.00 Outlays........................... 1,019 1,057 1,174
---------------------------------------------------------------------------

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 shape and implement comprehensive, flexible, coordinated
ap

[[Page 491]]

proaches 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 within a decade. 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.

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.

Samaritan Housing

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0400-2-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 50
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 50
23.95 Total new obligations............. -50
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 50
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 50
73.20 Total outlays (gross)............. -5
74.40 Obligated balance, end of year.... 45
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 50
90.00 Outlays........................... 5
---------------------------------------------------------------------------

The Administration will submit legislation for the Samaritan Housing
initiative, a new competitive grant program that supports the
Administration's efforts to end chronic homelessness within a decade.
Funding of $50 million for housing grants is requested in 2004 to
support the most promising local strategies to move chronically homeless
persons from the streets to safe permanent housing with supportive
services. The Samaritan Housing initiative is part of a broader
interagency Samaritan Initiative involving the Departments of Housing
and Urban Development (HUD), Health and Human Services (HHS), and
Veterans Affairs (VA) and other Federal agencies to end chronic
homelessness.

Rural Housing and Economic Development

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0324-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Rural Housing..................... 25 26
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 25 26
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 31 34 35
73.10 Total new obligations............. 25 26
73.20 Total outlays (gross)............. -22 -25 -23
74.40 Obligated balance, end of year.... 34 35 12
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 22 25 23
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25
90.00 Outlays........................... 22 25 23
---------------------------------------------------------------------------

This program encouraged new and innovative approaches to serving the
housing and economic development needs of the nation's rural
communities. The 2004 Budget proposes no new funding for this program.

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 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

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

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

New budget authority (gross), detail:
Discretionary:

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

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

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

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

Legislation will be submitted to transfer this program from the
Federal Emergency Management Agency to HUD in order to consolidate
emergency homeless assistance. 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 availability 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 492]]

prevent duplication of benefits. The Budget proposes no changes in the
program's design or operation. The 2004 Budget proposes $153 million.

Urban Development Action Grants

From balances of the Urban Development Action Grant Program, as
authorized by title I of the Housing and Community Development Act of
1974, as amended, $30,000,000 are cancelled.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0170-0-1-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -30
22.10 Resources available from
recoveries of prior year
obligations..................... 30
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescinded... -30
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 67 61 51
73.20 Total outlays (gross)............. -6 -10 -10
73.45 Recoveries of prior year
obligations..................... -30
74.40 Obligated balance, end of year.... 61 51 11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 6 10 10
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -30
90.00 Outlays........................... 6 10 10
---------------------------------------------------------------------------

Title I of the Housing and Community Development Act of 1974, as
amended, authorized grants to distressed cities and distressed urban
counties to fund economic development projects. The program was
terminated in 1990. The Budget proposes a cancellation of $30 million
from terminated Urban Development Action Grants.

Capacity Building for Community Development and Affordable Housing

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0222-0-1-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

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

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

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 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.
Funding of $29.5 million is being requested in 2004, 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 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Renewal of Expiring Contracts..... 57 18 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 57 18 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 76 19 1
23.95 Total new obligations............. -57 -18 -1
24.40 Unobligated balance carried
forward, end of year............ 19 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 22 54 37
73.10 Total new obligations............. 57 18 1
73.20 Total outlays (gross)............. -25 -35 -37
74.40 Obligated balance, end of year.... 54 37 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 25 35 37
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 25 35 37
---------------------------------------------------------------------------

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 2002 VA HUD
Appropriations Act (P.L. 107-73) provided funding for Shelter Plus Care
in the Homeless Assistance Grants account. Amounts provided in 2002 are
sufficient to cover Shelter Plus Care Renewals in 2003. Shelter Plus
Care Renewals are funded in the Homeless Assistance Grants account in
2004.

Public enterprise funds:

Revolving Fund (Liquidating Programs)

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Loan servicing.................... 2
--------- --------- ----------
10.00 Total new obligations........... 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 31 20 11
22.00 New budget authority (gross)...... 1 1 1
22.10 Resources available from
recoveries of prior year
obligations..................... 4
22.40 Capital transfer to general fund.. -15 -10 -8
--------- --------- ----------

[[Page 493]]

23.90 Total budgetary resources
available for obligation...... 21 11 4
23.95 Total new obligations............. -2
24.40 Unobligated balance carried
forward, end of year............ 20 11 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 3 1
73.10 Total new obligations............. 2
73.20 Total outlays (gross)............. -1 -2 -1
73.45 Recoveries of prior year
obligations..................... -4
74.40 Obligated balance, end of year.... 3 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1 2 1
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

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

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 19 18 17
1251 Repayments: Repayments and
prepayments..................... -1
1263 Write-offs for default: Direct
loans........................... -1 -1 -1
--------- --------- ----------
1290 Outstanding, end of year........ 18 17 15
---------------------------------------------------------------------------

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 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 4 1 1 1
0102 Expense........................... -183 -16 -10 -9
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -179 -15 -9 -8
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4015-0-3-451 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 38 23 14 6
1207 Non-Federal assets: 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............. 19 18 16 12
1602 Interest receivable............. 4 4 4 4
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -8 -7 -7 -7
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 15 15 13 9
1606 Foreclosed property............. 3 2 1
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 18 17 14 9
1801 Other Federal assets: Cash and
other monetary assets...........
------------ -------------- ------------ -------------
1999 Total assets.................... 57 41 29 16
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 1
2207 Other........................... 9 8 9 8
------------ -------------- ------------ -------------
2999 Total liabilities............... 9 9 9 8
NET POSITION:
3100 Appropriated capital.............. 3 3 3 3
3300 Cumulative results of operations.. 45 29 17 5
------------ -------------- ------------ -------------
3999 Total net position.............. 48 32 20 8
------------ -------------- ------------ -------------
4999 Total liabilities and net position 57 41 29 16
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.2 Other services.................... 1
32.0 Land and structures............... 1
--------- --------- ----------
99.9 Total new obligations........... 2
---------------------------------------------------------------------------

Credit accounts:

Community Development Loan Guarantees Program Account

(including transfer of funds)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Community development loan
guarantee credit subsidy........ 7 9 4
00.09 Administrative expense............ 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 33.0)................... 8 10 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 7 4
22.00 New budget authority (gross)...... 15 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 15 14 4
23.95 Total new obligations............. -8 -10 -4
24.40 Unobligated balance carried
forward, end of year............ 7 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 18 21
73.10 Total new obligations............. 8 10 4
73.20 Total outlays (gross)............. -6 -7 -7
73.40 Adjustments in expired accounts
(net)........................... -1
74.40 Obligated balance, end of year.... 18 21 18
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 2
86.93 Outlays from discretionary
balances........................ 3 5 7
--------- --------- ----------
87.00 Total outlays (gross)........... 6 7 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 15 7
90.00 Outlays........................... 6 7 7
---------------------------------------------------------------------------

Guaranteed Loans.--No funds are requested for the Community
Development Loan Guarantee program (Section 108) in 2004.

Section 108 loan guarantees have been used by Community Development
Block Grant entitlement and nonentitlement communities (assisted by
their State) for economic development activities, acquisition of real
property, rehabilitation of publicly owned real property, and housing
rehabilitation.

[[Page 494]]

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

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Community development loan
guarantee levels................ 609 275
--------- --------- ----------
215901Total loan guarantee levels....... 609 275
Guaranteed loan subsidy (in percent):
232001Community development loan
guarantee levels................ 2.30 2.30 0.00
--------- --------- ----------
232901Weighted average subsidy rate..... 2.30 2.30 0.00
Guaranteed loan subsidy budget authority:
233001Loan guarantee levels............. 14 6
--------- --------- ----------
233901Total subsidy budget authority.... 14 6
Guaranteed loan subsidy outlays:
234001Community development loan
guarantee levels................ 5 6 7
--------- --------- ----------
234901Total subsidy outlays............. 5 6 7
----------------------------------------------------------------------------

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

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

Community Development Loan Guarantees Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 48 56 65
22.00 New financing authority (gross)... 7 9 11
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 55 65 76
24.40 Unobligated balance carried
forward, end of year............ 56 65 76
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 7 9 11
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -18 -18 -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............... -5 -6 -7
88.25 Interest on uninvested funds.. -2 -3 -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -7 -9 -11
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -7 -9 -11
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 609 275
2121 Limitation available from carry-
forward......................... 298 183
2143 Uncommitted limitation carried
forward......................... -298 -183
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 311 390 183
2199 Guaranteed amount of guaranteed
loan commitments................ 311 390 183
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,887 2,040 2,051
2231 Disbursements of new guaranteed
loans........................... 309 261 304
2251 Repayments and prepayments........ -156 -250 -300
--------- --------- ----------
2290 Outstanding, end of year........ 2,040 2,051 2,055
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,040 2,051 2,055
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4096-0-3-451 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 30 38 50 62
------------ -------------- ------------ -------------
1999 Total assets.................... 30 38 50 62
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 30 38 50 62
------------ -------------- ------------ -------------
2999 Total liabilities............... 30 38 50 62
------------ -------------- ------------ -------------
4999 Total liabilities and net position 30 38 50 62
-----------------------------------------------------------------------------------------------

Guaranteed loans.--The Community Development Loan Guarantees program
has provided a mechanism for the Federal guarantee of private loans. An
accompanying liquidating account shows activity for Federal Financing
Bank (FFB) direct loan activity, obligated prior to July 1, 1986. The
following is a status of privately financed guaranteed loan commitments
made prior to 1992. No funding is requested for new section 108 loans in
2004.

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)

Obligations by program activity:
01.11 Direct program activity........... 18
--------- --------- ----------
10.00 Total new obligations (object
class 44.0)................... 18
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 16
22.00 New budget authority (gross)...... 5
22.60 Portion applied to repay debt..... -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 18
23.95 Total new obligations............. -18
----------------------------------------------------------------------------

[[Page 495]]

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 2
69.00 Offsetting collections (cash)..... 2
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -5 -6 -6
73.10 Total new obligations............. 18
73.20 Total outlays (gross)............. -17
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
74.40 Obligated balance, end of year.... -6 -6 -6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 17
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -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.................. 2
90.00 Outlays........................... 17
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 8 6 6
1251 Repayments: Repayments and
prepayments..................... -2
--------- --------- ----------
1290 Outstanding, end of year........ 6 6 6
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 81 47 27
2251 Repayments and prepayments........ -34 -20 -15
--------- --------- ----------
2290 Outstanding, end of year........ 47 27 12
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 47 27 12
---------------------------------------------------------------------------

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4097-0-3-451 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 1 1 1 1
0102 Expense........................... -1 -1 -1 -1
------------ -------------- ------------ -------------
0105 Net income or loss (-)............
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 11 -8 -6 -4
Investments in US securities:
1106 Receivables, net.............. 5 6 5 4
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1701 Defaulted guaranteed loans,
gross......................... 8 5 4 3
------------ -------------- ------------ -------------
1704 Defaulted guaranteed loans and
interest receivable, net.... 8 5 4 3
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 8 5 4 3
------------ -------------- ------------ -------------
1999 Total assets.................... 24 3 3 3
LIABILITIES:
2103 Federal liabilities: Debt......... 8 5 5 4
2207 Non-Federal liabilities: Other.... 16 -2 -2 -1
------------ -------------- ------------ -------------
2999 Total liabilities............... 24 3 3 3
------------ -------------- ------------ -------------
4999 Total liabilities and net position 24 3 3 3
-----------------------------------------------------------------------------------------------

No funding is requested for new Section 108 loans in 2004.

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

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

(including transfer of funds)

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, 2016, and for
supportive services associated with housing, $773,636,000, plus
recaptures and cancelled commitments, to remain available until
September 30, 2006, of which $53,000,000, shall be for service
coordinators and the continuation of existing congregate service grants
for residents of assisted housing projects, and of which amount
$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, That no less than
$470,000 shall be transferred to the Working Capital Fund for the
development of and modifications to information technology systems which
serve programs or activities under ``Housing Programs'' or ``Federal
Housing Administration'': Provided further, That the Secretary may waive
any provision of section 202 (including the provisions governing the
terms and conditions of project rental assistance that the Secretary
determines is not necessary to achieve the objections of such program,
or that otherwise impedes the ability to develop, operate, or administer
projects assisted under such program, and may make provision for
alternative conditions or terms where appropriate. Provided further,
That all balances outstanding, as of September 30, 2003, for capital
advances, including amendments to capital advances, for housing for
elderly, as authorized by section 202, for project rental assistance for
housing for the elderly, as authorized under section 202(c)(2) of such
Act, including amendments to contracts for such assistance and renewal
of expiring contracts for such assistance, for service coordinators and
congregate service grants, and for grants for conversion of eligible
projects to assisted living or related use under section 202b of such
Act, shall be transferred to and merged with the amounts of these
purposes under this heading.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution

[[Page 496]]

(P.L. 107-229, as amended). The amounts included for 2003 in this budget
prefect the Administration's 2003 policy proposals.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0320-0-1-604 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Elderly and disabled housing
grants.......................... 1,481 1,024 773
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,481 1,024 773
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,896 2,453 2,453
22.00 New budget authority (gross)...... 1,024 1,024 773
22.10 Resources available from
recoveries of prior year
obligations..................... 14
22.21 Unobligated balance transferred to
other accounts.................. -463
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,934 3,477 2,763
23.95 Total new obligations............. -1,481 -1,024 -773
24.40 Unobligated balance carried
forward, end of year............ 2,453 2,453 1,990
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,024 1,024 773
Mandatory:

60.00 Appropriation................... 73
60.49 Portion applied to liquidate
contract authority............ -73
--------- --------- ----------
62.50 Appropriation (total
mandatory)..................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,024 1,024 773
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4,062 4,634 4,763
73.10 Total new obligations............. 1,481 1,024 773
73.20 Total outlays (gross)............. -895 -895 -702
73.31 Obligated balance transferred to
other accounts.................. -1,164
73.45 Recoveries of prior year
obligations..................... -14
74.40 Obligated balance, end of year.... 4,634 4,763 3,670
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 895 895 702
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,024 1,024 773
90.00 Outlays........................... 895 895 702
---------------------------------------------------------------------------

This account consolidates activity under the Section 202 Housing for
the Elderly Program and the Section 811 Housing for the Disabled
Program. In 2004, housing for persons with disabilities is proposed as a
separate account. A total of $773 million is proposed for housing for
the elderly. Of this amount $30 million is for t