[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)

----------------------------------------------------------------------------
Identification code 86-0319-0-1-604      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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.

    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)

----------------------------------------------------------------------------
Identification code 86-0304-0-1-604      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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.

    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)

----------------------------------------------------------------------------
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)

    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)

----------------------------------------------------------------------------
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.

    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.

        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)

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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.

    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.

[[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)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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.

    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.

        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)

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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.

    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)

----------------------------------------------------------------------------
Identification code 86-0233-0-1-371      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4351-0-3-371      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4244-0-3-604      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4352-2-3-371      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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.

    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)

----------------------------------------------------------------------------
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.

    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)

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

    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)

----------------------------------------------------------------------------
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''.

    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.

[[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.

    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)

----------------------------------------------------------------------------
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)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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)

    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)

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451      2002 actual   2003 est.   2004 est.
----------------------------------------------------------------------------

    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)

-----------------------------------------------------------------------------------------------
Identification code   86-4097-0-3-451    2001 actual    2002 actual     2003 est.      2004 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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