[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 2005

[[Page 513]]

 
               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 2005 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. Toward that goal, two new programs are being 
proposed for 2005 within the Federal Housing Administration (FHA).  
First, FHA will introduce a 100 percent financing option for families 
who have good credit histories, but lack the savings needed for the 
downpayment on a home. It is  anticipated that this will assist over 
145,000 first-time homebuyers in the first year. The second program will 
be directed toward families who have impaired credit histories and would 
normally be served only by the sub-prime market. For these families, FHA 
will offer insurance at a modestly  higher initial premium, but 
subsequently reduce the premium over time as the families make timely 
mortgage payments. It is anticipated that this initiative will assist 
almost 60,000 first-time homebuyers in the first year. Housing 
counseling increases by $5 million. Also, the HOME Investment 
Partnerships Program is increased by $78 million. This increase reflects 
$200 million for the American Dream Downpayment Initiative. The 2005 
budget continues to propose the expanded Self-Help Homeownership 
Opportunity Program (SHOP) in an effort to accelerate home ownership by 
lower-income families.

    The 2005 Budget completes the shift of the Housing Choice Voucher 
program to a budget-based as opposed to a unit-based program. This shift 
was initiated by Congress in 2004 and will help in controlling the 
program's upward spiral in costs that has occurred over the past  two 
years. At the same time, Public Housing Agencies will be provided with 
substantial new flexibility to manage the voucher program in a way that 
controls costs and continues to provide assistance to the two million 
families currently receiving assistance.

    HUD continues to focus on combating homelessness and in addition 
eliminating chronic homelessness over a ten-year period with $1.49 
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. 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 2005 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 $4.6 
billion with $4.3 billion for formula grants. The CDBG formula is 
significantly impacted by the Census and other factors. The Department 
is considering proposals to change the program in ways that would 
increase local accountability, improve targeting of funds, and better 
demonstrate results. The Administration is proposing new pilots to test 
ways to better coordinate, target, and leverage  Federal community and 
economic development programs. HUD intends to initiate extensive 
outreach on these proposals before deciding on the best course of 
action.

    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. In 2005, 
the Budget proposes a new set-aside of $5 million for a 5-city pilot 
program aimed at increasing the participation of faith-based and 
community organizations in cities' community development strategies.

    The 2005 budget includes $139 million 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 2005 to refocus HUD on its core 
mission and key programs as part of a continuing series of planned 
reforms to improve program performance.

                                


 
                        PUBLIC AND INDIAN HOUSING

                              Federal Funds

General and special funds:

                        Housing Certificate Fund

              (including transfer and rescission of funds)

    For activities and assistance under the United States Housing Act of 
1937, as amended (42 U.S.C. 1437 et seq.) (``the Act'' herein), not 
otherwise provided for, [$19,371,481,762] $18,465,800,000, and amounts 
that are recaptured in this account, to remain available until expended: 
Provided, That of the amounts made available under this heading, 
[$15,171,481,762] $14,265,800,000 and the aforementioned recaptures 
shall be available on October 1, [2003] 2004 and $4,200,000,000 shall be 
available on October 1, [2004] 2005: Provided further, That amounts made 
available under this heading are provided as follows:
        (1) [$17,635,130,745] $16,920,000,000 for expiring or 
    terminating section 8 project-based subsidy contracts (including 
    section 8 moderate rehabilitation contracts), for amendments to 
    section 8 project-based subsidy contracts, for contracts entered 
    into pursuant to section 441 of the McKinney-Vento Homeless 
    Assistance Act, for the renewal of section 8 contracts for units in 
    projects that are subject to approved plans of action under the 
    Emergency Low Income Housing Preservation Act of 1987 or the Low-
    Income Housing Preservation and Resident Homeownership Act of 1990, 
    and for renewals of expiring section 8 tenant-based annual 
    contributions contracts (including amendments and renewals of 
    enhanced vouchers

[[Page 514]]

    under any provision of law authorizing such assistance under section 
    8(t) of the Act (42 U.S.C. 1437f(t))): Provided, That 
    notwithstanding any other provision of law, the Secretary shall 
    renew expiring section 8 tenant-based annual contributions contracts 
    for each public housing agency, (including for agencies 
    participating in the Moving to Work demonstration, unit months 
    representing section 8 tenant-based assistance funds committed by 
    the public housing agency for specific purposes, other than 
    reserves, that are authorized pursuant to any agreement and 
    conditions entered into under such demonstration, and utilized in 
    compliance with any applicable program obligation deadlines) based 
    on [the total number of unit months which were under lease as 
    reported on the most recent end-of-year financial statement 
    submitted by the public housing agency to the Department, or as 
    adjusted by such additional information submitted by the public 
    housing agency to the Secretary as of August 1, 2003 (subject to 
    verification), and by applying an inflation factor based on local or 
    regional factors to the actual per unit cost: Provided further, That 
    none of the funds made available in this paragraph may be used to 
    support a total number of unit months under lease which exceeds a 
    public housing agency's authorized level of units under contract] a 
    set dollar amount for housing assisance payments determined in 
    fiscal year 2004 adjusted as warranted;
        (2) [$136,846,017] $100,000,000 for a central fund to be 
    allocated by the Secretary for [amendments to section 8 tenant-based 
    annual contributions contracts for such purposes set forth in this 
    paragraph: Provided, That subject to the following proviso, the 
    Secretary may use amounts made available in such fund, as necessary, 
    for an increase in the total number of unit months under lease as 
    compared to the number of unit months under lease as of August 1, 
    2003, provided for by the annual contributions contract] emergencies 
    such as natural disasters and for unforeseen and validated market 
    changes: [Provided further, That if a public housing agency, at any 
    point in time during their fiscal year, has obligated the amounts 
    made available to such agency pursuant to paragraph (1) under this 
    heading for the renewal of expiring section 8 tenant-based annual 
    contributions contracts, and if such agency has expended fifty 
    percent of the amounts available to such agency in its annual 
    contributions contract reserve account, the Secretary may only make 
    available amounts as are necessary from amounts available from such 
    central fund to fund additional leased units under the preceding 
    proviso within thirty days of a request from such agency: Provided 
    further, That none of the funds made available in this paragraph may 
    be used to support a total number of unit months under lease which 
    exceeds a public housing agency's authorized level of units under 
    contract:] Provided further, That the Secretary shall provide 
    quarterly reports to the Committees on Appropriations of the House 
    and the Senate on the obligation of funds provided in this paragraph 
    in accordance with the directions specified in the report 
    accompanying this Act;
        (3) [$206,495,000] $163,000,000 for section 8 rental assistance 
    for relocation and replacement of housing units that are demolished 
    or disposed of pursuant to the Omnibus Consolidated Rescissions and 
    Appropriations Act of 1996 (Public Law 104-134), 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 relocation assistance; and for assistance to 
    families in units that are demolished or disposed of pursuant to 
    section 24 of the United States Housing Act of 1937 or to other 
    authority for the revitalization of severely distressed public 
    housing;
        [(4) $48,000,000 for family self-sufficiency coordinators under 
    section 23 of the Act;]
        [(5)] (4) not to exceed [$1,242,000,000] $1,176,000,000 for 
    administrative and other expenses of public housing agencies in 
    administering the section 8 tenant-based rental assistance program, 
    [of which up to $50,000,000 shall be available to the Secretary to 
    allocate to public housing agencies that need additional funds to 
    administer their section 8 programs: Provided, That not to exceed 
    $1,192,000,000 of the amount provided in this paragraph shall be 
    allocated on a pro rata basis to public housing agencies based on 
    the amount public housing agencies were eligible to receive in 
    fiscal year 2003 without regard to the reduction required for excess 
    administrative fee balances: Provided further, That, amounts under 
    this paragraph shall be distributed according to the requirements of 
    this paragraph and notwithstanding any other provision of law: 
    Provided further, That none of the funds provided in this Act or any 
    other Act may be used to supplement the amounts provided in this 
    paragraph] and for performance-based fees and incentive bonuses: 
    Provided further, That all such administrative fee amounts provided 
    under this paragraph shall be only for activities related to the 
    provision of rental assistance under section 8 [including related 
    development activities];
        [(6) $100,000,000] (5) $101,900,000 for contract administrators 
    for section 8 project-based assistance; and
        [(7)] (6) not less than [$3,010,000] $4,904,000 shall be 
    transferred to the Working Capital Fund for the development of and 
    modifications to information technology systems which serve programs 
    or activities under ``Public and Indian Housing'': Provided, That 
    the Secretary may transfer up to 15 percent of funds provided under 
    paragraphs (1), (2), [or] [(5)] (3) or (4), herein to paragraphs 
    [(1) or (2)] (1), (2) or (3), if the Secretary determines that such 
    action is necessary because the funding provided 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 prior to undertaking the transfer of funds in 
    excess of 10 percent from any paragraph pursuant to the previous 
    proviso, the Secretary shall notify the Chairman and Ranking Member 
    of the Subcommittees on Veterans Affairs and Housing and Urban 
    Development, and Independent Agencies of the Committees on 
    Appropriations of the House of Representatives and the Senate and 
    shall not transfer any such funds until 30 days after such 
    notification: Provided further, That incremental vouchers previously 
    made available under this heading for non-elderly disabled families 
    shall, to the extent practicable, continue to be provided to non-
    elderly disabled families upon turnover: Provided further, That, 
    hereafter, the Secretary shall require public housing agencies to 
    submit accounting data for funds disbursed under this heading in 
    this Act and prior Acts by source and purpose of such funds: 
    Provided further, That [$2,844,000,000] $1,557,000,000 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] 2004 and prior years, to be 
    effected by the Secretary no later than September 30, [2004] 2005: 
    Provided further, That any such balances governed by reallocation 
    provisions under the statute authorizing the program for which the 
    funds were originally appropriated shall be available for the 
    rescission: Provided further, That any obligated balances of 
    contract authority from fiscal year 1974 and prior that have been 
    terminated shall be cancelled. (Division G, H.R. 2673, Consolidated 
    Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0319-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Contract renewals.................      14,614      18,069      16,920
00.02 Contract Administrator............         170         217         102
00.03 Rental Assistance.................         181         217         163
00.09 Section 8 Amendment...............         219          33
00.11 Administrative Fees...............         713       1,235       1,176
00.12 Central Reserve...................         105         136         100
00.13 Job Plus..........................           1           1
00.14 Working Capital Fund..............           3           3           5
00.15 Section 8 Counseling..............           1           1
00.16 Family Self Sufficiency 
        Coordinators....................                      96
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................      16,007      20,008      18,466
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,938       3,479         184
22.00 New budget authority (gross)......      15,938      16,413      16,909
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................       1,641         300       1,373
22.75 Balance of contract authority 
        withdrawn.......................         -31
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      19,486      20,192      18,466
23.95 Total new obligations.............     -16,007     -20,008     -18,466
24.40 Unobligated balance carried 
        forward, end of year............       3,479         184

[[Page 515]]

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation (definite)........      13,024      15,171      14,266
40.35   Appropriation permanently 
          reduced.......................        -112        -114
40.36   Unobligated balance permanently 
          reduced.......................      -1,174      -2,844      -1,557
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............      11,738      12,213      12,709
55.00   Advance appropriation...........       4,200       4,200       4,200
      Mandatory:

60.00   Appropriation...................       5,500       5,000       5,000
60.49   Portion applied to liquidate 
          contract authority............      -5,500      -5,000      -5,000
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      15,938      16,413      16,909
    Change in obligated balances:
72.40 Obligated balance, start of year..      37,689      31,105      28,563
73.10 Total new obligations.............      16,007      20,008      18,466
73.20 Total outlays (gross).............     -20,950     -22,250     -22,195
73.45 Recoveries of prior year 
        obligations.....................      -1,641        -300      -1,373
74.40 Obligated balance, end of year....      31,105      28,563      23,461
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       8,607      10,458      10,178
86.93 Outlays from discretionary 
        balances........................      12,343      11,792      12,017
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      20,950      22,250      22,195
    Net budget authority and outlays:
89.00 Budget authority..................      15,938      16,413      16,909
90.00 Outlays...........................      20,950      22,250      22,195
93.03 Obligated balance, start of year: 
        Contract authority..............      21,307      15,776      10,776
93.04 Obligated balance, end of year: 
        Contract authority..............      15,776      10,776       5,776
---------------------------------------------------------------------------

    Housing Certificate Fund. This budget proposal would establish a new 
Flexible Voucher Program. This program would replace the Housing Choice 
Voucher Program to improve the delivery of rental and homeownership 
subsidies for low-income families in a fiscally responsible manner, 
thereby ensuring cost efficiency and effectiveness for long-term 
sustainability of the tenant-based voucher program. Some of the key 
features of the new Flexible Voucher Program include greater PHA 
discretion in meeting local housing objectives, steady and predictable 
funding levels adjusted annually for inflation, and rewards for PHAs 
that are good managers through performance-based incentives while 
holding PHAs accountable for poor performance.

    The Flexible Voucher Program would simplify Federally mandated 
program requirements and avoid the ``one size fits all'' program design 
by providing local and State PHAs with greater administrative 
flexibility to meet the overall program objective of assisting low-
income families to live in decent, safe, and sanitary private market 
housing. The Federal focus of the voucher program will be redirected to 
ensuring that low-income families are assisted in appropriate housing 
that meets housing quality standards. Instead of spending an inordinate 
amount of time attempting to comply with a myriad of Federal rules and 
objectives, PHAs will be able to streamline the subsidy design and 
implement local policies to meet local objectives.

    As is current practice, the Flexible Voucher Program will be 
administered by existing PHAs. PHAs with overlapping jurisdictions and 
PHAs with small Section 8 programs are encouraged to consolidate or 
enter into cooperative arrangements to promote administrative 
efficiencies and accomplish cost savings. The Flexible Voucher Program 
would include administrative costs as part of the total grant. PHAs that 
are well managed and able to achieve administrative savings would be 
able to serve additional families. High performing PHAs that meet 
national objectives such as increasing the number of participants that 
graduate from voucher assistance and increasing homeownership would be 
eligible for a performance-based incentive bonus.

    The Flexible Housing Voucher program will promote the concept that 
voucher assistance is a transition program for families in need and not 
a permanent institution for families. Voucher assistance is a scarce 
resource needed by many families but available only to some. In 
allocating such a resource, the federal government has an interest in 
seeing more people who are eligible have an opportunity to participate. 
PHAs are encouraged by this incentive to increase graduation rates so 
that more families have the opportunity to share in limited housing 
assistance.

    The Voluntary Graduation Incentive would be awarded to PHAs that 
exceed the baseline number of families that have graduated from the 
voucher program. Baselines would be established for housing authorities 
by various factors including size of the program. Awards would be made 
on a competitive basis and would be issued until funds are spent.

    A Central Fund will be available for emergencies such as actual 
disasters and for unforeseen and validated market changes.

    Contract Renewals. Contract renewals provide funding to renew 
expiring rental assistance contracts covering certificates, vouchers 
(including project-based vouchers), and moderate rehabilitation, Loan 
Management, New Construction/Substantial Rehabilitation, Property 
Disposition, and Preservation, and contracts authorized under Section 
441 of the McKinney-Vento Homeless Act.

    PIH Tenant Protection Vouchers.--The Flexible Voucher Program 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 and CPD Moderate Rehabilitation SRO, Tenant Protection 
Vouchers.--The Flexible Voucher Program 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 this program.

                                

                             Moving to Work

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0331-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           1
73.20 Total outlays (gross).............          -1          -1
74.40 Obligated balance, end of year....           1
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           1           1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           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.

[[Page 516]]

                                

                       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'') [$2,712,255,000] $2,674,100,000, to remain 
available until September 30, [2007] 2008: Provided, That 
notwithstanding any other provision of law or regulation, during fiscal 
year [2004] 2005, the Secretary may not delegate to any Department 
official other than the Deputy Secretary and the Assistant Secretary for 
Public and Indian Housing any authority under paragraph (2) of section 
9(j) regarding the extension of the time periods under such section: 
Provided further, That for purposes of such section 9(j), the term 
``obligate'' means, with respect to amounts, that the amounts are 
subject to a binding agreement that will result in outlays, immediately 
or in the future: Provided further, That of the total amount provided 
under this heading, [up to $50,000,000 shall be for carrying out 
activities under section 9(h) of such Act, 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: Provided further, That of the total amount 
provided under this heading, up to $500,000 shall be for lease 
adjustments to section 23 projects, and no less than $10,610,000 shall 
be transferred to the Working Capital Fund for the development of and 
modifications to information technology systems which serve programs or 
activities under ``Public and Indian housing'': Provided further, That 
no funds may be used under this heading for the purposes specified in 
section 9(k) of the United States Housing Act of 1937, as amended: 
Provided further, That of the total amount provided under this heading, 
up to $40,000,000 shall be available for the Secretary of Housing and 
Urban Development to make grants to public housing agencies for 
emergency capital needs resulting from emergencies and natural disasters 
in fiscal year 2004: Provided further, That of the total amount provided 
under this heading, $55,000,000 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 further, That of the total amount 
provided under this heading, $15,000,000 shall be for Neighborhood 
Networks grants for activities authorized in section 9(d)(1)(E) of the 
United States Housing Act of 1937, as amended: Provided further, That 
notwithstanding any other provision of law, amounts made available in 
the previous proviso shall be awarded to public housing agencies on a 
competitive basis] the following amounts shall be available as follows:
    (1) $35,000,000 for carrying out activities under section 9(h) of 
such Act, of which up to $5,000,000 shall be for 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;
    (2) no less than $4,500,000 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'';
    (3) $50,000,000 to make grants to public housing agencies for 
emergency capital needs resulting from emergencies and natural disasters 
recognized by the Department in fiscal year 2005 in accord with a 
Department-approved plan;
    (4) $54,700,000 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;
    (5) $30,000,000 for the demolition, relocation, and site remediation 
for obsolete and distressed public housing units;
    (6) $5,000,000 to fund costs associated with a Public Housing 
Demonstration Initiative;
    (7) up to $10,000,000 to support the costs of administrative and 
judicial receiverships or other intervention activities:
    Provided further, That no funds may be used under this heading for 
the purposes specified in section 9(k) of the United States Housing Act 
of 1937:
    [The first proviso under this heading in the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2003, is amended by striking ``1998, 1999''.] 
(Division G, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0304-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Capital Grants....................       2,709       3,071       2,485
00.02 Emergency/Disaster................          10          40          50
00.03 Technical Assistance..............          35          49          35
00.04 Working Capital Fund..............          18          10           4
00.05 Neighborhood Network Initiative...           1          15
00.06 Resident Opportunities and 
        Supportive Services.............           9          55          55
00.07 Public Housing Amendments.........           1           1
00.08 PH Demonstration Initiative.......                                   5
00.10 Administrative Receivership.......                                  10
00.11 Demolitions.......................                                  30
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       2,783       3,241       2,674
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         751         690         145
22.00 New budget authority (gross)......       2,712       2,696       2,674
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          16
22.75 Balance of contract authority 
        withdrawn.......................          -7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,472       3,386       2,819
23.95 Total new obligations.............      -2,783      -3,241      -2,674
24.40 Unobligated balance carried 
        forward, end of year............         690         145         145
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       3,230       2,712       2,674
40.35   Appropriation permanently 
          reduced.......................         -18         -16
40.49   Portion applied to liquidate 
          contract authority............        -500
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       2,712       2,696       2,674
      Mandatory:

60.00   Appropriation...................         500         500         500
60.49   Portion applied to liquidate 
          contract authority............        -500        -500        -500
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,712       2,696       2,674
    Change in obligated balances:
72.40 Obligated balance, start of year..      10,995      10,097       9,622
73.10 Total new obligations.............       2,783       3,241       2,674
73.20 Total outlays (gross).............      -3,665      -3,716      -3,743
73.45 Recoveries of prior year 
        obligations.....................         -16
74.40 Obligated balance, end of year....      10,097       9,622       8,553
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          39         157         162
86.93 Outlays from discretionary 
        balances........................       3,626       3,559       3,581
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,665       3,716       3,743
    Net budget authority and outlays:
89.00 Budget authority..................       2,712       2,696       2,674
90.00 Outlays...........................       3,665       3,716       3,743
93.03 Obligated balance, start of year: 
        Contract authority..............       3,806       3,299       2,799
93.04 Obligated balance, end of year: 
        Contract authority..............       3,299       2,799       2,299
---------------------------------------------------------------------------

    The Public Housing Capital Fund, a 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 $2.67 billion requested for the Public Housing Capital Fund, 
approximately $2.5 billion is provided to cover annual accrual needs. 
Other uses include up to $55 million to provide supportive services to 
public housing residents under the Resident Opportunities and Supportive 
Services (ROSS) program, up to $50 million for emergencies or disasters, 
up to $35 million for technical assistance, up to $30 million for 
demolition, site revitalization, replacement housing, and tenant based 
assistance grants, and no less than $4.5 million for the Working Capital 
Fund.

    Funding for two new proposals is requested in 2005:
        Freedom to House Demonstration. This proposal provides up to $5 
    million to test the advantages and disadvantages

[[Page 517]]

    of a locally-determined public housing program. This demonstration 
    is modeled after the Moving to Work Demonstration by granting PHAs 
    flexibility to manage their resources, but it will remove the 
    requirement to seek waivers and exceptions for such flexibility. In 
    the past, the need to individually negotiate programs hampered the 
    efficiency of PHAs to operate freely and made it more difficult to 
    directly assess impacts. This demonstration will remove these 
    barriers for a test group of fifty PHAs whose performance can be 
    measured and compared against a control group for effectiveness. The 
    demonstration will put into place reforms that would allow PHAs to 
    operate in a manner more aligned with market-based realities, 
    measures that both the Millennial Housing Commission and the Harvard 
    Cost Study have supported.
        The test group will be required to operate under an asset-based 
    management and accounting system. They will be granted full funding 
    fungibility and local rent policy discretion. Reporting requirements 
    will be streamlined and a new assessment system will be devised to 
    measure performance based on the financial health and physical 
    soundness of the housing authority's assets.
        Administrative and Judicial Receiverships. This proposal 
    provides up to $10 million to support the costs of administrative 
    and judicial receiverships or other intervention activities. These 
    funds will provide the Department with a source of funds to cover 
    operating and management costs where a court has asserted 
    operational authority over a public housing authority through a 
    judicial receivership process, or where the Department has taken 
    over operational authority of the public housing authority through 
    an administrative receivership procedure.

                                

                      Public Housing Operating Fund

    For [2004] 2005 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)), [$3,600,000,000: Provided, That of the total amount provided 
under this heading, $10,000,000 shall be for programs, as determined 
appropriate by the Attorney General, which assist in the investigation, 
prosecution, and prevention of violent crimes and drug offenses in 
public and federally-assisted low-income housing, including Indian 
housing, which shall be administered by the Department of Justice 
through a reimbursable agreement with the Department of Housing and 
Urban Development] $3,573,000,000, of which $15,000,000 in bonus funds 
shall be provided to public housing agencies that move program 
participants away from dependency on public housing assistance programs: 
Provided [further], That, in fiscal year [2004] 2005 and all fiscal 
years hereafter, no amounts under this heading in any appropriations Act 
may be used for payments to public housing agencies for the costs of 
operation and management of public housing for any year prior to the 
current year of such Act: Provided further, That no funds may be used 
under this heading for the purposes specified in section 9(k) of the 
United States Housing Act of 1937, as amended. (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0163-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating Subsidy.................       3,607       3,573       3,558
00.02 Voluntary Incentive Bonus.........                                  15
00.03 Department of Justice Anti-Drug...          10          10
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       3,617       3,583       3,573
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          26           4
22.00 New budget authority (gross)......       3,577       3,579       3,573
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          18
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,621       3,583       3,573
23.95 Total new obligations.............      -3,617      -3,583      -3,573
24.40 Unobligated balance carried 
        forward, end of year............           4
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       3,600       3,600       3,573
40.35   Appropriation permanently 
          reduced.......................         -23         -21
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       3,577       3,579       3,573
    Change in obligated balances:
72.40 Obligated balance, start of year..       1,658       1,861       1,893
73.10 Total new obligations.............       3,617       3,583       3,573
73.20 Total outlays (gross).............      -3,395      -3,551      -3,572
73.45 Recoveries of prior year 
        obligations.....................         -18
74.40 Obligated balance, end of year....       1,861       1,893       1,894
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,829       1,723       1,715
86.93 Outlays from discretionary 
        balances........................       1,566       1,828       1,857
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,395       3,551       3,572
    Net budget authority and outlays:
89.00 Budget authority..................       3,577       3,579       3,573
90.00 Outlays...........................       3,395       3,551       3,572
---------------------------------------------------------------------------

    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.....................        $3,558             57%
Dwelling Rental.........................         2,348             38%
Investment..............................           127              2%
Other Income............................           209              3%
Voluntary Graduation Bonus..............            15              0%
                                         -------------  --------------

   Total, Operating Revenue.............         6,257            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.

 Housing Authorities' Operating Expenditures (in millions of dollars)

                Category                    Annual 
                                          expenditures    Percent of 
                                                             total
Utilities...............................        $1,328             21%
Administration..........................         1,725             28%
General Operating Expenses..............           483              8%
Maintenance.............................         2,266             36%
Tenant Services.........................           132              2%
Protective Services.....................           176              3%
Capital Expenditures....................             7              0%
Operating Reserve.......................           125              2%
                                         -------------  --------------

   Total, Operating Expenses\*\.........         6,242            100%
                                         -------------  --------------

    \*\ Excludes Voluntary Graduation Bonuses.

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

[[Page 518]]

    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.

    Voluntary Graduation Bonus.--This proposal provides up to $15 
million in bonus funds for public housing authorities that move program 
participants away from dependency on public housing assistance programs 
within the current regulatory and statutory constraints. Awards would be 
made to PHAs that exceeded a baseline number of families who have exited 
public and assisted housing. Baselines would be established for housing 
authorities considering various factors including size of the program.

                                

             Drug Elimination Grants for Low-Income Housing

                    [(including transfers of funds)]

    Of the unobligated balances remaining from funds appropriated in 
fiscal year 2001 and prior years under the heading ``Drug elimination 
grants and low-income housing,'' $5,000,000 is hereby cancelled.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0197-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................           5           7
00.02 Federally Assisted................                       1
00.03 New Approach Anti--Drug Program...           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           6           9
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          39          14           5
22.00 New budget authority (gross)......         -23                      -5
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          20          14
23.95 Total new obligations.............          -6          -9
24.40 Unobligated balance carried 
        forward, end of year............          14           5
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................         -23                      -5
    Change in obligated balances:
72.40 Obligated balance, start of year..         286          66
73.10 Total new obligations.............           6           9
73.20 Total outlays (gross).............        -222         -75
73.45 Recoveries of prior year 
        obligations.....................          -4
74.40 Obligated balance, end of year....          66
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................         222          75
    Net budget authority and outlays:
89.00 Budget authority..................         -23                      -5
90.00 Outlays...........................         222          75
---------------------------------------------------------------------------

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

                                

     Revitalization of Severely Distressed Public Housing (Hope VI)

    [For grants to public housing agencies for demolition, site 
revitalization, replacement housing, and tenant-based assistance grants 
to projects as authorized by section 24 of the United States Housing Act 
of 1937, as amended, $150,000,000, to remain available until September 
30, 2005, of which the Secretary may use up to $4,000,000 for technical 
assistance and contract expertise, to be provided directly or indirectly 
by grants, contracts or cooperative agreements, including training and 
cost of necessary travel for participants in such training, by or to 
officials and employees of the department and of public housing agencies 
and to residents: Provided, That none of such funds shall be used 
directly or indirectly by granting competitive advantage in awards to 
settle litigation or pay judgments, unless expressly permitted herein.] 
(Division G, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0218-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........         535         504          97
00.02 Technical Assistance..............           2           6           4
00.03 Demolition of Elderly Public 
        Housing Projects................           1
00.04 Tenant Protection.................          51          53          40
00.05 Neighborhood Networks.............           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         595         568         141
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         587         559         141
22.00 New budget authority (gross)......         570         149
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,157         708         141
23.95 Total new obligations.............        -595        -568        -141
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
24.40 Unobligated balance carried 
        forward, end of year............         559         141
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         574         150
40.35   Appropriation permanently 
          reduced.......................          -4          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         570         149
    Change in obligated balances:
72.40 Obligated balance, start of year..       2,681       2,722       2,664
73.10 Total new obligations.............         595         568         141
73.20 Total outlays (gross).............        -555        -626        -699
74.40 Obligated balance, end of year....       2,722       2,664       2,106
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           3           1
86.93 Outlays from discretionary 
        balances........................         552         625         699
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         555         626         699
    Net budget authority and outlays:
89.00 Budget authority..................         570         149
90.00 Outlays...........................         555         626         699
---------------------------------------------------------------------------

    No additional funds are requested for this program in 2005. 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 519]]

                                

                  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.), 
[$654,100,000] $647,000,000, to remain available until expended, [of 
which $2,200,000 shall be contracted through the Secretary as technical 
assistance and capacity building to be used by the National American 
Indian Housing Council in support of the implementation of NAHASDA;] of 
which [$4,500,000] $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] $500,000 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, $2,000,000 shall be made available 
for the cost of guaranteed notes and other obligations, as authorized by 
title VI of NAHASDA: Provided further, That such costs, including the 
costs of modifying such notes and other obligations, shall be as defined 
in section 502 of the Congressional Budget Act of 1974, as amended: 
Provided further, That these funds are available to subsidize the total 
principal amount of any notes and other obligations, any part of which 
is to be guaranteed, not to exceed [$16,658,000] $17,926,357: 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: Provided further, That of the unobligated balances remaining 
from funds appropriated in fiscal year 2004 and prior years under the 
heading, ``Native American Housing Block Grant'' for activities related 
to title VI of NAHASDA, $21,000,000 is hereby cancelled. (Division G, 
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)
    [Sec. 164. The funds made available for Alaska Natives under the 
heading ``Native American Housing Block Grants'' in title II of division 
G of this Act shall be allocated to the same Native Alaskan Indian 
housing block grant recipients that received the funds in fiscal year 
2003.] (Division H, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Indian Housing Block Grants.......         659         639         639
00.02 Title VI Loan Guarantee Subsidy...           1           2           2
00.03 Technical Assistance..............           3           5           5
00.04 Working Capital Fund..............           1           2           1
00.05 National American Indian Housing 
        Council.........................                       2
00.07 Upward reestimate.................                       1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         664         651         647
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         139         123         123
22.00 New budget authority (gross)......         645         651         626
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         788         774         749
23.95 Total new obligations.............        -664        -651        -647
24.40 Unobligated balance carried 
        forward, end of year............         123         123         102
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         649         654         647
40.35   Appropriation permanently 
          reduced.......................          -4          -4
40.36   Unobligated balance permanently 
          reduced.......................                                 -21
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         645         650         626
      Mandatory:

60.00   Appropriation...................                       1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         645         651         626
    Change in obligated balances:
72.40 Obligated balance, start of year..       1,018         955         872
73.10 Total new obligations.............         664         651         647
73.20 Total outlays (gross).............        -723        -734        -722
73.45 Recoveries of prior year 
        obligations.....................          -4
74.40 Obligated balance, end of year....         955         872         797
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         161         113         113
86.93 Outlays from discretionary 
        balances........................         562         620         609
86.97 Outlays from new mandatory 
        authority.......................                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         723         734         722
    Net budget authority and outlays:
89.00 Budget authority..................         645         651         626
90.00 Outlays...........................         723         734         722
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Title VI..........................          17          18          18
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......          17          18          18
    Guaranteed loan subsidy (in percent):
232001Title VI..........................       11.07       10.56       10.32
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....       11.07       10.56       10.32
    Guaranteed loan subsidy budget authority:
233001Title VI..........................           2           2           2
                                           ---------   ---------  ----------
233901Total subsidy budget authority....           2           2           2
    Guaranteed loan subsidy outlays:
234001Title VI..........................           1           1           1
                                           ---------   ---------  ----------
234901Total subsidy outlays.............           1           1           1
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Title VI..........................                       1
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................                       1
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Title VI..........................          -1
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................          -1
----------------------------------------------------------------------------

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

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

    The Native American Housing Block Grant program includes a 
guaranteed loan provision (Title VI). A guarantee level of $17.9 million 
is proposed for this loan guarantee program for 2005. The subsidy rate 
for this program is set at 10.32 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.

[[Page 520]]

                                

                   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 (NAHASDA) (25 U.S.C. 4111 et seq.), 
$9,500,000, to remain available until expended, of which $400,000 shall 
be for training and technical assistance activities.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0235-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Native Hawaiian Housing Block 
        Grant...........................                                  10
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  10
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  10
23.95 Total new obligations.............                                 -10
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                  10
    Change in obligated balances:
73.10 Total new obligations.............                                  10
73.20 Total outlays (gross).............                                  -1
74.40 Obligated balance, end of year....                                   9
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                   1
    Net budget authority and outlays:
89.00 Budget authority..................                                  10
90.00 Outlays...........................                                   1
---------------------------------------------------------------------------

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

    It authorizes annual grants to the Department of Hawaiian Home Lands 
(DHHL) for housing and housing-related assistance, pursuant to an annual 
housing plan, within the area in which DHHL is authorized to provide 
that assistance. DHHL uses performance measures and benchmarks that are 
based on the needs and priorities established 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program: Capital 
        investment loans to PHAs........           3          30          30
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 33.0)...................           3          30          30
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          20          20          20
22.00 New budget authority (gross)......          99         109         113
22.60 Portion applied to repay debt.....         -96         -79         -83
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          23          50          50
23.95 Total new obligations.............          -3         -30         -30
24.40 Unobligated balance carried 
        forward, end of year............          20          20          20
    New budget authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............          25          30          30
69.00 Offsetting collections (cash).....          74          79          83
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          99         109         113
    Change in obligated balances:
72.40 Obligated balance, start of year..         597         515         436
73.10 Total new obligations.............           3          30          30
73.20 Total outlays (gross).............         -85        -109        -113
74.40 Obligated balance, end of year....         515         436         353
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           5         109         113
86.98 Outlays from mandatory balances...          80
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          85         109         113
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -74         -79         -83
    Net budget authority and outlays:
89.00 Budget authority..................          25          30          30
90.00 Outlays...........................          11          30          30
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,209       1,135       1,056
1251  Repayments: Repayments and 
        prepayments.....................         -74         -79         -79
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,135       1,056         977
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       2,189       1,916       1,643
2251  Repayments and prepayments........        -273        -273        -273
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       1,916       1,643       1,370
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       1,916       1,643       1,370
---------------------------------------------------------------------------

    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 2003, an estimated $30 
million will be borrowed from the Treasury and forgiven in 2004, and an 
estimated $30 million will be borrowed from the Treasury and forgiven in 
2005.

    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 2002, 2003, 2004 and 2005 follows:

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4098-0-3-604    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         617            536
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       1,210          1,134
1602    Interest receivable.............          75             69
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............       1,285          1,203
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       1,285          1,203
                                        ------------ --------------  ------------  -------------

[[Page 521]]


1999    Total assets....................       1,902          1,739
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................         147            137
2104    Resources payable to Treasury...       1,207          1,133
2207  Non-Federal liabilities: Other....           2
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,356          1,270
    NET POSITION:
3100  Appropriated capital..............         551            475
3300  Cumulative results of operations..          -5             -6
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         546            469
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,902          1,739
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

Credit accounts:

           Indian Housing Loan Guarantee Fund Program Account

                      (including transfer of funds)

    For the cost of guaranteed loans, as authorized by section 184 of 
the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a), 
[$5,300,000] $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 [$197,243,000] $29,069,767.
    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. (Division G, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)
    Of the unobligated balances remaining from funds appropriated in 
fiscal year 2004 and prior years under the heading, ``Indian Housing 
Loan Guarantee Fund Program Account,'' for activities related to the 
cost of guaranteed loans, $33,000,000 are hereby cancelled.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........           2           5           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           2           5           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          29          33          33
22.00 New budget authority (gross)......           5           5         -32
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          34          38           1
23.95 Total new obligations.............          -2          -5          -1
24.40 Unobligated balance carried 
        forward, end of year............          33          33
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           5           5           1
40.36   Unobligated balance permanently 
          reduced.......................                                 -33
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............           5           5         -32
    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1           2
73.10 Total new obligations.............           2           5           1
73.20 Total outlays (gross).............          -2          -4          -2
74.40 Obligated balance, end of year....           1           2           1
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           1
86.93 Outlays from discretionary 
        balances........................           1           3           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           2           4           2
    Net budget authority and outlays:
89.00 Budget authority..................           5           5         -32
90.00 Outlays...........................           2           4           2
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Indian Housing Loan Guarantee.....         197         197          29
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......         197         197          29
    Guaranteed loan subsidy (in percent):
232001Indian Housing Loan Guarantee.....        2.43        2.73        2.58
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        2.43        2.73        2.58
    Guaranteed loan subsidy budget authority:
233001Indian Housing Loan Guarantee.....           5           5           1
                                           ---------   ---------  ----------
233901Total subsidy budget authority....           5           5           1
    Guaranteed loan subsidy outlays:
234001Indian Housing Loan Guarantee.....           2           4           2
                                           ---------   ---------  ----------
234901Total subsidy outlays.............           2           4           2
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Indian Housing Loan Guarantee.....          -1
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................          -1
----------------------------------------------------------------------------

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

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

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

                                

          Indian Housing Loan Guarantee Fund Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default Claims....................                       1           1
00.02 Loan Guarantee Subsidy............                       4           2
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............                       5           3
08.02 Downward subsidy rate reestimate..           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 33.0)...................           1           5           3
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           5           6           5
22.00 New financing authority (gross)...           2           4           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           7          10           7
23.95 Total new obligations.............          -1          -5          -3
24.40 Unobligated balance carried 
        forward, end of year............           6           5           6
    New financing authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections 
          (gross): Federal sources......           2           4           2
    Change in obligated balances:
72.40 Obligated balance, start of year..          -1          -1
73.10 Total new obligations.............           1           5           3
73.20 Total financing disbursements 
        (gross).........................          -1          -4          -2
74.40 Obligated balance, end of year....          -1                       1
87.00 Total financing disbursements 
        (gross).........................           1           4           2

[[Page 522]]

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            program account.............          -1          -4          -2
88.40     Non-Federal sources...........          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -2          -4          -2
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........          -1
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........         197         197          29
2121  Limitation available from carry-
        forward.........................         442         599         599
2142  Uncommitted loan guarantee 
        limitation......................                                -599
2143  Uncommitted limitation carried 
        forward.........................        -599        -599         -20
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................          40         197           9
2199  Guaranteed amount of guaranteed 
        loan commitments................          40         197           9
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          58          61          68
2231  Disbursements of new guaranteed 
        loans...........................          45          19          23
2251  Repayments and prepayments........         -42         -11         -13
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................                      -1          -1
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          61          68          77
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          61          68          77
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           5              5
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           5              5
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           5              5
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           5              5
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           5              5
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

       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), 
[$1,035,000] $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 [$39,712,000] $37,403,101.
    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. (Division G, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0233-0-1-371      2003 actual   2004 est.   2005 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           2           2
22.00 New budget authority (gross)......           1           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           3           3
23.95 Total new obligations.............                      -1          -1
24.40 Unobligated balance carried 
        forward, end of year............           2           2           2
    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Native Hawaiian Housing...........          40          40          37
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......          40          40          37
    Guaranteed loan subsidy (in percent):
232001Native Hawaiian Housing...........        2.43        2.73        2.58
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        2.43        2.73        2.58
    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
----------------------------------------------------------------------------

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

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, the subsidy costs associated with the loan 
guarantees committed in 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.

[[Page 523]]

    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      2003 actual   2004 est.   2005 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           2
    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........          40          40          37
2121  Limitation available from carry-
        forward.........................          40          80         119
2143  Uncommitted limitation carried 
        forward.........................         -80        -119        -155
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                       1           1
2199  Guaranteed amount of guaranteed 
        loan commitments................                       1           1
----------------------------------------------------------------------------

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

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                       1           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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default Claims....................                       1           1
00.02 Guarantee Loan Subsidy............                       1           1
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............                       2           2
08.02 Downward Reestimate...............           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           1           2           2
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           8           8           9
22.00 New financing authority (gross)...           1           2           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           9          10          10
23.95 Total new obligations.............          -1          -2          -2
24.40 Unobligated balance carried 
        forward, end of year............           8           9          10
    New financing authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections 
          (gross): Offsetting 
          collections (cash)............           1           2           1
    Change in obligated balances:
73.10 Total new obligations.............           1           2           2
73.20 Total financing disbursements 
        (gross).........................          -1
87.00 Total financing disbursements 
        (gross).........................           1
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -1          -1          -1
88.00     Upward Reestimate.............                      -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -1          -2          -1
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........          -1          -2          -1
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4244-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........          17          18          18
2121  Limitation available from carry-
        forward.........................         367         376         376
2142  Uncommitted loan guarantee 
        limitation......................                                -376
2143  Uncommitted limitation carried 
        forward.........................        -376        -376         -10
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................           8          18           8
2199  Guaranteed amount of guaranteed 
        loan commitments................           8          18           8
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          65          71          75
2231  Disbursements of new guaranteed 
        loans...........................           9          10          17
2251  Repayments and prepayments........          -3          -5          -5
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................                      -1          -1
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          71          75          86
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          71          75          86
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4244-0-3-604    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           8              8
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           8              8
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           8              8
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           8              8
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           8              8
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

    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

[[Page 524]]

not included in the budget totals. As required by the Federal Credit 
Reform Act of 1990, no administrative expenses can be recorded in the 
financing account.

                                


 
                   COMMUNITY PLANNING AND DEVELOPMENT

                              Federal Funds

General and special funds:

               Housing Opportunities for Persons With AIDS

    For carrying out the Housing Opportunities for Persons with AIDS 
program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 
12901 et seq.), [$296,500,000] $294,800,000, to remain available until 
September 30, [2005] 2006: Provided, That the Secretary shall renew all 
expiring contracts for permanent supportive housing that were funded 
under section 854(c)(3) of such Act that meet all program requirements 
before awarding funds for new contracts and activities authorized under 
this section: Provided further, That the Secretary may use up to 
$2,500,000 of the funds under this heading for training, oversight, and 
technical assistance activities. (Division G, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0308-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Housing for Persons with HIV/AIDS.         294         298         298
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         294         298         298
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          91          88          85
22.00 New budget authority (gross)......         290         295         295
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         382         383         380
23.95 Total new obligations.............        -294        -298        -298
24.40 Unobligated balance carried 
        forward, end of year............          88          85          80
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         292         297         295
40.35   Appropriation permanently 
          reduced.......................          -2          -2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         290         295         295
    Change in obligated balances:
72.40 Obligated balance, start of year..         399         438         454
73.10 Total new obligations.............         294         298         298
73.20 Total outlays (gross).............        -254        -282        -292
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....         438         454         460
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2          12          12
86.93 Outlays from discretionary 
        balances........................         252         270         280
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         254         282         292
    Net budget authority and outlays:
89.00 Budget authority..................         290         295         295
90.00 Outlays...........................         254         282         292
---------------------------------------------------------------------------

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

    Up to $2.5 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 2005 will support approximately 73,700 housing 
units for persons with HIV/AIDS and their families.

                                

                       Community Development Fund

                     (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 $4,618,094,000, to remain available until September 30, 
2007: Provided, That unless explicitly provided for under this heading, 
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 Housing 
and Community Development Act of 1974, as amended (the ``Act'') shall be 
expended for planning and management development and administration. Of 
this amount:
        (1) $4,330,846,000 is for carrying out the community development 
    block grant program under title I of the Act;
        (2) $71,575,000 is for grants to Indian tribes notwithstanding 
    section 106(a)(1) of the Act;
        (3) $3,281,000 is for a grant to the Housing Assistance Council;
        (4) $2,485,000 is for a grant to the National American Indian 
    Housing Council;
        (5) $35,291,000 is for grants pursuant to section 107 of the 
    Act, of which $3,479,000 shall be to support Alaska Native serving 
    institutions and Native Hawaiian serving institutions as defined 
    under the Higher Education Act, as amended, $2,982,000 shall be for 
    tribal colleges and universities to build, expand, renovate and 
    equip their facilities, and $1,491,000 shall be for technical 
    assistance pursuant to section 107(b)(4) of the Act;
        (6) no less than $500,000 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'';
        (7) $65,000,000 is for grants pursuant to the Self Help 
    Homeownership Opportunity Program, including $3,000,000 for 
    technical assistance;
        (8) $29,500,000 is for capacity building, of which $25,000,000 
    is 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 is for 
    capacity building activities administered by Habitat for Humanity 
    International;
        (9) $64,617,000 is 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 be 
    given a priority for YouthBuild funding: Provided further, That no 
    more than 10 percent of any grant award under the YouthBuild program 
    may be used for administrative costs: Provided further, That of the 
    amount made available for YouthBuild not less than $9,941,000 is for 
    grants to establish YouthBuild programs in underserved and rural 
    areas and $1,988,000 is to be 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;
        (10) $10,000,000 is for a Development Challenge Pilot to test 
    ways to better coordinate, target, and leverage existing Federal 
    community and economic development programs; and
        (11) $5,000,000 is for a faith-based pilot for a multi-city 
    program aimed at increasing the participation of faith-based and 
    community-based organizations in the cities' community development 
    strategies.
    [For assistance to units of State and local government, and to other 
entities, for economic and community development activities, and for 
other purposes, $4,950,000,000, to remain available until

[[Page 525]]

September 30, 2006: Provided, That of the amount provided, 
$4,356,550,000 is for carrying out the community development block grant 
program under title I of the Housing and Community Development Act of 
1974, as amended (the ``Act'' herein) (42 U.S.C. 5301 et seq.): Provided 
further, That unless explicitly provided for under this heading (except 
for planning grants provided in the third paragraph and amounts made 
available in the second paragraph), 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: Provided further, That 
$72,000,000 shall be for grants to Indian tribes notwithstanding section 
106(a)(1) of such Act; $3,300,000 shall be for a grant to the Housing 
Assistance Council; $2,500,000 shall be for a grant to the National 
American Indian Housing Council; $5,000,000 shall be available as a 
grant to the National Housing Development Corporation, for operating 
expenses not to exceed $2,000,000 and for a program of affordable 
housing acquisition and rehabilitation; $5,000,000 shall be available as 
a grant to the National Council of La Raza for the HOPE Fund, of which 
$500,000 is for technical assistance and fund management, and $4,500,000 
is for investments in the HOPE Fund and financing to affiliated 
organizations; $52,000,000 shall be for grants pursuant to section 107 
of the Act, of which $9,500,000 shall be for the Native Hawaiian block 
grant authorized under title VIII of the Native American Housing 
Assistance and Self-Determination Act of 1996; 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''; $27,000,000 
shall be for grants pursuant to the Self Help Homeownership Opportunity 
Program; $34,750,000 shall be for capacity building, of which 
$30,000,000 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 $4,750,000 shall be for capacity 
building activities administered by Habitat for Humanity International; 
$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 under the YouthBuild program may be used for 
administrative costs: Provided further, That of the amount made 
available for YouthBuild not less than $10,000,000 is for grants to 
establish YouthBuild programs in underserved and rural areas and 
$2,000,000 is to be made available for a grant to YouthBuild USA for 
capacity building for community development and affordable housing 
activities as specified in section 4 of the HUD Demonstration Act of 
1993, as amended.
    Of the amount made available under this heading, $44,000,000 shall 
be available for neighborhood initiatives that are utilized to improve 
the conditions of distressed and blighted areas and neighborhoods, to 
stimulate investment, economic diversification, and community 
revitalization in areas with population outmigration or a stagnating or 
declining economic base, or to determine whether housing benefits can be 
integrated more effectively with welfare reform initiatives: Provided, 
That amounts made available under this paragraph shall be provided in 
accordance with the terms and conditions specified in the joint 
explanatory statement of the managers accompanying this Act.]
    [Of the amount made available under this heading, $278,000,000 shall 
be available for grants for the Economic Development Initiative (EDI) to 
finance a variety of targeted economic investments in accordance with 
the terms and conditions specified in the joint explanatory statement of 
the managers accompanying this Act: Provided, That none of the funds 
provided under this paragraph may be used for program operations.]
    [The referenced statement of the managers under this heading in 
Public Law 107-73 is deemed to be amended with respect to the amount 
made available to the North Carolina Community Land Trust Initiative by 
striking ``North Carolina Community Land Trust Initiative'' and 
inserting ``Orange Community Housing and Land Trust''.]
    [The referenced statement of the managers under this heading in 
Public Law 107-73 is deemed to be amended with respect to the amount 
made available to the Willacy County Boys and Girls Club in Willacy 
County, Texas by striking ``Willacy County Boys and Girls Club in 
Willacy County, Texas'' and inserting ``Willacy County, Texas''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 17 by striking ``for sidewalks, curbs, street 
lighting, outdoor furniture and facade improvements in the Mill Village 
neighborhood'' and inserting ``for the restoration and renovation of 
houses within the Lincoln or Dallas mill villages''.]
    [The referenced statement of the managers under this heading in 
Public Law 107-73 is deemed to be amended with respect to the amount 
made available to the Metropolitan Development Association in Syracuse, 
New York by inserting ``and other economic development planning and 
revitalization activities'' after the word ``study''.]
    [The referenced statement of the managers under this heading in 
Public Law 107-73 is deemed to be amended with respect to the amount 
made available to the Staten Island Freedom Memorial Fund by striking 
``Staten Island Freedom Memorial Fund for the construction of a memorial 
in the Staten Island community of St. George, New York'' and inserting 
``Staten Island Botanical Garden for construction and related activities 
for a healing garden''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 526 by striking ``for an economic development 
study for the revitalization of Westchester'' and inserting ``for the 
reconstruction of renaissance plaza at Main and Mamaroneck in downtown 
White Plains''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 877 by striking ``West Virginia High Technology 
Consortium Foundation, Inc. in Marion County, West Virginia for 
facilities construction for a high-tech park'' and inserting ``Glenville 
State College in Glenville, West Virginia for construction of a new 
campus community education center''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 126 by striking ``for construction of'' and 
inserting ``for facilities improvements and build out for''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 721 by striking ``training'' and inserting 
``creation, small business development and quality of life improvements 
within the State of South Carolina''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 317 by striking ``135,000'' and inserting 
``151,000''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 324 by striking ``225,000'' and inserting 
``209,000''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 74 by striking ``renovation'' and inserting 
``design and construction''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 718 by striking ``construction'' and inserting 
``renovation''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 785 by striking ``to the Town of Altavista, 
Virginia to assist with renovations of the shell building

[[Page 526]]

industrial site'' and inserting ``to the County of Campbell, Virginia 
for development of the Winston Tract Commercial Center industrial 
site''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 253 by striking ``to the Salvation Army/Boys and 
Girls Club-Northfolk community center'' and inserting ``to the Salvation 
Army Boys and Girls Club in Louisville, Kentucky for the renovation of 
the Newburg community center''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 288 by striking ``for building renovations'' and 
inserting ``for signage, street furniture, sidewalks and streetscape 
improvements''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 217 by striking ``$135,000 to the Village of 
Olympia Fields, Illinois for construction of a hall, public library and 
upgraded commuter station'' and inserting ``$135,000 to the Village of 
Olympia Fields, Illinois, for sidewalks, street lighting, neighborhood 
redevelopment improvements, and building renovations''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 809 by striking ``$90,000 to the Department of 
Vermont Veterans of Foreign Wars for the construction of the Green Block 
Veterans Memorial in Brandon, Vermont and the Windsor, Vermont War 
Memorial'' and inserting ``$90,000 to the Department of Buildings and 
General Services of the State of Vermont for the construction of the 
Brandon, Vermont Veterans Memorial and the Windsor, Vermont War 
Memorial''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 244 by striking ``$900,000 to Purdue University 
in West Lafayette, Indiana for facilities construction for the Northwest 
Indiana Purdue Technology Center'' and inserting ``$900,000 to Purdue 
Research Foundation in West Lafayette, Indiana for facilities buildout 
for the Northwest Indiana Purdue Technology Center''.]
    [The referenced statement of the managers under this heading in 
Public Law 107-73 is deemed to be amended with respect to the amount 
made available to Connecticut Hospice, Inc. of Branford, Connecticut by 
striking ``for construction of a new facility'' and inserting ``for 
facilities renovation and equipment upgrades''.]
    [The referenced statement of the managers under this heading in 
Public Law 107-73 is deemed to be amended with respect to a grant made 
available to the United Way community services facility in Anchorage, 
Alaska by striking ``the United Way community services facility in 
Anchorage, Alaska to complete construction of asocial service facility 
to serve low-income people;'' and inserting in lieu thereof ``the Cook 
Inlet Tribal Council, Inc. in Anchorage, Alaska as a federal 
contribution for construction of asocial service facility to serve low 
income people;''.]
    [The referenced statement of the managers under this heading in 
title II of division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7; H. Rept. 108-10) is deemed to be amended with 
respect to item number 137 by striking ``Wilmington Housing Authority'' 
and inserting ``City of Wilmington''.] (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)
    [Sec. 165. In addition to the amounts otherwise provided in this or 
any other Act for fiscal year 2004, for ``Department of Housing and 
Urban Development, Community Development Fund'', $10,000,000 to remain 
available until expended for a grant to the Anchorage museum in 
Anchorage, Alaska for facilities construction.] (Division H, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Community Development Formula 
        Grants..........................       4,330       4,365       4,351
00.02 World Trade Center Response.......         783
00.03 Working Capital Fund..............           3           5           1
00.04 CDBG set-asides...................         424         668         286
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       5,540       5,038       4,638
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,747       1,104       1,000
22.00 New budget authority (gross)......       4,905       4,934       4,618
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       6,652       6,038       5,618
23.95 Total new obligations.............      -5,540      -5,038      -4,638
23.98 Unobligated balance expiring or 
        withdrawn.......................          -7
24.40 Unobligated balance carried 
        forward, end of year............       1,104       1,000         980
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       4,937       4,964       4,618
40.35   Appropriation permanently 
          reduced.......................         -32         -30
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       4,905       4,934       4,618
    Change in obligated balances:
72.40 Obligated balance, start of year..      11,409      11,369      10,417
73.10 Total new obligations.............       5,540       5,038       4,638
73.20 Total outlays (gross).............      -5,569      -5,990      -5,586
73.40 Adjustments in expired accounts 
        (net)...........................         -11
74.40 Obligated balance, end of year....      11,369      10,417       9,469
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          47          99          92
86.93 Outlays from discretionary 
        balances........................       5,522       5,891       5,494
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       5,569       5,990       5,586
    Net budget authority and outlays:
89.00 Budget authority..................       4,905       4,934       4,618
90.00 Outlays...........................       5,569       5,990       5,586
---------------------------------------------------------------------------

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

    The 2005 Budget allocates $71.6 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 82,000 jobs. These funds will also help to rehabilitate an 
estimated 173,000 housing units.

    Section 107 Grants include 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, and $1.5 million in funding for technical 
assistance to support local and State grantees including efforts to 
streamline the Consolidated Plan.

    A transfer of $500,000 to the Working Capital Fund is included.

[[Page 527]]

    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 
developmentorganizations, and assist such corporations and organizations 
to carry out community development and affordable housing activities. 
The 2005 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 2005 request for $64.6 
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 
significant increase reflects the growing capacity of self-help housing 
organizations to expand upon recent successes in making home ownership a 
viable option. In addition, $3.3 million is provided for the Housing 
Assistance Council as well as $2.5 million for the Native American 
Indian Housing Council to meet unserved rural and Native American 
housing needs.

    The Administration is proposing new pilots to test ways to better 
coordinate, target, and leverage existing Federal community and economic 
development programs. An inter-agency group will advise on   standards 
for award of $10 million in competitive capital grants to a few 
communities prepared to set and meet a limited number of clear, 
measurable community development goals.

    The Budget also includes $5 million for a pilot program in at least 
five cities aimed at increasing the participation of faith-based and 
community organizations in the cities' community development strategies. 
Participating cities will submit plans that demonstrate (1) a strategy 
for involving faith-based and community organizations in the community 
development efforts of the city and (2) a plan for making small sub-
grants to faith-based and community groups to facilitate their 
partnership with their respective city.

                                

                Empowerment Zones/Enterprise Communities

    [For grants in connection with a second round of empowerment zones 
and enterprise communities, $15,000,000, to remain available until 
September 30, 2005, for ``Urban Empowerment Zones'', as authorized in 
section 1391(g) of the Internal Revenue Code of 1986 (26 U.S.C. 
1391(g)), including $1,000,000 for each empowerment zone for use in 
conjunction with economic development activities consistent with the 
strategic plan of each empowerment zone.] (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0315-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Develop urban sites...............          33          15
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          33          15
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3
22.00 New budget authority (gross)......          30          15
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          33          15
23.95 Total new obligations.............         -33         -15
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          30          15
    Change in obligated balances:
72.40 Obligated balance, start of year..         231         204         149
73.10 Total new obligations.............          33          15
73.20 Total outlays (gross).............         -60         -70         -65
74.40 Obligated balance, end of year....         204         149          84
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................          60          70          65
    Net budget authority and outlays:
89.00 Budget authority..................          30          15
90.00 Outlays...........................          60          70          65
---------------------------------------------------------------------------

    The 2005 Budget proposes no new funding for this program. 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 2003 (P.L. 108-7) provided $30 million for 
Round II Urban Empowerment Zones which brought the total funding for 
Round II urban EZs through 2003 to $359 million. No new funding is 
proposed for EZ's in 2005.

    Grant funds and tax incentives have 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

    [For competitive economic development grants, as authorized by 
section 108(q) of the Housing and Community Development Act of 1974, as 
amended, for Brownfields redevelopment projects, $25,000,000, to remain 
available until September 30, 2005.] (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0314-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Cleanup and develop contaminated 
        sites...........................           3          52
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           3          52
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           4          27
22.00 New budget authority (gross)......          25          25
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          30          52
23.95 Total new obligations.............          -3         -52
24.40 Unobligated balance carried 
        forward, end of year............          27
    New budget authority (gross), detail:
      Discretionary:

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

[[Page 528]]

    Change in obligated balances:
72.40 Obligated balance, start of year..         109          98         130
73.10 Total new obligations.............           3          52
73.20 Total outlays (gross).............         -13         -20         -23
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          98         130         107
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       1
86.93 Outlays from discretionary 
        balances........................          13          19          23
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          13          20          23
    Net budget authority and outlays:
89.00 Budget authority..................          25          25
90.00 Outlays...........................          13          20          23
---------------------------------------------------------------------------

    The 2005 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 through 2004.

                                

                           Youthbuild Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0219-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    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 2005 CDBG set aside 
request of $64.6 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, [$1,930,000,000] $1,884,200,000, to remain available until 
September 30, [2006] 2007: Provided, That of the total amount provided 
in this paragraph, [up to $40,000,000 shall be available for housing 
counseling under section 106 of the Housing and Urban Development Act of 
1968 and] no less than [$2,100,000] $200,000 shall be transferred to the 
Working Capital Fund for the development of and modifications to 
information technology systems which serve programs or activities under 
``Community planning and development'': Provided further, That 
$2,000,000 shall be available for the Partnership for Advancing 
Technology in Housing Program (PATH): Provided further, That all 
balances for PATH previously funded within the Policy Development and 
Research account shall be transferred to this account, to be available 
for the purposes [of] for which they were originally appropriated.
    In addition to amounts otherwise made available under this heading, 
[$87,500,000] $200,000,000, to remain available until September 30, 
[2006] 2007, for assistance to homebuyers as authorized under [title II 
of the Cranston-Gonzalez National Affordable Housing Act, as amended: 
Provided, That the Secretary shall provide such assistance in accordance 
with a formula to be established by the Secretary that considers, among 
other things, a participating jurisdiction's need for, and prior 
commitment to, assistance to homebuyers: Provided further, That should 
legislation be enacted prior to April 15, 2004, to authorize a new down-
payment assistance program under the HOME Investment Partnership Act, 
the amounts provided under this paragraph shall be distributed for 
downpayment assistance in accordance with the terms and conditions set 
forth in such Act] title I of the American Dream Downpayment Act. 
(Division G, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0205-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 HOME grants.......................       1,876       2,010       2,085
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       1,876       2,010       2,085
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         256         372         368
22.00 New budget authority (gross)......       1,987       2,006       2,084
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,247       2,378       2,452
23.95 Total new obligations.............      -1,876      -2,010      -2,085
24.40 Unobligated balance carried 
        forward, end of year............         372         368         367
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       2,000       2,018       2,084
40.35   Appropriation permanently 
          reduced.......................         -13         -12
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,987       2,006       2,084
    Change in obligated balances:
72.40 Obligated balance, start of year..       4,667       4,914       5,177
73.10 Total new obligations.............       1,876       2,010       2,085
73.20 Total outlays (gross).............      -1,616      -1,747      -1,885
73.32 Obligated balance transferred from 
        other accounts..................                                  10
73.40 Adjustments in expired accounts 
        (net)...........................          -9
73.45 Recoveries of prior year 
        obligations.....................          -4
74.40 Obligated balance, end of year....       4,914       5,177       5,387
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           9          40          42
86.93 Outlays from discretionary 
        balances........................       1,607       1,707       1,843
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,616       1,747       1,885
    Net budget authority and outlays:
89.00 Budget authority..................       1,987       2,006       2,084
90.00 Outlays...........................       1,616       1,747       1,885
---------------------------------------------------------------------------

    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 2005 request will result 
in the production of 100,848 units of affordable housing through new 
construction, rehabilitation, or acquisition. In addition, tenant-based 
rental assistance will be provided for 12,935 units.

    The $200 million American Dream Down Payment Initiative will help 
expand homeownership opportunities to 40,000 low-income first-time 
homebuyers and also support expansion of minority homeownership.

[[Page 529]]

    Funding of $2 million is provided for the Partnership for Advancing 
Technology in Housing (PATH). The PATH program is being transferred from 
the Policy, Development and Research program office to the HOME program 
to integrate this research program with the practical housing experience 
within the HOME program.

    The HOME request also includes up to $200,000 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, 
[$1,267,000,000] $1,282,400,000, of which [$1,247,000,000] 
$1,237,400,000 [to] shall remain available until September 30, [2006] 
2007, and of which $20,000,000 [to] shall remain available until 
expended; and of which $25,000,000 shall be for the Prisoner Re-Entry 
Initiative and shall remain available until expended: Provided, That not 
less than 30 percent of funds made available, excluding amounts provided 
for renewals under the shelter plus care program, shall be used for 
permanent housing: Provided further, That all funds awarded for services 
shall be matched by 25 percent in funding by each grantee: Provided 
further, That the Secretary shall renew on an annual basis expiring 
contracts or amendments to contracts funded under the shelter plus care 
program if the program is determined to be needed under the applicable 
continuum of care and meets appropriate program requirements and 
financial standards, as determined by the Secretary: Provided further, 
That all awards of assistance under this heading shall be required to 
coordinate and integrate homeless programs with other mainstream health, 
social services, and employment programs for which homeless populations 
may be eligible, including Medicaid, State Children's Health Insurance 
Program, Temporary Assistance for Needy Families, Food Stamps, and 
services funding through the Mental Health and Substance Abuse Block 
Grant, Workforce Investment Act, and the Welfare-to-Work grant program: 
Provided further, That [$12,000,000] $11,900,000 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] $500,000 of the funds 
appropriated under this heading shall be transferred to the Working 
Capital Fund for the development of and modifications to information 
technology systems which serve programs or activities under ``Community 
planning and development'': Provided further, That all balances for 
Shelter Plus Care renewals previously funded from the Shelter Plus Care 
Renewal account shall be transferred to this account, to be available 
for Shelter Plus Care renewals in Fiscal Year 2005. (Division G, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0192-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Homeless assistance grants........       1,099       1,319       1,382
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       1,099       1,319       1,382
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,583       1,755       1,751
22.00 New budget authority (gross)......       1,217       1,260       1,282
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          54          55          55
22.22 Unobligated balance transferred 
        from other accounts.............                                   7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,854       3,070       3,095
23.95 Total new obligations.............      -1,099      -1,319      -1,382
24.40 Unobligated balance carried 
        forward, end of year............       1,755       1,751       1,713
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,225       1,267       1,282
40.35   Appropriation permanently 
          reduced.......................          -8          -7
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,217       1,260       1,282
    Change in obligated balances:
72.40 Obligated balance, start of year..       2,428       2,393       2,257
73.10 Total new obligations.............       1,099       1,319       1,382
73.20 Total outlays (gross).............      -1,080      -1,400      -1,467
73.45 Recoveries of prior year 
        obligations.....................         -54         -55         -55
74.40 Obligated balance, end of year....       2,393       2,257       2,117
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           8          13          13
86.93 Outlays from discretionary 
        balances........................       1,072       1,387       1,454
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,080       1,400       1,467
    Net budget authority and outlays:
89.00 Budget authority..................       1,217       1,260       1,282
90.00 Outlays...........................       1,080       1,400       1,467
---------------------------------------------------------------------------

    The Homeless Assistance Grants account 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 
approaches to solving rather than institutionalizing homelessness. In 
fact, in recent years, many communities have made great strides in 
developing holistic approaches to ending chronic homelessness. To date, 
41 states and 80 cities and counties have begun or completed development 
of ten-year plans to end chronic 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. The transfer of remaining balances in 
the Shelter Plus Care Renewal account to this account reflects that 
Shelter Plus Care Renewals have been funded in this account since 2003.

    Funding of $25 million is included for a four year Prisoner Re-Entry 
Initiative, involving the Departments of Justice, Labor, and Housing and 
Urban Development, to help individuals exiting prison make a successful 
transition to community life and long-term employment.

                                

                            Samaritan Housing

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0400-0-1-604      2003 actual   2004 est.   2005 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

[[Page 530]]

    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 
initiative, a new competitive grant program that supports the 
Administration's efforts to end chronic homelessness by 2012. The Budget 
includes $50 million for housing grants in the Department of Housing and 
Urban Development (HUD) for this proposal. Together with the Departments 
of Health and Human Services (HHS), and Veterans Affairs (VA), HUD will 
support the most promising local strategies to move chronically homeless 
persons from the streets to safe permanent housing with supportive 
services. Supportive Services will be funded through HHS and VA, and 
housing will be funded through HUD.

                                

                 Rural Housing and Economic Development

    [For the Office of Rural Housing and Economic Development in the 
Department of Housing and Urban Development, $25,000,000 to remain 
available until expended, which amount shall be competitively awarded by 
June 1, 2004, to Indian tribes, State housing finance agencies, State 
community and/or economic development agencies, local rural nonprofits 
and community development corporations to support innovative housing and 
economic development activities in rural areas.] (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0324-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Rural Housing.....................          26          50
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          26          50
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          26          25
22.00 New budget authority (gross)......          25          25
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          51          50
23.95 Total new obligations.............         -26         -50
24.40 Unobligated balance carried 
        forward, end of year............          25
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          25          25
    Change in obligated balances:
72.40 Obligated balance, start of year..          34          40          70
73.10 Total new obligations.............          26          50
73.20 Total outlays (gross).............         -20         -20         -20
74.40 Obligated balance, end of year....          40          70          50
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       1
86.93 Outlays from discretionary 
        balances........................          20          19          20
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          20          20          20
    Net budget authority and outlays:
89.00 Budget authority..................          25          25
90.00 Outlays...........................          20          20          20
---------------------------------------------------------------------------

    This program encouraged new and innovative approaches to serving the 
housing and economic development needs of the nation's rural 
communities. The 2005 Budget proposes no new funding for this program.

                                

                   Emergency Food and Shelter Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0230-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
04.10 Direct Program Activity...........                                 153
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                 153
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 153
23.95 Total new obligations.............                                -153
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                 153
    Change in obligated balances:
73.10 Total new obligations.............                                 153
73.20 Total outlays (gross).............                                -153
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 153
    Net budget authority and outlays:
89.00 Budget authority..................                                 153
90.00 Outlays...........................                                 153
---------------------------------------------------------------------------

    Legislation will be submitted to transfer this program from the 
Federal Emergency Management Agency to HUD 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 continue to 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 will work 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 prevent duplication of benefits. The Budget proposes no 
changes in the program's design or operation. The 2005 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.] (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0170-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                      35           5
22.00 New budget authority (gross)......                     -30
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          35
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          35           5           5
24.40 Unobligated balance carried 
        forward, end of year............          35           5           5
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................                     -30
    Change in obligated balances:
72.40 Obligated balance, start of year..          61          10
73.20 Total outlays (gross).............         -16         -10
73.45 Recoveries of prior year 
        obligations.....................         -35
74.40 Obligated balance, end of year....          10
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................          16          10

[[Page 531]]

    Net budget authority and outlays:
89.00 Budget authority..................                     -30
90.00 Outlays...........................          16          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.

                                

                       Shelter Plus Care Renewals

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0232-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Renewal of Expiring Contracts.....          17           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          17           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          19           6           7
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4           2
22.21 Unobligated balance transferred to 
        other accounts..................                                  -7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          23           8
23.95 Total new obligations.............         -17          -1
24.40 Unobligated balance carried 
        forward, end of year............           6           7
    Change in obligated balances:
72.40 Obligated balance, start of year..          54          25
73.10 Total new obligations.............          17           1
73.20 Total outlays (gross).............         -42         -25
73.45 Recoveries of prior year 
        obligations.....................          -4          -2
74.40 Obligated balance, end of year....          25
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................          42          25
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          42          25
---------------------------------------------------------------------------

    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. Shelter Plus Care Renewals 
are funded in the Homeless Assistance Grants account in 2005. The budget 
transfers all remaining balances in this account to the Homeless 
Assistance Grant account where Shelter Plus Care renewals have been 
funded since 2003.

                                

Public enterprise funds:

                  Revolving Fund (Liquidating Programs)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Section 312 expenses..............                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 32.0)...................                       1           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          20          21          11
22.00 New budget authority (gross)......          12           1           1
22.40 Capital transfer to general fund..         -10         -10          -5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          22          12           7
23.95 Total new obligations.............                      -1          -1
24.40 Unobligated balance carried 
        forward, end of year............          21          11           6
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          12           1           1
    Change in obligated balances:
72.40 Obligated balance, start of year..           3           3           3
73.10 Total new obligations.............                       1           1
73.20 Total outlays (gross).............          -1          -1          -1
74.40 Obligated balance, end of year....           3           3           3
    Outlays (gross), detail:
86.98 Outlays from mandatory balances...           1           1           1
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -12          -1          -1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -11
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          18           7           5
1251  Repayments: Repayments and 
        prepayments.....................         -10          -1          -1
1263  Write-offs for default: Direct 
        loans...........................          -1          -1          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           7           5           3
---------------------------------------------------------------------------

    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. 

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4015-0-3-451    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          23             24
1207  Non-Federal assets: Advances and 
        prepayments.....................           1              1
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............          18              7
1602    Interest receivable.............           4
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -7             -7
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............          15
1606    Foreclosed property.............           2              2
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          17              2
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          41             27
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................           1              1
2207    Other...........................           8              8
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           9              9
    NET POSITION:
3100  Appropriated capital..............           3              2
3300  Cumulative results of operations..          29             16
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          32             18
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          41             27
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

[[Page 532]]

                                

Credit accounts:

          Community Development Loan Guarantees Program Account

                      (including transfer of funds)

    [For the cost of guaranteed loans, $6,325,000, to remain available 
until September 30, 2005, as authorized by section 108 of the Housing 
and Community Development Act of 1974, as amended: Provided, That such 
costs, including the cost of modifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974, as amended: 
Provided further, That these funds are available to subsidize total loan 
principal, any part of which is to be guaranteed, not to exceed 
$275,000,000, notwithstanding any aggregate limitation on outstanding 
obligations guaranteed in section 108(k) of the Housing and Community 
Development Act of 1974, as amended.]
    [In addition, for administrative expenses to carry out the 
guaranteed loan program, $1,000,000 which shall be transferred to and 
merged with the appropriation for ``Salaries and expenses''.] (Division 
G, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Community development loan 
        guarantee credit subsidy........           8           8           3
00.07 Upward Reestimate of Loan 
        Guarantee.......................                      24
00.08 Interest on reestimate............                       2
00.09 Administrative expense............           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 33.0)...................           9          35           3
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           7           5           3
22.00 New budget authority (gross)......           7          33
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          14          38           3
23.95 Total new obligations.............          -9         -35          -3
24.40 Unobligated balance carried 
        forward, end of year............           5           3
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           7           7
      Mandatory:

60.00   Appropriation...................                      26
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           7          33
    Change in obligated balances:
72.40 Obligated balance, start of year..          18          19          18
73.10 Total new obligations.............           9          35           3
73.20 Total outlays (gross).............          -7         -36          -9
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....          19          18          12
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           2
86.93 Outlays from discretionary 
        balances........................           6           8           9
86.97 Outlays from new mandatory 
        authority.......................                      26
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           7          36           9
    Net budget authority and outlays:
89.00 Budget authority..................           7          33
90.00 Outlays...........................           7          36           9
---------------------------------------------------------------------------

    Guaranteed Loans.--No funds are requested for the Community 
Development Loan Guarantee program (Section 108) in 2005.

    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.

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

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Community development loan 
        guarantee levels................         275         275
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......         275         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:
233001Community development loan 
        guarantee levels................           6           6
                                           ---------   ---------  ----------
233901Total subsidy budget authority....           6           6
    Guaranteed loan subsidy outlays:
234001Community development loan 
        guarantee levels................           6           9           9
                                           ---------   ---------  ----------
234901Total subsidy outlays.............           6           9           9
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Community development loan 
        guarantee levels................                      26
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................                      26
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Community development loan 
        guarantee levels................                      -7
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................                      -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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
08.02 Payment of Downward Reestimate to 
        Receipt Account.................                       5
08.04 Payment of Downward Reestimate to 
        Receipt Account (Interest)......                       2
                                           ---------   ---------  ----------
10.00   Total new obligations...........                       7
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          56          65          96
22.00 New financing authority (gross)...           9          38          13
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          65         103         109
23.95 Total new obligations.............                      -7
24.40 Unobligated balance carried 
        forward, end of year............          65          96         109
    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...           9          38          13
    Change in obligated balances:
72.40 Obligated balance, start of year..         -18         -19         -19
73.10 Total new obligations.............                       7
73.20 Total financing disbursements 
        (gross).........................                      -7
74.40 Obligated balance, end of year....         -19         -19         -19
87.00 Total financing disbursements 
        (gross).........................                       7
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal Sources...............          -6          -9          -9
88.00     Federal Sources: Payments from 
            Program Account.............                     -24
88.00     Federal sources: Upward 
            reestimate (Interest).......                      -2
88.25     Interest on uninvested funds..          -3          -3          -4
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -9         -38         -13
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........          -9         -31         -13
---------------------------------------------------------------------------

[[Page 533]]



             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........         273         273
2121  Limitation available from carry-
        forward.........................         298         183         130
2143  Uncommitted limitation carried 
        forward.........................        -237        -130
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................         334         326         130
2199  Guaranteed amount of guaranteed 
        loan commitments................         334         326         130
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       2,040       2,183       2,274
2231  Disbursements of new guaranteed 
        loans...........................         316         391         391
2251  Repayments and prepayments........        -173        -300        -350
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       2,183       2,274       2,315
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       2,183       2,274       2,315
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4096-0-3-451    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          38             46
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          38             46
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.          38             46
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          38             46
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          38             46
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

    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 
2005.

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...           3           2
69.47   Portion applied to repay debt...          -3          -2
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........
    Change in obligated balances:
72.40 Obligated balance, start of year..          -6          -6          -6
74.40 Obligated balance, end of year....          -6          -6          -6
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -2          -2
88.40     Non-Federal sources...........          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -3          -2
    Net budget authority and outlays:
89.00 Budget authority..................          -3          -2
90.00 Outlays...........................          -2          -2
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           6           2
1251  Repayments: Repayments and 
        prepayments.....................          -4          -2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           2
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          47          47          32
2251  Repayments and prepayments........                     -15         -15
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          47          32          17
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          47          12           2
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4097-0-3-451    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    Group heading
      ASSETS:

        Federal assets:
1101      Fund balances with Treasury...          -8             -6
          Investments in US securities:
1106        Receivables, net............           6              6
        Net value of assets related to 
            pre-1992 direct loans 
            receivable and acquired 
            defaulted guaranteed loans 
            receivable:
1701      Defaulted guaranteed loans, 
            gross.......................           5              2
                                        ------------ --------------  ------------  -------------
1704        Defaulted guaranteed loans 
              and interest receivable, 
              net.......................           5              2
                                        ------------ --------------  ------------  -------------
1799        Value of assets related to 
              loan guarantees...........           5              2
                                        ------------ --------------  ------------  -------------
1999      Total assets..................           3              2
      LIABILITIES:

2103    Federal liabilities: Debt.......           5              2
2207    Non-Federal liabilities: Other..          -2
                                        ------------ --------------  ------------  -------------
2999      Total liabilities.............           3              2
                                        ------------ --------------  ------------  -------------
4999    Total liabilities and net 
          position......................           3              2
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

    No funding is requested for new Section 108 loans in 2005.

    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

[[Page 534]]

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, and for 
supportive services associated with the housing, [$778,320,000] 
$773,300,000, plus recaptures and cancelled commitments, to remain 
available until September 30, [2006] 2008, of which amount [$30,000,000] 
$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 up to [$25,000,000] $30,000,000 shall be 
for grants under section 202b of the Housing Act of 1959 (12 U.S.C. 
1701q-2) for conversion of eligible projects under such section to 
assisted living or related use and for emergency capital repairs as 
determined by the Secretary: Provided, [That of the amount made 
available under this heading, $20,000,000 shall be available to the 
Secretary of Housing and Urban Development only for making competitive 
grants to private nonprofit organizations and consumer cooperatives for 
covering costs of architectural and engineering work, site control, and 
other planning relating to the development of supportive housing for the 
elderly that is eligible for assistance under section 202 of the Housing 
Act of 1959 (12 U.S.C. 1701q): Provided further,] That no less than 
[$470,000] $75,000 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 the provisions of section 202 governing the terms and 
conditions of project rental assistance, except that the initial 
contract term for such assistance shall not exceed 5 years in duration: 
Provided further, That all balances outstanding, as of September 30, 
[2003] 2004, for capital advances, including amendments to capital 
advances, for housing for the 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 
shall be transferred to and merged with the amounts for those purposes 
under this heading. (Division G, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0320-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Elderly and disabled housing 
        grants..........................       1,594         774         773
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       1,594         774         773
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       2,453       1,897       1,503
22.00 New budget authority (gross)......       1,027         774         773
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          10
22.21 Unobligated balance transferred to 
        other accounts..................                    -394
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,490       2,277       2,276
23.95 Total new obligations.............      -1,594        -774        -773
24.40 Unobligated balance carried 
        forward, end of year............       1,897       1,503       1,503
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,034         778         773
40.35   Appropriation permanently 
          reduced.......................          -7          -4
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,027         774         773
    Change in obligated balances:
72.40 Obligated balance, start of year..       4,634       5,227       4,058
73.10 Total new obligations.............       1,594         774         773
73.20 Total outlays (gross).............        -992        -755        -766
73.31 Obligated balance transferred to 
        other accounts..................                  -1,188
73.45 Recoveries of prior year 
        obligations.....................         -10
74.40 Obligated balance, end of year....       5,227       4,058       4,066
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................         992         755         766
    Net budget authority and outlays:
89.00 Budget authority..................       1,027         774         773
90.00 Outlays...........................         991         755         766
---------------------------------------------------------------------------

    This account consolidates activity under the Section 202 Housing for 
the Elderly Program and the Section 811 Housing for the Disabled Program 
for 2003. However, in 2004, Housing for the Elderly and Housing for the 
Disabled are appropriated as separate accounts. For 2005, a total of 
$773 million is proposed for housing for the elderly. Of this amount $30 
million is for the capital grant program to convert existing 202 
properties to assisted living under appropriate conditions. These funds 
for capital grants are available to existing HUD elderly subsidized 
(Section 202) projects that convert some or all units to Assisted 
Living.

    $53 million is provided for a service coordinator program that will 
serve both residents of HUD-assisted elderly housing, other eligible 
elderly residing in the neighborhood in which such projects are located 
on an exception basis, and residents of projects assisted under section 
811.

                                

                  Housing for Persons With Disabilities

                      (including transfer of funds)

    For capital advance contracts, including amendments to capital 
advance contracts, for supportive housing for persons with disabilities, 
as authorized by section 811 of the Cranston-Gonzalez National 
Affordable Housing Act, for project rental assistance for supportive 
housing for persons with disabilities under section 811(d)(2) of such 
Act, including amendments to contracts for such assistance and renewal 
of expiring contracts for such assistance for up to a 1-year term, and 
for supportive services associated with the housing for persons with 
disabilities as authorized by section 811(b)(1) of such Act, and for 
tenant-based rental assistance contracts entered into pursuant to 
section 811 of such Act, [$250,570,000] $248,700,000, plus recaptures 
and cancelled commitments to remain available until September 30, [2006] 
2008: Provided, That no less than [$470,000] $75,000 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 of the amount provided under 
this heading, other than amounts for renewal of expiring project-based 
or tenant-based rental assistance contracts, the Secretary may designate 
up to 25 percent for tenant-based rental assistance, as authorized by 
section 811 of such Act, (which assistance is five years in duration): 
Provided further, That the Secretary may waive the provisions of section 
811 governing the terms and conditions of project rental assistance and 
tenant-based assistance, except that the initial contract term for such 
assistance shall not exceed five years in duration: Provided further, 
That all balances outstanding, as of September 30, [2003] 2004, for 
capital advances, including amendments to capital advances, for 
supportive housing for persons with disabilities, as authorized by 
section 811, for project rental assistance for supportive housing for 
persons with disabilities, as authorized under section 811(d)(2), 
including amendments to contracts for such assistance and renewal of 
expiring contracts for such assistance, and for supportive services 
associated with the housing for persons with disabilities as authorized 
by section 811(b)(1), shall be transferred to and merged with the 
amounts for these purposes under this heading. (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

[[Page 535]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0237-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Housing for the Disabled..........                     249         249
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                     249         249
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                 394
22.00 New budget authority (gross)......                     250         249
22.22 Unobligated balance transferred 
        from other accounts.............                     394
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                     644         643
23.95 Total new obligations.............                    -249        -249
24.40 Unobligated balance carried 
        forward, end of year............                     394         394
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                     251         249
40.35   Appropriation permanently 
          reduced.......................                      -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............                     250         249
    Change in obligated balances:
72.40 Obligated balance, start of year..                               1,185
73.10 Total new obligations.............                     249         249
73.20 Total outlays (gross).............                    -252        -255
73.32 Obligated balance transferred from 
        other accounts..................                   1,188
74.40 Obligated balance, end of year....                   1,185       1,179
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................                     252         255
    Net budget authority and outlays:
89.00 Budget authority..................                     250         249
90.00 Outlays...........................                     252         255
---------------------------------------------------------------------------

    Prior to 2004, funding for the Housing for the Elderly and Housing 
for Persons with Disabilities were appropriated in one account, Housing 
for Special Populations. Beginning in 2004, they are appropriated as 
separate accounts.

                                

                      Housing Counseling Assistance

    For contract, grants, and other assistance other than loans, as 
authorized under section 106 of the Housing and Urban Development Act of 
1968, as amended, $45,000,000, to remain available until September 30, 
2006: Provided, That funds shall be used for providing counseling and 
advice to tenants and homeowners, both current and prospective, with 
respect to property maintenance, financial management and such other 
matters as may be appropriate to assist them in improving their housing 
conditions and meeting the responsibilities of tenancy or homeownership, 
including provisions for training and for support of voluntary agencies 
and services.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0156-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Housing Assistance................                                   5
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                   5
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  45
23.95 Total new obligations.............                                  -5
24.40 Unobligated balance carried 
        forward, end of year............                                  40
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                  45
    Change in obligated balances:
73.10 Total new obligations.............                                   5
73.20 Total outlays (gross).............                                  -5
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                   5
    Net budget authority and outlays:
89.00 Budget authority..................                                  45
90.00 Outlays...........................                                   5
---------------------------------------------------------------------------

    The Housing Counseling Assistance Program provides comprehensive 
housing counseling services to eligible homeowners and tenants, 
including home purchase, financial management, and rental counseling. 
This program has been funded through a set-aside under the HOME program 
appropriation for the past several years. However, in 2005, it is being 
proposed as a stand alone account.

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

    In 2005, a $5 million increase is requested to expand counseling 
services to families participating in FHA's new Zero Downpayment 
program.

                                

                     Other Assisted Housing Programs

                        Rental Housing Assistance

                              (rescission)

    [Up to $303,000,000 of recaptured section 236 budget authority 
resulting from prepayment of mortgages subsidized under section 236 of 
the National Housing Act (12 U.S.C. 1715z-1) shall be rescinded in 
fiscal year 2004: Provided, That the limitation otherwise applicable to 
the maximum payments that may be required in any fiscal year by all 
contracts entered into under section 236 is reduced in fiscal year 2004 
by not more than $303,000,000 in uncommitted balances of authorizations 
of contract authority provided for this purpose in prior appropriations 
Acts.] Of the amounts made available under the heading, ``Rent 
Supp1ement,'' in Public Law 98-63 for amendments to contracts under 
section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 
1701s) and section 236(f)(2) of the National Housing Act (12 U.S.C. 1715 
z-l) in State-aided, non-insured rental housing projects, $675,000,000 
is cancelled. (Division G, H.R. 2673, Consolidated Appropriations Bill, 
FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0206-0-1-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Rent supplement...................           6          10          10
00.02 Homeownership and rental housing 
        assistance (Sections 235 and 
        236)............................          24          34          34
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          30          44          44
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,422       1,293         990
22.00 New budget authority (gross)......        -100        -303        -675
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          51          44          44
22.75 Balance of contract authority 
        withdrawn.......................         -51
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,322       1,034         359
23.95 Total new obligations.............         -30         -44         -44
24.40 Unobligated balance carried 
        forward, end of year............       1,293         990         315
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         730         609         578
40.49   Portion applied to liquidate 
          contract authority............        -730        -609        -578
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............
49.35   Contract authority permanently 
          reduced.......................        -100        -303        -675
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................        -100        -303        -675
    Change in obligated balances:
72.40 Obligated balance, start of year..       8,279       7,618       7,009
73.10 Total new obligations.............          30          44          44
73.20 Total outlays (gross).............        -639        -609        -578
73.45 Recoveries of prior year 
        obligations.....................         -51         -44         -44
74.40 Obligated balance, end of year....       7,618       7,009       6,431
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................         639         609         578
    Net budget authority and outlays:
89.00 Budget authority..................        -100        -303        -675

[[Page 536]]

90.00 Outlays...........................         639         609         578
93.01 Unobligated balance, start of 
        year: Contract authority........       1,422       1,289         986
93.02 Unobligated balance, end of year: 
        Contract authority..............       1,289         986         311
93.03 Obligated balance, start of year: 
        Contract authority..............       8,044       7,296       6,643
93.04 Obligated balance, end of year: 
        Contract authority..............       7,296       6,643       6,021
---------------------------------------------------------------------------

                         OTHER ASSISTED HOUSING

                  Summary of Administrative Commitments

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Assistance contracts:
  Rent supplement...................           6          10          10
  Homeownership and rental housing 
    assistance (sections 235 and 
    236)............................          24          34          34
Administrative commitments, start of 
year................................           8           8           8
Administrative commitments, end of 
year................................          -8          -8          -8
                                    ------------------------------------
      Total obligations.............          30          44          44
                                    ====================================

    The Other Assisted Housing Account contains the programs listed 
below:

    Rent supplement.--Rent supplement assistance payments will continue 
to be made on behalf of qualified low-income tenants in approximately 
18,600 units which have not converted to section 8.

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

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

    IRP Rehab Grants.--Title V of the 1998 Appropriations Act (P.L. 105-
65) establishes a program of rehabilitation grants for owners of 
eligible projects.

    The table below reflects the consolidated outlay total for: the 
Housing Certificate Fund; the Public Housing Capital Fund; and the Other 
Assisted Housing account.

                         SUMMARY OF OUTLAYS \1\

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Subsidized housing programs, total..      25,254      26,575      26,516
Low-income housing assistance (sec. 
8)..................................      20,950      22,250      22,195
Public housing capital fund.........       3,665       3,716       3,743
Rent supplement.....................          55          51          47
Homeownership assistance (sec. 235).           8           6           5
Rental housing assistance (sec. 236)         566         542         517
College housing grants..............           9           9           9

    \1\ Includes outlays for contract renewals.

                                

Homeownership and Opportunity for People Everywhere Grants (HOPE Grants)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0196-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           5
22.00 New budget authority (gross)......          -5
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           1
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................          -6
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          -5
    Change in obligated balances:
72.40 Obligated balance, start of year..          19          16          14
73.20 Total outlays (gross).............          -2          -2          -2
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          16          14          12
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1
86.93 Outlays from discretionary 
        balances........................           1           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           2           2           2
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1
    Net budget authority and outlays:
89.00 Budget authority..................          -6
90.00 Outlays...........................           2           2           2
---------------------------------------------------------------------------

    The Homeownership and Opportunity for People Everywhere Program 
provided affordable homeownership opportunities for low-income families. 
Units were converted to homeownership from public and Indian housing 
properties in HOPE 1, from FHA-insured and Government-held multifamily 
properties in HOPE 2, and from Government-owned or -held single family 
properties in HOPE 3. HOPE Grants were used for property acquisition, 
rehabilitation, mortgage subsidies, security measures, and technical 
assistance. In addition, grants have been devoted to counseling and 
training of residents, and other activities intended to help them become 
economically self-sufficient homeowners. No funding is being requested 
for 2005. This schedule reflects the liquidation of prior year balances.

                                

             Payment to Manufactured Housing Fees Trust Fund

    For necessary expenses as authorized by the National Manufactured 
Housing Construction and Safety Standards Act of 1974, as amended (42 
U.S.C. 5401 et seq.), up to $13,000,000 to remain available until 
expended, to be derived from the Manufactured Housing Fees Trust Fund: 
Provided, That not to exceed the total amount appropriated under this 
heading shall be available from the general fund of the Treasury to the 
extent necessary to incur obligations and make expenditures pending the 
receipt of collections to the Fund pursuant to section 620 of such Act: 
Provided further, That the amount made available under this heading from 
the general fund shall be reduced as such collections are received 
during fiscal year [2004] 2005 so as to result in a final fiscal year 
[2004] 2005 appropriation from the general fund estimated at not more 
than $0 and fees pursuant to such section 620 shall be modified as 
necessary to ensure such a final fiscal year [2004] 2005 appropriation. 
(Division G, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0234-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           6           9           9
22.00 New budget authority (gross)......           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           9           9           9
24.40 Unobligated balance carried 
        forward, end of year............           9           9           9
    New budget authority (gross), detail:
      Discretionary:

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

[[Page 537]]



                                

Public enterprise funds:

                     Rental Housing Assistance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4041-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Refunds of Excess Income..........                       5           5
09.02 Payments to Flexible Subsidy Fund.          14
                                           ---------   ---------  ----------
10.00   Total new obligations...........          14           5           5
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          16          15          26
22.00 New budget authority (gross)......           6          16          14
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          29          31          40
23.95 Total new obligations.............         -14          -5          -5
24.40 Unobligated balance carried 
        forward, end of year............          15          26          35
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...           6          16          14
    Change in obligated balances:
72.40 Obligated balance, start of year..           7                     -11
73.10 Total new obligations.............          14           5           5
73.20 Total outlays (gross).............         -14         -16         -14
73.45 Recoveries of prior year 
        obligations.....................          -7
74.40 Obligated balance, end of year....                     -11         -20
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                      16          14
86.98 Outlays from mandatory balances...          14
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          14          16          14
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -6         -16         -14
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           8
---------------------------------------------------------------------------

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

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4041-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Refund of Excess Income...........                       5           5
94.0  Payments to Flexible Subsidy Fund.          14
                                           ---------   ---------  ----------
99.9    Total new obligations...........          14           5           5
---------------------------------------------------------------------------

                                

                          Flexible Subsidy Fund

                           (transfer of funds)

    From the Rental Housing Assistance Fund, all uncommitted balances of 
excess rental charges as of September 30, [2003] 2004, and any 
collections made during fiscal year [2004] 2005, shall be transferred to 
the Flexible Subsidy Fund, as authorized by section 236(g) of the 
National Housing Act, as amended. (Division G, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         291           7          27
22.00 New budget authority (gross)......        -284          20          20
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           7          27          47
24.40 Unobligated balance carried 
        forward, end of year............           7          27          47
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................        -308
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          24          20          20
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................        -284          20          20
    Change in obligated balances:
72.40 Obligated balance, start of year..           6           2         -18
73.20 Total outlays (gross).............          -4         -20         -20
74.40 Obligated balance, end of year....           2         -18         -38
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                      20          20
86.93 Outlays from discretionary 
        balances........................           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           4          20          20
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -14         -12         -12
88.20     Interest on Federal securities          -2
88.40     Non-Federal sources...........          -8          -8          -8
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -24         -20         -20
    Net budget authority and outlays:
89.00 Budget authority..................        -308
90.00 Outlays...........................         -20
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         658         656         652
1231  Disbursements: Direct loan 
        disbursements...................           4
1251  Repayments: Repayments and 
        prepayments.....................          -6          -4          -4
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         656         652         648
---------------------------------------------------------------------------

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

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


[[Page 538]]



                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4044-0-3-604    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         297              9
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         721            718
1602    Interest receivable.............          74             81
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -544           -592
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................         251            207
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         548            216
    LIABILITIES:
2207  Non-Federal liabilities: Other....           2
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           2
    NET POSITION:
3100  Appropriated capital..............         217           -308
3300  Cumulative results of operations..         329            524
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         546            216
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         548            216
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

                      Homeownership Assistance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4043-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          86
22.00 New budget authority (gross)......         -86
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................         -86
    Net budget authority and outlays:
89.00 Budget authority..................         -86
90.00 Outlays...........................
93.01 Unobligated balance, start of 
        year: Contract authority........          61
---------------------------------------------------------------------------

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

                                

                    Nehemiah Housing Opportunity Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4071-0-3-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3
22.00 New budget authority (gross)......          -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................          -3
    Change in obligated balances:
72.40 Obligated balance, start of year..          11          10           5
73.20 Total outlays (gross).............                      -5
74.40 Obligated balance, end of year....          10           5           5
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................                       5
    Net budget authority and outlays:
89.00 Budget authority..................          -3
90.00 Outlays...........................                       5
---------------------------------------------------------------------------

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

                                

Credit accounts:

                     Federal Housing Administration

                mutual mortgage insurance program account

                     (including transfers of funds)

    During fiscal year [2004, commitments to guarantee loans] 2005, loan 
guarantees to carry out the purposes of section 203(b) of the National 
Housing Act, as amended, shall not exceed a loan principal of 
$185,000,000,000.
    During fiscal year [2004] 2005, obligations to make direct loans to 
carry out the purposes of section 204(g) of the National Housing Act, as 
amended, shall not exceed $50,000,000: Provided, That the foregoing 
amount shall be for loans to nonprofit and governmental entities in 
connection with sales of single family real properties owned by the 
Secretary and formerly insured under the Mutual Mortgage Insurance Fund.
    For administrative expenses necessary to carry out the guaranteed 
and direct loan program, [$359,000,000] $366,000,000, of which not to 
exceed [$355,000,000] $362,000,000 shall be transferred to the 
appropriation for ``Salaries and expenses''; and not to exceed 
$4,000,000 shall be transferred to the appropriation for ``Office of 
Inspector General''. In addition, for administrative contract expenses, 
[$85,000,000] $70,900,000, of which no less than [$20,744,000] 
$7,002,000 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, That to the extent [guaranteed loan 
commitments] loan guarantees exceed $65,500,000,000 on or before April 
1, [2004] 2005, an additional $1,400 for administrative contract 
expenses shall be available for each $1,000,000 in additional 
[guaranteed loan commitments] loan guarantees (including a pro rata 
amount for any amount below $1,000,000), but in no case shall funds made 
available by this proviso exceed $30,000,000. (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.07 Reestimates of loan guarantee 
        negative subsidy................       1,863       5,947
00.08 Interest on reestimates of loan 
        guarantee subsidy...............         527       1,082
00.09 Administrative expenses, salaries 
        & expenses transfer.............         346         357         366
00.12 Non-overhead administrative 
        expenses for FHA contracts......          76          84          71
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,812       7,470         437
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         431         441         437
22.22 Unobligated balance transferred 
        from other accounts.............       2,390       7,029
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,821       7,470         437
23.95 Total new obligations.............      -2,812      -7,470        -437
23.98 Unobligated balance expiring or 
        withdrawn.......................          -9
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         434         444         437

[[Page 539]]

40.35   Appropriation permanently 
          reduced.......................          -3          -3
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         431         441         437
    Change in obligated balances:
72.40 Obligated balance, start of year..          61          72          72
73.10 Total new obligations.............       2,812       7,470         437
73.20 Total outlays (gross).............      -2,800      -7,470        -437
74.40 Obligated balance, end of year....          72          72          72
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         374         369         365
86.93 Outlays from discretionary 
        balances........................          36          72          72
86.98 Outlays from mandatory balances...       2,390       7,029
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,800       7,470         437
    Net budget authority and outlays:
89.00 Budget authority..................         431         441         437
90.00 Outlays...........................       2,800       7,470         437
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001MMI Fund, Direct loans............          50          50          50
                                           ---------   ---------  ----------
115901Total direct loan levels..........          50          50          50
    Direct loan subsidy (in percent):
132001MMI Fund, Direct loans............        0.00        0.00        0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....        0.00        0.00        0.00
    Direct loan subsidy budget authority:
133001MMI Fund, Direct loans............
                                           ---------   ---------  ----------
133901Total subsidy budget authority....
    Direct loan subsidy outlays:
134001MMI Fund, Direct loans............
                                           ---------   ---------  ----------
134901Total subsidy outlays.............
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001MMI Fund, Section 203(b)..........     147,395     143,521     151,877
215003Loan guarantee levels.............      17,605      41,479      33,123
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......     165,000     185,000     185,000
    Guaranteed loan subsidy (in percent):
232001MMI Fund, Section 203(b)..........       -2.53       -2.47       -1.73
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....       -2.53       -2.47       -1.73
    Guaranteed loan subsidy budget authority:
233001MMI Fund, Section 203(b)..........      -3,584      -3,545      -2,627
233003Loan guarantee levels.............
                                           ---------   ---------  ----------
233901Total subsidy budget authority....      -3,584      -3,545      -2,627
    Guaranteed loan subsidy outlays:
234001MMI Fund, Section 203(b)..........      -3,584      -3,545      -2,627
234003Loan guarantee levels.............
                                           ---------   ---------  ----------
234901Total subsidy outlays.............      -3,584      -3,545      -2,627
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001MMI Fund, Section 203(b)..........       2,390       7,029
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................       2,390       7,029
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001MMI Fund, Section 203(b)..........        -864
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................        -864
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................       2,821       7,470         436
358001Outlays from balances.............          36          72          72
359001Outlays from new authority........       2,764       7,398         365
---------------------------------------------------------------------------

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

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

    In 2005, FHA is requesting an aggregate limitation of $185 billion 
on loan guarantees and is proposing two new mortgage programs that 
reduce the biggest barriers to homeownership--the down payment and 
impaired credit. The Zero Downpayment mortgage allows first-time buyers 
with a strong credit record to finance 100 percent of the downpayment 
and closing costs. For borrowers with limited or weak credit histories, 
Payment Rewards initially charges a higher insurance premium, but 
reduces the borrower's premiums once they have established a history of 
regular payments, thereby demonstrating their creditworthiness.

    FHA is also proposing an amendment to section 203(c)(2)(A) of the 
National Housing Act to restrict payment of refunds of unearned premium 
charges. Current law mandates that the Secretary refund the unearned 
portion of the premium upon payment in full of the mortgage (e.g., 
through refinancing or prepayment). The proposal would limit refunds to 
only those borrowers who refinance with FHA. The restriction would 
affect mortgages insured on or after the date of enactment of the 
amendment.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................          54          64          64
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         368         377         373
41.0  Grants, subsidies, and 
        contributions...................       1,863       5,947
43.0  Interest and dividends............         527       1,082
                                           ---------   ---------  ----------
99.9    Total new obligations...........       2,812       7,470         437
---------------------------------------------------------------------------

                                

      FHA--Mutual Mortgage Insurance Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................                      50          50
00.02 Interest paid to Treasury.........                       2           2
00.03 Claims & other....................                       4           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........                      56          56
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3           3
22.00 New financing authority (gross)...                     105         105
22.60 Portion applied to repay debt.....                     -52         -49
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3          56          56
23.95 Total new obligations.............                     -56         -56
24.40 Unobligated balance carried 
        forward, end of year............           3
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............                      50          50
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                      55          55
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                     105         105
    Change in obligated balances:
73.10 Total new obligations.............                      56          56
73.20 Total financing disbursements 
        (gross).........................                     -56         -56
87.00 Total financing disbursements 
        (gross).........................                      56          56
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..                      -1          -1

[[Page 540]]

88.40     Repayment of principal........                     -50         -50
88.40     Repayment of interest.........                      -4          -4
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                     -55         -55
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                      50          50
90.00 Financing disbursements...........                       1           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 direct loans obligated in 1992 and thereafter (including 
modifications of direct loans that resulted from obligations in any 
year). The amounts in this account are a means of financing and are not 
included in the budget totals.

    The $50 million in 2005 direct loan limitation in the MMI Fund would 
permit the Department to use Purchase Money Mortgages (PMMs) to help 
finance the sale of acquired single family properties. HUD would extend 
credit for these single-family homes to community nonprofit 
organizations or local government entities who would be expected to sell 
the properties to low- and moderate-income buyers. The use of PMMs 
provides a tool for State and local nonprofit organizations to use in 
revitalizing communities, and creates enhanced homeownership 
opportunities for low- and moderate-income families.

      

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          50          50          50
1142  Unobligated direct loan limitation 
        (-).............................         -50
                                           ---------   ---------  ----------
1150    Total direct loan obligations...                      50          50
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........
1231  Disbursements: Direct loan 
        disbursements...................                      50          50
1251  Repayments: Repayments and 
        prepayments.....................                     -50         -50
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4242-0-3-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           3              3
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..
1405    Allowance for subsidy cost (-)..          -3             -3
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          -3             -3
                                        ------------ --------------  ------------  -------------
1999    Total assets....................
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

    FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Loan guarantee default claim 
        payments........................       7,290       4,555       4,451
00.02 Other capital investment & 
        operating expenses..............         993         801         480
00.08 Interest payments to Treasury.....         525         806         810
                                           ---------   ---------  ----------
00.91   Subtotal, capital/operating 
          expenses......................       8,808       6,162       5,741
      Negative Subsidy Activity:

08.01   Payment of negative subsidy to 
          liquidating account for new 
          business......................       3,583       3,545       2,627
08.02   Reestimate of loan guarantee 
          subsidy (downward reestimates)         763
08.04   Interest on reestimates of loan 
          guarantee subsidy.............         101
                                           ---------   ---------  ----------
08.91   Subtotal, subsidy activity......       4,447       3,545       2,627
                                           ---------   ---------  ----------
10.00   Total new obligations...........      13,255       9,707       8,368
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,599         308       4,868
22.00 New financing authority (gross)...      12,643      15,267       8,386
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          73
22.60 Portion applied to repay debt.....        -752      -1,000      -1,500
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      13,563      14,575      11,754
23.95 Total new obligations.............     -13,255      -9,707      -8,368
24.40 Unobligated balance carried 
        forward, end of year............         308       4,868       3,386
    New financing authority (gross), detail:
      Discretionary:

47.00   Authority to borrow.............       2,575         402         349
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............       7,678       7,836       8,037
      Mandatory:

69.00   Offsetting collections (cash)...       2,390       7,029
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................      12,643      15,267       8,386
    Change in obligated balances:
72.40 Obligated balance, start of year..          80         832         832
73.10 Total new obligations.............      13,255       9,707       8,368
73.20 Total financing disbursements 
        (gross).........................     -12,430      -9,707      -8,368
73.45 Recoveries of prior year 
        obligations.....................         -73
74.40 Obligated balance, end of year....         832         832         832
87.00 Total financing disbursements 
        (gross).........................      12,430       9,707       8,368
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Transfer of Reestimates from 
            reserves in Capital Reserve 
            account.....................      -2,390      -7,029
88.25     Interest on uninvested funds..        -192         -52          -9
88.40     Fees and premiums.............      -2,578      -3,460      -4,475
88.40     Recoveries on defaults........      -4,908      -4,324      -3,553
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........     -10,068     -14,865      -8,037
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       2,575         402         349
90.00 Financing disbursements...........       2,362      -5,158         331
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........     165,000     185,000     185,000
2142  Uncommitted loan guarantee 
        limitation......................     -17,605     -41,479     -33,123
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................     147,395     143,521     151,877
2199  Guaranteed amount of guaranteed 
        loan commitments................     147,395     143,521     151,877
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     435,353     382,234     436,461
2231  Disbursements of new guaranteed 
        loans...........................     147,395     143,521     151,877
2251  Repayments and prepayments........    -193,224     -84,739     -62,444
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -628      -1,008      -1,657
2262    Terminations for default that 
          result in acquisition of 
          property......................      -6,662      -3,491      -2,740
2263    Terminations for default that 
          result in claim payments......                     -56         -54
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     382,234     436,461     521,443
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..     382,234     436,461     521,443
----------------------------------------------------------------------------

[[Page 541]]


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

2310    Outstanding, start of year......           4         232
2331    Disbursements for guaranteed 
          loan claims...................         628       1,008       1,658
2351    Repayments of loans receivable..        -286
2364    Other adjustments, net..........        -114      -1,240      -1,658
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         232
---------------------------------------------------------------------------

                                                                


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

      

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4587-0-3-371          2002 
                                           actual\2\    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,679          1,140
        Investments in US securities:
1106      Receivables, net..............       2,390          7,029
      Non-Federal assets:

1201    Investments in non-Federal 
          securities, net...............                        116
1206    Receivables, net................                        258
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............         180            232
1504    Foreclosed property.............       2,138          2,773
1505    Allowance for subsidy cost......        -863           -841
                                        ------------ --------------  ------------  -------------
1599      Net value of assets related to 
            defaulted guaranteed loan...       1,455          2,164
1901  Other Federal assets: Other assets         267            353
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       5,791         11,060
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................         863
2103    Federal liabilities, Debt.......       6,312          8,135
2105    Other...........................           2
      Non-Federal liabilities:

2201    Accounts payable................         350            642
2204    Liabilities for loan guarantees.      -1,863          2,008
2207    Other...........................         127            275
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       5,791         11,060
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       5,791         11,060
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

         FHA--Mutual Mortgage Insurance Capital Reserve Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0236-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........      22,847      26,183      24,415
22.00 New budget authority (gross)......       5,726       4,706       3,902
22.21 Unobligated balance transferred to 
        other accounts..................      -2,390      -7,029          -9
22.22 Unobligated balance transferred 
        from other accounts.............                     555
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      26,183      24,415      28,308
24.40 Unobligated balance carried 
        forward, end of year............      26,183      24,415      28,308
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...       5,716       4,706       3,902
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          10
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........       5,726       4,706       3,902
    Change in obligated balances:
72.40 Obligated balance, start of year..        -267        -277        -277
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -10
74.40 Obligated balance, end of year....        -277        -277        -277
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources--negative 
            subsidy from new business...      -3,584      -3,545      -2,627
88.00     Federal sources--downward 
            reestimates.................        -864
88.00     Federal sources--PY 
            unobligated balance from 
            Liquidating Acct............        -172
88.20     Interest on Federal securities      -1,096      -1,161      -1,275
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -5,716      -4,706      -3,902
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -10
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................      -5,716      -4,706      -3,902
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...      21,249      23,819      23,819
92.02 Total investments, end of year: 
        Federal securities: Net.........      23,819      23,819      27,819
---------------------------------------------------------------------------

    In 2002, a new Capital Reserve account was established for the 
Mutual Mortgage Insurance Fund. Financial reserves, including 
securities, of the MMI Fund were transferred from the liquidating 
account to the new Capital Reserve account. In 2003, this new account 
started earning interest on Treasury investments, collecting negative 
subsidy and downward reestimates from the Financing account, and paying 
upward reestimates. The Liquidating account will now only reflect 
cashflows related to pre-1992 books of business.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-0236-0-1-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,699          2,421
        Investments in US securities:
1102      Treasury securities, net......      21,077         23,701
1106      Receivables, net..............         267            277
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      23,043         26,399
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................                      7,029
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                      7,029
    NET POSITION:
3300  Cumulative results of operations..      23,043         19,370
                                        ------------ --------------  ------------  -------------
3999    Total net position..............      23,043         19,370
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      23,043         26,399
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

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

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment:

01.03   Acquisition of real properties..         117         124          81
01.04   Acquisition of notes............           3
01.07   Capitalized expenses............          11
01.08   Loss mitigation activities......           5           1           1
01.09   Preforeclosure sale claims......                       2           1
                                           ---------   ---------  ----------
01.91     Total capital investment......         136         127          83
      Other:

02.01   PY unobligated balance to 
          Capital Reserve Acct..........         172
02.02 Other Operation expenses..........          -2
                                           ---------   ---------  ----------
02.91   Direct Program by Activities--
          Subtotal (1 level)............         170
                                           ---------   ---------  ----------
10.00   Total new obligations...........         306         127          83

[[Page 542]]

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         244         582
22.00 New budget authority (gross)......         176         100          74
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         468
22.21 Unobligated balance transferred to 
        other accounts..................                    -555
22.22 Unobligated balance transferred 
        from other accounts.............                                   9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         888         127          83
23.95 Total new obligations.............        -306        -127         -83
24.40 Unobligated balance carried 
        forward, end of year............         582
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         179         100          74
69.10   Change in uncollected acounts 
          receivable from Federal 
          sources.......................          -3
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         176         100          74
    Change in obligated balances:
72.40 Obligated balance, start of year..         949         456         456
73.10 Total new obligations.............         306         127          83
73.20 Total outlays (gross).............        -334        -127         -83
73.45 Recoveries of prior year 
        obligations.....................        -468
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           3
74.40 Obligated balance, end of year....         456         456         456
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         176         100          74
86.98 Outlays from mandatory balances...         158          27           9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         334         127          83
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Offsetting collections from 
            Federal sources.............          -3
88.40     Fees and premiums.............          -9         -19         -15
88.40     Proceeds from sale of real 
            property....................        -164         -81         -59
88.40     Recoveries on defaulted 
            mortgages...................          -4
88.40     Other.........................           1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -179        -100         -74
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           3
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         155          27           9
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           2           1
1251  Repayments: Repayments and 
        prepayments.....................
1264  Write-offs for default: Other 
        adjustments, net................          -1          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           1
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      31,968      24,952      21,428
2251  Repayments and prepayments........      -6,896      -3,398      -2,686
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....          -3
2262    Terminations for default that 
          result in acquisition of 
          property......................        -117        -124         -81
2263    Terminations for default that 
          result in claim payments......                      -2          -1
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      24,952      21,428      18,660
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      24,952      21,428      18,660
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......           7           1
2331    Disbursements for guaranteed 
          loan claims...................           3
2351    Repayments of loans receivable..          -3
2361    Write-offs of loans receivable..          -2
2364    Other adjustments, net..........          -4          -1
                                           ---------   ---------  ----------
2390      Outstanding, end of year......           1
---------------------------------------------------------------------------

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

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

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

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

    In 2002, a new MMI capital reserve account was established to 
maintain reserves required by statute that were previously deposited in 
the liquidating account.

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

                           PROGRAM HIGHLIGHTS

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Mortgage insurance written (in 
    fiscal year):
  Units.............................   1,264,293   1,162,829   1,148,273
  Amount (in millions of dollars)...    $147,395    $143,521    $151,877
                                    ====================================
Insurance maintenance: Outstanding 
    balance of insurance in force, 
    end of year:
  Mortgage insurance (in millions of 
    dollars)........................    $407,186    $457,889    $540,103
                                    ====================================

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4070-0-3-371          2002 
                                           actual\1\    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       1,193          1,038
      Non-Federal assets:

1206    Receivables, net................          26             26
1207    Advances and prepayments........                          5

[[Page 543]]

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

1601    Direct loans, gross.............           2
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -2
1701    Defaulted guaranteed loans, 
          gross.........................          16              9
1702    Interest receivable.............           1             16
1703    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -6             -4
                                        ------------ --------------  ------------  -------------
1704      Defaulted guaranteed loans and 
            interest receivable, net....          11             21
1706    Foreclosed property.............         133             33
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............         144             54
1901  Other Federal assets: Other assets          18
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,381          1,123
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................         437            425
2204    Liabilities for loan guarantees.         139            111
2207    Unearned revenue and advances, 
          and other.....................         299            206
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         875            742
    NET POSITION:
3300  Cumulative results of operations..         506            381
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         506            381
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,381          1,123
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.
    \1\ Estimated result on GAAP basis pending final audit.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................           8
25.2  Other services--PY unobligated 
        balance to Capital Reserve Acct.         172
32.0  Land and structures...............         116         124          81
33.0  Investments and loans.............           5
42.0  Insurance claims and indemnities..           5           3           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........         306         127          83
---------------------------------------------------------------------------

                                

                General and Special Risk Program Account

                     (including transfers of funds)

    For the cost of guaranteed loans, as authorized by sections 238 and 
519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including 
the cost of loan guarantee modifications, as that term is defined in 
section 502 of the Congressional Budget Act of 1974, as amended, 
[$15,000,000] $10,000,000, to remain available until expended: Provided, 
That these funds are available to subsidize total loan principal, any 
part of which is to be guaranteed, of up to [$25,000,000,000] 
$35,000,000,000: Provided, That of the amounts of such credit subsidy 
appropriated under this heading in prior years, $30,000,000 is 
rescinded.
    Gross obligations for the principal amount of direct loans, as 
authorized by sections 204(g), 207(l), 238, and 519(a) of the National 
Housing Act, shall not exceed $50,000,000, of which not to exceed 
$30,000,000 shall be for bridge financing in connection with the sale of 
multifamily real properties owned by the Secretary and formerly insured 
under such Act; and of which not to exceed $20,000,000 shall be for 
loans to nonprofit and governmental entities in connection with the sale 
of single-family real properties owned by the Secretary and formerly 
insured under such Act.
    In addition, for administrative expenses necessary to carry out the 
guaranteed and direct loan programs, [$229,000,000] $234,000,000, of 
which [$209,000,000] $214,000,000 shall be transferred to the 
appropriation for ``Salaries and expenses''; and of which $20,000,000 
shall be transferred to the appropriation for ``Office of Inspector 
General''.
    In addition, for administrative contract expenses necessary to carry 
out the guaranteed and direct loan programs, [$93,780,000] $81,600,000, 
of which no less than [$16,946,000] $5,200,000 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, 
That to the extent guaranteed loan commitments exceed $8,426,000,000 on 
or before April 1, [2004] 2005, an additional $1,980 for administrative 
contract expenses shall be available for each $1,000,000 in additional 
guaranteed loan commitments over $8,426,000,000 (including a pro rata 
amount for any increment below $1,000,000), but in no case shall funds 
made available by this proviso exceed $14,400,000. (Division G, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........           2           7          13
00.07 Reestimate of credit subsidy......         851         451
00.08 Interest on reestimates of loan 
        guarantee subsidy...............         316          66
00.09 Administrative expenses, salaries 
        & expenses transfer.............         222         229         234
00.10 Administrative contract expenses..          67          94          82
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,458         847         329
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          53          65          71
22.00 New budget authority (gross)......       1,497         853         296
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,550         918         367
23.95 Total new obligations.............      -1,458        -847        -329
23.98 Unobligated balance expiring or 
        withdrawn.......................         -26
24.40 Unobligated balance carried 
        forward, end of year............          65          71          40
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         332         338         326
40.35   Appropriation permanently 
          reduced (accross-the board 
          rescission)...................          -2          -2
40.36   Unobligated balance permanently 
          reduced (rescission)..........                                 -30
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         330         336         296
      Mandatory:

60.00   Appropriation...................       1,167         517
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,497         853         296
    Change in obligated balances:
72.40 Obligated balance, start of year..          77          87          63
73.10 Total new obligations.............       1,458         847         329
73.20 Total outlays (gross).............      -1,446        -871        -330
73.40 Adjustments in expired accounts 
        (net)...........................          -2
74.40 Obligated balance, end of year....          87          63          62
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         246         309         303
86.93 Outlays from discretionary 
        balances........................          33          45          27
86.97 Outlays from new mandatory 
        authority.......................       1,167         517
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,446         871         330
    Net budget authority and outlays:
89.00 Budget authority..................       1,497         853         296
90.00 Outlays...........................       1,446         871         330
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Single-family PMMs................           2           2           2
115002Multifamily bridge loans..........           2           2           2
115003Unused Limitation Authority.......          46          46          46
                                           ---------   ---------  ----------
115901Total direct loan levels..........          50          50          50
    Direct loan subsidy (in percent):
132001Single-family PMMs................        0.00        0.00        0.00
132002Multifamily bridge loans..........        0.00        0.00        0.00
132003Unused Limitation Authority.......        0.00        0.00        0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....        0.00        0.00        0.00
    Direct loan subsidy budget authority:
133001Single-family PMMs................
133002Multifamily bridge loans..........
133003Unused Limitation Authority.......
                                           ---------   ---------  ----------

[[Page 544]]


133901Total subsidy budget authority....
    Direct loan subsidy outlays:
134001Single-family PMMs................
134002Multifamily bridge loans..........
134003Unused Limitation Authority.......
                                           ---------   ---------  ----------
134901Total subsidy outlays.............
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Apartments NC/SC..................       2,243       3,000       3,100
215003221d3 NP/Coop owned apts..........                      75          50
215004Tax Credits NC....................       1,016       1,100       1,200
215005Mixed Income (Hope d4)............          45
215006Apartments Refinance..............       2,927       3,300       3,500
215007241a Supplemental Loans for Apts..           1          10          10
215008Operating Loss Loans for Apts 
        (plus 232)......................           4           4           4
215009HFA Risk Sharing..................         340         400         400
215012GSE Risk Sharing..................           7          50          50
215013FHA Full Insurance for Health Care 
        Facilities (plus 241/232).......         461         500         525
215014Health Care Refinances............       1,541       1,900       1,900
215015Hospitals.........................         241         896         900
215016Other Rental (incl 
        207(mhp),220,231)...............         129         325         400
215017Section 234: Condominiums.........      14,145      12,616      13,876
215018Section 203(k): Rehabilitation 
        Mortgages.......................         688         674         607
215019Title 1 Property Improvement......          61          75          75
215020Title 1 Manufactured Housing......          73          75          75
215021Standby authority.................       1,078                   8,328
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......      25,000      25,000      35,000
    Guaranteed loan subsidy (in percent):
232001Apartments NC/SC..................       -0.06       -0.62       -0.03
232003221d3 NP/Coop owned apts..........        3.93        5.35       10.58
232004Tax Credits NC....................       -0.65       -1.59       -4.45
232005Mixed Income (Hope d4)............       -0.33        0.00        0.00
232006Apartments Refinance..............       -2.17       -2.13       -2.46
232007241a Supplemental Loans for Apts..        6.35        8.60        6.22
232008Operating Loss Loans for Apts 
        (plus 232)......................       18.69       17.84       16.45
232009HFA Risk Sharing..................       -1.37       -1.67       -0.79
232012GSE Risk Sharing..................       -1.36       -1.08       -1.04
232013FHA Full Insurance for Health Care 
        Facilities (plus 241/232).......       -1.19       -0.22       -0.06
232014Health Care Refinances............       -1.97       -1.28       -1.80
232015Hospitals.........................       -2.76       -3.33       -2.02
232016Other Rental (incl 
        207(mhp),220,231)...............       -0.07       -0.08       -0.40
232017Section 234: Condominiums.........       -1.08       -1.03       -0.40
232018Section 203(k): Rehabilitation 
        Mortgages.......................       -0.46       -0.02        0.59
232019Title 1 Property Improvement......        2.02        1.86        1.92
232022Title 1 Manufactured Housing......       -0.47       -0.14        0.12
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....       -1.02       -1.17       -0.69
    Guaranteed loan subsidy budget authority:
233001Apartments NC/SC..................          -2         -19          -1
233003221d3 NP/Coop owned apts..........                       4           5
233004Tax Credits NC....................         -10         -18         -53
233005Mixed Income (Hope d4)............
233006Apartments Refinance..............         -49         -70         -86
233007241a Supplemental Loans for Apts..                       1           1
233008Operating Loss Loans for Apts 
        (plus 232)......................           1           1           1
233009HFA Risk Sharing..................          -4          -7          -3
233012GSE Risk Sharing..................                      -1          -1
233013FHA Full Insurance for Health Care 
        Facilities (plus 241/232).......          -9          -1
233014Health Care Refinances............         -34         -24         -34
233015Hospitals.........................          -5         -30         -18
233016Other Rental (incl 
        207(mhp),220,231)...............                                  -2
233017Section 234: Condominiums.........        -153        -130         -56
233018Section 203(k): Rehabilitation 
        Mortgages.......................          -3                       4
233019Title 1 Property Improvement......           1           1           1
233022Title 1 Manufactured Housing......
233023Standby authority.................          13
                                           ---------   ---------  ----------
233901Total subsidy budget authority....        -254        -293        -242
    Guaranteed loan subsidy outlays:
234001Apartments NC/SC..................          -2         -14          -5
234003221d3 NP/Coop owned apts..........                       3           5
234004Tax Credits NC....................         -10         -20         -44
234005Mixed Income (Hope d4)............
234006Apartments Refinance..............         -49         -71         -82
234007241a Supplemental Loans for Apts..                       1           1
234008Operating Loss Loans for Apts 
        (plus 232)......................           1           1           1
234009HFA Risk Sharing..................          -4          -8          -4
234012GSE Risk Sharing..................                                  -1
234013FHA Full Insurance for Health Care 
        Facilities (plus 241/232).......          -9          -3          -1
234014Health Care Refinances............         -34         -26         -32
234015Hospitals.........................          -5         -25         -21
234016Other Rental (incl 
        207(mhp),220,231)...............                                  -1
234017Section 234: Condominiums.........        -153        -150         -56
234018Section 203(k): Rehabilitation 
        Mortgages.......................          -3                       4
234019Title 1 Property Improvement......           1           2           1
234022Title 1 Manufactured Housing......
                                           ---------   ---------  ----------
234901Total subsidy outlays.............        -267        -310        -235
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235024General and Special Risk..........       1,167         517
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................       1,167         517
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237024General and Special Risk..........      -1,102        -138
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................      -1,102        -138
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority, S&E Transfer....         222         228         234
351001Budget authority..................          93          93          82
358001Outlays from balances.............          33          42          23
359001Outlays from new authority........         244         298         291
---------------------------------------------------------------------------

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

    As required by the Federal Credit Reform Act of 1990, this account 
records, for the single family, multifamily, hospital, and Title I 
insurance programs of FHA's General Insurance and Special Risk Insurance 
Funds, the subsidy costs associated with the loan guarantees committed 
or direct loans obligated in 1992 and thereafter (including 
modifications of loan guarantees or direct loans that resulted from 
obligations or commitments in any year), as well as administrative 
expenses of these programs. The subsidy amounts are estimated on a 
present value basis; the administrative expenses are accounted for on a 
cash basis.

    The Budget includes a reduction in the annual premium rate of 
multifamily Section 221(d)(4) loan guarantees from 50 basis points to 45 
basis points. This reflects improved estimates of these loan guarantee 
subsidy cost.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..          51          76          77
25.2  Other services....................          16          17           5
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         222         228         234
41.0  Grants, subsidies, and 
        contributions...................       1,169         526          13
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,458         847         329
---------------------------------------------------------------------------

                                

     FHA--General and Special Risk Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

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

00.01   Default claims and other........         918       1,311       1,385
00.05   Interest paid to Treasury.......         101         102         102
00.08   Asset sale negative subsidy 
          payment to the receipt account                      55          16
00.14   Contract Costs..................          22          20          20
                                           ---------   ---------  ----------

[[Page 545]]


00.91     Direct Program by Activities--
            Subtotal (1 level)..........       1,041       1,488       1,523
08.01   Payment of negative subsidy to 
          receipt account...............         270         297         247
08.02   Downward subsidy rate reestimate         774          99
08.04   Interest on subsidy rate 
          reestimates...................         328          39
                                           ---------   ---------  ----------
08.91     Direct Program by Activities--
            Subtotal (1 level)..........       1,372         435         247
                                           ---------   ---------  ----------
10.00     Total new obligations.........       2,413       1,923       1,770
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,419         751         761
22.00 New financing authority (gross)...       1,742       1,933       1,462
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,165       2,684       2,223
23.95 Total new obligations.............      -2,413      -1,923      -1,770
24.40 Unobligated balance carried 
        forward, end of year............         751         761         453
    New financing authority (gross), detail:
      Discretionary:

47.00   Authority to borrow.............         315         400         400
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       1,314       1,833       1,362
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................        -158
68.47   Portion applied to repay debt...        -896        -300        -300
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         260       1,533       1,062
      Mandatory:

69.00   Offsetting collections (cash)...       1,167
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,742       1,933       1,462
    Change in obligated balances:
72.40 Obligated balance, start of year..        -158         108
73.10 Total new obligations.............       2,413       1,923       1,770
73.20 Total financing disbursements 
        (gross).........................      -2,301      -2,031      -1,770
73.45 Recoveries of prior year 
        obligations.....................          -4
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         158
74.40 Obligated balance, end of year....         108
87.00 Total financing disbursements 
        (gross).........................       2,301       2,031       1,770
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.          -3          -7         -12
88.00     Repayment of principal and 
            interest from liquidating 
            account.....................         -15         -16         -10
88.00     Subsidy reestimate from 
            program account.............      -1,167        -517
88.00     Federal resources -other......        -172
88.25     Interest on uninvested funds..        -106        -107        -107
88.40     Fees and premiums.............        -514        -372        -418
88.40     Recoveries on defaulted 
            mortgages...................         -46         -84        -104
88.40     Title I recoveries............         -28          -4          -2
88.40     Single family property 
            recoveries..................        -269        -494        -374
88.40     Gross Proceeds from sale of 
            mortgage notes (liquidating)                     -55         -16
88.40     Gross Proceeds from Mortgage 
            Note Sales..................        -122        -176        -318
88.40     Multifamily property 
            recoveries..................          -1          -1          -1
88.40     Non-Federal Resources-other...         -38
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -2,481      -1,833      -1,362
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............         158
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............        -581         100         100
90.00 Financing disbursements...........        -180         198         408
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........      25,000      25,000      35,000
2142  Uncommitted loan guarantee 
        limitation......................      -1,078                  -8,328
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      23,922      25,000      26,672
2199  Guaranteed amount of guaranteed 
        loan commitments................      23,922      25,000      26,672
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      74,738      72,048      76,360
2231  Disbursements of new guaranteed 
        loans...........................      23,260      24,789      28,635
2251  Repayments and prepayments........     -25,031     -19,166     -17,427
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -416        -785        -929
2262    Terminations for default that 
          result in acquisition of 
          property......................        -362        -518        -447
2263    Terminations for default that 
          result in claim payments......        -141          -8          -9
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      72,048      76,360      86,183
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      72,048      76,360      86,183
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         601         584       1,184
2331    Disbursements for guaranteed 
          loan claims...................         416         785         929
2351    Repayments of loans receivable..        -233        -185        -315
2361    Write-offs of loans receivable..        -200
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         584       1,184       1,798
---------------------------------------------------------------------------

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4077-0-3-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,260            859
        Investments in US securities:
1106      Receivables, net..............       1,194            531
      Non-Federal assets:

1201    Investments in non-Federal 
          securities, net...............                          4
1206    Receivables, net................          21             24
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............         637            584
1502    Interest receivable.............          23             48
1504    Foreclosed property.............         206            420
1505    Allowance for subsidy cost......        -593           -685
                                        ------------ --------------  ------------  -------------
1599      Net value of assets related to 
            defaulted guaranteed loan...         273            367
1901  Other Federal assets: Other assets         176              9
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,924          1,794
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable 
          Intragovernmental.............       1,102            138
2103    Debt............................       1,241            660
      Non-Federal liabilities:

2201    Accounts payable................          19             85
2202    Interest payable................           3              9
2204    Liabilities for loan guarantees.         535            809
2207    Other...........................          24             93
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,924          1,794
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,924          1,794
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

[[Page 546]]

                                

       FHA--General and Special Risk Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................                       3           3
00.02 Interest paid to Treasury.........                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........                       4           4
    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                       3           3
23.95 Total new obligations.............                      -4          -4
    New financing authority (gross), detail:
      Mandatory:

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

        Discretionary:
68.00     Offsetting collections (cash).                       4           4
68.47     Portion applied to repay debt.                      -4          -4
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                       3           3
    Change in obligated balances:
73.10 Total new obligations.............                       4           4
73.20 Total financing disbursements 
        (gross).........................                      -4          -4
87.00 Total financing disbursements 
        (gross).........................                       4           4
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.40     Interest received on loans....                      -1          -1
88.40     Repayment of Principal........                      -3          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                      -4          -4
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                      -1          -1
90.00 Financing disbursements...........
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          50          50          50
1142  Unobligated direct loan limitation 
        (-).............................         -50         -47         -47
                                           ---------   ---------  ----------
1150    Total direct loan obligations...                       3           3
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           2           2           1
1231  Disbursements: Direct loan 
        disbursements...................                       3           3
1251  Repayments: Repayments and 
        prepayments.....................                      -4          -4
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           2           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 direct loans obligated in 1992 and thereafter (including 
loan modifications) for FHA's General Insurance and Special Risk 
Insurance Fund programs. The amounts in this account are a means of 
financing and are not included in the budget totals. As required by the 
Federal Credit Reform Act of 1990, no administrative expenses can be 
recorded in the financing account.

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4105-0-3-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

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

2103    Treasury borrowing..............           1              1
2104    Resources payable to Treasury...           1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           2              2
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           2              2
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

          FHA--Loan Guarantee Recovery Fund--Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

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

69.00   Offsetting collections (cash)...                       2
    Offsets:
      Against gross financing authority and 
          financing disbursements:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -2
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                      -2
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........
2121  Limitation available from carry-
        forward.........................           4           4
2143  Uncommitted limitation carried 
        forward.........................          -4
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                       4
2199  Guaranteed amount of guaranteed 
        loan commitments................                       4
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........           5           5           6
2231  Disbursements of new guaranteed 
        loans...........................                       4
2251  Repayments and prepayments........                      -3          -3
                                           ---------   ---------  ----------
2290    Outstanding, end of year........           5           6           3
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..           5           6           3
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4106-0-3-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Investments in US securities:

1102    Federal assets: Treasury 
          securities, par...............           3              3
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1504    Foreclosed property.............           1
                                        ------------ --------------  ------------  -------------

[[Page 547]]


1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............           1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           4              3
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           4              3
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           4              3
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           4              3
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

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

                                

    FHA--General and Special Risk Insurance Funds Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.02   Interest on debentures..........          45          45          45
00.03   Other operating costs...........                      10          10
00.05   Legislative savings repayments..                      16          10
00.06   PAE & 3rd party restructuring 
          fees..........................          63          32          21
                                           ---------   ---------  ----------
00.91     Total operating expenses......         108         103          86
      Capital investment: Claims and other:

01.01   Acquisition of defaulted Title I 
          notes.........................         -13          -6          -3
01.02   Assignment of mortgages.........         176         130         103
01.05   Mark-To-Market Restructures.....         641         456         281
01.09   Acquisition of real properties..           3           6           4
01.10   Capitalized Expenses............         112          94          74
01.12   Upfront Grants..................          44          70          65
01.13   Other...........................           6           6           6
01.14   M&M Contract....................           3           3           3
01.16   Payment to the Financing 
          Account-Asset Sale............                      55          16
                                           ---------   ---------  ----------
01.91     Total capital investment......         972         814         549
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,080         917         635
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         531          84
22.00 New budget authority (gross)......       1,348       1,417       1,135
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          39
22.40 Capital transfer to general fund..                     -84
22.60 Portion applied to repay debt.....        -755        -500        -500
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,163         917         635
23.95 Total new obligations.............      -1,080        -917        -635
24.40 Unobligated balance carried 
        forward, end of year............          84
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         469         386         186
67.10   Authority to borrow.............         205         500         500
69.00 Offsetting collections (cash).....         674         531         449
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,348       1,417       1,135
    Change in obligated balances:
72.40 Obligated balance, start of year..         886         600         228
73.10 Total new obligations.............       1,080         917         635
73.20 Total outlays (gross).............      -1,327      -1,289        -704
73.45 Recoveries of prior year 
        obligations.....................         -39
74.40 Obligated balance, end of year....         600         228         159
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,327         689         476
86.98 Outlays from mandatory balances...                     600         228
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,327       1,289         704
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.40     Fees and premiums.............        -106         -96         -78
88.40     Multifamily foreclosure sales.        -147        -112         -96
88.40     Proceeds from sale of real 
            property....................         -26         -20         -19
88.40     Proceeds from sale of mortgage 
            notes.......................        -118         -78         -55
88.40     Recoveries on defaulted 
            mortgages...................        -257        -200        -175
88.40     Interest, dividends and 
            revenue.....................          -9         -12         -13
88.40     Other collections.............         -11         -13         -13
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -674        -531        -449
    Net budget authority and outlays:
89.00 Budget authority..................         674         886         686
90.00 Outlays...........................         653         758         255
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...           2           4           6
92.02 Total investments, end of year: 
        Federal securities: Par value...           4           6           6
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          26          21          16
1251  Repayments: Repayments and 
        prepayments.....................          -5          -5          -5
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          21          16          11
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      21,319      17,070      12,630
2251  Repayments and prepayments........      -3,428      -3,848      -1,349
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -817        -586        -384
2262    Terminations for default that 
          result in acquisition of 
          property......................          -4          -6          -4
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      17,070      12,630      10,893
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      17,070      12,630      10,893
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......       2,226       2,415       2,362
2331    Disbursements for guaranteed 
          loan claims...................         817         586         384
2351    Repayments of loans receivable..        -375        -277        -230
2361    Write-offs of loans receivable..        -109        -362        -354
2364    Other adjustments, net..........        -144
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       2,415       2,362       2,162
---------------------------------------------------------------------------

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

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

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

    Section 571 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1998 
established the Office of Multifamily Housing Assistance Restructuring 
within HUD to administer

[[Page 548]]

the program of mortgage and rental assistance restructuring. Included in 
the budget estimates for this account are projections for the financial 
operations of the office.

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

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4072-0-3-371          2002 
                                           actual\1\    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,415            681
        Investments in US securities:
1102      Treasury securities, par......           2              4
      Non-Federal assets:

1201    Investments in non-Federal 
          securities, net...............                          2
1206    Receivables, net................          17             49
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............          25             21
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -8
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          17             21
1701    Defaulted guaranteed loans, 
          gross.........................       2,285          2,420
1702    Interest receivable.............         107            145
1703    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -978           -886
                                        ------------ --------------  ------------  -------------
1704      Defaulted guaranteed loans and 
            interest receivable, net....       1,414          1,679
1705    Allowance for uncollectables 
          from foreclosed property......           2
1706    Foreclosed property.............          68              9
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............       1,484          1,688
1901  Other Federal assets: Other assets         120            132
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,055          2,577
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          28             14
2105    Other Liabilities...............         175
      Non-Federal liabilities:

2201    Accounts payable................         384             54
2202    Interest payable................           7             16
2203    Debt............................         284            265
2204    Liabilities for loan guarantees.       4,950          3,323
2207    Unearned revenue and advances...         400            370
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       6,228          4,042
    NET POSITION:
3100  Appropriated capital..............       1,938          2,026
3300  Cumulative results of operations..      -5,111         -3,491
                                        ------------ --------------  ------------  -------------
3999    Total net position..............      -3,173         -1,465
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,055          2,577
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.
    \1\ Preliminary pending final audit.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................          72          52          41
32.0  Land and structures...............         159         169         143
33.0  Investments and loans.............         804         580         380
43.0  Interest and dividends............          45          45          45
44.0  Repayments to financing account...                      71          26
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,080         917         635
---------------------------------------------------------------------------

                                

     Housing for the Elderly or Handicapped Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment:

00.02   Maintenance security and 
          collateral....................           5           5           5
01.01 Operating expenses: Interest on 
        borrowings......................         215         188         161
                                           ---------   ---------  ----------
10.00   Total new obligations...........         220         193         166
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          90         609
22.00 New budget authority (gross)......         829         193         166
22.40 Capital transfer to general fund..         -90         -25
22.60 Portion applied to repay debt.....                    -584
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         829         193         166
23.95 Total new obligations.............        -220        -193        -166
24.40 Unobligated balance carried 
        forward, end of year............         609
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         829         770         770
69.47   Portion applied to repay debt...                    -577        -604
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         829         193         166
    Change in obligated balances:
72.40 Obligated balance, start of year..         128         111          16
73.10 Total new obligations.............         220         193         166
73.20 Total outlays (gross).............        -237        -288        -166
74.40 Obligated balance, end of year....         111          16          16
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                     193         166
86.98 Outlays from mandatory balances...         237          95
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         237         288         166
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -643        -590        -590
88.40     Non-Federal sources...........        -186        -180        -180
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -829        -770        -770
    Net budget authority and outlays:
89.00 Budget authority..................                    -577        -604
90.00 Outlays...........................        -592        -482        -604
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       7,647       7,449       7,269
1231  Disbursements: Direct loan 
        disbursements...................
1251  Repayments: Repayments and 
        prepayments.....................        -186        -180        -180
1264  Write-offs for default: Other 
        adjustments, net................         -12
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       7,449       7,269       7,089
---------------------------------------------------------------------------
    Note.--Amounts for direct loan obligations reflect reservations of 
section 202 funds. Loan obligations shown under the program and 
financing schedule reflect loans that have reached the initial closing 
stage of processing.

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

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

[[Page 549]]

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

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

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

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4115-0-3-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         218            719
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       7,646          7,449
1602    Interest receivable.............          88             79
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -19            -18
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............       7,715          7,510
1606    Acquired Real Property..........           9              8
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       7,724          7,518
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       7,942          8,237
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................         126            108
2103    Debt............................       2,640          2,640
2104    Resources payable to Treasury...       4,381          4,291
2207  Non-Federal liabilities: Other....          15             17
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       7,162          7,056
    NET POSITION:
3100  Unexpended Appropriations.........          22             19
3300  Revolving Fund: Cumulative results 
        of operations...................         758          1,162
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         780          1,181
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       7,942          8,237
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
32.0  Land and structures...............           5           5           5
43.0  Interest and dividends............         215         188         161
                                           ---------   ---------  ----------
99.9    Total new obligations...........         220         193         166
---------------------------------------------------------------------------

                                

                  Manufactured Housing Fees Trust Fund

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-8119-0-7-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.00 Mobile home inspection and 
        monitoring fees, Manufactured 
        housing.........................          10          13          13
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          10          13          13
    Appropriations:
05.00 Manufactured housing fees trust 
        fund............................         -10         -13         -13
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-8119-0-7-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Transfer to salaries and expenses.           1           2           2
00.02 Other program costs...............           8          11          12
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................           9          13          14
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           3           3
22.00 New budget authority (gross)......          10          13          13
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          12          16          16
23.95 Total new obligations.............          -9         -13         -14
24.40 Unobligated balance carried 
        forward, end of year............           3           3           2
    New budget authority (gross), detail:
      Discretionary:

40.26   Appropriation (trust fund)......          10          13          13
    Change in obligated balances:
72.40 Obligated balance, start of year..                       3           3
73.10 Total new obligations.............           9          13          14
73.20 Total outlays (gross).............          -7         -13         -13
74.40 Obligated balance, end of year....           3           3           4
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           4          10          10
86.93 Outlays from discretionary 
        balances........................           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           7          13          13
    Net budget authority and outlays:
89.00 Budget authority..................          10          13          13
90.00 Outlays...........................           7          13          13
---------------------------------------------------------------------------

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

    Fees are charged to the manufacturers for each manufactured home 
transportable section produced and will be used to fund the costs of all 
authorized activities necessary for the consensus committee, HUD, and 
its agents to carry out all aspects of the manufactured housing 
legislation. Fees are deposited in a trust fund administered by the 
Department, and a portion of the fee receipts are transferred to the 
salaries and expenses account to defray the direct administrative 
expenses of the program. In 2003, 250,826 transportable sections were 
produced, for a total of 136,891 manufactured homes.

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

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

    The Interstate Land Sales Full Disclosure Act provides protection to 
the public with respect to purchases or leases of subdivision lots. 
Statements of record must be filed with the

[[Page 550]]

Secretary before subdivisions with 100 or more lots may be sold in 
interstate commerce, except when the subdivision is eligible for 
exemption.

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

    An estimated 600 filings in 2005 will result in $350,000 in fees.

                                


 
                GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

                              Federal Funds

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

    The Budget proposes two new FHA mortgage insurance programs. These 
programs will increase demand for FHA mortgages and thus increase the 
volume of Ginnie Mae guarantees of securities backed by FHA mortgages. 
In 2005, the new FHA programs increase Ginnie Mae commitments by 
approximately $10 billion, resulting in an additional $23 million in 
negative subsidy.

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

    Operating results.--Fee collections, interest, and other income are 
expected to exceed expenses by $733 million in 2004 and $784 million in 
2005.

                                

Credit accounts:

 Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

                      (including transfer of funds)

    New commitments to issue guarantees to carry out the purposes of 
section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)), 
shall not exceed $200,000,000,000, to remain available until September 
30, [2005] 2006.
    For administrative expenses necessary to carry out the guaranteed 
mortgage-backed securities program, $10,986,000, to be derived from the 
GNMA guarantees of mortgage-backed securities guaranteed loan receipt 
account, of which not to exceed [$10,695,000] $10,986,000, shall be 
transferred to the appropriation for ``Salaries and expenses''. 
(Division G, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............       1,696       2,084       2,478
    Receipts:
02.20 GNMA-guarantees of mortgage backed 
        securities guarantee loans, N...         398         405         368
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       2,094       2,489       2,846
    Appropriations:
05.00 Guarantees of mortgage-backed 
        securities loan guarantee 
        program.........................         -10         -11         -11
                                           ---------   ---------  ----------
07.99 Balance, end of year..............       2,084       2,478       2,835
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Administrative expenses, salaries 
        and expenses....................          10          11          11
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.3)...................          10          11          11
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          10          11          11
23.95 Total new obligations.............         -10         -11         -11
    New budget authority (gross), detail:
      Discretionary:

40.20   Appropriation (special fund)....          10          11          11
    Change in obligated balances:
73.10 Total new obligations.............          10          11          11
73.20 Total outlays (gross).............         -10         -11         -11
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          10          11          11
    Net budget authority and outlays:
89.00 Budget authority..................          10          11          11
90.00 Outlays...........................          10          11          11
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Ginnie Mae mortgage-backed 
        securities......................     215,818     150,000     160,000
215002Standby commitment authority......      37,052      50,000      40,000
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......     252,870     200,000     200,000
    Guaranteed loan subsidy (in percent):
232001Ginnie Mae mortgage-backed 
        securities......................       -0.33       -0.27       -0.23
232002Standby commitment authority......        0.00        0.00        0.00
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....       -0.33       -0.27       -0.23
    Guaranteed loan subsidy budget authority:
233001Ginnie Mae mortgage-backed 
        securities......................        -398        -405        -368
233002Standby commitment authority......
                                           ---------   ---------  ----------
233901Total subsidy budget authority....        -398        -405        -368
    Guaranteed loan subsidy outlays:
234001Ginnie Mae mortgage-backed 
        securities......................        -398        -405        -368
234002Standby commitment authority......
                                           ---------   ---------  ----------
234901Total subsidy outlays.............        -398        -405        -368
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................          10          11          11
359001Outlays from new authority........          10          11          11
---------------------------------------------------------------------------

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

                                

       Guarantees of Mortgage-Backed Securities Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Operating expenses................           2           2          17
00.03 Capital investment................          63          25          28
                                           ---------   ---------  ----------
00.91   Subtotal, Operating expenses and 
          capital investment............          65          27          45
08.01 Payment to receipt account for 
        negative subsidy................         398         405         368
                                           ---------   ---------  ----------
10.00   Total new obligations...........         463         432         413
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         760         783         809
22.00 New financing authority (gross)...         486         457         491
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,246       1,240       1,300
23.95 Total new obligations.............        -463        -432        -413

[[Page 551]]

24.40 Unobligated balance carried 
        forward, end of year............         783         809         887
    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         486         457         491
    Change in obligated balances:
72.40 Obligated balance, start of year..          45          55         110
73.10 Total new obligations.............         463         432         413
73.20 Total financing disbursements 
        (gross).........................        -452        -377        -406
74.40 Obligated balance, end of year....          55         110         116
87.00 Total financing disbursements 
        (gross).........................         452         377         406
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..         -53         -39         -42
88.40     Guarantee Fees................        -337        -330        -355
88.40     Commitment and other fees.....         -49         -38         -40
88.40     Multiclass fees...............         -31         -34         -36
88.40     Repayment of advances.........         -14         -15         -17
88.40     Servicing Fees................          -2          -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -486        -457        -491
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........         -34         -80         -85
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........     200,000     200,000     200,000
2121  Limitation available from carry-
        forward.........................      59,419      37,052
2143  Uncommitted limitation carried 
        forward.........................     -43,601
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................     215,818     237,052     200,000
2199  Guaranteed amount of guaranteed 
        loan commitments................     215,818     237,052     200,000
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     568,229     473,799     539,584
2231  Disbursements of new guaranteed 
        loans...........................     215,818     150,000     160,000
2251  Repayments and prepayments........    -310,248     -84,215    -144,108
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     473,799     539,584     555,476
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..     473,798     539,583     555,475
---------------------------------------------------------------------------

    Operating Results.--Fee collections, interest, and other income are 
expected to exceed expenses by $34 million in 2004 and $104 million in 
2005. These amounts will be retained against losses that may be incurred 
on guarantees.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4240-0-3-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         805            839
1206  Non-Federal assets: Receivables, 
        net.............................          30             26
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............           4             50
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -2            -13
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................           2             37
1803  Other Federal assets: Property, 
        plant and equipment, net........           9             69
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         846            971
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................          75            151
2207    Other...........................          21             10
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          96            161
    NET POSITION:
3300  Cumulative results of operations..         750            810
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         750            810
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         846            971
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.
    Note.--Ginnie Mae guarantees the timely payment of principal and 
interest installments on securities which are backed by FHA-insured, 
Rural Housing Service-insured, and VA-guaranteed mortgages. Such 
guarantees are excluded from the Government total of guaranteed 
obligations duplicating FHA, Rural Housing Service, and VA guarantees.

                                

      Guarantees of Mortgage-Backed Securities Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Administrative contract expenses..          63          66          55
      Operating expenses:

00.02   Default expenses................                      11           1
00.03   Servicing expenses..............           2           1
                                           ---------   ---------  ----------
00.91     Total operating expenses......          65          78          56
      Capital investment:

01.01   Advances of guaranty payments...          28          49          47
                                           ---------   ---------  ----------
10.00   Total new obligations...........          93         127         103
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       6,950       7,229       7,562
22.00 New budget authority (gross)......         372         460         456
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       7,322       7,689       8,018
23.95 Total new obligations.............         -93        -127        -103
24.40 Unobligated balance carried 
        forward, end of year............       7,229       7,562       7,915
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                      66          55
69.00 Offsetting collections (cash).....         372         394         401
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         372         460         456
    Change in obligated balances:
72.40 Obligated balance, start of 
        year\1\.........................         -39         -28         -99
73.10 Total new obligations.............          93         127         103
73.20 Total outlays (gross).............         -83        -198        -102
74.40 Obligated balance, end of year....         -28         -99         -98
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          83         198         102
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.20     Interest on Federal securities        -351        -369        -377
88.40     Repayments of guaranteed 
            payments....................         -20         -24         -23
88.40     Servicing income..............          -1          -1          -1
88.40     Repayments on mortgages.......
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -372        -394        -401
    Net budget authority and outlays:
89.00 Budget authority..................                      66          55
90.00 Outlays...........................        -289        -196        -299
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...       6,958       7,241       7,496
92.02 Total investments, end of year: 
        Federal securities: Par value...       7,241       7,496       7,779
---------------------------------------------------------------------------
    \1\ This line nets unpaid obligations and offsetting collections 
from new Federal sources.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         102         105         126
1232  Disbursements: Purchase of loans 
        assets from the public..........          27          49          47
1252  Repayments: Proceeds from loan 
        asset sales to the public or 
        discounted......................         -21         -24         -23
1263  Write-offs for default: Direct 
        loans...........................          -3          -4         -21
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         105         126         129
---------------------------------------------------------------------------



[[Page 552]]



             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         122         109          95
2251  Repayments and prepayments........         -13         -14         -14
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         109          95          81
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         109          95          81
---------------------------------------------------------------------------

    Operating results.--Fee collections, interest, and other income are 
expected to exceed expenses by $294 million in 2004 and $312 million in 
2005. These amounts will be retained to cover future year expenses and 
as a reserve against losses that may be incurred on guarantees.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   86-4238-0-3-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

        Investments in US securities:
1102      Treasury securities, par......       6,935          7,216
1106      Receivables, net..............          60             63
1206  Non-Federal assets: Receivables, 
        net.............................           2             11
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         102            105
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -95           -105
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................           7
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       7,004          7,290
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................          22             34
2207    Other...........................         517            509
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         539            543
    NET POSITION:
3300  Cumulative results of operations..       6,465          6,747
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       6,465          6,747
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       7,004          7,290
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................          65          78          56
33.0  Investments and loans.............          28          49          47
                                           ---------   ---------  ----------
99.9    Total new obligations...........          93         127         103
---------------------------------------------------------------------------

                                


 
                     POLICY DEVELOPMENT AND RESEARCH

                              Federal Funds

General and special funds:

                         Research and Technology

    For contracts, grants, and necessary expenses of programs of 
research and studies relating to housing and urban problems, not 
otherwise provided for, as authorized by title V of the Housing and 
Urban Development Act of 1970, as amended (12 U.S.C. 1701z-1 et seq.), 
including carrying out the functions of the Secretary under section 
1(a)(1)(i) of Reorganization Plan No. 2 of 1968, [$47,000,000] 
$46,700,000, to remain available until September 30, [2005: Provided, 
That of the total amount provided under this heading, $7,500,000 shall 
be for the Partnership for Advancing Technology in Housing (PATH) 
Initiative] 2006. (Division G, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Housing Research..................          37          43          47
00.02 PATH..............................           6          11
                                           ---------   ---------  ----------
10.00   Total new obligations...........          43          54          47
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           4           7
22.00 New budget authority (gross)......          47          47          47
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          51          54          47
23.95 Total new obligations.............         -43         -54         -47
24.40 Unobligated balance carried 
        forward, end of year............           7
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          47          47          47
    Change in obligated balances:
72.40 Obligated balance, start of year..          41          30          40
73.10 Total new obligations.............          43          54          47
73.20 Total outlays (gross).............         -54         -44         -42
73.31 Obligated balance transferred to 
        other accounts..................                                 -10
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....          30          40          35
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          23          19          19
86.93 Outlays from discretionary 
        balances........................          31          25          23
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          54          44          42
    Net budget authority and outlays:
89.00 Budget authority..................          47          47          47
90.00 Outlays...........................          54          44          42
---------------------------------------------------------------------------

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

    In 2005, the research program includes funds for program evaluations 
and for work related to the removal of barriers to affordable housing. 
National surveys will continue in 2005. Funds are not requested out of 
the Research and Technology account for the Partnership for Advancing 
Technology (PATH) program in 2005. Instead, $2 million is requested for 
the PATH program out of the Office of Community Planning and 
Development's (CPD) HOME program. The administration and balances of the 
PATH program will also transfer to CPD in 2005. Research and evaluation 
activities will also support the Department in carrying out its 
responsibilities under the Government Performance and Results Act.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................          41          49          42
41.0  Grants, subsidies, and 
        contributions...................           2           5           5
                                           ---------   ---------  ----------
99.9    Total new obligations...........          43          54          47
---------------------------------------------------------------------------

[[Page 553]]



                                


 
                   FAIR HOUSING AND EQUAL OPPORTUNITY

                              Federal Funds

General and special funds:

                         Fair Housing Activities

    For contracts, grants, and other assistance, not otherwise provided 
for, as authorized by title VIII of the Civil Rights Act of 1968, as 
amended by the Fair Housing Amendments Act of 1988, and section 561 of 
the Housing and Community Development Act of 1987, as amended, 
[$48,000,000] $47,700,000, to remain available until September 30, 
[2005] 2006, of which [$20,250,000] $20,650,000 shall be to carry out 
activities pursuant to such section 561: Provided, That no funds made 
available under this heading shall be used to lobby the executive or 
legislative branches of the Federal Government in connection with a 
specific contract, grant or loan. (Division G, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0144-0-1-751      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Fair housing assistance...........          25          27          28
00.02 Fair housing initiatives..........          21          21          21
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          46          48          49
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          23          23          21
22.00 New budget authority (gross)......          46          48          48
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          70          71          69
23.95 Total new obligations.............         -46         -48         -49
24.40 Unobligated balance carried 
        forward, end of year............          23          21          18
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          46          48          48
    Change in obligated balances:
72.40 Obligated balance, start of year..          53          49          50
73.10 Total new obligations.............          46          48          49
73.20 Total outlays (gross).............         -50         -49         -46
73.40 Adjustments in expired accounts 
        (net)...........................           1
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          49          50          55
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           3           3           3
86.93 Outlays from discretionary 
        balances........................          47          46          43
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          50          49          46
    Net budget authority and outlays:
89.00 Budget authority..................          46          48          48
90.00 Outlays...........................          50          49          46
---------------------------------------------------------------------------

    The Budget proposes an appropriation of $47.7 million in 2005 to 
fund fair housing activities that support efforts to end housing 
discrimination. Of the amount requested, $27 million is for the Fair 
Housing Assistance Program and $20.7 million is for the Fair Housing 
Initiatives Program.

    The Fair Housing Assistance Program (FHAP), authorized by title VIII 
of the Civil Rights Act of 1968 as amended, provides funding to State 
and local agencies to assure prompt and effective processing of Title 
VIII (Civil Rights Act of 1968) complaints.

    The funding requested for FHAP will support fair housing enforcement 
by increasing funding to support additional State and local fair housing 
organizations to meet the needs of currently underserved populations. It 
will also address the persistent high rate of discrimination against 
minorities as identified by the 2000 Housing Discrimination Study. It is 
estimated that the number of new State and local agencies with laws 
equivalent to the Fair Housing Act will increase to 100 in 2005 from 99 
in 2004.

    The Fair Housing Initiatives Program (FHIP), authorized by the 
Housing and Community Development Act of 1987, as amended by the Housing 
and Community Development Act of 1992, provides support to public and 
private organizations for the purpose of eliminating or preventing 
discrimination in housing and for enhancing fair housing opportunities. 
FHIP provides funding for projects that inform and educate the public, 
including housing providers, on the rights and obligations of the Fair 
Housing Act and about substantially equivalent state and local fair 
housing laws.

                                


 
                      OFFICE OF LEAD HAZARD CONTROL

                              Federal Funds

General and special funds:

                          Lead Hazard Reduction

    For the Lead Hazard Reduction Program, as authorized by section 1011 
of the Residential Lead-Based Paint Hazard Reduction Act of 1992, 
[$175,000,000] $139,000,000, to remain available until September 30, 
[2005] 2006, of which [$10,000,000] $9,941,000 shall be for the Healthy 
Homes Initiative, pursuant to sections 501 and 502 of the Housing and 
Urban Development Act of 1970 that shall include research, studies, 
testing, and demonstration efforts, including education and outreach 
concerning lead-based paint poisoning and other housing-related diseases 
and hazards: Provided, That [of the total amount made available under 
this heading, $50,000,000 shall be made available on a competitive basis 
for areas with the highest lead paint abatement needs, as identified by 
the Secretary as having: (1) the highest number of occupied pre-1940 
units of rental housing; and (2) a disproportionately high number of 
documented cases of lead-poisoned children: Provided further, That each 
grantee receiving funds under the previous proviso shall target those 
privately owned units and multifamily buildings that are occupied by 
low-income families as defined under section 3(b)(2) of the United 
States Housing Act of 1937: Provided further, That not less than 90 
percent of the funds made available under this paragraph shall be used 
exclusively for abatement, inspections, risk assessments, temporary 
relocations and interim control of lead-based hazards as defined by 42 
U.S.C. 4851: Provided further, That each recipient of funds provided 
under the first proviso shall make a matching contribution in an amount 
not less than 25 percent: Provided further, That each applicant shall 
submit a detailed plan and strategy that demonstrates adequate capacity 
that is acceptable to the Secretary to carry out the proposed use of 
funds pursuant to a Notice of Funding Availability] for purposes of 
environmental review, pursuant to the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) and other provisions of law that 
further the purposes of such Act, a grant under the Healthy Homes 
Initiative, Operation Lead Elimination Action Plan (LEAP), or the Lead 
Technical Studies program under this heading or under prior 
appropriations Acts for such purposes under this heading, shall be 
considered to be funds for a special project for purposes of Sec. 305(c) 
of the Multifamily Housing Property Disposition Reform Act of 1994. 
(Division G, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0174-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Lead abatement....................         286         188         139
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         286         188         139
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         110          14
22.00 New budget authority (gross)......         175         174         139
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          15
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         300         188         139
23.95 Total new obligations.............        -286        -188        -139
24.40 Unobligated balance carried 
        forward, end of year............          14
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         176         175         139
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         175         174         139
    Change in obligated balances:
72.40 Obligated balance, start of year..         187         364         425

[[Page 554]]

73.10 Total new obligations.............         286         188         139
73.20 Total outlays (gross).............         -91        -127        -134
73.40 Adjustments in expired accounts 
        (net)...........................          -3
73.45 Recoveries of prior year 
        obligations.....................         -15
74.40 Obligated balance, end of year....         364         425         430
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       3           3
86.93 Outlays from discretionary 
        balances........................          91         124         131
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          91         127         134
    Net budget authority and outlays:
89.00 Budget authority..................         175         174         139
90.00 Outlays...........................          91         127         134
---------------------------------------------------------------------------

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

    The program is a major part of a 10-year strategy to eliminate lead 
poisoning in children. The 2005 Budget includes $110 million for HUD's 
Lead Hazard Control Program competitive grants and $8.9 million for 
operation LEAP. The Technical Support Program and the Healthy Homes 
Initiative are both funded at $9.9 million each. Operation LEAP funds 
will be used to leverage other private and public sector resources for 
the lead hazard control program.

    The Lead Hazard Control Grant Program provides grants of $1 to $2.5 
million to State and local governments and Indian tribes for control of 
lead-based paint hazards in privately owned, low-income owner-occupied 
and rental housing. The grants are also designed to stimulate the 
development of a housing maintenance and rehabilitation workforce 
trained in lead-safe work practices and a certified hazard evaluation 
and control industry. In awarding grants, HUD promotes the use of new, 
low cost approaches to hazard control that can be replicated across the 
nation.

    The Healthy Homes Initiative will enable the Department to assess 
and control housing-related hazards that contribute to childhood 
diseases and injuries. The initiative will demonstrate and evaluate 
methods for controlling two or more housing related diseases through a 
single intervention. A public education/outreach effort, to enable the 
public to act effectively to protect their children from exposure to 
hazards, will also be conducted.

    The Office of Healthy Homes and Lead Hazard Control will continue 
its Technical Support program, which will include public education; 
technical assistance for State and local agencies, private property 
owners, HUD programs and field offices and professional organizations; 
quality control to ensure that the evaluation and control of lead-based 
paint hazards is done properly in HUD-assisted housing; development of 
standards, technical guidance, regulations and improved testing and 
hazard control methods.

                                


 
                      MANAGEMENT AND ADMINISTRATION

                              Federal Funds

General and special funds:

                          Salaries and Expenses

                      (including transfer of funds)

    For necessary administrative and non-administrative expenses of the 
Department of Housing and Urban Development, not otherwise provided for, 
including purchase of uniforms, or allowances therefor, as authorized by 
5 U.S.C. 5901-5902; hire of passenger motor vehicles; services as 
authorized by 5 U.S.C. 3109; and not to exceed $25,000 for official 
reception and representation expenses, [$1,123,130,000] $1,179,000,000, 
of which [$564,000,000] $576,000,000 shall be provided from the various 
funds of the Federal Housing Administration, [$10,695,000] $10,986,000 
shall be provided from funds of the Government National Mortgage 
Association, [$1,000,000 shall be provided from the ``Community 
development loan guarantees program'' account,] $150,000 shall be 
provided by transfer from the ``Native American housing block grants'' 
account, $250,000 shall be provided by transfer from the ``Indian 
housing loan guarantee fund program'' account and $35,000 shall be 
transferred from the ``Native Hawaiian housing loan guarantee fund'' 
account: Provided, That [funds made available under this heading shall 
only be allocated in the manner specified in the report accompanying 
this Act unless the Committees on Appropriations of both the House of 
Representatives and the Senate are notified of any changes in an 
operating plan or reprogramming: Provided further, That] no official or 
employee of the Department shall be designated as an allotment holder 
unless the Office of the Chief Financial Officer (OCFO) has determined 
that such allotment holder has implemented an adequate system of funds 
control and has received training in funds control procedures and 
directives: Provided further, That the Chief Financial Officer shall 
establish positive control of and maintain adequate systems of 
accounting for appropriations and other available funds as required by 
31 U.S.C. 1514: Provided further, That for purposes of funds control and 
determining whether a violation exists under the Anti-Deficiency Act (31 
U.S.C. 1341 et seq.), the point of obligation shall be the executed 
agreement or contract, except with respect to insurance and guarantee 
programs, certain types of salaries and expenses funding, and 
incremental funding that is authorized under an executed agreement or 
contract, and shall be designated in the approved funds control plan: 
Provided further, That the Chief Financial Officer shall: (a) appoint 
qualified personnel to conduct investigations of potential or actual 
violations; (b) establish minimum training requirements and other 
qualifications for personnel that may be appointed to conduct 
investigations; (c) establish guidelines and timeframes for the conduct 
and completion of investigations; (d) prescribe the content, format and 
other requirements for the submission of final reports on violations; 
and (e) prescribe such additional policies and procedures as may be 
required for conducting investigations of, and administering, 
processing, and reporting on, potential and actual violations of the 
Anti-Deficiency Act and all other statutes and regulations governing the 
obligation and expenditure of funds made available in this or any other 
Act[: Provided further, That the Secretary shall fill 7 out of 10 
vacancies at the GS-14 and GS-15 levels until the total number of GS-14 
and GS-15 positions in the Department has been reduced from the number 
of GS-14 and GS-15 positions on the date of enactment of Public Law 106-
377 by 2\1/2\ percent].
    [The tenth proviso under this heading in the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2003, is amended by striking ``the purpose of'' and 
inserting ``purposes of funds control and'' and before the colon insert 
the following ``, except with respect to insurance and guarantee 
programs, certain types of salaries and expenses funding, and 
incremental funding that is authorized under an executed agreement or 
contract''.] (Division G, H.R. 2673, Consolidated Appropriations Bill, 
FY 2004.)

[[Page 555]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Housing, mortgage credit, 
          regulatory and energy 
          conservation..................         218         242         271
00.02   Community planning and 
          development programs..........          41          43          46
00.03   Equal opportunity and research 
          programs......................          43          46          48
00.04   Departmental management, legal 
          and audit services............          45          48          51
00.05   Field direction and 
          administration................         156         165         176
09.01 Reimbursable program..............         559         573         587
                                           ---------   ---------  ----------
09.99   Total reimbursable program......         559         573         587
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,062       1,117       1,179
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                      16
22.00 New budget authority (gross)......       1,086       1,117       1,179
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,086       1,133       1,179
23.95 Total new obligations.............      -1,062      -1,117      -1,179
23.98 Unobligated balance expiring or 
        withdrawn.......................          -8         -16
24.40 Unobligated balance carried 
        forward, end of year............          16
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         530         547         592
40.35   Appropriation permanently 
          reduced.......................          -3          -3
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         527         544         592
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............         559         573         587
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,086       1,117       1,179
    Change in obligated balances:
72.40 Obligated balance, start of year..         130         117         119
73.10 Total new obligations.............       1,062       1,117       1,179
73.20 Total outlays (gross).............      -1,061      -1,115      -1,178
73.40 Adjustments in expired accounts 
        (net)...........................         -13
74.40 Obligated balance, end of year....         117         119         121
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         993         992       1,043
86.93 Outlays from discretionary 
        balances........................          68         123         135
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,061       1,115       1,178
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -559        -573        -587
    Net budget authority and outlays:
89.00 Budget authority..................         527         544         592
90.00 Outlays...........................         502         542         591
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Enacted/requested:
  Budget Authority..................         527         544         592
  Outlays...........................         502         542         591
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                  -3
  Outlays...........................                                  -2
                                    ------------------------------------
Total:
  Budget Authority..................         527         544         589
  Outlays...........................         502         542         589
                                    ====================================

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         310         339         369
11.3      Other than full-time permanent           4           4           4
11.5      Other personnel compensation..           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation         316         345         375
12.1    Civilian personnel benefits.....          80          87          95
21.0    Travel and transportation of 
          persons.......................           7          10          11
23.1    Rental payments to GSA..........          46          52          52
23.3    Communications, utilities, and 
          miscellaneous charges.........          11          13          13
24.0    Printing and reproduction.......           1           2           2
25.1    Advisory and assistance services          29          23          30
25.2    Other services..................           2           2           2
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           7           6           7
25.4    Operation and maintenance of 
          facilities....................           1           1           1
26.0    Supplies and materials..........           2           2           2
31.0    Equipment.......................           1           1           2
                                           ---------   ---------  ----------
99.0      Direct obligations............         503         544         592
99.0  Reimbursable obligations..........         559         573         587
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,062       1,117       1,179
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       4,361       4,700       4,700
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       4,918       4,705       4,705
---------------------------------------------------------------------------

                                

                          Salaries and Expenses

               (Legislative proposal not subject of PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0143-2-1-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Housing, mortgage credit, 
          regulatory and energy 
          conservation..................                                  -3
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  -3
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  -3
23.95 Total new obligations.............                                   3
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                  -3
    Change in obligated balances:
73.10 Total new obligations.............                                  -3
73.20 Total outlays (gross).............                                   2
74.40 Obligated balance, end of year....                                  -1
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                  -2
    Net budget authority and outlays:
89.00 Budget authority..................                                  -3
90.00 Outlays...........................                                  -2
---------------------------------------------------------------------------

    Upon enactment of the proposal announced by the Secretaries of the 
Departments of Housing and Urban Development and the Treasury on 
September 10, 2003, it is expected that the cost of HUD's 
responsibilities would be assessed on the Government-sponsored 
enterprises (GSEs) Fannie Mae and Freddie Mac. These responsibilities 
include the establishment and enforcement of affordable housing goals 
for the GSEs, ensuring GSE compliance with fair housing laws, and 
providing consulation to the safety and soundness regulator on the GSEs 
new activities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0143-2-1-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................                                  -2

[[Page 556]]

25.2  Other services....................                                  -1
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  -3
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0143-2-1-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                 -14
---------------------------------------------------------------------------

                                

                       Office of Inspector General

                      (including transfer of funds)

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$101,000,000, of which $24,000,000 shall be provided from the various 
funds of the Federal Housing Administration: Provided, That the 
Inspector General shall have independent authority over all personnel 
issues within this office[: Provided further, That no less than $300,000 
shall be transferred to the Working Capital Fund for the development of 
and modifications to information technology systems for the Office of 
Inspector General]. (Division G, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          74          76          77
09.01 Reimbursable program..............          23          24          24
                                           ---------   ---------  ----------
10.00   Total new obligations...........          97         100         101
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          97         100         101
23.95 Total new obligations.............         -97        -100        -101
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          74          77          77
40.35   Appropriation permanently 
          reduced.......................                      -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          74          76          77
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          23          24          24
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          97         100         101
    Change in obligated balances:
72.40 Obligated balance, start of year..          22          21          21
73.10 Total new obligations.............          97         100         101
73.20 Total outlays (gross).............         -97        -100        -101
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....          21          21          21
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          82          83          83
86.93 Outlays from discretionary 
        balances........................          15          17          18
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          97         100         101
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -23         -24         -24
    Net budget authority and outlays:
89.00 Budget authority..................          74          76          77
90.00 Outlays...........................          74          76          77
---------------------------------------------------------------------------

    This appropriation provides agency wide audit and investigative 
functions to identify and correct management and administrative 
deficiencies that create conditions for existing or potential instances 
of fraud, waste and mismanagement. The audit function provides internal 
audit and contract audit. Internal audits review and evaluate all facets 
of agency operations. The investigative function provides for the 
detection and investigation of improper and illegal activities involving 
programs, personnel, and operations.

      

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          41          41          42
11.5      Other personnel compensation..           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          43          43          44
12.1    Civilian personnel benefits.....          11          12          12
21.0    Travel and transportation of 
          persons.......................           4           4           4
23.1    Rental payments to GSA..........           6           6           6
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.1    Advisory and assistance services           6           7           7
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           1           1           1
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          74          76          77
99.0  Reimbursable obligations..........          23          24          24
                                           ---------   ---------  ----------
99.9    Total new obligations...........          97         100         101
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         493         509         503
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         156         166         157
---------------------------------------------------------------------------

                                

                             GSE Regulation

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code  86-0142-2-1-371    2003 actual    2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.00 GSE regulation expenses...........                                   6
                                        -----------  -----------  ----------
10.00   Total new obligations...........                                   6
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                   6
23.95 Total new obligations.............                                  -6
    New budget authority (gross), detail:
      Mandatory:
69.00   Offsetting collections (cash)...                                   6
    Change in obligated balances:
73.10 Total new obligations.............                                   6
73.20 Total outlays (gross).............                                  -6
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                   6
    Offsets:
      Against gross budget authority and outlays:
88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                  -6
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
----------------------------------------------------------------------------

    Upon enactment of the proposals announced by the Secretaries of the 
Departments of Housing and Urban Development and the Treasury on 
September 10, 2003, and October 16, 2003, it is expected that the cost 
of HUD's responsibilities under the Federal Housing Enterprise Safety 
and Soundness

[[Page 557]]

Act of 1992, and amendments as proposed, would be assessed on the 
Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. 
These responsibilities include the establishment and enforcement of 
affordable housing goals for the GSEs, ensuring GSE compliance with fair 
housing laws, and providing consultation to the safety and soundness 
regulator on the GSEs' new activities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0142-2-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
99.0  Reimbursable obligations: 
        Reimbursable obligations........                                   6
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                   6
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-0142-2-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                  19
---------------------------------------------------------------------------

                                

                          Consolidated Fee Fund

                              (rescission)

    [All unobligated balances remaining available from fees and charges 
under section 7(j) of the Department of Housing and Urban Development 
Act on October 1, 2003 are rescinded.] (Division G, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5486-0-2-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           8
22.00 New budget authority (gross)......          -8
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................          -8
    Net budget authority and outlays:
89.00 Budget authority..................          -8
90.00 Outlays...........................
---------------------------------------------------------------------------

    Section 7(j) of the Department of Housing and Urban Development Act 
established fees and charges from selected programs to offset the costs 
of audits, inspections and other related expenses that may be incurred 
by the Department in monitoring these programs. All funds have now been 
expended.

                                

             Office of Federal Housing Enterprise Oversight

                          Salaries and Expenses

                      (including transfer of funds)

    [For carrying out the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992, including not to exceed $500 for official 
reception and representation expenses, $39,915,000, to remain available 
until expended, to be derived from the Federal Housing Enterprises 
Oversight Fund: Provided, That of the amount made available under this 
heading, $4,500,000 is for one-time costs to conduct special 
investigations of the federal housing enterprises and $3,000,000 is for 
costs associated with strengthening the examination and legal functions: 
Provided further, That the Secretary shall submit a spending plan for 
the amounts provided under this heading no later than January 15, 2004: 
Provided further, That not less than 60 percent of total amount made 
available under this heading shall be used only for examination, 
supervision, and capital oversight of the enterprises (as such term is 
defined in section 1303 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 4502)) to ensure that the 
enterprises are operating in a financially safe and sound manner and 
complying with the capital requirements under Subtitle B of such Act: 
Provided further, That not to exceed the amount provided herein shall be 
available from the general fund of the Treasury to the extent necessary 
to incur obligations and make expenditures pending the receipt of 
collections to the Fund: Provided further, That the general fund amount 
shall be reduced as collections are received during the fiscal year so 
as to result in a final appropriation from the general fund estimated at 
not more than $0.] (Division G, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.60 Office of Federal Housing 
        Enterprise Oversight............          30          40          44
02.65 Legislative proposal..............                                 -44
                                           ---------   ---------  ----------
02.99   Total receipts and collections..          30          40
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          30          40
    Appropriations:
05.00 Office of Federal Housing 
        Enterprise Oversight............         -30         -40         -44
05.10 Legislative proposal..............                                  44
                                           ---------   ---------  ----------
05.99   Total appropriations............         -30         -40
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          30          40          44
                                           ---------   ---------  ----------
10.00   Total new obligations...........          30          40          44
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          30          40          44
23.95 Total new obligations.............         -30         -40         -44
    New budget authority (gross), detail:
      Discretionary:

40.20   Appropriation (special fund)....          30          40          44
    Change in obligated balances:
72.40 Obligated balance, start of year..           5           7           8
73.10 Total new obligations.............          30          40          44
73.20 Total outlays (gross).............         -28         -39         -43
74.40 Obligated balance, end of year....           7           8           9
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          24          32          35
86.93 Outlays from discretionary 
        balances........................           4           7           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          28          39          43
    Net budget authority and outlays:
89.00 Budget authority..................          30          40          44
90.00 Outlays...........................          28          39          43
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.

Enacted/requested:
  Budget Authority..................          30          40          44
  Outlays...........................          28          39          43
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 -44
  Outlays...........................                                 -43
                                    ------------------------------------
Total:
  Budget Authority..................          30          40
  Outlays...........................          28          39
                                    ====================================
------------------------------------------------------------------------

    The Office of Federal Housing Enterprise Oversight (OFHEO) was 
established in 1992 to regulate the financial safety and soundness of 
two housing Government-sponsored enterprises (GSEs)--Fannie Mae and 
Freddie Mac. OFHEO

[[Page 558]]

was authorized in the Federal Housing Enterprise Safety and Soundness 
Act of 1992. OFHEO is required to ensure that the GSEs meet capital 
standards, and to conduct onsite annual examinations at the GSEs for the 
purpose for ensuring their financial safety and soundness.

    It is expected that all resources available to OFHEO would be 
transferred to a new strengthened housing GSE regulator upon enactment 
of the proposal announced by the Secretaries of the Departments of 
Housing and Urban Development and the Treasury on September 10, 2003 and 
October 16, 2003. The Administration continues to support direct funding 
of these activities with mandatory assessments on Fannie Mae and Freddie 
Mac.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: 
          Personnel Compensation........          15          22          23
12.1    Civilian personnel benefits.....           3           5           6
23.2    Rental payments to others.......           3           4           4
25.2    Other services..................           6           7           7
31.0    Equipment.......................           2           1           3
32.0    Land and structures.............                                   1
                                           ---------   ---------  ----------
99.0      Direct obligations............          29          39          44
99.5  Below reporting threshold.........           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          30          40          44
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         126         167         185
---------------------------------------------------------------------------

                                

             Office of Federal Housing Enterprise Oversight

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-2-2-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................                                 -44
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                 -44
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 -44
23.95 Total new obligations.............                                  44
    New budget authority (gross), detail:
      Discretionary:

40.20   Appropriation (special fund)....                                 -44
    Change in obligated balances:
73.10 Total new obligations.............                                 -44
73.20 Total outlays (gross).............                                  43
73.31 Obligated balance transferred to 
        other accounts..................                                  -8
74.40 Obligated balance, end of year....                                  -9
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -35
86.93 Outlays from discretionary 
        balances........................                                  -8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                                 -43
    Net budget authority and outlays:
89.00 Budget authority..................                                 -44
90.00 Outlays...........................                                 -43
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-2-2-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Personnel 
        Compensation....................                                 -23
12.1  Civilian personnel benefits.......                                  -6
23.2  Rental payments to others.........                                  -4
25.2  Other services....................                                  -7
31.0  Equipment.........................                                  -3
32.0  Land and structures...............                                  -1
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                 -44
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-5272-2-2-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                -185
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                          Working Capital Fund

    For additional capital for the Working [Capitol] Capital Fund (42 
U.S.C. 3535) for the development of, modifications to, and 
infrastructure for Department-wide information technology systems, and 
for the continuing operation of both Department-wide and program-
specific information systems, [$235,000,000] $234,000,000, to remain 
available until September 30, [2005] 2006: Provided, That any amounts 
transferred to this Fund under this Act shall remain available until 
expended: Provided further, That any amounts transferred to this Fund 
from amounts appropriated by previously enacted appropriations Acts may 
be used for the purposes specified under this Fund, notwithstanding the 
purposes for which such amounts were appropriated. (Division G, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........         222         287         234
09.01 Reimbursable program..............          71          65          90
                                           ---------   ---------  ----------
10.00   Total new obligations...........         293         352         324
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          58         119          67
22.00 New budget authority (gross)......         352         299         257
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         412         418         324
23.95 Total new obligations.............        -293        -352        -324
24.40 Unobligated balance carried 
        forward, end of year............         119          67
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         276         235         234
40.35   Appropriation permanently 
          reduced.......................          -2          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         274         234         234
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          84          65          23
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -6
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          78          65          23
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         352         299         257
    Change in obligated balances:
72.40 Obligated balance, start of year..         125         132         139
73.10 Total new obligations.............         293         352         324
73.20 Total outlays (gross).............        -290        -345        -398
73.45 Recoveries of prior year 
        obligations.....................          -2
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           6
74.40 Obligated balance, end of year....         132         139          65
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         174         213         192

[[Page 559]]

86.93 Outlays from discretionary 
        balances........................         116         132         206
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         290         345         398
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -84         -65         -23
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           6
    Net budget authority and outlays:
89.00 Budget authority..................         274         234         234
90.00 Outlays...........................         206         280         375
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Enacted/requested:
  Budget Authority..................         274         234         234
  Outlays...........................         206         280         375
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                  -2
  Outlays...........................                                  -2
                                    ------------------------------------
Total:
  Budget Authority..................         274         234         232
  Outlays...........................         206         280         373
                                    ====================================

    The Working Capital Fund, authorized by the Department of Housing 
and Urban Development Act of 1965, finances information technology and 
office automation initiatives which can be performed more efficiently on 
a centralized basis. Since 2003, a direct appropriation has been 
requested for the operations of the computer system and for development 
and modifications of Department-wide systems. Fees have continued for 
services to develop and modify systems where the benefit is limited to a 
specific program.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          29          34          35
12.1    Civilian personnel benefits.....           7           6           6
21.0    Travel and transportation of 
          persons.......................                       2           2
23.3    Communications, utilities, and 
          miscellaneous charges.........          31          15           5
25.1    Advisory and assistance services         151         219         175
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           3          10          10
                                           ---------   ---------  ----------
99.0      Direct obligations............         222         287         234
      Reimbursable obligations:

25.1    Advisory and assistance services          71          65          90
                                           ---------   ---------  ----------
99.0      Reimbursable obligations......          71          65          90
                                           ---------   ---------  ----------
99.9    Total new obligations...........         293         352         324
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         386         380         380
    Reimbursable:
---------------------------------------------------------------------------

                                

                          Working Capital Fund

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4586-2-4-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........                                  -2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.1)...................                                  -2
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  -2
23.95 Total new obligations.............                                   2
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                  -2
    Change in obligated balances:
73.10 Total new obligations.............                                  -2
73.20 Total outlays (gross).............                                   2
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                  -2
    Net budget authority and outlays:
89.00 Budget authority..................                                  -2
90.00 Outlays...........................                                  -2
---------------------------------------------------------------------------

    Upon enactment of the proposal announced by the Secretaries of the 
Departments of Housing and Urban Development and the Treasury on 
September 10, 2003, it is expected that the cost of HUD's 
responsibilities would be assessed on the Government-sponsored 
enterprises (GSEs) Fannie Mae and Freddie Mac. These responsibilities 
include the establishment and enforcement of affordable housing goals 
for the GSEs, ensuring GSE compliance with fair housing laws, and 
providing consultation to the safety and soundness regulator on the 
GSE's, new activities.

                                

                        Administrative Provisions

    Sec. 201. Fifty percent of the amounts of budget authority, or in 
lieu thereof 50 percent of the cash amounts associated with such budget 
authority, that are recaptured from projects described in section 
1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 
1988 (42 U.S.C. 1437 note) shall be rescinded, or in the case of cash, 
shall be remitted to the Treasury, and such amounts of budget authority 
or cash recaptured and not rescinded or remitted to the Treasury shall 
be used by State housing finance agencies or local governments or local 
housing agencies with projects approved by the Secretary of Housing and 
Urban Development for which settlement occurred after January 1, 1992, 
in accordance with such section. Notwithstanding the previous sentence, 
the Secretary may award up to 15 percent of the budget authority or cash 
recaptured and not rescinded or remitted to the Treasury to provide 
project owners with incentives to refinance their project at a lower 
interest rate.
    Sec. 202. None of the amounts made available under this Act may be 
used during fiscal year [2004] 2005 to investigate or prosecute under 
the Fair Housing Act any otherwise lawful activity engaged in by one or 
more persons, including the filing or maintaining of a non-frivolous 
legal action, that is engaged in solely for the purpose of achieving or 
preventing action by a Government official or entity, or a court of 
competent jurisdiction.
    Sec. 203. (a) Notwithstanding section 854(c)(1)(A) of the AIDS 
Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts 
made available under this title for fiscal year [2004] 2005 that are 
allocated under such section, the Secretary of Housing and Urban 
Development shall allocate and make a grant, in the amount determined 
under subsection (b), for any State that--
        (1) received an allocation in a prior fiscal year under clause 
    (ii) of such section; and
        (2) is not otherwise eligible for an allocation for fiscal year 
    [2004] 2005 under such clause (ii) because the areas in the State 
    outside of the metropolitan statistical areas that qualify under 
    clause (i) in fiscal year [2004] 2005 do not have the number of 
    cases of acquired immunodeficiency syndrome (AIDS) required under 
    such clause.
    (b) The amount of the allocation and grant for any State described 
in subsection (a) shall be an amount based on the cumulative number of 
AIDS cases in the areas of that State that are outside of metropolitan 
statistical areas that qualify under clause (i) of such section 
854(c)(1)(A) in fiscal year [2004] 2005, in proportion to AIDS cases 
among cities and States that qualify under clauses (i) and (ii) of such 
section and States deemed eligible under subsection (a).
    Sec. 204. (a) During fiscal year [2004] 2005, in the provision of 
rental assistance under section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)) in connection with a program to demonstrate 
the economy and effectiveness of providing such assistance for use in 
assisted living facilities that is carried out in the

[[Page 560]]

counties of the State of Michigan specified in subsection (b) of this 
section, notwithstanding paragraphs (3) and (18)(B)(iii) of such section 
8(o), a family residing in an assisted living facility in any such 
county, on behalf of which a public housing agency provides assistance 
pursuant to section 8(o)(18) of such Act, may be required, at the time 
the family initially receives such assistance, to pay rent in an amount 
exceeding 40 percent of the monthly adjusted income of the family by 
such a percentage or amount as the Secretary of Housing and Urban 
Development determines to be appropriate.
    (b) The counties specified in this subsection are Oakland County, 
Macomb County, Wayne County, and Washtenaw County, in the State of 
Michigan.
    Sec. 205. Except as explicitly provided in law, any grant, 
cooperative agreement or other assistance made pursuant to title II of 
this Act shall be made on a competitive basis and in accordance with 
section 102 of the Department of Housing and Urban Development Reform 
Act of 1989.
    Sec. 206. Funds of the Department of Housing and Urban Development 
subject to the Government Corporation Control Act or section 402 of the 
Housing Act of 1950 shall be available, without regard to the 
limitations on administrative expenses, for legal services on a contract 
or fee basis, and for utilizing and making payment for services and 
facilities of the Federal National Mortgage Association, Government 
National Mortgage Association, Federal Home Loan Mortgage Corporation, 
Federal Financing Bank, Federal Reserve banks or any member thereof, 
Federal Home Loan banks, and any insured bank within the meaning of the 
Federal Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-
1831).
    Sec. 207. Unless otherwise provided for in this Act or through a 
reprogramming of funds, no part of any appropriation for the Department 
of Housing and Urban Development shall be available for any program, 
project or activity in excess of amounts set forth in the budget 
estimates submitted to Congress.
    Sec. 208. Corporations and agencies of the Department of Housing and 
Urban Development which are subject to the Government Corporation 
Control Act, as amended, are hereby authorized to make such 
expenditures, within the limits of funds and borrowing authority 
available to each such corporation or agency and in accordance with law, 
and to make such contracts and commitments without regard to fiscal year 
limitations as provided by section 104 of such Act as may be necessary 
in carrying out the programs set forth in the budget for [2003] 2005 for 
such corporation or agency except as hereinafter provided: Provided, 
That collections of these corporations and agencies may be used for new 
loan or mortgage purchase commitments only to the extent expressly 
provided for in this Act (unless such loans are in support of other 
forms of assistance provided for in this or prior appropriations Acts), 
except that this proviso shall not apply to the mortgage insurance or 
guaranty operations of these corporations, or where loans or mortgage 
purchases are necessary to protect the financial interest of the United 
States Government.
    Sec. 209. None of the funds provided in this title for technical 
assistance, training, or management improvements may be obligated or 
expended unless HUD provides to the Committees on Appropriations a 
description of each proposed activity and a detailed budget estimate of 
the costs associated with each program, project or activity as part of 
the Budget Justifications. For fiscal year [2004] 2005, HUD shall 
transmit this information to the Committees by [January 15, 2004] March 
15, 2005 for 30 days of review.
    [Sec. 210. A public housing agency or such other entity that 
administers Federal housing assistance in the states of Alaska, Iowa, 
and Mississippi shall not be required to include a resident of public 
housing or a recipient of assistance provided under section 8 of the 
United States Housing Act of 1937 on the board of directors or a similar 
governing board of such agency or entity as required under section 
(2)(b) of such Act. Each public housing agency or other entity that 
administers Federal housing assistance under section 8 in the states of 
Alaska, Iowa and Mississippi shall establish an advisory board of not 
less than 6 residents of public housing or recipients of section 8 
assistance to provide advice and comment to the public housing agency or 
other administering entity on issues related to public housing and 
section 8. Such advisory board shall meet not less than quarterly.]
    Sec. [211] 210. The Secretary of Housing and Urban Development shall 
provide quarterly reports to the House and Senate Committees on 
Appropriations regarding all uncommitted, unobligated, recaptured and 
excess funds in each program and activity within the jurisdiction of the 
Department and shall submit additional, updated budget information to 
these Committees upon request.
    Sec. [212] 211. Notwithstanding any other provision of law, in 
fiscal year [2004] 2005, in managing and disposing of any multifamily 
property that is owned or held by the Secretary and is occupied 
primarily by elderly or disabled families, the Secretary of Housing and 
Urban Development shall maintain any rental assistance payments under 
section 8 of the United States Housing Act of 1937 that are attached to 
any dwelling units in the property. To the extent the Secretary 
determines that such a multifamily property owned or held by the 
Secretary is not feasible for continued rental assistance payments under 
such section 8, the Secretary may, in consultation with the tenants of 
that property, contract for project-based rental assistance payments 
with an owner or owners of other existing housing properties or provide 
other rental assistance.
    [Sec. 213. The Secretary of Housing and Urban Development shall 
submit an annual report no later than August 30, 2004 and annually 
thereafter to the House and Senate Committees on Appropriations 
regarding the number of Federally assisted units under lease and the per 
unit cost of these units to the Department of Housing and Urban 
Development.]
    Sec. [214] 212. (a) Notwithstanding any other provision of law, the 
amount allocated for fiscal year [2004] 2005 under section 854(c) of the 
AIDS Housing Opportunity Act (42 U.S.C. 12903(c)), to the City of 
Wilmington, Delaware, on behalf of the Wilmington, Delaware-Maryland-New 
Jersey Metropolitan Division (hereafter ``metropolitan division'') [of 
the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical 
Area], shall be adjusted by the Secretary of Housing and Urban 
Development by allocating to the State of New Jersey the proportion of 
the metropolitan [area's or] division's amount that is based on the 
number of cases of AIDS reported in the portion of the metropolitan 
[area or] division that is located in New Jersey. The State of New 
Jersey shall use amounts allocated to the State under this subsection to 
carry out eligible activities under section 855 of the AIDS Housing 
Opportunity Act (42 U.S.C. 12904) in the portion of the metropolitan 
division that is located in New Jersey.
    (b) Notwithstanding any other provision of law, the Secretary of 
Housing and Urban Development shall allocate to Wake County, North 
Carolina, the amounts that otherwise would be allocated for fiscal year 
[2004] 2005 under section 854(c) of the AIDS Housing Opportunity Act (42 
U.S.C. 12903(c)) to the City of Raleigh, North Carolina, on behalf of 
the Raleigh-Cary, North Carolina Metropolitan Statistical Area. Any 
amounts allocated to Wake County shall be used to carry out eligible 
activities under section 855 of such Act (42 U.S.C. 12904) within such 
metropolitan statistical area.
    (c) Notwithstanding section 854(c) of the AIDS Housing Opportunity 
Act (42 U.S.C. 12903(c)), the Secretary of Housing and Urban Development 
may adjust the allocation of the amounts that otherwise would be 
allocated for fiscal year 2005 under section 854(c) of such Act, upon 
the written request of an applicant, in conjunction with the State(s), 
for a formula allocation on behalf of a metropolitan statistical area, 
to designate the State or States in which the metropolitan statistical 
area is located as the eligible grantee(s) of the allocation. In the 
case that a metropolitan statistical area involves more than one State, 
such amounts allocated to each State shall be in proportion to the 
number of cases of AIDS reported in the portion of the metropolitan 
statistical area located in that State. Any amounts allocated to a State 
under this section shall be used to carry out eligible activities within 
the portion of the metropolitan statistical area located in that State.
    [Sec. 215. Section 224 of the National Housing Act (12 U.S.C. 1735o) 
is amended by adding the following new sentence at the end of the first 
paragraph: ``Notwithstanding the preceding sentence and the following 
paragraph, if an insurance claim is paid in cash for any mortgage that 
is insured under section 203 or 234 of this Act and is endorsed for 
mortgage insurance after the date of enactment of this sentence, the 
debenture interest rate for purposes of calculating such a claim shall 
be the monthly average yield, for the month in which the default on the 
mortgage occurred, on United States Treasury Securities adjusted to a 
constant maturity of ten years.''.]
    [Sec. 216. The McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11301 et seq.) is amended--
        (1) in section 101(b), by striking ``Interagency Council on the 
    Homeless'' and inserting ``United States Interagency Council on 
    Homelessness'';

[[Page 561]]

        (2) in section 102(b)(1), by striking ``an Interagency Council 
    on the Homeless'' and inserting ``the United States Interagency 
    Council on Homelessness'';
        (3) in the heading for title II, by striking ``INTERAGENCY 
    COUNCIL ON THE HOMELESS'' and inserting ``UNITED STATES INTERAGENCY 
    COUNCIL ON HOMELESSNESS''; and
        (4) in sections 201, 207(1), 501(c)(2)(a), and 501(d)(3), by 
    striking ``Interagency Council on the Homeless'' and inserting 
    ``United States Interagency Council on Homelessness''.]
    [Sec. 217. (a) Information Comparisons for Public and Assisted 
Housing Programs.--Section 453(j) of the Social Security Act (42 U.S.C. 
653(j)) is amended by adding at the end the following new paragraph:
        ``(7) Information comparisons for housing assistance programs.--
                ``(A) Furnishing of information by hud.--Subject to 
            subparagraph (G), the Secretary of Housing and Urban 
            Development shall furnish to the Secretary, on such periodic 
            basis as determined by the Secretary of Housing and Urban 
            Development in consultation with the Secretary, information 
            in the custody of the Secretary of Housing and Urban 
            Development for comparison with information in the National 
            Directory of New Hires, in order to obtain information in 
            such Directory with respect to individuals who are 
            participating in any program under--
    ``(i) the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.);
    ``(ii) section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
    ``(iii) section 221(d)(3), 221(d)(5), or 236 of the National Housing 
Act (12 U.S.C. 1715l(d) and 1715z-1);
    ``(iv) section 811 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013); or
    ``(v) section 101 of the Housing and Urban Development Act of 1965 
(12 U.S.C. 1701s).
                ``(B) Requirement to seek minimum information.--The 
            Secretary of Housing and Urban Development shall seek 
            information pursuant to this section only to the extent 
            necessary to verify the employment and income of individuals 
            described in subparagraph (A).
                ``(C) Duties of the secretary.--
    ``(i) Information disclosure.--The Secretary, in cooperation with 
the Secretary of Housing and Urban Development, shall compare 
information in the National Directory of New Hires with information 
provided by the Secretary of Housing and Urban Development with respect 
to individuals described in subparagraph (A), and shall disclose 
information in such Directory regarding such individuals to the 
Secretary of Housing and Urban Development, in accordance with this 
paragraph, for the purposes specified in this paragraph.
    ``(ii) Condition on disclosure.--The Secretary shall make 
disclosures in accordance with clause (i) only to the extent that the 
Secretary determines that such disclosures do not interfere with the 
effective operation of the program under this part.
                ``(D) Use of information by hud.--The Secretary of 
            Housing and Urban Development may use information resulting 
            from a data match pursuant to this paragraph only--
    ``(i) for the purpose of verifying the employment and income of 
individuals described in subparagraph (A); and
    ``(ii) after removal of personal identifiers, to conduct analyses of 
the employment and income reporting of individuals described in 
subparagraph (A).
                ``(E) Disclosure of information by hud.--
    ``(i) Purpose of disclosure.--The Secretary of Housing and Urban 
Development may make a disclosure under this subparagraph only for the 
purpose of verifying the employment and income of individuals described 
in subparagraph (A).
    ``(ii) Disclosures permitted.--Subject to clause (iii), the 
Secretary of Housing and Urban Development may disclose information 
resulting from a data match pursuant to this paragraph only to a public 
housing agency, the Inspector General of the Department of Housing and 
Urban Development, and the Attorney General in connection with the 
administration of a program described in subparagraph (A). Information 
obtained by the Secretary of Housing and Urban Development pursuant to 
this paragraph shall not be made available under section 552 of title 5, 
United States Code.
    ``(iii) Conditions on disclosure.--Disclosures under this paragraph 
shall be--
    ``(I) made in accordance with data security and control policies 
            established by the Secretary of Housing and Urban 
            Development and approved by the Secretary;
    ``(II) subject to audit in a manner satisfactory to the Secretary; 
            and
    ``(III) subject to the sanctions under subsection (l)(2).
    ``(iv) Additional disclosures.--
    ``(I) Determination by secretaries.--The Secretary of Housing and 
            Urban Development and the Secretary shall determine whether 
            to permit disclosure of information under this paragraph to 
            persons or entities described in subclause (II), based on an 
            evaluation made by the Secretary of Housing and Urban 
            Development (in consultation with and approved by the 
            Secretary), of the costs and benefits of disclosures made 
            under clause (ii) and the adequacy of measures used to 
            safeguard the security and confidentiality of information so 
            disclosed.
    ``(II) Permitted persons or entities.--If the Secretary of Housing 
            and Urban Development and the Secretary determine pursuant 
            to subclause (I) that disclosures to additional persons or 
            entities shall be permitted, information under this 
            paragraph may be disclosed by the Secretary of Housing and 
            Urban Development to a private owner, a management agent, 
            and a contract administrator in connection with the 
            administration of a program described in subparagraph (A), 
            subject to the conditions in clause (iii) and such 
            additional conditions as agreed to by the Secretaries.
    ``(v) Restrictions on redisclosure.--A person or entity to which 
information is disclosed under this subparagraph may use or disclose 
such information only as needed for verifying the employment and income 
of individuals described in subparagraph (A), subject to the conditions 
in clause (iii) and such additional conditions as agreed to by the 
Secretaries.
                ``(F) Reimbursement of hhs costs.--The Secretary of 
            Housing and Urban Development shall reimburse the Secretary, 
            in accordance with subsection (k)(3), for the costs incurred 
            by the Secretary in furnishing the information requested 
            under this paragraph.
                ``(G) Consent.--The Secretary of Housing and Urban 
            Development shall not seek, use, or disclose information 
            under this paragraph relating to an individual without the 
            prior written consent of such individual (or of a person 
            legally authorized to consent on behalf of such 
            individual).''.
    (b) Consent to Information Comparison and Use as Condition of Hud 
Program Eligibility.--As a condition of participating in any program 
authorized under--
        (1) the United States Housing Act of 1937 (42 U.S.C. 1437 et 
    seq.);
        (2) section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
        (3) section 221(d)(3), 221(d)(5), or 236 of the National Housing 
    Act (12 U.S.C. 1715l(d) and 1715z-1);
        (4) section 811 of the Cranston-Gonzalez National Affordable 
    Housing Act (42 U.S.C. 8013); or
        (5) section 101 of the Housing and Urban Development Act of 1965 
    (12 U.S.C. 1701s),
the Secretary of Housing and Urban Development may require consent by an 
individual (or by a person legally authorized to consent on behalf of 
such individual) for such Secretary to obtain, use, and disclose 
information with respect to such individual in accordance with section 
453(j)(7) of the Social Security Act (42 U.S.C. 653(j)(7)).]
    [Sec. 218. Notwithstanding any other provision of law, the State of 
Hawaii may elect by July 31, 2004 to distribute funds under section 
106(d)(2) of the Housing and Community Development Act of 1974, to units 
of general local government located in nonentitlement areas of that 
State. If the State of Hawaii fails to make such election, the Secretary 
shall for fiscal years 2005 and thereafter make grants to the units of 
general local government located in the State of Hawaii's nonentitlement 
areas (Hawaii, Kauai, and Maui counties). The Secretary of Housing and 
Urban Development shall allocate funds under section 106(d) of such Act 
to units of general local government located in nonentitlement areas 
within the State of Hawaii in accordance with a formula which bears the 
same ratio to the total amount available for the nonentitlement areas of 
the State as the weighted average of the ratios between (1) the 
population of that eligible unit of general local government and the 
population of all eligible units of general local government in the 
nonentitlement areas of the State; (2) the extent of poverty in that 
eligible unit of general local government and the extent of poverty in 
all of the eligible units of general local government in the 
nonentitlement areas

[[Page 562]]

of the State; and (3) the extent of housing overcrowding in that 
eligible unit of general local government and the extent of housing 
overcrowding in all of the eligible units of general local government in 
the nonentitlement areas of the State. In determining the weighted 
average of the ratios described in the previous sentence, the ratio 
described in clause (2) shall be counted twice and the ratios described 
in clauses (1) and (3) shall be counted once. Notwithstanding any other 
provision, grants made under this section shall be subject to the 
program requirements of section 104 of the Housing and Community 
Development Act of 1974 in the same manner as such requirements are made 
applicable to grants made under section 106(b) of the Housing and 
Community Development Act of 1974.]
    [Sec. 219. The Secretary of Housing and Urban Development shall 
issue a proposed rulemaking, in accordance with Title V, United States 
Code, not later than 90 days from the date of enactment of this Act 
that--
        (1) addresses and expands, as necessary, the participation and 
    certification requirements for the sale of HUD-owned multifamily 
    housing projects and the foreclosure sale of any multifamily housing 
    securing a mortgage held by the Secretary, including whether a 
    potential purchaser is in substantial compliance with applicable 
    state or local government housing statutes, regulations, ordinances 
    and codes with regard to other properties owned by the purchaser; 
    and
        (2) requires any state, city, or municipality that exercises its 
    right of first refusal for the purchase of a multifamily housing 
    project under section 203 of the Housing and Community Development 
    Amendments of 1978 (12 U.S.C. 1701z-11(i)) to ensure that potential 
    purchasers of the project from the state, city, or municipality are 
    subject to the same standards that they would otherwise be subject 
    to if they had purchased the project directly from the Secretary, 
    including whether a potential purchaser is in substantial compliance 
    with applicable state or local government housing statutes, 
    regulations, ordinances and codes with regard to other properties 
    owned by the purchaser.]
    [Sec. 220. Section 217 of Public Law 107-73 is amended by striking 
``the rehabilitation'' and inserting in lieu thereof: ``redevelopment, 
including demolition and new construction''.]
    Sec. [221] 213. Notwithstanding any other provision of law, funds 
appropriated for the housing for the elderly, as authorized by section 
202 of the Housing Act of 1959, as amended, and for supportive housing 
for persons with disabilities, as authorized by section 811 of the 
Cranston-Gonzalez National Affordable Housing Act, shall be available 
for the cost of maintaining and disposing of such properties that are 
acquired or otherwise become the responsibility of the Department.
    [Sec. 222. The Secretary of Housing and Urban Development shall 
conduct negotiated rulemaking with representatives from interested 
parties for purposes of any changes to the formula governing the Public 
Housing Operating Fund. A final rule shall be issued no later than July 
1, 2004.]
    [Sec. 223. The Department of Housing and Urban Development shall 
submit the Department's fiscal year 2005 congressional budget 
justifications to the Committees on Appropriations of the House of 
Representatives and the Senate using the identical structure provided 
under this Act and only in accordance with the direction included in the 
joint explanatory statement of the managers accompanying this Act.] 
(Division G, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

    Note: Section 167, Division H, HR 2673, Consolidated Appropriations 
Bill, FY 2004, appropriates additional amounts for the Department of 
Housing and Urban Development for 2004. The language is presented with 
the government-wide general provisions.

    Sec. 214. Clarification Regarding Mortgage Insurance for Purchases 
of Existing Health Care Facilities.
    Section 223(f)(1) of the National Housing Act (12 U.S.C. 
1715n(f)(1)) is amended by inserting ``purchase or'' immediately before 
``refinancing of existing debt''.
    Sec. 215. Section 683(2) of the Housing and Community Development 
Act of 1992 is amended--
        (1) in subparagraph (F), by striking ``and'';
        (2) in subparagraph (G), by striking ``section.'' and inserting 
    ``section; and''; and
        (3) by adding the following new subparagraph at the end:
            ``(H) housing that is assisted under section 811 of the 
        Cranston-Gonzalez National Affordable Housing Act.''.
    Sec. 216. Clarifications to Multifamily Housing Enforcement 
Authority.
    (a) Section 536(b)(1) of the National Housing Act (12 U.S.C. 1735f-
14(b)(1)) is amended by adding the following new subparagraph at the 
end:
            ``(J) Failure to perform a required physical inspection of 
        the mortgaged property.''.
    (b) Section 537(c)(1)(B)(ii) of such Act (12 U.S.C. 1735f-
15(c)(1)(B)(ii)) is amended by inserting after ``rents,'' the following: 
``other revenues, or contract rights,''.
    (c) Section 537(c)(1)(B)(x) of such Act (12 U.S.C. 1735f-
15(c)(1)(B)(x)) is amended to read as follows:
                ``(x) Failure to furnish the Secretary, by the 
            expiration of the 90-day period beginning on the first day 
            after the completion of each fiscal year (unless the 
            Secretary has approved an extension of the 90-day period in 
            writing), with a complete annual financial report, in 
            accordance with requirements prescribed by the Secretary, 
            including requirements that the report be--
            ``(I) based upon an examination of the books and records of 
        the mortgagor;
            ``(II) prepared and certified to by an independent public 
        accountant or a certified public accountant (unless the 
        Secretary has waived this requirement in writing); and
            ``(III) certified to by the mortgagor or an authorized 
        representative of the mortgagor.
``The Secretary shall approve an extension where the mortgagor 
demonstrates that failure to comply with this clause is due to events 
beyond the control of the mortgagor.''.
    Sec. 217. Clarification of Double Damages Remedy in Multifamily 
Housing Projects.
    Section 421 of the Housing and Community Development Act of 1987 (12 
U.S.C. 1715z-4a) is amended--
        (1) in subsection (a)(1)(A), by inserting after ``project'' the 
    following: ``, nursing home, intermediate care facility, board and 
    care home, assisted living facility, or hospital'';
        (2) in subsection (a)(1)(B), by inserting after ``is'' the 
    following: ``or, at the time of the violations, was'';
        (3) in the second sentence of subsection(a)(1), by striking 
    ``project'' and inserting ``property'';
        (4) in subsection (a)(2) by striking ``which'' and all that 
    follows through ``any owner'' and inserting the following: ``that 
    owns or operates a property, as identified in the regulatory 
    agreement, including but not limited to--
            ``(A) any stockholder holding 25 percent or more interest of 
        a corporation that owns that property;
            ``(B) any beneficial owner of the property under any 
        business or trust;
            ``(C) any officer, director, or partner of an entity owning 
        or controlling the property;
            ``(D) any nursing home lessee or operator;
            ``(E) any hospital lessee or operator;
            ``(F) any other person or entity that controls the property 
        regardless of that person or entity's official relationship to 
        the property; and
            ``(G) any heir, assignee, successor in interest, or agent of 
        any person or entity described in the preceding subparagraphs'';
        (5) in subsection (c), by striking ``project'' the first two 
    places it appears and inserting ``property''; and
        (6) in subsection (d), by striking ``project'' and inserting ``a 
    property's''.
    Sec. 218. Increased Flexibility for Sale of Properties Under Asset 
Control Area Agreements.
    Section 204(h) of the National Housing Act (12 U.S.C. 1710(h)) is 
amended--
        (1) in paragraph (2)--
            (A) by striking ``following assets of the Secretary'' and 
        inserting ``following categories of assets of the Secretary, 
        unless the Secretary determines at any time that the asset 
        property is economically or otherwise infeasible to rehabilitate 
        or that the best use of the asset property is as open space 
        (including park land)'';
            (B) in subparagraph (B)(ii), by inserting after ``Act'' the 
        following: ``except for mortgages insured under or made pursuant 
        to sections 235, 247, or 255''; and
            (C) by striking subparagraph (C);
        (2) in the second sentence of paragraph (3), by inserting after 
    ``government'' the following: ``, States, and Indian tribes'';
        (3) in paragraph (4)--
            (A) in subparagraph (A)(i), by inserting after 
        `'government'' the following: ``, State, or Indian tribe'';

[[Page 563]]

            (B) by revising subparagraph (B)(ii) to read as follows:
                ``(ii) purchases all assets of the Secretary in the 
            category or categories of eligible assets set forth in the 
            sale agreement required under paragraph (7) that, at any 
            time during the period which shall be set forth in the sale 
            agreement--
            ``(I) are or become eligible for purchase under this 
        subsection; and
            ``(II) are located in the asset control area of the 
        purchaser; and''; and
            (C) in subparagraph (C), by striking ``purchase of eligible 
        assets under'' and inserting ``purchase of the category or 
        categories of eligible assets set forth in the sale agreement 
        under'';
        (4) in paragraph (6)--
            (A) by revising subparagraph (C) to read as follows:
            (C) Discounts.--The Secretary, in the sole discretion of the 
        Secretary, shall establish the discount under this paragraph for 
        an eligible asset. In determining the discount, the Secretary 
        may consider the condition of the asset property, the extent of 
        resources available to the preferred purchaser, the 
        comprehensive revitalization plan undertaken by such purchaser, 
        the financial safety and soundness of the Mutual Mortgage 
        Insurance Fund, and any other circumstances the Secretary 
        considers appropriate''; and
            (B) by striking subparagraph (D);
        (5) in paragraph (7)(A), by striking ``eligible assets to be 
    purchased and the interests sold'' and inserting ``category or 
    categories of eligible assets to be purchased and, based on the 
    purchaser's capacity to manage and dispose of assets, the maximum 
    number of assets owned by the Secretary at the time the sale 
    agreement is executed that shall be sold to the purchaser''; and
        (6) in paragraph (8)--
            (A) in subparagraph (F), by inserting after ``State'' the 
        following: ``, and any agency or instrumentality thereof that is 
        established pursuant to legislation and designated by the chief 
        executive officer to act on behalf of the jurisdiction with 
        regard to the provisions of this subsection''; and
            (B) by adding the following new subparagraphs at the end:
            ``(G) State.--The term `State' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, American Samoa, the Virgin Islands, the Northern 
        Mariana Islands, or any agency or instrumentality thereof that 
        is established pursuant to legislation and designated by the 
        chief executive officer to act on behalf of the State with 
        regard to provisions of this subjection.
            ``(H) Indian tribe.--The term ``Indian tribe'' has the same 
        meaning as in section 248(i)(I) of this Act.''.
    Sec. 219. Payment Incentives for Certain Single Family Mortgages.
    Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is 
amended by adding the following new section at the end:
    ``Sec. 257. FHA Payment Incentive Program.--For purposes of 
establishing an alternative to high cost mortgages for borrowers with 
credit impairments, the Secretary may insure under sections 203(b) and 
234(c) of this title any mortgage that meets the requirements of such 
sections, except as provided in the following sentences. The Secretary 
may establish lower percentages of appraised value limitations than 
those provided in section 203(b)(2)(B). Notwithstanding section 
203(c)(2)(B), the Secretary may establish and collect annual premium 
payments in an amount not exceeding 1.0 percent of the remaining insured 
principal balance, and such payments may be reduced or eliminated in 
subsequent years based on mortgage payment performance. All mortgages 
insured pursuant to this section shall be obligations of the Mutual 
Mortgage Insurance Fund, notwithstanding section 519 of this Act.''
    Sec. 220. Technical Correction to National Housing Act Insurance 
Premium Authority
        (a) Section 203(c) of the National Housing Act (12 U.S.C. 
    1709(c)), as amended, is further amended in paragraph (1) by 
    striking ``subsections (n) and (k)'' and inserting `'subsection 
    (n)'' and striking ``or (k)''.
    Sec. 221. Section 203 of the National Housing Act (12 U.S.C. 1709) 
is amended by adding the following new subsection at the end:
        ``(y) Notwithstanding any provision of this section or any other 
    section of this title, the Secretary is authorized to insure, and to 
    commit to insure, any mortgage, involving a property upon which 
    there is located a dwelling designed principally for a 1-family 
    residence which (1) involves a principal obligation not in excess of 
    100 percent of the applicable maximum dollar amount limit under 
    subsection (b)(2)(A) for a one unit dwelling and (2) is not in 
    excess of 100 percent of the appraised value of the property plus 
    any initial service charges, appraisal, inspection, and other fees 
    in connection with the mortgage as approved by the Secretary. The 
    Secretary is authorized to establish any additional requirements as 
    may be necessary, or appropriate, including requirements regarding 
    mortgagor and property eligibility.''.
    Sec. 222. Limitation on Payment of Refunds.
    Section 203(c)(2)(A) of the National Housing Act (12 U.S.C. 
1709(c)(2)(A)) is amended in the last sentence after ``subparagraph'' by 
inserting the following: ``, provided that the mortgagor refinances the 
unpaid principal obligation under title II of this Act''. This provision 
shall apply to loans that become insured on or after date of enactment 
of this Act.
    Sec. 223. Flexible Voucher Program.
    (a) Authority.--
        (1) The Secretary is authorized to make grants to public housing 
    agencies to provide tenant-based rental, project-based voucher, and 
    homeownership housing assistance and to carry out activities related 
    thereto in accordance with the provisions of this section.
        (2) Beginning in fiscal year 2005 and thereafter, and subject to 
    the availability of appropriations, each public housing agency 
    receiving a grant under this section is authorized to provide 
    tenant-based rental, project-based voucher, and homeownership 
    housing assistance to families served by such public housing agency 
    during its previous fiscal year by the Housing Choice Voucher 
    program authorized under section 8 of the United States Housing Act 
    of 1937 (42 U.S.C. 1437f), including those families receiving 
    enhanced voucher assistance authorized under section 8(t) of the 
    Act.
        (3) Any family that is receiving homeownership assistance under 
    section 8(y) of the Act shall continue to receive such assistance 
    subject to the terms and conditions of that Act, from amounts made 
    available for assistance under this section.
        (4) Any units covered by a housing assistance payments contract 
    under the project-based voucher program or project-based certificate 
    program under section 8 of the Act shall continue to receive 
    assistance subject to the terms and conditions of that contract, 
    from amounts made available for assistance under this section.
    (b) Definitions.--For the purposes of this section:
        (1) the term ``public housing agency'' or ``PHA'' shall mean any 
    State, county, municipality, or other governmental entity or public 
    body (or agency or instrumentality thereof) or ``other entity,'' 
    which is authorized to engage in or assist in the development or 
    operation of low-income housing. An ``other entity'' may be a 
    private or non-profit organization designated by the Secretary to 
    administer the program where (i) no public housing agency has been 
    organized, or (ii) the Secretary determines that a public housing 
    agency is unable or unwilling to administer the program;
        (2) the term ``base administrative fee'' shall mean the fee paid 
    by the Secretary to a public housing agency for the administration 
    of programs under this section and the United States Housing Act of 
    1937, pursuant to subsection (m);
        (3) the term ``performance-based fee'' shall mean a fee paid by 
    the Secretary to a public housing agency, in addition to the base 
    administrative fee, which shall reflect the public housing agency's 
    performance of administrative tasks, as measured by performance 
    standards determined by the Secretary in accordance with subsection 
    (c);
        (4) the term ``tenant-based rental housing assistance'' means 
    assistance that provides for the eligible family to select suitable 
    housing within an administering public housing agency's 
    jurisdiction;
        (5) the term ``project-based voucher assistance'' shall mean 
    rental assistance that a public housing agency may attach to a 
    specific property under subsection (e);
        (6) the term ``gross income'' is the amount of income that 
    includes income from all sources for each family member of the 
    household, without deductions or exclusions, notwithstanding any 
    other provision of law;
        (7) the term ``first-time homebuyer'' means a family, no member 
    of which has had a present ownership interest in a principal 
    residence during the 3 years preceding the date on which the family 
    initially receives assistance for homeownership under this section;
        (8) the term ``median income for the area'' means the median 
    family income for a jurisdiction, county or metropolitan area as 
    determined by the Secretary, with adjustments for smaller and larger 
    families.

[[Page 564]]

        (9) the term ``family'' means a person or group of persons, as 
    determined by the public housing agency, approved to reside in a 
    unit with assistance under this section.
        (10) the term ``household'' means the family and any public 
    housing agency-approved live-in aide.
        (11) the term ``Secretary'' means the Secretary of the 
    Department of Housing and Urban Development.
    (c) Performance.--
        (1) Performance standards.--The Secretary shall establish such 
    performance standards for public housing agencies receiving grants 
    under this section as the Secretary determines to be appropriate, 
    including effective budget utilization, financial management, and 
    the effectiveness of voucher assistance in helping families, 
    including the elderly and disabled, move toward independent living, 
    economic self-sufficiency and homeownership.
        (2) Evaluation of performance.--The Secretary shall develop a 
    performance assessment system to measure, on at least an annual 
    basis, the performance of each public housing agency. The Secretary 
    may also require each public housing agency to provide general 
    reporting on information that may include:
            (A) the number of families and individuals receiving rental 
        and homeownership housing assistance under the program, 
        including the number of families with children, elderly 
        families, and disabled families and for each household, general 
        demographic information, and income levels relative to median 
        income for the area;
            (B) the average subsidy value of housing assistance received 
        per family;
            (C) amounts spent on administration; and
            (D) other information on the use of federal assistance as 
        the Secretary may prescribe.
        (3) Performance reports.--The Secretary shall require 
    performance reports of information gathered from the performance 
    assessment system that will be made available to the public on at 
    least an annual basis on the Internet.
        (4) Alternative administration.--
            (A) If any public housing agency receives a failing score 
        for two consecutive public housing agency fiscal years under the 
        performance assessment system, as described in subsection 
        (c)(2), the Secretary shall determine how best to administer the 
        grant, which may include administration of such grant by one or 
        more other public housing agencies or other entities or 
        extending the deadline for improvement if the Secretary 
        determines that significant improvements have and will continue 
        to be made.
            (B) If, pursuant to subparagraph (A), grant amounts under 
        this section are administered by one or more other public 
        housing agencies or other entities, all provisions applicable to 
        public housing agencies administering funds under this section 
        shall be applicable to such other public housing agencies or 
        other entities.
    (d) Eligible Families.--
        (1) Initial Eligibility.--To be eligible to receive rental and 
    homeownership housing assistance under this section, a family that 
    is not assisted under section 8 of the United States Housing Act of 
    1937 (42 U.S.C. 1437f) shall have a gross income that does not 
    exceed 80 percent of the median income for the area, as determined 
    by the Secretary, with adjustments for smaller or larger families, 
    except that on an individual basis, the Secretary may establish 
    income ceilings higher than 80 percent of the median for the area 
    for elderly and disabled families. Further, to be eligible to 
    receive rental and homeownership housing assistance under this 
    section, all families must satisfy the following two requirements: 
    (1) a family shall not own an interest in any residential property 
    (including a primary home); and (2) a family shall not have assets 
    exceeding an amount established by the Secretary.
        (2) Continued eligibility.--Subject to paragraph (4), continued 
    eligibility for housing assistance pursuant to this section shall be 
    determined in accordance with standards established by the public 
    housing agency.
        (3) Preferences.--Each public housing agency receiving a grant 
    pursuant to this section may establish a fair system for making 
    housing assistance pursuant to this section available on behalf of 
    eligible families that provides preference for such assistance to 
    eligible families that meet the public housing agency's criteria for 
    preferences. Notwithstanding any other provisions of law, a public 
    housing agency may establish a preference for persons with a 
    specific disability.
        (4) Review of family income.--Each public housing agency 
    administering a housing assistance grant pursuant to this section 
    shall, not less frequently than every other year, conduct a review 
    of the family income of each family receiving such assistance to 
    determine continued eligibility, except that the public housing 
    agency shall review the income of elderly families not less 
    frequently than every three years.
        (5) Criminal activity and alcohol abuse.--The owner may 
    terminate tenancy, and the PHA may deny or terminate assistance, if 
    there is reasonable cause to believe that a family, or any guest or 
    other person under the family's control, (A) commits or committed 
    any criminal activity including violent criminal activity or drug-
    related criminal activity including, but not limited to, manufacture 
    or production of methamphetamine; (B) commits alcohol abuse (or 
    pattern of abuse) that interferes with the health, safety or right 
    to peaceful enjoyment of the premises by other residents; (C) is 
    fleeing to avoid prosecution, or custody or confinement after 
    conviction, for a crime or attempt to commit a crime, or is 
    violating a condition of probation or parole; or (D) is subject to a 
    lifetime registration requirement under a State sex offender 
    registration program.
    (e) Eligibility Activities.--
        (1) Activities assisted under this section may include only:
            (A) tenant-based rental housing assistance;
            (B) project-based voucher assistance under paragraph (2);
            (C) homeownership assistance for first-time homebuyers under 
        paragraph (3);
            (D) costs of administering grant amounts under this section, 
        except that such costs shall not exceed 7 percent of total 
        subsidy amounts;
            (E) other activities or performance bonuses, as specified by 
        the Secretary, in support of tenant-based rental housing, 
        project-based voucher assistance, homeownership assistance, and 
        self-sufficiency activities authorized under this section; and
            (F) amounts to be used by the Secretary for purposes of 
        program evaluation, management information systems, and 
        technical assistance.
        (2) Project-based voucher assistance.--
            (A) In general.--A public housing agency may use amounts 
        provided under this section to enter into a housing assistance 
        payments contract with respect to eligible units for a period of 
        time specified by the PHA in the contract.
            (B) Percentage limitation.--Not more than 20 percent of the 
        funding made available to the public housing agency under this 
        section may be attached to structures pursuant to this 
        paragraph.
            (C) Resident choice.--Each low-income family occupying a 
        dwelling unit assisted under the contract may move from the 
        housing at any time after the family has occupied the assisted 
        dwelling unit for 12 months. Upon such a move, the public 
        housing agency shall provide the low-income family with tenant-
        based rental assistance under this section or such other tenant-
        based rental assistance that is comparable. If such rental 
        assistance is not immediately available to fulfill this 
        requirement, the public housing agency must provide the family 
        with the next voucher or other tenant-based rental assistance 
        amounts that become available.
            (D) Payment for vacant units.--The public housing agency 
        may, in its discretion, continue to provide assistance under the 
        contract, for a reasonable period not exceeding 60 days, for a 
        dwelling unit that becomes vacant, but only if (i) the vacancy 
        was not the fault of the owner of the dwelling unit; and (ii) 
        the owner takes every reasonable action to minimize the 
        likelihood and extent of any such vacancy. Rental assistance may 
        not be provided for a vacant unit after the expiration of such 
        period.
        (3) Homeownership assistance for first-time homebuyers.--
            (A) In general.--A public housing agency may provide tenant-
        based assistance under this section to assist a first-time 
        homebuyer that purchases an eligible unit with their monthly 
        homeownership expenses.
            (B) Family eligibility.--In order to receive homeownership 
        assistance under this section, the family must qualify as a 
        first-time homebuyer, participate in a homeownership counseling 
        program provided by the agency, and meet any other initial or 
        continuing requirements established by the public housing 
        agency.
            (C) Downpayment assistance.--A public agency may, in lieu of 
        providing monthly assistance payments under this paragraph,

[[Page 565]]

        provide assistance for the family in the form of a single one-
        time grant to be used only as a contribution toward the 
        downpayment and reasonable closing costs required in connection 
        with the purchase of a dwelling unit. The amount of a one-time 
        downpayment grant may not exceed $10,000.
    (f) Amount of Assistance.--
        (1) In general.--Subject to paragraphs (2), (3), and (4), any 
    monthly assistance payment for a family receiving housing assistance 
    pursuant to this section shall be determined by the public housing 
    agency administering such assistance.
        (2) Minimum rental amount.--Public housing agencies shall 
    establish a minimum monthly rental amount to be paid by the family.
        (3) Rent reasonableness.--The rent for dwelling units assisted 
    under this section shall be reasonable and appropriate in comparison 
    with rents charged for dwelling units of a modest nature in the 
    private, unassisted local market. Public housing agencies shall 
    review rents not less than annually to ensure that they meet this 
    rent reasonableness standard.
        (4) Maximum subsidy.--Public housing agencies shall establish 
    maximum subsidy levels for housing assistance under this section 
    that are reasonable and appropriate for the market area.
    (g) Authorization, Allocation and Distribution of Funds.--
        (1) For purposes of administering the program under this 
    section, and subject to appropriations, the Secretary shall allocate 
    available amounts as follows:
            (A) Allocations for fiscal year 2005.--For fiscal year 2005, 
        each public housing agency may receive an amount proportionate 
        to its annual 2004 Housing Choice Voucher funding for housing 
        assistance and administrative expenses, adjusted for inflation 
        and subject to validation.
            (B) Adjustments to annual grant amounts in subsequent fiscal 
        years.--
                (i) The Secretary shall, by regulation issued not later 
            than 18 months after the date of enactment of this section, 
            establish a formula to allocate and award any new, 
            incremental grant funding which is made available by 
            Congress under this section and for the purpose of 
            reallocating, any unutilized amounts made available under 
            this section.
                (ii) In establishing the formula, the Secretary shall 
            consider factors reflecting the need of low-income families 
            in the jurisdictions of the public housing agencies 
            administering the grants, including the following factors:
            (I) the number of families receiving housing assistance 
        under this section;
            (II) the extent of poverty;
            (III) the cost of housing;
            (IV) the performance of PHAs in administering grant amounts 
        under this section; and
            (V) other objectively measurable conditions as the Secretary 
        may specify.
        (2) The Secretary is authorized to allocate additional amounts 
    made available from appropriations to public housing agencies for 
    tenant-protection assistance as authorized by section 8(t) of the 
    United States Housing Act of 1937 (42 U.S.C. 1437f(t)). Such 
    assistance to a family shall be for one year. Thereafter, these 
    amounts shall be included in the public housing agencies' subsequent 
    grant for the flexible voucher program. After the one-year period, 
    section 8(t) shall not apply to these amounts and any vouchers 
    issued to the family shall be subject to the provisions of this 
    section.
        (3) There are authorized to be appropriated such sums as may be 
    necessary for carrying out this subsection each of fiscal years 2005 
    through 2010.
    (h) Environmental Review.--
        Activities authorized under this Act are categorically excluded 
    from the National Environmental Protection Act.
    (i) Inspection of Units.--
        (1) In general.--The Secretary shall require, with respect to 
    any dwelling unit assisted pursuant to this section, that the public 
    housing agency administering housing assistance inspect each unit 
    within 60 days of the initial assistance payment made to determine 
    that the dwelling unit meets the housing quality standards under 
    paragraph (2). Such dwelling unit must meet such standards in order 
    to receive continued assistance payments.
        (2) Housing quality standards.--All dwelling units assisted by a 
    public housing agency under this section shall, at the discretion of 
    the public housing agency, meet either applicable State and local 
    housing quality standards and code requirements or the housing 
    quality standards established by the Secretary.
        (3) Re-inspections.--Each public housing agency administering 
    housing assistance under this section shall determine that all 
    occupied dwelling units assisted by such public housing agency 
    pursuant to this section are maintained in accordance with the 
    standards described under paragraph (2). Every dwelling unit 
    assisted by the public housing agency shall be inspected when it is 
    first leased, pursuant to paragraph (1). Thereafter, each public 
    housing agency shall annually inspect at least 25 percent of its 
    units.
        (4) Corrective actions.--No further assistance payment may be 
    made pursuant to this section for a dwelling unit which fails to 
    meet the standards under paragraph (2).
    (j) Portability.--
        (1) In general.--Any family receiving assistance for at least 12 
    months under this section or under section (8)(o) of the United 
    States Housing Act of 1937 (42 U.S.C. 1437f(o)) that has not 
    transferred any such assistance to a receiving public housing agency 
    within the previous twelve months may receive assistance to lease an 
    eligible dwelling unit if the dwelling unit to which the family 
    moves is within any area in which a program is being administered 
    under this section.
        (2) Procedures.--The Secretary may establish procedures to 
    implement the requirements of this section.
    (k) Compliance.--
        (1) Compliance monitoring.--The Secretary shall make such 
    reviews and audits as may be necessary or appropriate to determine 
    whether the public housing agency has carried out those activities 
    and objectives, including all things that have been certified to, in 
    accordance with the requirements of this section and other 
    applicable laws, whether it has the continuing capacity to undertake 
    these activities in a timely and effective manner, and whether it 
    has met the performance standards established by the Secretary 
    pursuant to subsection (c)(1).
        (2) Compliance actions.--In addition to any other actions 
    authorized under this or any other applicable laws, if the Secretary 
    finds that a public housing agency receiving a grant under this 
    section has failed to comply with any provision of this section, 
    including any performance standard established by the Secretary 
    pursuant to this section, and until the Secretary is satisfied that 
    there is no longer any such failure to comply, the Secretary may:
            (A) terminate grant payments under this section to the 
        public housing agency and provide for alternative administration 
        of such grant amounts;
            (B) withhold from the public housing agency amounts from the 
        total allocation that would otherwise be available to the public 
        housing agency under this section;
            (C) reduce the amount of future grants to the public housing 
        agency by an amount equal to the amount of such grants that were 
        not expended in accordance with this section;
            (D) limit the availability of grant amounts provided to the 
        public housing agency to programs and activities under this 
        section not affected by such failure to comply;
            (E) withhold from the public housing agency other amounts 
        allocated for the public housing agency under other programs 
        administered by the Secretary;
            (F) require such changes in public housing agency policy, 
        consistent with other provisions of this section, as determined 
        necessary to ensure compliance;
            (G) refer the matter to the Attorney General of the United 
        States for such relief as may be appropriate, including an 
        action to recover the amount of assistance furnished under this 
        section which was not used in accordance with it; or
            (H) order other corrective action with respect to the public 
        housing agency.
    (l) Administrative Fees, Performance-Based Fees, and Incentive 
Bonuses.--
        (1) In general.--The Secretary shall establish a base 
    administrative fee, a performance-based fee, and incentive bonuses 
    for public housing agencies administering assistance under this 
    section. A public housing agency may earn additional administrative 
    fees based on its performance in administering programs under this 
    section.
        (2) Base administrative fee.--The base administrative fee for 
    all public housing agencies shall not exceed 7 percent of the total 
    subsidy amount made to the public housing agency under this section.
        (3) Performance-based fees.--
            (A) The amount of the performance-based fees paid to a 
        public housing agency shall reflect the public housing agency's 
        perform

[[Page 566]]

        ance of administrative tasks, as measured by performance 
        standards determined by the Secretary.
            (B) The Secretary shall establish the method for determining 
        performance-based fees on an annual basis and shall have the 
        authority to modify the method and fee levels from time to time.
        (4) Incentive bonuses.--
            (A) The Secretary may provide incentive bonuses to public 
        housing agencies.
            (B) The Secretary shall establish the method for determining 
        incentive bonuses and shall have the authority to determine, and 
        modify from time to time: (i) the method and standards for 
        determining incentive bonuses; and (ii) bonus levels, based on 
        public housing agency performance as measured by the standards 
        determined by the Secretary.
    (m) Implementation.--
        (1) Interim implementation.--Notwithstanding any other provision 
    of law, the Secretary shall publish a notice in the Federal Register 
    not later than 180 days after enactment of this Act describing the 
    immediate implementation of this program on an interim basis.
        (2) Final implementation.--For the purposes of final 
    implementation of this program, the Secretary shall issue a proposed 
    rule and, not later than 18 months after enactment, the Secretary 
    shall issue a final rule implementing the program.
    (n) Conditions.--This section shall not be construed to limit the 
ability of a public housing agency to condition the assistance provided 
under this section in accordance with all applicable statues.
    Sec. __. The Public Housing Reform Demonstration Program.
    (a) Purpose.--The purpose of this demonstration is to give public 
housing agencies (PHAs) the flexibility to formulate policies and 
programs best suited to serve their local communities, to allow the 
Secretary to evaluate several models of locally determined public 
housing programs, to accelerate and facilitate the conversion of public 
housing to an asset-based management and accounting process, to allow 
the Secretary to determine whether increased PHA flexibility results in 
higher self-sufficiency and turnover rates of public housing residents, 
to provide a mechanism with which the Secretary can review current and 
proposed practices in order to guide future policy decisions, and to 
create useful training protocols for the staff of both the Department of 
Housing and Urban Development and public housing agencies.
    (b) Definitions.--
        (1) The term ``public housing agency'' or ``PHA'' means any 
    State, county, municipality, or other governmental entity or public 
    body (or agency or instrumentality thereof) which is authorized to 
    engage in or assist in the development or operation of public 
    housing.
        (2) The term ``test PHA'' means a public housing agency selected 
    by the Secretary to participate in a public housing program as 
    described in subsection (e).
        (3) The term ``control PHA'' means a public housing agency 
    selected by the Secretary to measure its performance against test 
    PHAs.
        (4) The term ``formula share'', as used in this demonstration, 
    means the amount of funds provided to test PHAs pursuant to 
    subsection (e)(2).
        (5) The term ``proportional share'', as used in this 
    demonstration, means the percentage of funds allocated to an 
    individual test PHA as compared to the total amount of funds 
    available for distribution.
        (6) The term ``Secretary'' means the Secretary of Housing and 
    Urban Development.
    (c) Program Authority.--The Secretary shall conduct a three-year 
demonstration program beginning in fiscal year 2005 which shall include 
up to 100 PHAs. Up to one half of the PHAs participating in the 
demonstration will constitute a control group (control PHAs) and the 
remaining PHAs in the demonstration will operate in an environment of 
fewer statutory and regulatory requirements (test PHAs). The Secretary 
will collect data during the demonstration and at its conclusion, will 
assess and evaluate all participating PHAs for the purpose of 
identifying the advantages and disadvantages of administering locally 
determined public housing programs. The demonstration will conclude at 
the expiration of the three-year period, unless extended by the 
Secretary subject to notifying Congress, or by subsequent legislation 
enacted into law.
    (d) Selection.--The Secretary shall select up to 100 PHAs to 
participate in the demonstration. Both test PHAs and control PHAs, as 
determined by the Secretary, shall represent various size public housing 
agencies and diverse geographic locations.
    (e) Test PHAs.--Notwithstanding any provision of the United States 
Housing Act of 1937, and for the duration of this demonstration, those 
public housing agencies selected as test PHAs by the Secretary shall be 
subject to the following:
        (1) Full flexibility of funds.--Of any amounts allocated to the 
    test PHAs under this demonstration, the Secretary shall allow for 
    full fungibility between the capital and operating funds. The PHA 
    may use any such amounts for any eligible activities under sections 
    9(d)(1) and 9(e)(1) of the United States Housing Act of 1937, 
    regardless of the fund from which the amounts were initially 
    allocated and provided.
        (2) Formula share.--In fiscal year 2005 and for the duration of 
    this demonstration, the Secretary is authorized to provide 
    assistance under section 9 of the United States Housing Act of 1937 
    to each test PHA in a proportional share and pursuant to the 
    formulas promulgated under sections 9(d)(2) and 9(e)(2) in fiscal 
    year 2004, notwithstanding any change in the formula characteristics 
    of a test PHA and unless otherwise determined by the Secretary.
        (3) Rent policy.--Consistent with the applicable provisions of 
    the United States Housing Act of 1937, each test PHA may establish 
    its own rent policy to reflect local preferences and to ensure 
    viable cost management.
        (4) Demonstration plan and year-end statements.--
            (A) In general.--At the outset of the demonstration period, 
        all test PHAs shall submit to the Secretary a demonstration 
        plan, stating the quantifiable and measurable goals and 
        objectives of the test PHA. Not less than once every fiscal 
        year, all test PHAs shall develop and submit to the Secretary a 
        year-end statement outlining the test PHAs' progress in meeting 
        the goals and objectives outlined in its demonstration plan.
            (B) Contents of demonstration plan.--A demonstration plan 
        under this paragraph shall contain the following information:
                (i) Goals and objectives.--A statement of the 
            quantifiable and measurable goals and objectives that the 
            test PHA intends to achieve during the three-year period 
            covering the demonstration plan;
                (ii) Rent determination.--A statement of the policies of 
            the test PHA governing rents charged for public housing 
            dwelling units;
                (iii) Number of residents assisted.--A statement that 
            essentially the same total number of eligible low-income 
            families will be assisted under the public housing 
            demonstration as would have been assisted had the test PHA 
            not been selected for participation in the demonstration;
                (iv) Management assessment.--A statement that the test 
            PHA has adopted, or is in the process of adopting, asset-
            based management and project-based accounting; and
                (v) Other matters.--Such other matters as the Secretary 
            determines to be appropriate.
            (C) Contents of year-end statement.--A year-end statement 
        under this paragraph shall contain the following information:
                (i) Goals and objectives.--A statement of the progress 
            of the test PHA in meeting the goals and objectives 
            specified in its demonstration plan under this paragraph;
                (ii) Financial statements.--Financial statements for the 
            subject fiscal years as required by the Secretary, which may 
            include financial statements submitted to the Secretary in 
            conjunction with other audits required by the Secretary;
                (iii) Management's discussion and analysis.--A section 
            entitled ``Management's Discussion and Analysis'' providing 
            information supplementing the test PHA's financial 
            statements including:
            (I) A brief discussion of the financial statements;
            (II) Condensed financial information derived from the 
        financial statements comparing the current year to the prior 
        year;
            (III) An analysis of the test PHA's overall financial 
        position and results of operations, including comparison to the 
        previous fiscal year;
            (IV) A description of significant capital asset and long-
        term debt activity during the year; and
            (V) A description of currently known facts, decisions, or 
        conditions that are expected to have a significant effect on 
        financial position or results of operations.

[[Page 567]]

                (iv) Civil rights certification.--A certification by the 
            test PHA that it will carry out the demonstration plan in 
            conformity with title VI of the Civil Rights Act of 1964, 
            the Fair Housing Act, section 504 of the Rehabilitation Act 
            of 1973, and title II of the Americans with Disabilities Act 
            of 1990, and will affirmatively further fair housing;
                (v) Demolition and disposition.--A description of any 
            housing for which the test PHA has or will apply for 
            demolition or disposition under section 18 of the United 
            States Housing Act of 1937 (42 U.S.C. 1437p) and a timetable 
            for the demolition or disposition; and
                (vi) Other matters.--Such other matters as the Secretary 
            determines to be appropriate.
            (D) Adoption of demonstration plan.--A test PHA shall adopt 
        a demonstration plan and submit the demonstration plan to the 
        Secretary in accordance with subparagraph (F) only after the 
        demonstration plan has been approved by the governing board of 
        the test PHA.
            (E) Amendments and modifications to demonstration plan and 
        year-end statements.--A test PHA may amend or modify a 
        demonstration plan or year-end statement previously submitted in 
        accordance with this paragraph, except that a significant 
        amendment to a demonstration plan must meet the requirements of 
        subparagraph (D).
            (F) Submission of demonstration plan and year-end 
        statements.--
                (i) Demonstration plan.--Not later than 60 days before 
            the start of the fiscal year immediately preceding the 
            selection of a test PHA for this demonstration, each test 
            PHA shall submit to the Secretary the demonstration plan 
            required by this paragraph in such form as the Secretary 
            shall require.
                (ii) Year-end statements.--Not later than 90 days after 
            the end of each fiscal year of the demonstration program, 
            each test PHA shall submit to the Secretary the year-end 
            statement required by this paragraph in such form as the 
            Secretary shall require.
            (G) Approval of demonstration plan by the secretary.--Within 
        30 days of submission of the demonstration plan to the Secretary 
        pursuant to subparagraph (F), the Secretary shall: (i) notify 
        the test PHA of approval of the demonstration plan; or (ii) 
        notify the test PHA of deficiencies in the demonstration plan 
        that must be corrected before final approval can be granted. If 
        the Secretary fails to provide such notification, the 
        demonstration plan shall be deemed to be effective.
            (H) Troubled and at-risk phas.--In the event that, after 
        selection of the test PHA, it is determined that the test PHA is 
        at risk of being designated or is designated as troubled under 
        section 6(j)(2) of the United States Housing Act of 1937 (42 
        U.S.C. 1437d(j)(2)), the Secretary may require that the 
        demonstration plan or year-end statement for such agency include 
        such additional information as the Secretary determines to be 
        appropriate, in accordance with such standards as the Secretary 
        may establish or in accordance with such determinations as the 
        Secretary may make on an agency-by-agency basis.
        (5) Assessment.--The Secretary shall assess the condition of the 
    housing provided by test PHAs and control PHAs under this 
    demonstration to ensure safe and sound housing for residents, and 
    will assess the financial condition of each test and control PHA to 
    ensure that funding is spent for the intended purposes and in a 
    manner consistent with good asset-based real estate management 
    practices.
        (6) Authorization of appropriations for evaluation, monitoring 
    and technical assistance.--There is authorized to be appropriated 
    $5,000,000 for each year of the demonstration program for 
    evaluation, monitoring and technical assistance, to be available for 
    the duration of this demonstration.
        (7) Transition.--Notwithstanding any other provision of law, the 
    Secretary may extend this demonstration program either for all test 
    PHAs or for individual test PHAs on a case-by-case basis for a 
    period of up to one year for the purpose of transitioning out of the 
    demonstration program.
        (8) Applicability of 1937 act provisions.--Notwithstanding any 
    provision of law, the following provisions of the United States 
    Housing Act of 1937 (42 U.S.C. 1437 et seq.) shall not apply to test 
    PHAs for the duration of this demonstration:
            (A) Section 2(b) (42 U.S.C. 1437 (b));
            (B) Section 3(a) (42 U.S.C. 1437 (a));
            (C) Section 3(b)(5) (42 U.S.C. 1437a(b)(5));
            (D) Section 5A (42 U.S.C. 1437c-1);
            (E) Section 6(k) (42 U.S.C. 1437d(k));
            (F) Section 7 (42 U.S.C. 1437e);
            (G) Section 12(c) (42 U.S.C. 1437j(c)); and
            (H) Section 31 (42 U.S.C. 1437z-3).

                      General Fund Receipt Accounts

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2003 actual   2004 est.   2005 est.
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Offsetting receipts from the public:
  86-271910  FHA-general and special 
    risk, Negative subsidies: Enacted/
    requested...........................         270         352         263
  86-271930  FHA-general and special 
    risk, Downward reestimates of 
    subsidies: Enacted/requested........       1,102         138
  86-274330  Indian housing loan 
    guarantees, downward reestimates of 
    subsidies: Enacted/requested........           1
  86-276230  Title VI indian loan 
    guarantee downward reestimate: 
    Enacted/requested...................           1
  86-277330  Community development loan 
    guarantees, downward reestimates: 
    Enacted/requested...................                       7
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................       1,374         497         263
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