Appendix - Department of Housing and Urban Development

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

THE BUDGET FOR FISCAL YEAR 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
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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
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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)

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)

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)

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

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

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

Indian Housing Loan Guarantee Fund Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 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)

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

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)

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)

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.

[[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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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